Business also ordered to back-pay over $6,000 to affected apprentice
A former hairdressing business in Sydney and its ex-director have been fined a total of $58,000 after breaching employment laws and failing to back-pay an apprentice.
Lizzy Hair Design Pty Ltd, which operated in Plumpton, was hit with a $55,000 penalty by the Federal Circuit and Family Court. Sharon Xuereb, the business's former director, was penalised $3,000.
The penalties follow the company's failure to act on a Compliance Notice issued by the Fair Work Ombudsman (FWO), which required the business to calculate and repay entitlements owed to a young worker it employed as an apprentice between May 2018 and June 2022.
In addition to the penalties, the court further ordered Lizzy Hair Design to back-pay the apprentice a total of $6,413, plus interest.
The business received a Compliance Notice in December 2022 after a Fair Work Inspector confirmed that it did not pay the worker's accrued but unused annual leave entitlements when her employment ended.
This is a breach under the requirements of the Hair and Beauty Industry Award 2010 and the Fair Work Act's National Employment Standards, according to the FWO.
Fair Work Ombudsman Anna Booth said employers who do not act on Compliance Notices risk facing penalties in court in addition to back-paying their staff.
"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," Booth said in a statement.
She also underscored the FWO's commitment to protecting young workers, including apprentices.
"Employers also need to be aware that taking action to protect young workers, which can often include apprentices, is among our top priorities. Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance," she said.
