Travel agency busted for running ‘cashback’ visa scam

Travel agency busted for running ‘cashback’ visa scam

A Melbourne travel agency has come under fire for “charging” workers for staying in Australia on a sponsored visa.

Little Collins St-based agency, Abella Travel, which operates in both Melbs and South Korea, is being taken to the Federal Circuit Court over accusations it ran a “cash back” visa scheme, per Herald Sun.

According to the publication, the Fair Work Ombudsman claims the agency and its director Juong Hyung Lee underpaid two South Korean nationals by more than $17,000 below the minimum wage.

On top of that, they forced one employee to pay back more than $20,000 of her wages in return for her 457-visa sponsorship.

The employee agreed to the demand, and per the Herald Sun was told to pay pack between $289 and $387 in cash each week for around a year in return for her visa, per court documents.

The company has back-paid $6,505.94 to the workers so far, with another $31,822.12 still outstanding.

Per the Herald Sun, Acting Fair Work Ombudsman Mark Scully said the matter was just one of a bunch of ‘cashback’ schemes brought to the courts recently.

“I am concerned that cashback schemes are being utilised by unscrupulous operators in an attempt to get around record keeping laws and disguise serious underpayment of wages,” Scully said, per Herald Sun.

The Abella Travel agency has come under the radar of the Fair Work Ombudsman previously as well, and in 2014 was found to have underpaid another South Korean employee more than $4200.

“Repeated interactions with my agency mean this employer is aware of their workplace obligations in relation to wages rates, leave entitlements and record keeping requirements,” Scully told Herald Sun.

“Visa holders are entitled to the same minimum rates and conditions as Australian workers.

“The fact that we have previously put this employer on notice and the vulnerable status of the employees as visa-holders were significant factors in the decision to commence legal action in this case.”

Latest News

  • Products

Embrace the journey: Traversing the world with the Shokz OpenRun

If you’ve been on the wrong side of a final call in the airport, or missed the stop on rail journey, it might be time to invest in a pair of Shokz OpenRun headphones. Originally marketed as headphones for fitness fanatics, runners or cyclists with a keen to steer clear of a prang with a car, […]

  • Tour Operators
  • Tourism

TTC: Deals are driving up demand for September trips

The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]

  • Aviation

Qantas ‘working urgently’ to fix app data leak

Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]

  • Hotels

Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa

Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]

  • Luxury
  • News

Kamalaya Koh Samui clinches clutch of wellness awards

Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]