The Fair Work Ombudsman has commenced legal action against the former operators of a Japanese restaurant in north-western Sydney, alleging they underpaid two migrant workers a total of almost $100,000 and falsified records.
Facing the Federal Circuit and Family Court are Kosu Group Pty Ltd, which operated Yakiniku Kosu restaurant in Castle Hill, and the company's sole director and part-owner, Sean Lee.
The Fair Work Ombudsman alleges Kosu Group and Mr Lee arranged for two Filipino nationals to come to Australia from the Philippines on visas and underpaid them a total of $97,621 for work performed at Yakiniku Kosu between May 2019 and September 2020.
It is alleged that in total, the workers were only paid about one-third of what they were lawfully entitled to.
The FWO alleges the primary cause of the underpayments was Kosu Group paying the workers an unlawfully low flat rate, irrespective of the hours they worked.
One of the workers, aged 21-22 at the time, was engaged as a food and beverage attendant and the other as a sous chef.
They allegedly worked varying hours but were required to work up to 128 hours some fortnights, including split shifts, weekend and public holiday work.
However, it is alleged that Kosu Group generally paid the food and beverage attendant $800 (net) per fortnight and the sous chef $1,200 (net) per fortnight.
This allegedly resulted in significant underpayment of their minimum pay rates, overtime entitlements, various penalty rates and a split-shift allowance, under the Restaurant Industry Award 2010 and 2020. Annual leave entitlements were allegedly also underpaid.
It is alleged that the food and beverage attendant was underpaid $57,927.95 and the chef was underpaid $39,693.48.
The Fair Work Ombudsman alleges Kosu Group also breached record-keeping and pay slip laws under the Fair Work Act, including by providing false or misleading time-and-wages records and pay slips to an inspector during the investigation that overstated wages paid to the two workers.
It is alleged that Mr Lee was involved in all of Kosu Group's contraventions.
Fair Work Ombudsman Anna Booth said allegedly underpaying vulnerable migrant workers and trying to cover it up with false records was completely unacceptable conduct.
"Allegedly paying workers only about one-third of their total owed wages will not be tolerated. We are committed to taking action to protect vulnerable workers in this country and ensure that employers who breach the law are held to account," Ms Booth said.
"Accurate record-keeping is a legal requirement for any employer. We allege Kosu Group provided false or misleading records to our inspectors.
"Employers should be aware that taking action to protect migrant workers and improve compliance in the fast food, restaurants and cafés sector are priorities for the FWO.
"Migrant workers have the same workplace rights as all others, and any workers with concerns about their pay or entitlements should contact us for free advice and assistance."
The FWO is seeking penalties in court. Kosu Group Pty Ltd faces penalties of up to $33,300 per breach and Mr Lee faces penalties of up to $6,660 per breach.
The workplace regulator discovered the alleged underpayments when it investigated after receiving requests for assistance from the workers.
The alleged underpayments have been rectified.
A directions hearing is listed in the Federal Circuit and Family Court in Sydney on 16 September 2025.
The Yakiniku Kosu restaurant has closed.
The Fair Work Ombudsman filed 146 litigations against employers involving visa holder workers, and secured nearly $23 million in penalties in cases that have included visa holder workers, in the seven financial years to June 2024.
