Australia’s Fair Work Ombudsman (FWO) launched Federal Court proceedings on 26 February 2026 against the owner-operator of a popular Sydney Japanese restaurant, alleging deliberate underpayment of 33 migrant workers totalling more than A$162,000. The regulator claims the restaurateur continued paying flat hourly rates of A$22—even on weekends and public holidays—after prior warnings. The workers, mainly visa holders from Nepal, Vietnam and Colombia, should have received up to A$48 per hour for penalty shifts under the Restaurant Industry Award. FWO is seeking full back-payment, penalties of up to A$18,780 per breach, and an injunction preventing future contraventions. The case underscores the Ombudsman’s 2025-26 enforcement priority on migrant worker exploitation. Since legislative changes in 2023, visa-holder employees are protected from visa cancellation if they report workplace breaches, a safeguard intended to break the silence around wage theft. FWO is using the lawsuit to remind hospitality employers that ignorance of award rates is no defence. For global-mobility managers, the action highlights reputational and compliance risks when staff on 482, 408 or student visas moonlight in secondary jobs. Employers sponsoring visas must ensure any additional work meets award conditions and must not be complicit in unlawful pay. Multinationals in the food and beverage sector should audit franchisees and supply-chain partners, as courts increasingly impose accessorial liability on head companies. If successful, the case will reinforce a trend of higher penalties for egregious underpayment, further discouraging low-ball wage offers that can distort local labour markets and undermine legitimate skilled-migration programs.
Source: Fair Work Ombudsman
