The operators of a Newcastle dumpling restaurant have been ordered to pay more than $22,000 in penalties and back-payments after a court found they failed to comply with a workplace regulator’s lawful notice relating to underpayments of mostly migrant staff.
The Federal Circuit and Family Court imposed a total of $10,479 in penalties on the partnership behind Dumpling Land in Wallsend — $4,563.54 against Kailiang Chen and $5,915.70 against Alex Du — for breaching the Fair Work Act by not obeying a Compliance Notice issued in August 2023.
The notice followed a Fair Work Ombudsman investigation that found 28 workers had been underpaid minimum wages, overtime and penalty rates owed under the Restaurant Industry Award 2020 between June 2021 and April 2023. Most of the affected employees were international students, with some aged under 25 at the time.
While some staff have since been back-paid, entitlements for 10 workers remain outstanding. In addition to the penalties, the court ordered Mr Chen and Mr Du to pay six of those workers a total of $12,423, plus superannuation and interest, and to comply with the Compliance Notice by calculating and rectifying any underpayments to the remaining four.
Fair Work Ombudsman Anna Booth said employers risked court sanctions if they ignored regulator directions. “When Compliance Notices are not followed, we will continue to take legal action to ensure workers receive all their lawful entitlements,” Ms Booth said.
“We treat cases impacting visa holders and young workers particularly seriously, because we are conscious they can be vulnerable due to factors such as a lack of awareness of their entitlements or a reluctance to complain.
“Employers need to be aware that taking action to protect vulnerable workers is an enduring priority for the Fair Work Ombudsman. Any workers with concerns should contact us for free advice and assistance.”
Judge Natasha Laing said penalties needed to deter both the duo and other employers from similar conduct. “The penalties imposed in this matter should be sufficiently high to impress upon those in positions of responsibility the importance of complying with their legal obligations, and in particular the need to comply with statutory notices from the FWO,” Judge Laing said.
The case arose from surprise inspections of Newcastle eateries in April 2023. The 28 workers were employed across full-time, part-time and casual roles, including as food and beverage attendants, kitchen hands and delivery drivers.
According to the Ombudsman, the regulator filed 146 litigations involving visa holder workers and secured nearly $23 million in penalties in cases that have included visa holders in the seven financial years to June 2024.
