The Fair Work Ombudsman (FWO) has secured an $8,415 penalty in court against the director of a labour hire company that supplied workers to two restaurant-and-shisha-lounge outlets in Sydney.
The Federal Circuit and Family Court has imposed the penalty against Simon Jabbour, sole director of labour hire company NLHR Management Pty Ltd, which supplied workers to 'Nara Lounge' outlets at Hurstville and Pendle Hill.
NLHR Management is now in liquidation and the Nara Lounge outlets in Hurstville and Pendle Hill are now closed.
The penalty was imposed after Mr Jabbour admitted he was involved in NLHR Management Pty Ltd breaching workplace laws by failing to comply with a Compliance Notice.
The Compliance Notice required the back-payment of entitlements owing to dozens of workers, including several visa holders and young workers, who worked at the two Nara Lounge outlets between 2022 and 2024.
Fair Work Ombudsman Anna Booth said directors involved in failing to act on Compliance Notices needed to be aware they could face court-imposed penalties.
"When Compliance Notices are not followed, we will continue to take legal action to protect employees," Ms Booth said.
"Employers and directors should be aware that taking action to improve compliance in the fast food, restaurants and cafés sector and protecting migrant workers are priorities for the Fair Work Ombudsman.
"Any employees with concerns about their pay or entitlements should contact us for free assistance. They can also contact their union if they are a member."
Fair Work Inspectors visited the Nara Lounge Hurstville outlet during a proactive auditing campaign and subsequently commenced an investigation.
A Fair Work Inspector issued the Compliance Notice in December 2024 after forming a belief the affected workers had been variously underpaid minimum wage rates for ordinary hours, penalty rates for weekend and public holiday work, and annual leave entitlements.
The entitlements were owed under the Restaurant Industry Award 2020 and the Fair Work Act's National Employment Standards.
The amount NLHR Management was required to pay the workers to comply with the Compliance Notice was $127,467, with individual gross amounts ranging from $60 to $10,459.
There is still $125,241, plus superannuation, outstanding for 53 workers. NLHR Management being placed into liquidation has restricted the FWO's ability to secure back-payment for the workers.
Judge Sheila Kaur-Bains noted that Mr Jabbour remained a director of several companies, and found there was a need to impose a penalty to deter other employers and Mr Jabbour from non-compliance in the future.
"Specific deterrence is important because the respondent is a director of 10 other companies and his businesses may employ staff in the future," Judge Kaur-Bains said.
