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Introduction
Australian sushi chain Sushi Bay has been fined a record-breaking $13.7 million by the Federal Court for deliberately underpaying more than 160 migrant workers over $650,000 in entitlements.
Deliberate and Calculated Exploitation
The Federal Court found that Sushi Bay’s underpayment practices were intentional and calculated, describing the company’s conduct as “audacious.” The court also noted that many of the affected workers were young and on temporary visas, making them particularly vulnerable to exploitation.
Record-Breaking Penalties
This penalty is the highest ever secured by the Fair Work Ombudsman, exceeding the previous record of $10.34 million imposed on the Commonwealth Bank earlier this year.
Fair Work Ombudsman’s Response
Fair Work Ombudsman Anna Booth emphasized that exploiting vulnerable migrant workers is “reprehensible” and will not be tolerated in Australia. She highlighted the Ombudsman’s commitment to protecting vulnerable workers and improving compliance in the hospitality sector.
Repayment Efforts
The court had previously ordered Sushi Bay to repay the underpaid wages and superannuation. However, as most companies within the group are now in liquidation, the liquidator has stated they cannot comply and the unpaid amounts have been recorded as debts.
Conclusion
This landmark case sends a strong message that deliberate and systematic exploitation of workers, particularly vulnerable migrants, will not be tolerated in Australia. The record fine highlights the severity of the offense and serves as a deterrent to other businesses engaging in similar practices.