The Fair Work Ombudsman has commenced legal action against a vocational education organisation for allegedly requiring a migrant worker in Brisbane to repay at least $23,365 following a cashback scheme.
Facing the Federal Circuit and Family Court is Warwick Institute of Australia Pty Ltd, which has campuses in Sydney and Brisbane and is part of the Times Education group.
Also facing court for their alleged involvement in the unlawful cashback scheme are Warwick Institute of Australia director Charles Shiao, and Xiaowen 'Eva' Xu, a former finance manager within the Times Education group.
The Fair Work Ombudsman's allegations relate to the treatment of a Brazilian national that Warwick Institute employed as a marketing officer at its campus in the Brisbane CBD between July 2019 and February 2022.
It is alleged Warwick Institute initially employed the worker on a casual basis for about seven months before engaging her full-time under a subclass 482 Temporary Skills Shortage visa.
We allege that the Department of Home Affairs granted Warwick Institute permission to sponsor the worker on the 482 visa, with conditions including that the company would pay her an annual salary of $65,000.
It is alleged that the cashback scheme involved Warwick Institute requiring the worker to pay $6,796 cash to Mr Shiao, on behalf of Warwick Institute, in February 2020 for expenses incurred in sponsoring the worker's visa.
It is alleged the worker subsequently made further cash payments totalling at least $16,569 to Warwick Institute over the course of her employment.
It is alleged that Ms Xu and Mr Shiao were involved in the cashback scheme, on behalf of Warwick Institute, including communicating to the worker the requirement to make the cashback payments.
The FWO alleges the cashback scheme was unlawful for reasons including that the payments were for the benefit of Warwick Institute and/or Mr Shiao as a director of Warwick Institute, and not the worker.
It is alleged the cashback payments also resulted in an approximately $900 underpayment of the worker's lawful minimum wages under the Educational Services (Post-Secondary Education) Award 2010 and 2020. Breaches of pay slip laws are also alleged.
Fair Work Ombudsman Anna Booth said the alleged treatment of the migrant worker was serious conduct that would not be tolerated.
"Unlawful cashback schemes are some of the most blatant, and can be some of the most appalling, forms of worker exploitation.
"In this case, we allege the worker was required to pay back more than $23,000 of her own money, including $16,569 from wages that she should have been able to keep.
"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.
"Visa holders should be reassured that if they seek the Fair Work Ombudsman's help about alleged workplace breaches, protections for their visa are available."
The Fair Work Ombudsman is seeking penalties in Court against Warwick Institute of Australia, Mr Shiao and Ms Xu for multiple alleged contraventions of workplace laws.
The company faces penalties of up to $66,600 per contravention and Mr Shiao and Ms Xu face penalties of up to $6,600 per contravention.
The Fair Work Ombudsman is also seeking a court order requiring the company to return the cashback payments to the worker (plus interest).
A directions hearing is scheduled in the Federal Circuit and Family Court in Sydney for 10 June 2026.
The Fair Work Ombudsman investigated after the worker lodged a request for assistance.
The Fair Work Act's section 325 prohibits an employer requiring an employee to spend or pay to the employer or another person an employee's money, if the requirement was unreasonable and the payment was directly or indirectly for the benefit of the company or a related person.
The Fair Work Ombudsman filed 171 litigations against employers involving visa holder workers, and secured $39 million in penalties in cases that have included visa holder workers, in the eight financial years to June 2025.
