Sydney Employer Dila Ram Kharel Accused of Exploiting Migrant Worker in Wage Cashback Scheme

What We Know

The Fair Work Ombudsman (FWO) has taken legal action against Innovative Associates Pty Ltd and its sole director, Dila Ram Kharel, for allegedly forcing a Nepalese migrant worker to return all her wages through an unlawful cashback scheme.

According to the official press release, the worker was employed part-time as an assistant accountant from July 2019 to December 2020 while on a temporary graduate visa. During this period, she allegedly received no net wages despite more than a year of employment.

The FWO claims that for the first ten weeks, the worker was not paid at all. Then, between October 2019 and December 2020, she was reportedly required to transfer a total of $32,907 into bank accounts controlled by Mr. Kharel. Those funds were allegedly funneled back into the company’s account to simulate wage payments — including for tax and superannuation obligations — effectively leaving the worker unpaid.

Although $27,873.50 was returned to her in wages on paper, the arrangement meant she never kept any of her earnings. The FWO argues this constitutes a blatant breach of Australia’s minimum wage laws and workplace protections.

What They’re Saying

Fair Work Ombudsman Anna Booth condemned the alleged conduct, calling it a severe example of worker exploitation. She said the cashback scheme appeared to be a deliberate attempt to “give the impression” of compliance while depriving the employee of lawful entitlements.

Booth emphasized that unlawful cashback arrangements are among “the most blatant and appalling forms of exploitation,” and confirmed that targeting such conduct — especially involving visa holders — remains a top enforcement priority for the agency.

She also reminded workers that Australian labor laws apply regardless of visa status and encouraged migrant workers to report unfair practices without fear.

The Big Picture

Beyond the wage violations, the company is also accused of failing to provide proper pay slips, not paying for public holidays or accrued leave, and submitting false documentation to Fair Work inspectors. The FWO calculated the total underpayment at $40,164.49 — an amount that has since been reimbursed to the worker.

Mr. Kharel is alleged to have been directly involved in all the contraventions. The FWO is seeking maximum penalties for each offense. For the cashback scheme alone, Innovative Associates faces fines of up to $66,600, while Kharel could be fined up to $13,320. Additional breaches carry similar penalties per violation.

A directions hearing is scheduled for August 18, 2025, in the Federal Circuit and Family Court in Sydney. The case is part of a broader trend: in the seven years leading up to June 2024, the FWO filed 146 lawsuits involving visa holder workers and recovered nearly $23 million in penalties.

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