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Beauty Salon Operators In Court Over Alleged Underpayments

Beauty salon operators in court over alleged underpayments

The operators of an Adelaide beauty salon are in court for allegedly underpaying two Chinese workers.

The Fair Work Ombudsman also alleges the operators failed to comply with a Compliance Notice to back-pay the workers.

Beauty salon operators in court over alleged underpayments

Facing the Federal Circuit Court are Ms Yi Yang and Ms Xurui Zhang who operate the Bestie House Salon in the Adelaide CBD.

Fair Work commenced an investigation after receiving complaints from the two workers who are visa holders from China.

Both performed the role of beauticians on a casual basis.

The inspectors believed Bestie House Salon underpaid the workers between September 2018 and June 1019 their:

  • minimum wages;
  • casual loadings;
  • and also penalty rates for weekend and public holiday work.

Compliance Notice

As a result of the investigation, Fair Work issued a Compliance Notice in April this year requiring the business to calculate and back-pay the workers their entitlements.

Fair Work claims it issued the Compliance Notice in addition to making attempts to remind Yang and Zhang to voluntarily comply.

The regulator subsequently allege the pair, without reasonable excuse, failed to comply with the Compliance Notice. 

As a result, it commenced legal action.


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Softy-softy approach doesn’t work

Industrial advocate Miles Heffernan from Fair Work Claims questions the effectiveness of Compliance Notices.

“It seems the softy-softy approach continually used by the regulator doesn’t work,” he said.

“These greedy and incompetent bosses simply don’t take Compliance Notices and also requests by the Fair Work Ombudsman seriously.

“It’s therefore time for the government to make wage theft a criminal offence- then let’s see how many employers continue to steal from their workers.”


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Penalties

Fair Work is seeking penalties against Yang and Zhang and also a court order requiring them to comply with the Compliance Notice.

This includes rectifying any underpayments in full, plus interest.

The pair each face a maximum penalty of $6,300.

The Federal Circuit Court in Adelaide has a directions hearing listed on 16 October 2020.


 Please call our specialist team at Fair Work Claims today on

1300 324 748

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