Feb 21st, 2023
A hairdressing salon and its director were recent recipients of legal action by the Fair Work Ombudsman (FWO).
An investigation by the FWO was initiated after receiving a request for assistance from a full-time apprentice that was engaged for a single period between February 2019 and September 2020.
From this investigation, it was determined that the apprentice had not been adequately compensated and was owed a considerable sum of $13, 760 in entitlements in accordance with the Hair and Beauty Industry Award 2020 and the Fair Work Act 2009.
The minimum entitlements that the business failed to compensate for the apprentice included the full-time minimum apprentice wage, Sunday penalty rates, leave loading, JobKeeper entitlements, and annual leave and leave loading upon termination. The apprentice in question was also aged between 18 and 20 during this time, on a humanitarian visa.
It was only after the FWO initiated legal action that the director complied with the Compliance notice and remedied the issue, which involved back-paying the employee $13,760.
Further, the Federal Circuit and Family Court have also imposed a $13, 336 penalty against the business, as well as a separate $2,664 penalty against the company director, in response to a failure to act on the initial Compliance Notice served by the Fair Work Ombudsman.
Overall, the key takeaway from a case such as this is that the FWO will heavily scrutinise employment conditions when investigating workplaces, and is prepared to take strong action if they deem it necessary, particularly when dealing with issues that involve vulnerable workers, such as young workers and workers on a visa, that continue to be a priority for the Ombudsman.
Strong financial penalties can be dealt to businesses where they fail to ensure employees receive their minimum pay entitlements – a business may not just be required to make the appropriate back payment, but they may also be subject to penalties for non-compliance with a Compliance Notice.
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