Australia

‘Greed and exploitation’: Judge slams Hero Sushi for underpayments

Three outlets of food court staple Hero Sushi and five staff members have been fined a record $891,000 for underpaying workers and attempting to cover up the wrongdoing.

An audit in 2016 by the Fair Work Ombudsman found 94 Hero Sushi employees at stores in the Canberra Centre, Westfield Kotara and Australia Fair on the Gold Coast, many of whom were international students and migrant workers, had been underpaid just over $700,000.

“This is a case about greed and the exploitation of the vulnerable,” Federal Court Justice Geoffrey Flick found on Monday. “Those in a position to ruthlessly take advantage of others pursued their goal of seeking to achieve greater profits at the expense of employees.”

One worker told the court of working 60-hour weeks and being afraid of losing her job if she gave in to fatigue. Another said she accepted the wages because she was living out of home due to a family breakdown and had to support herself.

Justice Flick said “a great number of false documents were deliberately and repeatedly created with a view to concealing the fraud being perpetrated. Lies were told to cover up the wrongdoing”.

“It was only when the ‘game was up’ that those responsible admitted their misdeeds,” he said.

Deuk Hee Lee, who also goes by “William Lee”, and Hokun Hwang, also known as Robert Hwang, were equal shareholders in three of the corporate entities behind Hero Sushi stores that underpaid their workers.

Mr Lee told the court he and Mr Hwang “decided that we would offer our employees a minimum of $12 per hour in cash so that we can be more competitive in the industry”.

Mr Lee said he was “sincerely remorseful of [his] actions and ha[s] been humbled by the experience” while Mr Hwang said he had made a “very wrong decision”.

Both were fined $85,000 while three men from the company’s payroll team, Chang Seok “Tommy” Lee, Ji Won “Brian” Cho and Jung Sun “Jimmy” Kim, who were involved in creating false records as part of the scheme, were fined $75,000, $16,000 and $30,000 respectively.

Combined with the corporate penalties, the court ordered $891,000 in fines.

Tough new laws are on the cards in a bid to put Australian businesses on notice, after Coles becomes another of many companies to admit to underpaying their staff.

Fair Work Ombudsman Sandra Parker, who brought the litigation in February last year, said the penalty was the largest awarded as a result of her agency’s work. Fines for falsification of records have been increased since the conduct occurred in this case.

“This matter should serve as a warning for all businesses that underpay migrant workers, who may be particularly vulnerable if they have language barriers or be reluctant to seek help due to their visa status,” Ms Parker said.

Deuk Hee Lee, who also goes by “William Lee”, and Hokun Hwang, also known as Robert Hwang, were equal shareholders in three of the corporate entities behind Hero Sushi stores that underpaid their workers.

Mr Lee told the court he and Mr Hwang “decided that we would offer our employees a minimum of $12 per hour in cash so that we can be more competitive in the industry”.

Mr Lee said he was “sincerely remorseful of [his] actions and ha[s] been humbled by the experience” while Mr Hwang said he had made a “very wrong decision”.

Both were fined $85,000 while three men from the company’s payroll team, Chang Seok “Tommy” Lee, Ji Won “Brian” Cho and Jung Sun “Jimmy” Kim, who were involved in creating false records as part of the scheme, were fined $75,000, $16,000 and $30,000 respectively.

  • Fair Work Ombudsman Sandra Parker, who brought the litigation in February last year, said the penalty was the largest awarded as a result of her agency’s work. Fines for falsification of records have been increased since the conduct occurred in this case.

    “This matter should serve as a warning for all businesses that underpay migrant workers, who may be particularly vulnerable if they have language barriers or be reluctant to seek help due to their visa status,” Ms Parker said.