The Fair Work Ombudsman has secured a penalty in the Federal Circuit Court against the former operator of a hairdressing salon located on the Gold Coast.
The Federal Circuit Court has imposed a penalty of $4,000 against sole trader Hala Dib, who formerly operated a salon trading as Michael Dib Robina in the Pacific Fair Shopping Centre.
The penalty was imposed in response to Ms Dib's failure to comply with two Compliance Notices, which required her to calculate and back-pay any outstanding entitlements to four employees.
Fair Work Ombudsman Sandra Parker said the regulator would continue to enforce laws in a proportionate manner during the COVID-19 pandemic and business operators that fail to act on Compliance Notices need to be aware they can face court-imposed penalties on top of back-payment orders.
"When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements," Ms Parker said.
"Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."
The regulator commenced its investigation following a referral from the Queensland Department of Employment, Small Business and Training. During the investigation, the Fair Work Ombudsman also received a request for assistance from one employee.
A Fair Work Inspector issued a Compliance Notice to Ms Dib in April 2020 after forming a belief that three employees were underpaid their entitlements under the Hair and Beauty Industry Award 2010, including adult apprentice minimum wage and part-time minimum wage entitlements. The underpayments related to work performed between April and May 2019. Two of the employees worked as hairdressers and one employee was completing a hairdressing apprenticeship.
A second Compliance Notice was issued to Ms Dib in July 2020 after the Fair Work Inspector formed a belief that an additional employee, who was aged 16 at the time and employed as a salon assistant, was not paid at all for work performed between June and July 2019, including her entitlements to the minimum wage for a junior employee and weekend penalty rates.
The majority of the underpayments were rectified earlier this year, after the Fair Work Ombudsman commenced legal action. The Court has ordered Ms Dib to rectify the additional super contributions, and a small outstanding amount owed to the employees.
