Bestie House Salon owners to face court accused of underpaying workers
The owners of a beauty salon will face court after failing to pay back their staff nearly a year’s worth of entitlements and failing to comply with the Fair Work Ombudsman.
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An Adelaide beauty salon accused of underpaying staff and not paying penalty rates is facing Federal Court after investigations from the Fair Work Ombudsman.
Bestie House Salon, which offers nail and eyelash services, in Field St in the CBD, was investigated by Ombudsman Sandra Parker after requests from two visa holders from China employed on a casual basis as beauticians at the salon.
Owners Yi Yang and Xurui Zhang were issued a compliance notice in April 2020, after investigations revealed they allegedly failed to pay the employees their full wages and entitlements from September 2018 to June 2019.
Ms Parker believed the employers underpaid staff their minimum wages, casual loading and penalty rates for weekend and public holiday work under the Hair and Beauty Industry Award 2010.
It is alleged Ms Yang and Ms Zhang failed to co-operate with the compliance notice, which required them to calculate and backpay the out-of-pocket workers.
The Fair Work Ombudsman’s approach to regulation during the COVID-19 pandemic meant Ms Parker made attempts to secure compliance before legal action was taken.
“Under the Fair Work Act, compliance notices are important tools used by inspectors if they form a belief that an employer has breached workplace laws,” Ms Parker said.
“Where our requests are not complied with, we will take appropriate action to protect employees. A court can order business operators to pay penalties in addition to back-paying workers.”
The court order by Ms Parker seeks penalties against Ms Yang and Ms Zhang, and a court order requiring they comply with the compliance notice. Underpayments should be reimbursed to staff in addition to interest, which would have accumulated.
Ms Yang and Ms Zhang each face a maximum penalty of $6300. They will face the Federal Circuit Court in Adelaide in October.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance,” Ms Parker said.