The Fair Work Ombudsman has secured $28,195 in penalties in court against the operators of a cosmetics clinic in Melbourne.
The Federal Circuit and Family Court has imposed a $23,496 penalty against Port Melbourne Cosmetic Clinic Pty Ltd, which operates Bayside Skin and Laser Clinic in Port Melbourne.
In addition, the court has imposed a $4,699 penalty against the company's sole director, Robin Abdelmalek.
The penalties were imposed after Port Melbourne Cosmetic Clinic admitted breaching the Fair Work Act by failing to comply with a Compliance Notice requiring it to back-pay two workers and providing a false and misleading pay slip to one of the workers.
Mr Abdelmalek was penalised for his involvement in the contraventions.
Port Melbourne Cosmetic Clinic employed the two affected workers at Bayside Skin and Laser Clinic between August and October, 2022. One worker was engaged as a part-time nurse and the other was employed as a full-time clinic manager.
The company paid the amounts owed to the workers only after the Fair Work Ombudsman commenced legal action.
Fair Work Ombudsman Anna Booth said business operators that failed to act on Compliance Notices needed to be aware they could face penalties in court on top of having to pay workers outstanding amounts owed.
"When Compliance Notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties in addition to the need to pay workers amounts required by such notices," Ms Booth said.
Ms Booth said providing false and misleading pay slips was also a serious matter.
"Pay slips provide employees with the clarity they need about their pay, and we expect every employer to follow laws requiring them to provide pay slips to their employees within one business day of them being paid," Ms Booth said.
"Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance."
A Fair Work Inspector issued a Compliance Notice to Port Melbourne Cosmetic Clinic Pty Ltd in June 2023 after forming a belief the company had underpaid the workers' minimum entitlements owed under the Nurses Award 2020 and the Fair Work Act's National Employment Standards.
The inspector formed a belief that the nurse was only partially paid for work performed during the final two weeks of her employment, and was not paid accrued but untaken annual leave entitlements at the end of her employment. The inspector also formed a belief that the clinic manager was not paid one week's wages in lieu of notice of her termination.
In her judgment, Judge Catherine Symons found that there was a need to impose penalties to deter other employers from similar breaches in future.
"It has been repeatedly emphasised in penalty cases that general deterrence must serve a purpose that ensures that any penalty imposed is not seen as 'the cost of doing business'," Judge Symons said.
"Penalties must be set at a level which demonstrates that there are serious consequences for non-compliance, to deter others from failing to comply."
Judge Symons also emphasised the importance of companies adhering to pay slip laws, finding that "there is a continued need to remind the community of the important role that payslips play in the protection of employee entitlements".
The FWO investigated after receiving a request for assistance from the affected workers.
