Sushi Bay's Record $15.3 Million Penalty: A landmark finding
Sushi Bay's Record $15.3 Million Penalty: A landmark finding
In a landmark case that underscores the critical importance of compliance in the migration and employment sectors, the Australian Federal Court has imposed a record $15.3 million penalty on Sushi Bay outlets across New South Wales, Darwin, and Canberra.
BDO Migration Services Principal Lawyer, Rebecca Thomson, said the ruling marks a significant moment in the enforcement of the protecting vulnerable workers laws.
“The severe penalty of $15.3 million highlights the importance of adhering to legal standards and protecting vulnerable workers from exploitation,” Rebecca said.
The case revealed that Sushi Bay underpaid 163 workers, predominantly Korean nationals on various temporary visas, by over $650,000 between 2016 and 2020. Rebecca said the case’s referral to the Department of Home Affairs highlights the heightened scrutiny on sponsorship obligations. “Employers must adhere strictly to their sponsorship agreements.
“Breaches can lead to severe penalties, including fines and restrictions on future sponsorships.
“Compliance is essential not just for legal adherence but also for maintaining the ability to recruit and retain skilled workers.
“Regular audits and assessments of compliance with wage rates, working conditions, and visa obligations are critical.
“Employers must ensure their policies align with legal requirements, particularly for staff on temporary visas, to guarantee fair compensation and treatment.”
The Australian industrial relations landscape is complex, with obligations varying across numerous industrial instruments.
Wage underpayments are taken very seriously by the Fair Work Ombudsman, and wage theft is criminalised in various Australian jurisdictions.
“Accurate record-keeping and the provision of pay slips are vital for compliance,” Rebecca said. “Employers must retain detailed records for at least seven years to ensure effective investigation and enforcement of employment standards.”
“This case serves as a powerful reminder of the importance of maintaining high ethical standards in employment practices.”
For media enquiries:
Tate Papworth
Manager, Media
E: tate.papworth@bdo.com.au
Ph: 0433 411 189