AN INTERNATIONAL student was short-changed more than $23,000 by her employer because she was “not an Aussie”, the Fair Work Ombudsman has found.

The 27-year-old woman from Nepal was paid a flat rate of $12 an hour by the Health Express takeaway at the DFO South Wharf in Melbourne.

According to the FWO, the student alleges her employer threatened to cancel her visa if she complained to the employment watchdog.

Health Express owner Jeffrey Herscu allegedly made it clear to the student she would be paid less because she was an overseas worker.

“When I came for the interview, he said that I will give you the job, but as you are not an Aussie, I will be paying you a lesser amount,” she told Fair Work inspectors.

“It was really embarrassing for me. I had Australian friends who were doing the same kind of work, but were getting paid over $20 an hour.”

The FWO found the student was underpaid $23,500 between September 2013 and March 2015. Another employee, a 31-year-old male international student from India, was found to have been underpaid $27,300 between June 2010 and March 2015.

Mr Herscu has agreed to apologise and back-pay the $50,000.

He must also place a public notice in the Herald Sun newspaper and make a $5000 donation to the Western Community Legal Centre to promote workplace rights for vulnerable employees.

Fair Work Ombudsman Natalie James said the watchdog treats the exploitation of overseas workers seriously. “Anyone operating a business needs to ensure they take the time to understand our workplace laws applicable to their workplace,” she said.

“Employers simply cannot undercut the minimum lawful entitlements of their employees based on what they think the job may be worth, what the employee is happy to accept, what other businesses are paying, or what the job may pay in their country of origin.”

Mr Herscu declined to comment when contacted by news.com.au.

frank.chung@news.com.au