Accounting Firm Accused of Withholding Wages from Nepalese Worker in Cashback Scheme

31 July 2025 | Sydney

In a disturbing case of alleged exploitation within the Nepalese-Australian community, the Fair Work Ombudsman (FWO) has launched legal action against a Sydney-based accounting and financial services firm owned by a Nepalese national, accusing it of systematically underpaying and deceiving a fellow Nepalese migrant worker.

Facing court is Innovative Associates Pty Ltd and its sole director, Dila Ram Kharel, also of Nepalese background. The case centres around the company’s treatment of a Nepalese woman, who was employed as a part-time assistant accountant from July 2019 to December 2020 while on a temporary graduate visa.

According to the FWO, the worker was not paid any wages for the first 10 weeks of her employment. She was then allegedly forced to pay back her wages, superannuation, and tax into bank accounts controlled by Mr Kharel, in what authorities describe as an unlawful “cashback” scheme designed to make it appear that legal obligations were being met.

Between October 2019 and December 2020, the worker was required to deposit $32,907 into accounts linked to Mr Kharel, while receiving $27,873.50 back as wages—leaving her with nothing for the work she performed over more than a year. The Fair Work Ombudsman alleges that the scheme left the worker with zero net income despite working continuously.

The FWO further alleges that false payslips were provided to inspectors, and the firm failed to pay the worker’s public holiday entitlements and her accrued annual leave.

“This case is especially troubling because it involves exploitation by someone from the same cultural and linguistic background,” said Fair Work Ombudsman Anna Booth. “Visa holders are often vulnerable, and this kind of conduct erodes trust within migrant communities.”

The total underpayment, including all entitlements, is alleged to be $40,164.49, which has now been repaid. However, legal proceedings are continuing.

The Ombudsman is seeking maximum penalties of up to $66,600 per contravention for the company and $13,320 per contravention for Mr Kharel. A directions hearing is set for 18 August 2025 in the Federal Circuit and Family Court in Sydney.

The FWO is urging all workers, including those from migrant backgrounds, to speak up without fear. Visa protections exist for workers reporting mistreatment, regardless of their immigration status.