The Fair Work Ombudsman has commenced legal action against a Sydney restaurateur for allegedly knowingly underpaying dozens of migrant workers more than $162,000, despite having been put on notice.
Facing court is Katsuyoshi 'Ken' Sadamatsu, who part-owned and was centrally involved in running the 'Miso World Square' Japanese restaurant, located on Liverpool Street in Haymarket. Mr Sadamatsu placed the employer, Miso Pty Ltd, into liquidation in 2024. In early 2025 the restaurant closed and the employer, Miso Pty Ltd, was deregistered.
The Fair Work Ombudsman investigated the restaurant during an auditing campaign.
It is alleged that a FWO investigation discovered Mr Sadamatsu was involved in paying staff at Miso World Square unlawfully low flat rates of $19 to $27 an hour.
This allegedly resulted in underpayment of their overtime rates, and penalty rates for weekend and public holiday work, under the Restaurant Industry Award 2020.
Underpayment of accrued annual leave on termination entitlements and split-shift allowances, and breaches of record-keeping laws are also alleged.
Alleged underpayments per individual range from under $100 to $19,017.
It is alleged the individual with this highest underpayment was, during some parts of their employment, paid a flat hourly rate of $22, when they should have been paid hourly rates of $32 for overtime, $27 on Saturdays and $48 on public holidays.
It is alleged that in total, 82 workers were underpaid $162,514 between June 2020 and September 2022. The individuals were most commonly engaged as cooks, kitchen attendants and wait staff.
Most of the affected workers were visa holders from a range of countries in Asia, with most of these visa holders from Thailand, Indonesia or Japan. 36 were young workers, aged between 19 and 24 at the time.
The Fair Work Ombudsman alleges that Mr Sadamatsu was involved in knowingly and systematically committing the contraventions between June 2020 and September 2022 and that they constitute 'serious contraventions' under the Fair Work Act, which attract a tenfold increase in available maximum penalties.
The alleged underpayments occurred despite Mr Sadamatsu and his family's companies having entered into Enforceable Undertakings with the Fair Work Ombudsman in 2011 in response to $679,000 in underpayments of 180 staff across four Sydney restaurants.
The Fair Work Ombudsman had previously formally cautioned Mr Sadamatsu in relation to underpayments in August 2020.
Fair Work Ombudsman Anna Booth said the alleged knowing underpayment of vulnerable migrant workers warranted litigation and the pursuit of penalties.
"It is completely unacceptable that these alleged underpayments have occurred despite the Fair Work Ombudsman having squarely put Mr Sadamatsu on notice of the need to comply with workplace laws and having previously offered him assistance to rectify compliance issues," Ms Booth said.
"When we encounter alleged deliberate underpayments of vulnerable migrant workers we will do everything within our power to hold individuals involved in that exploitation to account.
"This type of alleged conduct will not be tolerated. The alleged underpayments were significant for the workers.
"Employers also need to be aware that taking action to protect migrant workers and young workers, and improve compliance in the fast food, restaurant and café sector, are long-term FWO priorities."
The FWO is seeking penalties against Mr Sadamatsu for multiple alleged breaches of the Fair Work Act. Mr Sadamatsu faces penalties of up to $133,200 per breach for the alleged serious contraventions, and of up to $13,320 per breach for the other alleged contraventions.
The Fair Work Ombudsman is also seeking court orders requiring Mr Sadamatsu to rectify the alleged underpayments in full, plus interest and superannuation.
A directions hearing is listed in the Federal Circuit and Family Court in Sydney on 12 March 2026.
Migrant workers have the same rights and protections under the Fair Work Act as other employees in Australia, and protections exist for their visa if they call out any breaches.
Information for migrant workers, including on protections for visas, is available at our visa holders and migrants webpage.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace.
