The HR manager of Din Tai Fung instructed the payroll officer to inaccurately pay staff by advising him to pay employees for 76 hours a fortnight, regardless of the actual hours worked.

The payroll officer was told to alter the employee records by decreasing the number of actual hours worked and to falsify information by not including the correct number of hours or records of cash payments on pay slips.

It was also revealed that allowances, penalty rates and leave loadings were not correctly paid to some employees. Several examples revealed that casuals were paid well below award rates for weekend and evening work.

The HR manager knowingly required employees to work unreasonable overtime – which is a breach of the National Employment Standards (NES) – and threatened to deduct hours from accrued annual leave if employees on temporary 457 visas did not work at least 55 hours.

Employees in senior managerial positions committed a variety of breaches, including telling staff to lie if the Fair Work Ombudsman (FWO) ever visited the workplace. Overall, multiple employees were involved in intentionally paying under minimum award rates, not providing accurate payslips and forcing employees to work more than 38 hours per week.

The decision

The Federal Court found that, due to their role, the HR manager would most likely know that there was an award with minimum rates and conditions that the restaurant chain needed to comply with.

It was determined that the HR manager and general manager played a part in knowingly breaching multiple sections of the award and Fair Work Act 2009 (FWA).

The FWO is seeking penalties from these individuals and the Melbourne and Sydney restaurant chain will have to compensate all workers who were intentionally underpaid between 2017-2018 to the value of approximately $175,000.

Learnings for businesses

This case highlights the importance of adhering to the relevant award and the FWA requirements. It is vital for employers to understand their obligations and comply with the standards to avoid any future issues or claims that might arise while minimising the risk of damaging the business’ reputation. This case demonstrates the significance of ensuring employees can perform their role effectively, with sufficient knowledge instruction, oversight and commitment to ethical standards.

Ultimately, it is the employer’s responsibility to understand and follow all relevant legal obligations to make sure employees receive appropriate entitlements and reducing the risk of costly claims being made against the business.

How the Victorian Chamber can assist

For assistance on any aspect of your employment obligations, please call the Victorian Chamber Workplace Relations Advice Line on 8662 5222.

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