The Fair Work Ombudsman has commenced legal action against two former directors and a former bookkeeper of a real estate industry company for their alleged involvement in requiring a migrant worker to repay wages under an unlawful cashback scheme.
Facing court are Geng Xu and Jayce Richardson, former directors and part-owners of Ezytenant Pty Ltd, which operated the website www.ezytenant.com.au providing real estate rental advertising and management services for renters and real estate agents.
Also facing court is Chen Sun, a former employee who performed bookkeeping duties for the company.
Ezytenant Pty Ltd operated in Adelaide and has now been liquidated and deregistered.
The Fair Work Ombudsman's allegations relate to the treatment of a Chinese national employed as a marketing specialist at Ezytenant between January and July 2020. The worker was on a temporary graduate visa at the time and aged in his 20s.
It is alleged that Mr Xu, Mr Richardson and Mr Sun were involved in implementing an unlawful cashback scheme under which the worker was required to re-pay his whole after-tax wages for the final 15 weeks of his employment.
The worker was allegedly required to withdraw his weekly wages in cash and pay it to Mr Xu or Mr Richardson.
It is alleged the worker was told he needed to re-pay the cash to assist Ezytenant with financial difficulties or his employment would be terminated.
It is alleged that in total, the worker was required to re-pay $10,702 of his wages between April and July, 2020.
The Fair Work Ombudsman alleges that the cashback contravention is a serious contravention under the Protecting Vulnerable Workers laws because it was committed knowingly and as part of a systematic pattern of conduct which occurred over multiple pay periods. It is also alleged that Ezytenant threatened the worker with litigation if he did not withdraw a request for assistance he had made to the Fair Work Ombudsman.
Serious contraventions attract a tenfold increase in available maximum penalties.
In addition, the Fair Work Ombudsman alleges Mr Sun was involved in issuing the worker with false and misleading pay slips during his employment that gave the impression he was being paid lawfully.
Fair Work Ombudsman Anna Booth said the alleged cashback scheme applying to the visa holder worker was serious conduct that would not be tolerated.
"We will be alleging in court that these individuals implemented a cashback scheme to try to give the impression that legal wage obligations were being met, when in fact a vulnerable migrant worker was being deprived of their entitlements," Ms Booth said.
"Unlawful cashback schemes can be some of the most blatant and appalling forms of underpayment.
"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 contraventions of Commonwealth workplace laws.
"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 is seeking penalties in court.
For the alleged cashback contravention, Mr Xu, Mr Richardson and Mr Sun each face a penalty of up to $133,200 if the contravention is found to be a serious contravention (or up to $13,320 otherwise).
For the alleged pay slip contravention, Mr Sun faces an additional penalty of up to $13,320.
The FWO is also seeking compensation orders against Mr Xu and Mr Richardson, being the two former directors who allegedly received the cash payments from the worker. None of the alleged cashback amount has been rectified.
A directions hearing is scheduled in the Federal Circuit and Family Court in Adelaide for 12 March 2026.
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.
