Fair Work Ombudsman v Sushi Bay Pty Ltd (in liq) (No 3)
Citation: [2024] FCA 869
At a glance
- Penalty
- $15,300,000
What happened
The Sushi Bay group of companies operated sushi restaurants in NSW, the ACT, and the Northern Territory under the director. From February 2016 to January 2020, the companies systematically exploited immigrant workers through false record-keeping, unreasonable wage deduction requirements, and failure to pay minimum award rates, casual loadings, annual leave loadings, overtime rates, penalty rates for weekend and public holiday work, and annual leave entitlements on termination. The Fair Work Ombudsman discovered the contraventions and the companies subsequently entered liquidation.
What was decided
The Court found multiple serious civil remedy contraventions including knowingly creating false records, producing false records to inspectors, unreasonably requiring wage refunds, and systematic underpayment of award entitlements. The director and four corporate entities were ordered to pay substantial pecuniary penalties totalling $15.3 million. The director's penalty of $1.6 million was to be distributed to affected employees as compensation for underpayment. The corporate entities' penalties were to be paid to the Commonwealth, reflecting the gravity and systematic nature of the wage theft.
What it means for employers
Employers must maintain accurate wage records and ensure all employee payments comply with modern award rates, including casual loadings, penalty rates, and leave entitlements. Attempting to recover wages from employees through deductions is unlawful. False record-keeping and misrepresentation to inspectors carry severe financial penalties. Systematic contraventions, especially those knowingly committed, trigger maximum penalty levels.
What it means for employees
Employees at the Sushi Bay restaurants were underpaid across multiple categories: award rates, casual loadings, overtime, and public holiday work. The case demonstrates that courts will intervene to recover lost wages even after business failure. Employees should report wage irregularities to the Fair Work Ombudsman rather than accepting incorrect payments.
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https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2024/2024fca0869Send your details to Liquid Employment Lawyers
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections