Salon Operator Penalised for Giving an Unfair Cut  

Aug 16th, 2021

The former operator of a hairdressing salon on the Gold Coast has been penalised by the Federal Circuit Court after action was taken by the Fair Work Ombudsman (FWO).

A $4000 penalty has been imposed, in response to a failure to respond to two Compliance Notices, which required the former operator to calculate and backpay the outstanding entitlements owed to four employees.

More so than ever, the FWO is committed to enforcing employment law in the wake of the Covid-19 pandemic, and they’ve warned that any business operators that fail to act on their Compliance Notices must be aware of the court-imposed penalties that can be applied to them.

Any employees that are concerned that they are not receiving their minimum pay or entitlements are welcomed to contact the FWO for free advice and assistance.

The investigation into the hairdressing salon began after they received a referral from the Queensland Department of Employment, Small Business and Training.

The former operator was initially issued a Compliance Notice by a Fair Work Inspector in April 2020 after they came to the belief that three employees, between April and May of 2019, had been underpaid their entitlements according to the Hair and Beauty Industry Award 2010, including the adult apprentice minimum wage, and part-time minimum wage entitlements.

In July 2020 a second Compliance Notice was issued after the Fair Work Inspector formed a belief that another employee, employed as a salon assistant, was not paid at all for the work they performed between June and July of 2019. This included her minimum wage entitlements as well as the appropriate weekend penalty rates.

While most of the underpayment concerns had been corrected earlier in 2021, after the FWO had begun legal action, the Federal Circuit Court has since ordered the former operator to rectify their obligation to pay additional super contributions, as well as a remaining outstanding amount owed to the employees.

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