Fair Work Ombudsman
Citation: FWO-2024-12-19-chen-and-du-litigation-media-release
At a glance
- Respondent
- Dumpling Land
- Penalty
- $9,390
- Employees affected
- 28
- Awards cited
- MA000173
What happened
The Fair Work Ombudsman has commenced legal action against Kailiang Chen and Alex Du, who operate Dumpling Land, a restaurant in Wallsend, Newcastle. A Fair Work Inspector issued a Compliance Notice in August 2023 after suspecting 28 workers were underpaid. The alleged underpayments occurred between June 2021 and April 2023, involving minimum wages, overtime, and penalty rates under the Restaurant Industry Award 2020. The affected workers included international students, some aged 24 and under, in full-time, part-time, and casual roles. While some back-payments have been made, 12 workers still have outstanding entitlements.
What was decided
The Fair Work Ombudsman is seeking penalties against Kailiang Chen and Alex Du for failing to comply with the Compliance Notice. The court can order a business to pay penalties and make payments to workers. The FWO is also seeking orders to ensure full compliance with the notice, including back-payments, interest, and superannuation. A hearing is scheduled for January 31, 2025, in the Federal Circuit and Family Court in Sydney. Each respondent faces a potential penalty of $9,390.
What it means for employers
Employers, particularly those in the fast food, restaurant, and cafe sector, must ensure they comply with workplace laws and Compliance Notices. Failure to do so can result in significant penalties and orders to back-pay entitlements. Employers should review their payroll practices and seek assistance if unsure about their obligations.
What it means for employees
Employees, especially visa holders, should be aware of their workplace rights and entitlements. If you suspect underpayment or other breaches of workplace laws, contact the Fair Work Ombudsman for free advice and assistance. Interpreter services are available.
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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 →