Din Tai Fung Fined $4 Million for Underpaying Staff in ‘Calculated’ Scheme

Introduction

Din Tai Fung, a renowned dumpling restaurant chain, has been fined a total of $4 million by the Federal Court for deliberately underpaying staff and fabricating records to conceal the misconduct.

Details of the Violation

The court found that Din Tai Fung and its managers engaged in systematic underpayment of at least 17 employees in its Sydney and Melbourne locations from July 2014 to June 2018, with significant offenses occurring between November 2017 and June 2018. Workers were denied proper compensation for overtime and penalties, with individual underpayments ranging from $2,300 to over $50,000.

Key Figures and Penalties

General Manager Hannah Handoko and Human Relations Manager Sinthiana Parmenas were personally fined $92,232 and $105,084, respectively. The court’s decision emphasizes the severity of the misconduct, highlighting a deliberate effort to exploit vulnerable workers, many of whom were young migrants on temporary visas.

Company’s Response and Legal Consequences

Din Tai Fung went into administration following the commencement of Federal Court proceedings, which complicates the repayment process for the affected workers. The company, which had over 400 employees and a turnover of $7.25 million in the previous financial year, created false records to mislead authorities and its own staff.

Judicial Commentary

Justice Anna Katzmann condemned the actions as calculated and deceitful, designed to rob employees of their earnings and mislead enforcement bodies. She noted that the employment of visa holders over Australian citizens was a tactic to minimize exposure to regulatory scrutiny.