Restaurant pair hit with $225k bill for paying cook $2.30 an hour

THE Fair Work Ombudsman has taken ex-operators of two Gold Coast Chinese restaurants to court for paying a cook as little as $2.30 per hour.

Federal Circuit and Family Court documents show the Ombudsman secured $225,500 in penalties against Fu Kang GC Pty Ltd (Fu Kang) and two married directors, Yingchun “Christine” Wang and Liangtao “Frank” Zhao. The company, which has stopped trading, operated the shuttered Fu Kang Gold Coast Chinese Restaurant at Labrador and Memory Taste of Fu Kang at Southport.

The Ombudsman told the court Fu Kang breached the Fair Work Act by underpaying the cook on a sponsored visa $46,555 for eight months between May 2016 and January 2017.

The cook was working 22 to 87 hours each week and getting cash payments between $200 to $600, the court was told. It works out to between $2.30 per hour and $12.85 per hour.

Judge Salvatore Vasta said the company “took advantage” of the vulnerable worker and there was an “element of exploitation that colours this case”.

“(The cook) was a vulnerable person in that he relied upon (Fu Kang) for his ability to be in this country,” he said. (Fu Kang) took advantage of that reliance by contravening the Act in a manner which it is unlikely it would have dared to perpetrate if the employee was not a vulnerable visa holder.”

Judge Vasta criticised the “attempt to cover” underpayments by providing false documents. He said Fu Kang acted “in a brazen manner” and the penalty “needs to be in the higher echelon”.

The Ombudsman stated it launched investigations after a request for assistance was received from the worker.

It was stated the underpayment was rectified after the Ombudsman began action.

The employee is a Chinese national who was aged in his 20s and sponsored by the company on a 457 skilled visa. Ms Wang and Mr Zhao are also of Chinese background.

Fair Work Ombudsman Sandra Parker said matters involving vulnerable workers such as visa holders unaware of their rights and unwilling to speak up would be prioritised.

“The Fair Work Ombudsman will continue to use all our powers to hold employers to account whenever we find allegations impacting vulnerable workers,” she said.

“Significant underpayments and false records in this case are entirely unacceptable in any workplace.”

Visit www.fairwork.gov.au.