Mr Lam is a property developer as well as the founder and sole shareholder of Award Mortgaging Solutions, which boasts turnover of more than $1.5 billion a year.
According to FWO’s statement of claim, agents for Mr Lam allegedly recruited the nanny directly from the Philippines.
She was allegedly required to work from 6am to 11pm on weekdays and 7am to 11pm on weekends, totalling between 88 and 106 hours a week with breaks of just 90 minutes a day.
The nanny was also allegedly directed to sleep in the same room as Mr Lam’s youngest child in his $2.3 million luxury penthouse apartment in Maestri Towers, Sussex Street.
For her 12 months work, Mr Lam paid her the equivalent of $12,574 directly into her Philippines-based bank account.
Spread across her alleged hours, the FWO claims the salary equated to just $2.33 an hour.
Under minimum award rates, the FWO argues she should have been paid between $17.29 and $18.91 an hour and up to $37.82 for overtime hours.
There is no award that specifically covers nannies or domestic workers so the FWO is arguing they come under the Miscellaneous Award, which covers employees who are not covered by any other award.
If the court finds against this claim, the FWO will allege the nanny was entitled to the national minimum wage and so underpaid $85,834.
The FWO, which is seeking penalties as well as backpay, has also alleged that Mr Lam’s wife was an accessory to the underpayments.
The investigation was sparked by a referral from the immigration department following anonymous reports on the worker’s conditions.
The case is set for mention on October 29.