Salon operators penalised
The Fair Work Ombudsman has secured $27,475 in penalties in court against the operators of a hairdressing and beauty business in Melbourne.
The Federal Circuit and Family Court has imposed a $22,125 penalty against Alexjax Corp Pty Ltd, which trades as Heaven Salons, and a further $5,350 penalty against the company’s sole director and shareholder, Jack Hanna.
The penalties were imposed in response to Alexjax Corp failing to comply with Compliance Notices requiring it to calculate and back-pay entitlements to four workers it employed in beauty, hairdressing and salon-management roles at Heaven Salons outlets in South Yarra and Brighton. The outlets have now closed.
Mr Hanna was involved in the contraventions.
One of the workers, a 24-year-old woman from the United Kingdom, was in Australia on a working holiday visa.
The four workers were owed a total of $12,778 under the Compliance Notices and the majority has already been back-paid. In addition to the penalties, the Court has ordered Alexjax Corp to back-pay the outstanding entitlements, plus pay interest and superannuation.
Acting Fair Work Ombudsman Kristen Hannah said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court on top of having to back-pay workers.
“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Hannah said.
“Any employees with concerns about their pay or entitlements should contact the FWO for free assistance.”
The FWO investigated after receiving a request for assistance from affected workers.
Fair Work Inspectors issued Compliance Notices to Alexjax Corp in May and June 2021 in response to the company variously underpaying four workers’ minimum wages, Saturday penalty rates, annual leave entitlements and payment-in-lieu-of-notice of termination under the Hair and Beauty Industry Award 2010 and the Fair Work Act’s National Employment Standards.
Judge Catherine Symons found that there was a need to impose penalties to deter similar conduct in future and said the failure to fully back-pay the workers and engage meaningfully in the legal proceedings “reflects poorly” on Alexjax Corp and Mr Hanna.
“I do not consider that either respondent has approached the question of compliance in a manner that inspires confidence that, absent appropriate sanction, the same (or similar) conduct would not be repeated,” Judge Symons said.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. An interpreter service is available on 13 14 50.
The Fair Work Ombudsman has an agreement with the Department of Home Affairs, called the Assurance Protocol, where visa holders with work rights can ask for help without fear of visa cancellation. Details are at our visa protection webpage.
Small businesses can find targeted resources at the Small Business Showcase.
