New Shanghai at Charlestown fined $300,000 for underpaying staff

PENALTY: The Federal Court of Australia has fined New Shanghai at Charlestown $300,000 for underpaying staff between 2013 and 2014. Picture: Simone De Peak.
PENALTY: The Federal Court of Australia has fined New Shanghai at Charlestown $300,000 for underpaying staff between 2013 and 2014. Picture: Simone De Peak.

THE owners of New Shanghai at Charlestown Square have been fined more than $300,000 for underpaying 85 employees more than $583,000 in just 16 months.

The Federal Court of Australia has also ordered the restaurant repay the remaining $128,000 it owes to the Fair Work Ombudsman in the next 60 days. 

The ombudsman took the restaurant’s Sydney owner, Zhong Yuan “John” Chen, his company NSH North Pty Ltd, and two restaurant managers, Ting “Sarah” Zhu and Jin “Jenna” Xu, to court seeking damages for breaches of employment law obligations and a “systematic failure” to pay employees proper entitlements. The owner and managers had admitted to underpaying 85 staff a total of $583,688.68 between July, 2013, and November, 2014. 

In a published judgement, Federal Court Judge Robert Bromwich ordered the restaurant repay the more than $128,000 that was outstanding to employees and fined the company $301,000. 

Judge Bromwich also ordered Mr Chen pay penalties of $54,672, while Ms Zhu and Ms Xu were fined $21,760 and $18,496, respectively.

New Shanghai.

New Shanghai.