A Japanese‑trained head chef dismissed from a Circular Quay omakase restaurant will receive $11,753.84 in compensation after the Fair Work Commission found his firing was harsh, unjust and unreasonable.
Michiaki Miyazaki, who trained in a three‑star Michelin kitchen in Kyoto, was employed by Sydney Omakase Pty Ltd as head chef at Besuto. He relocated from Japan to Sydney in 2023 after being invited to work by restaurateur Joel Best, a man Miyazaki had known for about 20 years.
Miyazaki’s reported remuneration included a $40,000 annual wage, while Best paid for his accommodation at $700 a week, provided flights to Japan twice a year and a gym membership. The commission noted the accommodation deduction was unusually high, with the typical deduction for a person on Miyazaki’s pay usually limited to about $250 a week.
There was no dispute that Miyazaki consumed alcohol while at work. Best told the commission he had sacked the chef over ongoing conduct and performance problems and alleged Miyazaki had been drinking four to five bottles a week without authorisation. Best also relied on what he described as repeated discussions and warnings.
But Deputy President Judith Wright said the relationship between the owner and the chef blurred personal and professional boundaries and that the practice of drinking sake with customers complicated the matter.
"In most employment relationships, [consuming alcohol at work] would be regarded as misconduct justifying dismissal," she said. "Miyazaki may well have thought that as long as he could fulfil his role as head chef, practices such as drinking at work would be tolerated because of their friendship, even if this was not acceptable in other workplaces."
Wright found there was insufficient evidence that Miyazaki had been intoxicated at work, had consumed restaurant alcohol without authorisation, or had breached a direction to stop drinking. The commission also noted there was no evidence of written warnings, no formal complaints from customers or other staff, and that some alleged verbal warnings had been given in informal settings such as a sauna.
The decision highlighted additional practical problems: Miyazaki’s gross weekly pay was below the relevant award rate and his annual leave was calculated on his weekly wage rather than on the higher total that included the accommodation benefit. Wright said it was possible Best effectively paid the chef "in kind" by permitting alcohol consumption after hours given the unusual remuneration arrangements.
The commission found the dismissal was procedurally unfair and that Miyazaki suffered financial hardship after being dismissed without notice, having statutory entitlements withheld, and being evicted from his home and required to vacate the property within five days. Wright said those actions were likely to offend both residential tenancies legislation and the Fair Work Act.
As a remedy, the commission ordered compensation of $11,753.84, equivalent to eight weeks’ pay. The ruling underscores for small hospitality operators the importance of clear, written workplace expectations, proper payroll and benefits arrangements, documented warnings and lawful termination processes to avoid costly unfair‑dismissal findings.
The case provides a cautionary example for restaurateurs and other small businesses that informal arrangements, close personal relationships and workplace practices that differ from local norms can increase legal and financial risk when employment disputes arise.
