A Shellharbour takeaway food outlet is to face court for allegedly using an unlawful ‘internship’ program to exploit three young overseas workers.
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The three females, aged 20 and 21 and who spoke little English, were allegedly underpaid more than $51,000.
They came to Australia from Korea on 417 working holiday visas.
The Fair Work Ombudsman has commenced legal proceedings against Kjoo Pty Ltd, which operates the Masaki sushi outlet at Stockland Shellharbour.
The outlet’s manager and part-owner, Hyo Jun “John” Kwon, is also facing legal action over his alleged central role in the underpayments.
So too is accountant Ok Gyu Lim for allegedly creating false pay records that were used to try to cover-up the extent of the underpayments. The three workers had studied at a private Korean college.
Mr Kwon and his company entered into a so-called ‘Internship Agreement’ with the college, which encouraged the three to travel to Australia for work experience. They worked at Masaki from September 2014 and July 2015. Each worked between four and six days each week, averaging more than 38 hours of work per week.
The Agency alleges the purported internship agreement was not authorised under any Australian law or administrative arrangement and the work performed at Masaki was not a formal part of the workers’ college studies. Unlawful deductions were allegedly also made from the workers’ wages for accommodation.
Fair Work Ombudsman Natalie James said while the company has now back-paid the workers in full, legal action is being taken because of the seriousness of the alleged conduct and significant amounts involved.
Kjoo Pty Ltd and Mr Kwon allegedly committed multiple contraventions of workplace laws and face maximum penalties of up to $51,000 and $10,200 per contravention. Mr Lim faces a maximum penalty of up to $7200 for two alleged contraventions. A directions hearing is listed in Federal Circuit Court, Sydney on July 1.
