Fair Work Ombudsman
Citation: FWO-2024-08-06-sushi-bay-penalty-media-release
At a glance
- Respondent
- Sushi Bay Pty Ltd
- Penalty
- $15,300,000
- Employees affected
- 163
What happened
The Federal Court imposed record penalties of $15.3 million against the former operators of the Sushi Bay outlets in NSW, Darwin and Canberra after the Fair Work Ombudsman proved they deliberately exploited vulnerable migrant workers. The companies and owner-director Yi Jeong 'Rebecca' Shin underpaid 163 workers, mostly Korean nationals on student, working holiday and 457 skilled worker visas, a total of $653,129 between February 2016 and January 2020. Individual underpayments ranged from $48 to $83,968. The group also falsified records to try to cover up the breaches.
What was decided
Penalties were imposed as follows: Sushi Bay Pty Ltd (in liquidation) $3.2 million, Sushi Bay ACT Pty Ltd (in liquidation) $5.8 million, Auskobay Pty Ltd (in liquidation) $2.4 million, Auskoja Pty Ltd (in liquidation) $2.3 million, and Yi Jeong Shin $1.6 million personally. The $15.3 million total is the highest ever secured in a Fair Work Ombudsman legal action, eclipsing the $10.34 million against CBA and CommSec earlier in 2024. Unlike most cases on this page, this is an actual civil penalty ordered by the Federal Court, not an Enforceable Undertaking.
What it means for employers
Deliberate underpayment of migrant workers and falsifying records will attract personal liability for directors, with penalties running into the millions. Serious contraventions attract a tenfold increase in maximum penalties. Prior penalties against the same operators do not protect them, they make the next breach worse. Ownership structure and company liquidation do not shield directors from personal penalties.
What it means for employees
Migrant workers in Australia, including those on student, working holiday and 457 or TSS visas, have the same workplace rights as local workers. The Fair Work Ombudsman will pursue personal penalties against directors who deliberately underpay. If you are a visa worker and think you are being underpaid, contact the FWO on 13 13 94 in confidence.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2024-media-releases/august-2024/20240806-sushi-bay-penalty-media-releaseWant more cases like this?
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This summary was drafted by AI 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 →