Salon operator, company face over $100K penalty for alleged wage underpayment

The Fair Work Ombudsman (FWO) has commenced legal action in the Federal Circuit Court against a hair salon operator in New South Wales after an inspection led it to believe a 17-year-old apprentice was allegedly not paid minimum wage and loading.

Hair Salon faces court for underpaying employee

Picture for representative purpose only. Source: Pixabay/Renee Olmsted

Highlights
  • Fair Work Ombudsman has taken legal action for alleged underpayment of wages against Indian-origin salon operator and company in NSW.
  • The ombudsman has alleged a 17-year-old employee was underpaid minimum wage, overtime loading and weekend penalty rates.
  • My Salon Erina Pty Ltd faces a maximum penalty of $31,500 for non-compliance and a fine up to $63,000 for failing to provide payslips.
The workplace regulator has decided to take My Salon Erina Pty Ltd and its manager Nelvin Nitesh Lal to court after an inspection last year.

My Salon Erina Pty Ltd faces a maximum penalty of $31,500 for failing to comply with the Compliance Notice and a fine of up to $63,000 for failing to provide payslips.

Mr Lal faces a maximum penalty of $6,300 for his alleged involvement in the Compliance Notice contraventions and a fine of up to $12,600 for his alleged involvement in the payslip contravention.

A Fair Work inspector had issued a Compliance Notice to the company in October last year “after forming a belief the employee was underpaid minimum rates, overtime loading and weekend penalty rates under the Hair and Beauty Industry Award 2010.”
Fair Work Ombudsman
Source: facebook.com/fairwork
“The FWO alleges the company, without reasonable excuse, failed to comply with the Compliance Notice. The notice required the company to calculate and back-pay the worker’s entitlements. A failure to provide payslips as required is also alleged. Mr Lal was allegedly involved in the contraventions,” said the FWO in a statement.
The ombudsman commenced investigation after receiving a request for assistance from a worker.

According to FWO, this worker was employed as a first-year hairdressing apprentice at the salon between October 2019 and May 2020.

The employee was aged 17 at the start of the employment period.

“In line with the FWO’s proportionate approach to regulation during the COVID-19 pandemic, the FWO made several attempts to secure voluntary compliance before commencing proceedings,” reads the statement.

“Compliance Notices are important tools used by inspectors to deal with apparent contraventions of the Fair Work Act or industrial instruments, most typically Modern Awards,” said Fair Work Ombudsman Sandra Parker in a statement.

A directions hearing is listed in the Federal Circuit Court in Sydney on 9 April.

SBS Hindi approached My Salon Erina for comment. The manager on duty refused to comment. Mr Lal could not be reached.

Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. A free interpreter service is available on 13 14 50.

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