Razor Edge Barbershop in Point Cook is being investigated by the Fair Work Ombudsman for allegedly failing to pay terminated staff owed leave

A Point Cook barbershop has come under fire for allegedly not paying terminated staff their untaken annual leave.

An alleged dodgy barbershop in Melbourne’s west could be slapped with a $33,300 penalty if found guilty of failing to correctly pay outgoing staff.

The Fair Work Ombudsman has commenced legal action against Razor’s Edge Barbershop in Point Cook, which has closed, and sole director Salvatore Anselmo for allegedly failing to comply with a compliance notice issued after two terminated workers were allegedly not paid their accrued but untaken annual leave in full.

The Fair Work Ombudsman received requests from two ex-part time workers who were employed between March 2018 and June 2021.

One of the workers was from Indonesia and was a visa holder at the time.

A compliance notice was issued to the barbershop in March 2022 after the regulator formed the belief the two workers had not been paid their accrued but untaken annual leave entitlements upon termination, which is owed under fair work standards.

Razor Edge Barbershop has allegedly partially back paid the workers.

The compliance notice required the barbershop to pay back the workers in full and it is alleged Mr Anselmo was involved.

Fair Work Ombudsman Sandra Parker said the regulator would continue to enforce workplace laws and take businesses to court where lawful requests are not complied with.

“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties in addition to back-paying workers,” she said.

“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.” Razor’s Edge Barbershop Pty Ltd faces a penalty of up to $33,300 and Mr Anselmo faces a penalty of up to $6,660.

The regulator is also seeking a court order for Razor’s Edge Barbershop to comply with the Compliance notice, which includes rectifying the alleged underpayments in full, plus interest.

A directions hearing is listed in the Federal Circuit and Family Court in Melbourne later this month.