Costume jewellery chain Lovisa accused in lawsuit of exploiting its young, mostly female staff

Costume jewellery chain Lovisa’s mostly young female staff were exploited, not given proper meal and rest breaks, and even forced to pay for and wear its products each shift, a lawsuit alleges.

Shoppers at a Lovisa store in Melbourne’s Bourke Street Mall.

Young female staff at costume jewellery chain Lovisa faced a hostile work environment, worked hours outside their paid shifts, undertook training in their own time and were forced to adhere to “unrealistic and unsafe dress standards” such as wearing open-toe and high-heel shoes in the store, a class-action lawsuit claims.

There were instances where women who were adjudged as wearing the wrong type of shoes – such as ones that had zippers or laces – were sent home without pay, while other staff members were not given meal and rest breaks in accordance with enterprise agreements.

One aspect of a 2022 workplace agreement allegedly forced Lovisa staff to wear five pieces of Lovisa jewellery per shift, all funded by the staff member.

Lovisa, which operates more than 900 stores across 45 countries, had allegedly built its successful business model on “exploiting young people” – a damaging accusation against the retailer whose biggest customer base is women and teens.

Lifting the lid on a string of workplace allegations dating back to January 2019, former staff at Lovisa also alleged they were forced to dress up in Lovisa “team pieces” such as headbands, earrings, necklaces and bracelets sold by the retailer and which they had to buy themselves.

According to the statement of claim lodged with the Federal Court, the dress code extended to footwear. Staff member Ayesha Kelso – who is an applicant in the class action – claims she was forced to adhere to a workplace agreement that she wore “dress shoes” in the store and that “no shoes with laces could be worn”.

At one stage other employees had been sent home without pay for failing to comply with the requirement to wear dress shoes, the statement of claim says.

The class action against the company backed and chaired by billionaire retailer Brett Blundy, has been launched by law firm Adero Law which now has more than 300 registered group members who worked for Lovisa between 2018 and 2024.

“The class action claim alleges multiple serious contraventions of Lovisa’s own enterprise

agreements and the Fair Work Act 2009, with the unlawful conduct spanning over a decade and impacting an estimated 1000 current and former employees,” Adero managing principal Rory Markham said.

“Adero Law has been investigating Lovisa Holdings after a number of former employees came forward to complain about what they allege to be appalling and hostile working conditions.

“One former employee has told Adero Law of their view that ‘the whole business is built on exploiting young people’.”

In an 85-page statement of claim, a number of former employees alleged that, in breach of its enterprise agreements, Lovisa engaged in workplace practices such as regularly requiring staff to arrive at the store 15 to 20 minutes before the start of their shift, regardless of whether they were rostered to open the store or start later in the day.

Adero said it had been instructed that staff were not paid overtime or at all for the additional 15 to 20 minutes worked.

Staff were allegedly regularly required to stay back at the end of their closing shift to perform tasks such as cleaning up and balancing the cash register – for which they were not paid.

Staff were allegedly forced to undertake training in their own time, for which they were not

paid and training sessions sometimes went for an hour or more. Employees were allegedly only compensated with Lovisa gift cards.

The statement of claim says Lovisa failed to provide meal and rest breaks in accordance with the enterprise agreements, failed to pay travel, clothing and other allowances and regularly required its staff to purchase products.

“Group members allege that employees were required to purchase store product to wear on

the floor, that there was a requirement to buy and wear the latest or newest pieces and that employees were prohibited from wearing product that was either reduced or no longer available,” Mr Markham said.

“The decision made by Lovisa to exploit their young workforce, many of whom are entering the workforce for the first time, falls far below the standard expected from an international company that prides itself on having a team culture that prioritises respect and dignity.”

In a statement to the ASX, Lovisa acknowledged the class action lawsuit.

“The company takes its obligations under the Fair Work Act and the Lovisa enterprise agreements of 2014 and 2022 very seriously, including obligations to pay overtime, and has processes in place to monitor compliance with employment laws,” it said.

“Lovisa intends to defend the class action proceedings and will provide further updates to the market as and when appropriate.”

Originally published as Costume jewellery chain Lovisa accused in lawsuit of exploiting its young, mostly female staff