You are using an older browser version. Please use a supported version for the best MSN experience.

Sydney Malaysian restaurant Mamak fined

AAP logoAAP 19/08/2016

Popular Malaysian restaurant chain Mamak will be audited after a Sydney court fined owners and the company almost $300,000 for deliberately short-changing their employees, paying them as little as $11 an hour.

The Fair Work Ombudsman took legal action after an investigation revealed six employees at the Mamak's inner Sydney restaurant were underpaid more than $87,000 between 2012 and 2015.

Three of the Haymarket restaurant owner-operators were fined more than $30,000 each, while the company Mamak Pty Ltd was penalised $184,960.

In handing down his sentence, Federal Circuit Court Judge Justin Smith said the underpayments stemmed from the restaurant operators conducting their own market research to see what other restaurants were paying their staff.

"They discovered that there were three approaches - the first were the star-rated restaurants which paid according to the award, the second were medium restaurants that followed the award half the time and third included small restaurants that just paid illegal rates," Judge Smith said.

"Mamak took the third approach."

Pay practices will now be audited across Mamak's other stores, including the Melbourne CBD restaurant, Sydney's Chatswood restaurant and the Sydney factory in Marrickville where food is prepared.

The audit will look at payments from March to December 2016.

The court found that Sydney's Haymarket store was using false records to try to disguise their underpayments.

The staff members who were underpaid have now been repaid the amounts they were owed.

image beaconimage beaconimage beacon