Brisbane Training College Faces Court Over Alleged $23,000 Migrant Worker Exploitation
The Fair Work Ombudsman has initiated legal proceedings against the Warwick Institute of Australia, a training college operating campuses in both Sydney and Brisbane. The regulator alleges the institute forced a Brazilian migrant worker to secretly hand back more than $23,000 of her own wages through an unlawful cash repayment scheme.
Details of the Alleged Cashback Scheme
According to court documents filed in the Federal Circuit and Family Court of Australia, the Brazilian national was employed as a marketing officer at the institute's Brisbane CBD campus between July 2019 and February 2022. During this period, she was allegedly compelled to make a series of cash repayments directly to her employer.
The worker was initially employed on a casual basis for approximately seven months before being engaged full-time under a subclass 482 Temporary Skills Shortage visa. The Department of Home Affairs granted Warwick Institute permission to sponsor the worker, with specific conditions including payment of an annual salary of $65,000.
Shortly after securing the visa in February 2020, the worker allegedly paid $6,796 in cash to institute director Charles Shiao. This payment was purportedly to cover sponsorship-related costs. The Fair Work Ombudsman claims further cash payments totaling at least $16,569 were made to the Warwick Institute throughout her employment.
Key Individuals Facing Allegations
Institute director Charles Shiao and former finance manager Xiaowen 'Eva' Xu, who worked within the Times Education Group, will both face court over these allegations. The regulator contends that both individuals were actively involved in the cashback scheme, communicating the requirement for these payments to the worker on behalf of Warwick Institute.
Fair Work Ombudsman Anna Booth described the alleged treatment as serious conduct that would not be tolerated by Australian authorities. 'Unlawful cashback schemes represent some of the most blatant, and can be among the most appalling, forms of worker exploitation,' she stated.
'In this particular case, we allege the worker was required to pay back more than $23,000 of her own money, including $16,569 from wages that she should have been legally entitled to keep,' Booth emphasized.
Legal Consequences and Worker Protections
The company now faces potential penalties of up to $66,600 per contravention, while Mr. Shiao and Ms. Xu each face penalties of up to $6,600 per contravention. The Fair Work Ombudsman is also seeking a court order requiring the company to return all cashback payments to the worker with added interest.
Booth reinforced that protecting vulnerable workers, including visa holders, remains among the regulator's highest priorities. 'All employees working in Australia have the right to receive – and retain – the minimum lawful entitlements applicable to their employment position, regardless of their visa status or nationality,' she affirmed.
Investigation and Legal Proceedings
The Fair Work Ombudsman launched its investigation after the worker submitted a formal request for assistance. Additional allegations include breaches of pay slip laws, further complicating the legal case against the training college.
A directions hearing has been scheduled in the Federal Circuit and Family Court in Sydney for 10 June 2026. The Warwick Institute of Australia offers courses in business, information technology, and real estate across its Australian campuses.
This case highlights ongoing concerns about migrant worker exploitation within Australia's education and employment sectors, particularly involving temporary visa holders who may be less aware of their workplace rights and protections.
