[Australia] Sydney restaurateur ‘knowingly underpaid’ migrant workers $162,000

In Australia, the Fair Work Ombudsman has started legal action against a Sydney restaurateur who allegedly knowingly underpaid dozens of migrant workers more than $162,000, despite having been put on notice.

Katsuyoshi ‘Ken’ Sadamatsu part-owned and was centrally involved in running the Miso World Square Japanese restaurant in Haymarket. Mr Sadamatsu placed the employer, Miso Pty Ltd, into liquidation in 2024. The restaurant closed in early 2025, and the employer, Miso Pty Ltd, was deregistered.

The Fair Work Ombudsman reportedly investigated the restaurant as part of an audit campaign. It is alleged that its investigation found that Mr Sadamatsu was involved in paying staff at Miso World Square unlawfully low flat rates of $19 to $27 an hour.

This allegedly resulted in underpayment of their overtime rates and penalty rates for weekend and public holiday work under the Restaurant Industry Award 2020. Additional allegations include underpayment of accrued annual leave on termination entitlements and split-shift allowances, and breaches of record-keeping laws.

Alleged underpayments per individual range from under $100 to $19,017.

The majority of the affected workers were visa holders from a range of countries in Asia, most from Thailand, Indonesia or Japan, and 36 were reportedly young workers, aged between 19 and 24 at the time.

The Fair Work Ombudsman alleges that the underpayments occurred despite Mr Sadamatsu and his family’s companies having entered into Enforceable Undertakings with the Fair Work Ombudsman in 2011 in response to $679,000 in underpayments of 180 staff across four Sydney restaurants.

It previously formally cautioned Mr Sadamatsu about underpayments in August 2020.

Fair Work Ombudsman Anna Booth stated that the alleged knowing underpayment of vulnerable migrant workers warranted litigation and the pursuit of penalties.

“It is completely unacceptable that these alleged underpayments have occurred despite the Fair Work Ombudsman having squarely put Mr Sadamatsu on notice of the need to comply with workplace laws and having previously offered him assistance to rectify compliance issues,” she said.

“When we encounter alleged deliberate underpayments of vulnerable migrant workers, we will do everything within our power to hold individuals involved in that exploitation to account.

“This type of alleged conduct will not be tolerated. The alleged underpayments were significant for the workers.

“Employers also need to be aware that taking action to protect migrant workers and young workers, and improve compliance in the fast food, restaurant and café sector, are long-term FWO priorities,” Ms Booth added.

The FWO is reportedly seeking penalties against Mr Sadamatsu for multiple alleged breaches of the Fair Work Act. He faces penalties of up to $133,200 per breach for the alleged serious contraventions, and of up to $13,320 per breach for the other alleged contraventions. It is also seeking court orders requiring him to rectify the alleged underpayments in full, plus interest and superannuation.

A directions hearing is listed in the Federal Circuit and Family Court in Sydney on March 12, 2026.

The FWO says, “Migrant workers have the same rights and protections under the Fair Work Act as other employees in Australia, and protections exist for their visa if they call out any breaches.”

Source: Fair Work Ombudsman

(Link and quotes via original reporting)

In Australia, the Fair Work Ombudsman has started legal action against a Sydney restaurateur who allegedly knowingly underpaid dozens of migrant workers more than $162,000, despite having been put on notice.

Katsuyoshi ‘Ken’ Sadamatsu part-owned and was centrally involved in running the Miso World Square Japanese restaurant in Haymarket. Mr Sadamatsu placed the employer, Miso Pty Ltd, into liquidation in 2024. The restaurant closed in early 2025, and the employer, Miso Pty Ltd, was deregistered.

The Fair Work Ombudsman reportedly investigated the restaurant as part of an audit campaign. It is alleged that its investigation found that Mr Sadamatsu was involved in paying staff at Miso World Square unlawfully low flat rates of $19 to $27 an hour.

This allegedly resulted in underpayment of their overtime rates and penalty rates for weekend and public holiday work under the Restaurant Industry Award 2020. Additional allegations include underpayment of accrued annual leave on termination entitlements and split-shift allowances, and breaches of record-keeping laws.

Alleged underpayments per individual range from under $100 to $19,017.

The majority of the affected workers were visa holders from a range of countries in Asia, most from Thailand, Indonesia or Japan, and 36 were reportedly young workers, aged between 19 and 24 at the time.

The Fair Work Ombudsman alleges that the underpayments occurred despite Mr Sadamatsu and his family’s companies having entered into Enforceable Undertakings with the Fair Work Ombudsman in 2011 in response to $679,000 in underpayments of 180 staff across four Sydney restaurants.

It previously formally cautioned Mr Sadamatsu about underpayments in August 2020.

Fair Work Ombudsman Anna Booth stated that the alleged knowing underpayment of vulnerable migrant workers warranted litigation and the pursuit of penalties.

“It is completely unacceptable that these alleged underpayments have occurred despite the Fair Work Ombudsman having squarely put Mr Sadamatsu on notice of the need to comply with workplace laws and having previously offered him assistance to rectify compliance issues,” she said.

“When we encounter alleged deliberate underpayments of vulnerable migrant workers, we will do everything within our power to hold individuals involved in that exploitation to account.

“This type of alleged conduct will not be tolerated. The alleged underpayments were significant for the workers.

“Employers also need to be aware that taking action to protect migrant workers and young workers, and improve compliance in the fast food, restaurant and café sector, are long-term FWO priorities,” Ms Booth added.

The FWO is reportedly seeking penalties against Mr Sadamatsu for multiple alleged breaches of the Fair Work Act. He faces penalties of up to $133,200 per breach for the alleged serious contraventions, and of up to $13,320 per breach for the other alleged contraventions. It is also seeking court orders requiring him to rectify the alleged underpayments in full, plus interest and superannuation.

A directions hearing is listed in the Federal Circuit and Family Court in Sydney on March 12, 2026.

The FWO says, “Migrant workers have the same rights and protections under the Fair Work Act as other employees in Australia, and protections exist for their visa if they call out any breaches.”

Source: Fair Work Ombudsman

(Link and quotes via original reporting)