The Fair Work Ombudsman has secured a total of $9,075 in penalties in court against the operators of a beauty salon in regional South Australia.
The Federal Circuit and Family Court has imposed a $4,537.50 penalty against each of Frances Fimmano and Rocco Fimmano, as co-trustees for The Trustee for R & R River Trust, which operates Pure Bliss Spa & Beauty in Gawler, north of Adelaide.
The penalties were imposed after Mrs and Mr Fimmano failed to comply with a Compliance Notice requiring them to calculate and back-pay entitlements owed to a casual beauty therapist they employed between February 2021 and March 2022. The worker was aged 23-24 at the time.
The Fimmanos back-paid the worker, plus superannuation and interest, last year after a contested liability hearing.
Fair Work Ombudsman Anna Booth said employers that failed to act on Compliance Notices needed to be aware they could face court-imposed penalties on top of having to pay workers.
"Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and to make payments," Ms Booth said.
"Employers should also be aware that taking action to protect young workers remains a priority for the Fair Work Ombudsman.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance. They can also contact their union if they are a member."
The Fair Work Ombudsman investigated after receiving a request for assistance from the affected worker.
A Fair Work Inspector issued a Compliance Notice to Mrs and Mr Fimmano in December 2022 after forming a belief they had underpaid the worker's casual minimum wages and Saturday penalty rates, owed under the Hair and Beauty Industry Award 2020.
Judge Anastasis Liveris found that the failure to comply with the Compliance Notice was deliberate and the "circumstances of this matter to be serious".
Judge Liveris found that the Fimmanos had "demonstrated a disregard for their obligations under the F[air] W[ork] Act" and had "prioritised their own interests over their responsibilities" to the worker.
"Mrs Fimmano and Mr Fimmano have generally shown a lack of contrition and a lack of insight into the seriousness of their non-compliance," Judge Liveris said.
His Honour also found that "their conduct was one of wilful, conscious non-compliance, that had the effect of depriving [the worker] of her lawful entitlements for a considerable period of time".
Judge Liveris found there was a need for penalties to deter the Fimmanos and other employers from similar conduct in future.
"The efficacy of statutory notices would be hindered or made redundant if the recipients perceive that a failure to comply will not carry meaningful consequences," his Honour said.
