"'Ignorance and inattention’: Bubble tea giant Chatime fined for wage scandal", 26 November 2024

Bubble tea chain Chatime and its managing director Chen “Charlley” Zhao have been penalised for underpaying more than 150 employees, some earning rates as low as $7.59 an hour, and many of whom were vulnerable junior workers and international students.

The Federal Circuit and Family Court ordered the bubble tea business to pay $120,960 and Zhao a personal penalty of $11,880 for his involvement in the underpayments.

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In total, 152 workers – including 41 who were aged below 21 and nearly 100 visa holders and international students – were underpaid some $162,533 between August and December 2016.

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Judge Nicholas Manousaridis ruled that Zhao was involved and aware of the essential elements of the contraventions by approving to omit casual loadings and weekend rates, but also found that Zhao did not believe he was committing Chatime to engage in unlawful activity.

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A spokesperson for Chatime Australia said it was pleased Judge Manousaridis had handed down his decision and that the business’ most valuable assets were its people.

“At Chatime we see our employees as family and recognise they are the key to our success,” the spokesperson said.

“We strive to be an employer of choice and uphold our values of being a fair, open and transparent business playing by the rules and being a good corporate citizen.

“We recognise that underpayments are a serious issue impacting the franchise industry (indeed the community at large) and we have made and will continue to make significant improvement in people capabilities (internal and external), business/payroll systems, compliance, training, and education to ensure full compliance at all times.”