Sydney Asian grocers rectify over $700k in underpayments

The Fair Work Ombudsman has signed enforceable undertakings with the operators of two Asian grocery stores in Sydney, which have collectively rectified more than $706,000 in underpayments to 146 workers, including vulnerable visa holders.

Two companies that have common directors have signed the undertakings: Thai Kee Grocer, trading as Gong Grocer World Square, and G Grocer Kingsford, trading as Gong Grocer Kingsford.

The Fair Work Ombudsman (FWO) began investigating Thai Kee Grocer last year following community inquiries that flagged potential widespread non-compliance.

The business admitted to the discrepancies in pay shortly thereafter, while G Grocer Kingsford subsequently disclosed its own underpayment issues to the regulator.

Consequently, the entities are required to provide contrition payments amounting to $95,000 to the Commonwealth’s Consolidated Revenue Fund, consisting of a $75,000 contribution from Thai Kee Grocer and $20,000 from G Grocer Kingsford.

Those affected by the wage discrepancies were employed in shop assistant and office administrative capacities.

Among the 146 underpaid staff members, 32 held various visas, such as those for students or working holidays, while three were junior employees aged between 18 and 19.

This circumstance of underpayments follows recent investigations by the FWO into UNSW, whereby it admitted to underpaying entitlements under its enterprise agreements between 2023 and 2024.

Similarly, the FWO reported underpayments at CQ University, which ranged from less than $1 to over $60,000.

Speaking to HR Leader, the FWO provided comments around the factors that led to the widespread underpayments.

“Most of the underpayments were the result of Thai Kee and G Grocer Kingsford failing to pay applicable penalty rates (for weekend work) and overtime under the General Retail Industry Award 2020 (Retail Award),” a FWO spokesperson said.

“We expect all employers to meet all their obligations under any relevant award and the Fair Work Act.”

“Hardworking employees must receive their full range of entitlements – and there are consequences for employers when they don’t.”

“While acting in accordance with our policy, we will be on alert for community intelligence that flags potential wrongdoing, as was the case for these employers.”

The companies have rectified all underpayments, with $48,689 in superannuation and $30,751 in interest on top, collectively.

Across all the employees, the lowest individual back payment was $2, and the highest was $22,320.

The FWO spokesperson highlighted measures that are available to migrant workers who believe they may have been underpaid.

“Improving compliance to protect vulnerable or ‘at-risk’ workers, such as visa holders, is an enduring priority for the FWO,” the spokesperson said.

“To visa holder workers, we say directly – you have the same workplace rights as all other employees in Australia, and protections exist for your visa if you call out for help.”

“The Australian government has the Strengthening Reporting Protections Pilot and Workplace Justice Visa Pilot to strengthen protections for eligible visa holders experiencing workplace exploitation; both pilots are being administered by the Department of Home Affairs.”

Enforceable undertakings were considered appropriate because of the companies’ cooperation with the FWO in its investigations, the full back payments, and the measures put in place to prevent future breaches – including two audits to check compliance in the future.

Further, under the enforceable undertakings with the FWO, both companies complied by fixing any underpayments uncovered by their two audits and by reporting to the FWO about new systems and processes to ensure future compliance with workplace laws.

The companies agreed to introduce paid monthly meetings to hear employees’ concerns about employment conditions, along with taking inquiries about entitlements, underpayments, or related concerns through an email inbox and tell the FWO how they responded.

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