A franchise operator at the PappaRich Malaysian food chain was allegedly involved in underpaying more than 150 workers at three Sydney eateries, according to the Fair Work Ombudsman (FWO).

Key points: PappaRich employees in three eateries were allegedly paid flat rates as low as $13 to $14.50 per hour

PappaRich employees in three eateries were allegedly paid flat rates as low as $13 to $14.50 per hour This allegedly resulted in underpayment of their hourly rates, overtime rates and casual loadings under the award

This allegedly resulted in underpayment of their hourly rates, overtime rates and casual loadings under the award Ombudsman Sandra Parker said some of the employees were migrant workers on student and working holiday visas

The ombudsman is taking action against the manager-operator of the PappaRich franchise outlet at Macquarie Park and former manager-operator of PappaRich restaurants in Chatswood and on Liverpool Street in Sydney's CBD, Loke Cheng Wong.

It said he is alleged to have underpaid 154 workers by a total of $74,000.

The FWO is also taking action against two companies Mr Wong is a director and part owner of, PPR Ryde (NSW) and Gateharvest, for alleged involvement in some of the underpayments.

It alleges that between May 29 and July 2, 2017, employees at the three PappaRich outlets were allegedly paid flat rates as low as $13 to $14.50 per hour.

This resulted in underpayment of their ordinary hourly rates, penalty rates, overtime rates and casual loadings under the Restaurant Industry Award 2010.

It is alleged that 73 employees who worked primarily at PappaRich Macquarie Park were underpaid to the tune of $34,834.

A further 42 employees at PappaRich Chatswood were allegedly underpaid $22,533, and 39 employees at the PappaRich Sydney CBD outlet were allegedly underpaid $16,633.

Some of the employees worked at more than one of the three restaurants.

The FWO also alleges that laws relating to annual and personal leave entitlements, written agreements with part-time employees, minimum engagement pay, split-shift allowances, record-keeping and pay slips were breached by Mr Wong and his companies.

Mr Wong faces penalties of up to $12,600 per contravention, and the maximum penalty for PPR Ryde (NSW) and Gateharvest is up to $63,000 per contravention.

The Fair Work Ombudsman Sandra Parker said a number of the affected PappaRich employees were migrant workers on student and working holiday visas.

"All workers in Australia have the same rights, regardless of citizenship or visa status, and we encourage anyone with concerns about their pay to contact the Fair Work Ombudsman," she said.

"We have an agreement with the Department of Home Affairs where visa holders can seek our help without fear of their visa being cancelled."

An 'isolated' case

PappaRich general manager Jian Lee said this was an isolated case and that there were no issues identified in the chain's other stores across the country.

The popular Malaysian eatery was established in 2005 when its first outlet opened in Kuala Lumpur, Malaysia.

The business has since expanded rapidly, with 29 outlets now operating across Australia.

Mr Lee said the company was first notified of the FWO investigation into the Sydney franchise operator in June last year.

He said the company had worked with franchisee and FWO "to ensure compliance at those three stores" and to ensure affected workers were repaid.

The FWO said all employees had been paid back in full, except for two who have not yet been located.

Mr Lee said PappaRich was providing its workforce with ongoing training and "working hard to ensure compliance across the group and that everyone is doing the right thing".

Ms Parker said enforcing compliance with workplace laws in the fast food, restaurant and catering sector continues to be a priority for the FWO.

"Franchise outlets are on notice that they must pay all employees according to Australia's lawful minimum pay rates," she said.

The FWO is also seeking court orders requiring Mr Wong, PPR Ryde (NSW) and Gateharvest to register on the ombudsman's website and complete workplace relations training.

A hearing is listed in the Federal Circuit Court in Sydney on May 3.