31 July 2025

The Fair Work Ombudsman has commenced legal action against a Sydney accounting and financial services company and its owner-operator after they allegedly required a migrant worker to pay them amounts that covered her whole wage as part of an unlawful cashback scheme.

Facing court is Innovative Associates Pty Ltd and its sole director and owner, Dila Ram Kharel.

The Fair Work Ombudsman’s allegations relate to Innovative Associates’ treatment of a Nepalese national the company employed on a part-time basis as an assistant accountant between July 2019 and December 2020. The worker was on a temporary graduate visa at the time and aged in her 30s.

It is alleged Innovative Associates unlawfully failed to pay the worker any wages for the first approximately 10 weeks of her employment, before unlawfully requiring the worker to pay amounts to Mr Kharel or Innovative Associates sufficient to cover not only her wages, but also superannuation contributions and tax.

It is alleged the worker was required to transfer amounts into bank accounts in Mr Kharel's name or which Mr Kharel controlled or had access to. Mr Kharel would then allegedly transfer the money into Innovative Associates’ bank account and it would then use the funds to pay the employee’s wages, and satisfy PAYG withholding and superannuation obligations in respect of the employee.

It is alleged that from October 2019 until December 2020, Innovative Associates required the worker to pay a total of $32,907 into Mr Kharel’s bank accounts and Innovative Associates returned $27,873.50 to the employee in the form of wages as part of an exploitative cashback scheme.

It is alleged the worker was lawfully entitled to be paid according to Australia’s National Minimum Wage Order but the cashback scheme resulted in her being left with no wages at all for the work she performed.

It is alleged Innovative Associates also breached record-keeping and pay slip laws, including by knowingly providing a Fair Work Inspector with false or misleading pay slips, and that it also failed to pay the worker for public holidays where she was entitled to be absent from work and her accrued but untaken annual leave entitlement at the end of her employment.

Fair Work Ombudsman Anna Booth said the alleged exploitation of the visa holder worker was serious conduct that would not be tolerated.

“We will be alleging in court that this company implemented a cashback scheme to try to give the impression that it was complying with its legal wage obligations, when it in fact was exploiting a vulnerable migrant worker for its own gain,” Ms Booth said.

“For more than a year’s work, we allege the worker got to keep no wages and instead had to pay even more than she received.

“Unlawful cashback schemes are one of the most blatant and appalling forms of exploitation.

“Employers need to be aware that taking action to protect potentially vulnerable workers, including visa holders, is among the Fair Work Ombudsman’s top priorities.

“All employees in Australia are entitled to receive – and keep – the minimum lawful entitlements that apply to their employment position, regardless of their visa status. Protections exist for any visas of those who call out exploitation.

“We also have no tolerance for allegedly knowingly providing our inspectors false or misleading records.

“We urge visa holders and other employees with concerns about their pay or entitlements to contact the Fair Work Ombudsman for free advice and assistance.”

The Fair Work Ombudsman investigated after the worker lodged a request for assistance.

In total, including all alleged contraventions related to the cashback scheme and underpayment of wages and other entitlements, the worker was allegedly underpaid a total of $40,164.49. Innovative Associates has now back-paid the worker in full.

It is alleged Mr Kharel was involved in all of Innovative Associates’ contraventions.

The Fair Work Ombudsman is seeking penalties in Court against Innovative Associates and Mr Kharel for multiple alleged contraventions.

For the alleged cashback contravention, the company faces a penalty of up to $66,600 and Mr Kharel faces a penalty of up to $13,320.

For the other alleged contraventions, the company faces penalties of up to $66,600 per contravention and Mr Kharel faces penalties of up to $13,320 per contravention.

A directions hearing is scheduled in the Federal Circuit and Family Court in Sydney for 18 August 2025.

The Fair Work Ombudsman filed 146 litigations against employers involving visa holder workers, and secured nearly $23 million in penalties in cases that have included visa holder workers, in the seven financial years to June 2024.

Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance. An interpreter service is available on 13 14 50. Employees can also seek information from their employer and their union, if they are a union member.

The FWO also has an online anonymous report tool, including options to report in languages other than English, and information for migrant workers, including protections for visas, is available at our visa holders and migrants webpage.

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