Beauty salon operators penalised by the Fair Work Ombudsman

As a business owner, ensuring your actions are compliant with Australian employment laws is essential for avoiding issues with the Fair Work Ombudsman. If you have been served with a compliance notice, ignoring it can open your company to fines and other actions.

In a case referred to in this media release from the Fair Work Ombudsman, the operators of a beauty salon in South Australia were penalised for not following a Compliance Notice involving back-pay entitlements involving a former casual worker.

The Compliance Notice

This example involves the operators of Pure Bliss Spa & Beauty being issued with a Compliance Notice where they were required to back-pay the entitlements of a casual beauty therapist previously employed at their salon. The former employee informed the Fair Work Ombudsman of the issue. As the business did not act on the notice in time, the operators were both issued with penalties for non-compliance, with their failure to act considered to be serious by the judge.

The penalties

The operators of the salon were penalised a total of $9,075 in court for not following the Compliance Notice issued to them. The salon did back-pay the worker after a contested liability hearing, with the judge seeing the penalties as necessary in order to send a message to other employers that this conduct is unacceptable and will be investigated.

This example amongst various others from Fair Work Australia are exactly why you need to take the utmost care in ensuring you have paid your staff according to the applicable award. Whether it’s intentional or accidental, you will still be held accountable and may have to pay penalties alongside dealing with reputational damage. To help you stay compliant, we offer a library of specialist reviewed HR documents as well as our dedicated 24-hour employment advice line. Book a free demo today for more information!