Cook short-changed more than $10,000

24 May 2016

An international student working as a cook at a Melbourne restaurant was underpaid more than $10,000 because the owner believed he was inexperienced and had agreed to a lower wage rate, a Fair Work Ombudsman investigation has found.

The Korean national, in his late 20s and who spoke limited English, was underpaid $10,392 over a three-year period when he was employed as a casual cook at the Naked Japan restaurant at Albert Park.   

The Japanese restaurant, which has now closed, started the cook on a flat rate of $14 for all hours worked and gradually increased the rate to $18.

However, under Restaurant Industry Award the employee was entitled to a normal hourly rate of about $22, almost $25 on Saturdays and more than $27 on public holidays.

The underpayments occurred between July, 2010 and June, 2013. The Fair Work Ombudsman investigated the matter last year after the former employee lodged a request for assistance.

Restaurant owner Mr Gimo Kim told Fair Work inspectors during a Record of Interview that he would have paid the cook more had the employee been more experienced. Mr Kim revealed that he had “asked friends” how much he should pay.

Mr Kim and his company Naked Japan Australia Pty Ltd have signed an Enforceable Undertaking (EU) with the Fair Work Ombudsman, agreeing to apologise to the former employee and reimbursing all outstanding entitlements in full.

Fair Work Ombudsman Natalie James says the EU aims to encourage behavioural change and future compliance with federal workplace laws.

It requires Mr Kim to inform the Fair Work Ombudsman if he establishes any businesses employing workers in the next two years and to engage independent professionals to audit their compliance.

Mr Kim must also provide evidence that he is using a range of educative resources for employers available on the Fair Work Ombudsman’s website and develop systems for ensuring future compliance with workplace laws.   

Ms James says employers must ensure they are aware of the minimum hourly rates and penalty rates that apply to their staff, and pay them accordingly.

“Minimum rates apply to everyone – including visa-holders – and they are not negotiable,” she says.  

Ms James encouraged employers who had any uncertainty to visit the Fair Work Ombudsman website at www.fairwork.gov.au  or call the Fair Work Infoline on 13 13 94 for advice. An interpreter service is available by calling 13 14 50, and information on the website is translated into 27 languages.

Follow Fair Work Ombudsman Natalie James on Twitter @NatJamesFWO external-icon.png, the Fair Work Ombudsman @fairwork_gov_au External link icon or find us on Facebook www.facebook.com/fairwork.gov.au External link icon.

Sign up to receive the Fair Work Ombudsman’s media releases direct to your email inbox at www.fairwork.gov.au/mediareleases.

Download:

Naked Japan Australia Pty Ltd Enforceable Undertaking (DOCX 154.2KB) (PDF 406.6KB)

Media inquiries:

Annie Lawson, Media Adviser
Mobile: 0466 522 004
annie.lawson@fwo.gov.au

Lara O'Toole, Media Adviser
Mobile: 0439 835 855
lara.otoole@fwo.gov.au

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