Hero Sushi record fine revealed as operators and payroll cop penalties

Hero Sushi franchisees and head office payroll have copped record penalties of $891,000 for underpaying workers and providing false records to the Fair Work Ombudsman.

“This is a case about greed and the exploitation of the vulnerable,” said Federal Court judge Justice Geoffrey Flick.

The significant penalties handed out should dispel any idea such behaviour is simply the “cost of doing business” in the fast food industry, he said.

The Federal Court handed out a $225,000 fine to the companies behind the Newcastle and Canberra outlets, with the operators of the Gold Coast Hero Sushi penalised $150,000.

Company directors and owners Deuk Hee “William” Lee and Hokun “Robert” Hwang were each penalised $85,000.

Three members of Hero Sushi’s head office payroll team have been fined $75,000, $16,000 and $30,000.

Justice Flick said “Those in a position to ruthlessly take advantage of others pursued their goal of seeking to achieve greater profits at the expense of employees.

“In doing so, a great number of false documents were deliberately and repeatedly created with a view to concealing the fraud being perpetrated. Lies were told to cover up the wrongdoing. It was only when the “game was up” that those responsible admitted their misdeeds.”

Fair Work Ombudsman welcomes record penalties

Fair Work Ombudsman Sandra Parker welcomed the record penalties from the court.

“The penalties imposed against Hero Sushi are the largest ever achieved as a result of a Fair Work Ombudsman litigation and demonstrate that employers who deliberately exploit vulnerable workers will face serious consequences,” she said.

“Employers need to be aware that penalties for serious falsification of records have been increased since the conduct occurred in this case and any employer engaging in this sort of conduct today can face even higher penalties and sanctions in Court,” Parker said.

The Fair Work Ombudsman took court action in February last year.