Court orders Melbourne hairdresser to back-pay workers $63,000

19 March 2010

The former operator of a Melbourne hairdressing salon has been ordered to back-pay seven staff more than $63,000 following a prosecution by the Fair Work Ombudsman.

She Hairdressing Pty Ltd, which formerly operated the Snip ‘n’ Shape hairdressing salon at Westfield Shopping Town in Doncaster, has also been fined $7000.

Magistrate Franz Holzer issued the fine and back-payment order in the Melbourne Magistrates’ Court after finding She Hairdressing had committed three breaches of workplace laws by underpaying seven hairdressers it employed.

Magistrate Holzer found the company had failed to pay the employees $4300 in allowances they were entitled to between 2003-2006 and failed to pay the employees more than $59,000 in lieu of notice and severance pay when it sold the Snip ‘n’ Shape business in 2006.

Magistrate Holzer has ordered She Hairdressing to back-pay the workers a total of $63,759, plus interest, in 12 monthly instalments.

Fair Work inspectors discovered the underpayments when they investigated complaints from employees.

Fair Work Ombudsman Executive Director Michael Campbell says the decision to prosecute She Hairdressing was made because of the significant amount involved and the company’s failure to rectify the matter.

“The company has failed to co-operate with us and shown little contrition for its actions but we are happy we have been able to finally secure a good result for the employees,” Mr Campbell said.

“This penalty illustrates to employers that failing to pay employees’ termination entitlements is a serious matter.”

The Fair Work Ombudsman promotes harmonious, productive and co-operative workplaces. It also monitors compliance and investigates breaches of national workplace laws.

Employers or employees seeking assistance should contact the Fair Work Infoline on 13 13 94 or visit www.fwo.gov.au. For translations call 13 14 50.

Media inquiries:

Craig Bildstien, Director Media & Stakeholder Relations,
0419 818 484
craig.bildstien@fwo.gov.au

Ryan Pedler, Media & Stakeholder Relations Senior Adviser
(03) 9954 2561, 0434 365 924
ryan.pedler@fwo.gov.au

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