Noodle chain allegedly owes workers almost $1 million

The Fair Work Ombudsman (FWO) has commenced legal action against P’Nut Street Noodles chain for allegedly underpaying workers $1 million.

The FWO alleged that Sabcha Pty Ltd, which employed staff to work across 11 P’Nut Street Noodles restaurants, underpaid 118 workers a total of $976,463. Alleged individual underpayments range from $70 to $79,000.

The regulator is also taking one of the company’s managers and directors, Ankur Sehgal, to court.

P’Nut Street Noodles has seven stores in Sydney, and four in Queensland. The majority of the underpaid staff were migrant workers on sponsored work, student and other visas.

“We are committed to using all powers at our disposal to protect vulnerable workers in this country, and to ensure that employers who deliberately or systematically breach the law face significant consequences,” said Fair Work Ombudsman Anna Booth.

“The alleged scale of underpayment across the P’Nut Street Noodles chain was concerning.”

The FWO received a number of underpayment allegations through its anonymous report tool, triggering the regulator to conduct surprise audits.

During the audits, Fair Work Inspectors discovered the alleged underpayments were the result of Sabcha reportedly paying unlawfully low flat rates. The allegations also state that Sabcha breached record keeping and pay slip obligations, and provided false or misleading time and wage records to inspectors.

“Record-keeping is a bedrock obligation for any employer. We allege Sabcha failed to provide both its employees and our inspectors the accurate pay slips the law demands, instead providing false or misleading records,” said Booth.

“Employers should be aware that taking action to protect migrant workers and improve compliance in the fast food, restaurants, and cafés sector are priorities for the FWO.”

The FWO considers breaches that are committed knowingly and systematically as serious contraventions, which attract a tenfold increase in available maximum penalties.

Sabcha Pty Ltd faces penalties of up to $666,000 per ‘serious convention’ breach. and up to $66,600 for each other breach. Sehgal faces penalties of up to $13,320 per breach.

The regulator is also seeking an order requiring Sabcha Pty Ltd to back-pay all workers in full, plus interest and superannuation.

Photo by Cats Coming.