What began as a quiet compliance issue is now erupting into front-page stories and multi-million dollar fines. Here’s what Din Tai Fung’s headline-making wage breach means for every employer in Australia.
The numbers are staggering. Recently, we’ve seen hospitality giant Merivale under investigation for alleged underpayment of Mexican staff, following a $19.25 million class action settlement just six months earlier.
Meanwhile, Monkey’s Corner – the family-run restaurant co-founded by MasterChef star Reynold Poernomo – collapsed owing staff wages, unpaid super, and tax debts totalling around half a million dollars.
But perhaps the most telling case is that of Guoyong “Jet” Liu, a visa holder who worked at Din Tai Fung’s Sydney restaurant. His story, which culminated in $4 million in penalties being imposed against his employer, reveals a troubling pattern that extends far beyond high-profile brands.
“I felt terrible,” Liu recalled about his experience. “I [knew I] should work for the same as Australians. Not a low salary that makes me feel uncomfortable.”
The court later described what happened to Liu and 16 other workers – mostly migrants from China and Indonesia – as “a calculated scheme to rob employees of their hard-earned wages.” The penalties were, at the time, the Fair Work Ombudsman’s second-highest ever secured.
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The human cost behind the headlines
For Liu, the impact went far beyond his paycheck. Working long hours in the kitchen while being systematically underpaid made him “very mentally tired” and “so stressed.” The financial pressure forced him to restructure his family’s entire lifestyle.
“I bought an apartment because I thought the company would give us fair conditions. I had less income to pay the mortgage and had to rejig the expenses. It used to be that we would hang out with friends twice a week and get dinner; we had to reduce this,” he said.
The psychological toll was equally severe. “I was working so many hours at Din Tai Fung that I could not spend much time with [my son], my wife or my friends. This made me feel very sorry for my family.”
When Liu tried to raise concerns about wages, “the boss got mad at us and shouted at us sometimes.” The power imbalance was clear, but Liu persisted because “it felt so unfair to us.”
A problem that transcends size
Max Moran, CEO and founder of wage compliance platform Subi, warns that these high-profile cases represent just the tip of the iceberg.
“You don’t have to be a billion-dollar company to run into wage compliance trouble,” Moran explains. “In fact, some of the most avoidable and costly mistakes happen in small businesses not because of bad intentions, but because business owners are wearing too many hats and don’t have the time, tools or visibility to keep on top of it all.”
The Fair Work Ombudsman’s data supports this concern. In the seven financial years to June 2024, they filed 146 litigations against employers involving visa holder workers and secured nearly $23 million in penalties. Many of these cases involved smaller businesses that, like larger companies, fell into compliance traps.
Fair Work Ombudsman Anna Booth emphasizes that migrant workers like Liu are particularly vulnerable. “We know visa holders are often heavily reliant on their jobs and can therefore be reluctant to complain if something seems wrong,” she said.
The compliance reality check
According to Moran, the underlying issues extend far beyond hospitality’s frequent appearances in compliance headlines. The root cause lies in “complicated awards, changing staff rosters, and the assumption that payroll is ‘sorted’ because you use software or an accountant.”
This assumption proved costly for the businesses involved in recent cases. While Merivale faces investigation over alleged systematic underpayment, Monkey’s Corner’s collapse highlighted how quickly compliance failures can escalate – with $76,000 in unpaid superannuation being one of the biggest red flags.
Five critical steps
Drawing from the lessons of these high-profile failures, Moran – whose platform Subi helps businesses automate wage compliance monitoring – outlines five practical steps that small businesses can implement immediately:
1. Stop thinking “We’re too small to be noticed”
The belief that small businesses fly under regulatory radar is dangerously misguided, Moran warns.
“Plenty of small businesses assume they’re flying under the radar. But underpayment is now treated as a serious offence, even for unintentional errors, and Fair Work doesn’t care how big your team is,” he says.
The reality is that small businesses often lack the in-house HR support that bigger companies rely on, making them more vulnerable to mistakes. The Din Tai Fung case proves that systematic underpayment will be pursued regardless of company size.
2. Understand that outsourcing doesn’t shift responsibility
Many business owners mistakenly believe that hiring external payroll providers absolves them of legal responsibility. Moran is clear about where accountability lies:
“You might use a payroll provider or bookkeeper and that’s a smart move. But it doesn’t absolve you from responsibility. As a business owner or director, you’re still the one on the hook legally if things go wrong. Don’t assume it’s all being handled. Ask questions, check your settings, and make sure whoever’s doing your payroll knows which award applies to your staff.”
Liu’s case demonstrates what happens when businesses assume their systems are working correctly without proper oversight. The court found the underpayment was systematic and deliberate, suggesting a failure of management responsibility rather than simple software errors.
3. Treat super like wages – because it is
The Monkey’s Corner collapse, with $76,000 in unpaid super, illustrates how quickly superannuation non-compliance can escalate. Moran emphasizes the critical nature of this obligation:
“In the case of Monkey’s Corner, $76,000 in unpaid super was one of the biggest red flags. Super is part of every employee’s entitlement and must be paid regularly and accurately. If your system doesn’t account for different hours, casual loadings, or fluctuating rosters, mistakes can creep in fast.”
Liu eventually received $50,588 in wages plus $12,116 in interest as part of the settlement – money that should have been paid during his employment, not years later through court action.
4. Audit regularly, not just at tax time
Regular compliance monitoring is essential, not optional, according to Moran’s experience helping businesses avoid costly mistakes:
“If you only look at payroll once a year, you’re already behind. Compliance needs to be checked regularly – ideally monthly – so you can fix small issues before they snowball. Tools like Subi automate this process and give you early visibility into risks, even if you don’t have an HR team or legal advisor on hand.”
Liu’s underpayment occurred over nearly four years (July 2014 to May 2018), demonstrating how small compliance failures can compound into major legal and financial liabilities.
5. Don’t underestimate the reputational cost
Beyond financial penalties, compliance failures can devastate a business’s standing in the community. Moran highlights the broader business impact:
“Beyond fines and repayments, non-compliance can hurt your brand, staff morale and customer trust. Word travels fast – especially in local communities – and today’s workforce is more aware of their rights than ever. Showing that you care about doing the right thing isn’t just good ethics. It’s good business.”
Liu’s advice to other migrant workers is telling: “The Ombudsman we can trust.” This trust comes at the expense of employers who fail to meet their obligations, creating lasting reputational damage that extends far beyond the immediate financial penalties.
The $197,316 in penalties paid to the Fair Work Ombudsman in Liu’s case was then distributed to the underpaid employees that could be located. For Liu, this meant he could “pay the mortgage for two years” – a significant sum that highlights just how much he had been underpaid.
“Of course I felt excited. I felt that the Ombudsman is really doing an excellent job for people like us. We are not rich, we don’t have power, we are not in some high position in society. We are regular, normal people,” Liu said.
His relief at receiving justice underscores the human impact of wage compliance failures. These aren’t just regulatory issues – they’re about people’s ability to support their families, pay their mortgages, and maintain their dignity at work.
The path forward
The Australian Government has responded to these widespread issues with initiatives like the Strengthening Reporting Protections Pilot and Workplace Justice Visa Pilot, designed to protect eligible visa holders experiencing workplace exploitation.
But for businesses, Moran’s assessment is stark: proper compliance systems aren’t optional in today’s regulatory environment.
“Running a small business is already hard enough. The last thing you need is to get caught up in a wage scandal that could have been prevented with better systems and visibility,” he says.
His final point cuts to the heart of the issue: “Wage compliance doesn’t have to be scary or expensive. But it does have to be taken seriously.”
The lesson from Din Tai Fung, Merivale, and Monkey’s Corner is consistent with Moran’s analysis: “it’s not about how big you are – it’s about whether you’re paying attention.”
For workers like Liu, the Fair Work Ombudsman provides crucial protection. But for businesses, the choice is simple: invest in proper compliance systems now, or face the potentially devastating consequences later.
The $4 million in penalties from the Din Tai Fung case should serve as a wake-up call for every Australian business: wage compliance isn’t just about following rules – it’s about respecting the people who make your business possible.
- Employers and employees can call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. A free interpreter service is available on 13 14 50.
- Workers can check if amounts are owing to them using the search function on the Fair Work Ombudsman’s website at www.fairwork.gov.au.
- Criminalising wage underpayments and other issues
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