Coffee Club makes worker pay back wages

The worker was told his visa would be revoked if he didn't pay up. Photo / 123rf

A Brisbane Coffee Club franchisee is facing court for allegedly forcing an overseas worker to pay back A$18,000 ($19,420) in wages.

The Fair Work Ombudsman has commenced legal action against Saandeep Chokhani, who owns and runs the Coffee Club at Nundah Village Shopping Centre, and his company Gaura Nitai Pty Ltd.

The watchdog alleges Chokhani underpaid an Indian national in his late 20s who was sponsored to work as a cook on a 457 skilled worker visa.

The worker, who approached the Ombudsman for help after his employment was terminated without notice in November 2015, was promised an annual salary of $53,900, but was paid "significantly less" and went for long periods without being paid at all.

The FWO alleges that in 2015, after paying the worker $19,334 by electronic transfer for one four-month period the previous year, Chokhani then told the worker to withdraw $18,000 and repay it to him or his 457 visa would be cancelled.

The worker withdrew the money and gave it to Chokhani. Overall, it is alleged the worker was underpaid $23,546 between September 2013 and November 2015, which has now been paid in full.

Chokhani faces penalties of up to $10,800 per contravention and Gaura Nitai Pty Ltd faces penalties of up to $54,000 per contravention. A penalty hearing is scheduled for the Federal Circuit Court in Brisbane on June 2.

The FWO has recently started proceedings against a number of business for similar "cashback" arrangements, including cafes in Sydney and the Gold Coast.

"It is hard to see a legitimate reason why an employer would require employees to be regularly paying back significant parts of their wage," Fair Work Ombudsman Natalie James said.

"I am concerned that cashback schemes are being utilised by unscrupulous operators in an attempt to get around record-keeping laws and disguise serious underpayment of wages. We welcome the government's commitment to strengthen laws to explicitly cover cashback arrangements."

News.com.au has contacted Chokhani for comment.