A chain of Melbourne based hairdressing salons has been
obliged to enter into an enforceable undertaking with the Fair Work Ombudsman
to avoid prosecution after the agency uncovered widespread underpayment of
employees.
In mid-2016 two former employees approached the FWO claiming
that they had not been paid accrued annual leave on termination of employment.
One of the employees also alleged that penalty rates had not
been paid for work on Sundays and public holidays.
The investigation the FWO conducted found that numerous employees
had been underpaid a total of $88,000.00 over an eighteen month period.
The employer behind Best Cuts and Colours and What’s Up Hair
agreed, as part of the enforceable undertaking, to write letters of apology to
each of its underpaid employees and make a “contrition payment” to Monash
Oakleigh Legal Service of $10,000.
Because the employer cooperated in the investigation the FWO
thought that the best way of ensuring the underpaid employees received their
correct pay was by having the employer enter the enforceable undertaking rather
than prosecuting.
This case demonstrates the importance of employers knowing
and complying with their obligations under a modern award.
If you are an employer who has had an inquiry from the FWO
we have the lawyers who can advise you through the process.
