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Business & WorkAustralia · 2017

Calombaris: back-pay, collapse and the workers left outside the safety net

The wage revelations began in 2017. After MAdE collapsed in 2020, government payments covered some former employees’ entitlements, with others excluded.

THE ORIGINAL STORY3 April 2017
ABC News
4 April 2017
George Calombaris apologises after restaurant empire underpays staff up to $2.6m
George Calombaris in the photograph accompanying ABC’s original 2017 wage-underpayment reportAAP: Network Ten
Read the original report

The wage revelations began in 2017.

The Sydney Morning Herald first published the $2.6 million underpayment news on 3 April 2017. ABC’s report the next morning covered the same disclosure and Calombaris’s apology. Its credited photograph identifies the chef whose restaurant group was being reported on. These are the original wage reports, rather than later stories about the group’s collapse. The original figure was subsequently revised upwards by the regulator.

THEN WHAT?

Back-pay was followed by a different entitlement bill.

Editorial illustration associated with the restaurant-group follow-up

The regulator recorded $7.83 million in MAdE back-pay in 2019. After the 2020 collapse, The Age reported nearly $1 million in government payments, while temporary visa workers were excluded from that assistance. Final recoveries for every worker have not been verified.

Back-pay and undertaking · Fair Work Ombudsman · 18 July 2019

The story, in dates

Event dates
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The back-pay bill grew

The Fair Work Ombudsman recorded that MAdE had repaid $7,832,953 in wages and superannuation to 515 current or former employees for work between 2011 and 2017. Another $16,371 was repaid to nine Jimmy Grants employees. The regulator found problems with salary reconciliations and staff classifications. MAdE entered a court-enforceable undertaking, including a $200,000 contrition payment and annual external pay audits until 2022. This was a regulatory undertaking, not a criminal conviction or a court-imposed fine.

Back-pay and undertaking · Fair Work Ombudsman · 18 July 2019

The group entered administration

ABC reported the administrators’ appointment to 22 MAdE companies, excluding Yo-Chi. Most venues stopped trading immediately. The administrators cited declining trade and wider trading pressures; the collapse should not be reduced to a single cause. Their announcement said wages and superannuation had been paid up to appointment. That statement did not establish payment of every leave or redundancy entitlement arising from the closures.

Administration announcement · ABC · 10 February 2020

Government payments did not cover every worker

The Age reported that nearly $1 million had been paid through the federal Fair Entitlements Guarantee to cover part of the group’s employee-entitlement debt. Its reporters interviewed eligible workers who said they had received what they were owed. The same report said at least 27 temporary visa workers had received no payment through that scheme. It cited liquidators’ expectations of limited recoveries from company assets. Those were the circumstances reported in June 2020, not a verified account of each worker’s position today.

Payments and excluded workers · The Age · 29 June 2020

The safety net has limits

The department’s current guidance says the scheme may cover unpaid wages, leave, notice and redundancy, subject to eligibility and caps. It does not cover unpaid superannuation. At the end of employment, a claimant must have been an Australian citizen or held a permanent or special category visa, among other conditions. These rules explain the distinction between an employment debt and government assistance; they do not establish the final recovery in an individual MAdE claim.

Government safety net · Department of Employment and Workplace Relations · Eligibility and exclusions · Department of Employment and Workplace Relations

Sources for this update

  1. 01Back-pay and undertaking · Fair Work Ombudsman · 18 July 2019
  2. 02Administration announcement · ABC · 10 February 2020
  3. 03Payments and excluded workers · The Age · 29 June 2020
  4. 04Government safety net · Department of Employment and Workplace Relations
  5. 05Eligibility and exclusions · Department of Employment and Workplace Relations

The story continues when the evidence does.

Status checked on 10 October 2026. The June 2020 report documents a payment step and a gap in scheme eligibility. A complete later account of the liquidation distributions and every former employee’s recovery has not been obtained. It would be inaccurate to say either that everyone was repaid or that the workers excluded in 2020 remain unpaid today.

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