Newcastle cafe operators face court over alleged migrant worker underpayment

The Fair Work Ombudsman has commenced legal action against two companies and their sole director for allegedly underpaying seven migrant workers at two former Oliver Brown cafes in Newcastle. The companies, Achon Pty Ltd and Echon Pty Ltd, operated outlets at the Marketown shopping centre and Charlestown Square.

The affected employees, who were all visa holders from countries including France and Korea, were primarily employed as casual wait staff between October 2023 and July 2024. The Fair Work Ombudsman alleges the workers were denied minimum wages, casual loadings, overtime rates, penalty rates for weekends and public holidays, and in one instance, annual leave entitlements.

Despite being issued compliance notices in February, the companies and their director, Rachel Lee, allegedly failed to comply with orders to calculate and back-pay the owed amounts. The total amount required for compliance was approximately $29,193. The regulator is seeking penalties of up to $99,000 for each company and up to $19,800 per contravention for Lee.