The Fair Work Ombudsman (FWO) has commenced legal proceedings against Sabcha Pty Ltd, the operator of the P’Nut Street Noodles restaurant chain, alleging nearly $1 million in underpayments to 118 workers across Sydney, Brisbane and the Sunshine Coast.

This case is a timely reminder for all employers—particularly those in the hospitality, fast food and retail sectors—that non-compliance, whether accidental or deliberate, can have significant financial and reputational consequences.

📌 What Happened?

According to the FWO, Sabcha Pty Ltd and one of its directors are facing serious allegations, including:

• Underpaying workers a total of $976,463
• Paying flat rates that failed to meet minimum wage, overtime, penalty rates
• Failing to meet leave entitlements
• Breaching record-keeping and pay slip laws
• Providing false or misleading records to Fair Work inspectors

The alleged breaches occurred between April 2019 and May 2021, with most of the affected employees being migrant workers on student, sponsored, or other temporary visas.

🚨 Key Learnings for Employers

Whether you employ one staff member or a team of 100, the law applies equally—and there are no shortcuts when it comes to fair work practices.

Here’s what every business owner should take away from this case:

1. You Must Pay the Right Rates

Flat rates are not a workaround. If your staff are working overtime, weekends, public holidays or split shifts, you must apply the correct award-based penalties and allowances.

2. Award Interpretation Matters

The most common issues we see relate to misclassification or outdated assumptions about Award coverage. You need to ensure you're paying according to the correct Modern Award, classification level, and entitlements.

3. Record-Keeping Isn’t Optional

Providing accurate payslips, time sheets, and leave records is a legal requirement. Inaccurate or missing records not only make it harder to defend your business—they can result in significant penalties on their own.

4. Visa Holders Are Protected Too

There is a misconception that workers on visas don’t have the same rights. This is simply not true. All workers in Australia, regardless of visa status, are entitled to the same pay and protections.

5. Systemic Non-Compliance Can Get Very Expensive

This case involves alleged systematic breaches, which attract significantly higher penalties under Fair Work’s serious contravention provisions. These can increase maximum penalties tenfold.

🔧 How We Can Help

At HR Dynamics, our goal is to simplify compliance and reduce your risk—without burying you in paperwork.

We help businesses across Australia with:

• Award interpretation and correct pay rates
• Risk-based audits of your payroll, payslips and time records
• WHS risk registers and compliance systems
• Contract and handbook development
• Toolbox talks and staff training, including the new sexual harassment requirements for QLD
• Ongoing HR support to keep you covered all year round

If you're unsure whether your systems would pass a Fair Work audit, now is the time to act—not when it's too late.

📞 Let’s Make Sure You’re Covered

We offer compliance checks, practical advice and real-world solutions to make sure your business is protected and your people are paid fairly.

Need help?
📧 hello@hrdynamics.com.au
📞 0438 735 926
🌐 www.hrdynamics.com.au