The Fair Work Ombudsman’s targeted audit campaign across Australia’s Hair & Beauty Industry continues to uncover illegal employment practices with the latest Salon Owner found non-compliant being based in Adelaide. The Ombudsman is now commencing litigation against the Nail Salon and this time it's for underpaying two employees and providing Fair Work Inspectors with false records of the hours their employees worked.
Penalties: As is the case when businesses are found in breach of the Fair Work Act, penalties can be imposed on both the individual business owner/s and their company. So the owner of this Nail Salon must now personally face the Federal Circuit Court and potentially pay penalties of up to $10,800 per breach, as well as his company also facing Court and maximum penalties of up to $54,000 per breach of the Act.
Fair Work inspectors investigated the nail Salon after one of the employees lodged a request for assistance.
What the Inspectors uncovered: Inspectors found that the employees were allegedly paid less than the applicable minimum 'normal' hourly rates and the minimum 'penalty' rates for weekend work as listed in the Hair and Beauty Industry Award 2010. It is alleged that the Salon owner and his company failed to apply loadings and also breached workplace laws by knowingly providing inspectors with false and misleading records that significantly understated the hours the employees had worked, creating an appearance that they had been paid much higher rates than was actually the case. The employees were allegedly underpaid $35,680 and $17,339 respectively.
A word from the Fair Work Ombudsman: The Fair Work Ombudsman, Ms Natalie James says, “This case is another chance to make it clear that the lawful obligations to pay minimum rates apply to all employees – and employers – in Australia and they are not negotiable. It is incumbent on all business owners operating in Australia to understand and apply Australian laws". Ms James reportedly welcomes the Government’s commitments to enhance workplace laws to better protect workers, including increasing applicable penalties for serious record-keeping contraventions.
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