Fair Work Ombudsman
Citation: FWO-2023-02-14-ra-barbers-zone-penalty-media-release
At a glance
- Respondent
- R&A Barbers Zone Pty Ltd
- Penalty
- $16,000
- Employees affected
- 1
What happened
The Fair Work Ombudsman investigated R&A Barbers Zone Pty Ltd, which operates 'The Barbers Zone' in Fairfield, and its director, Arsin Yousif. A full-time apprentice hairdresser, an Iraqi national on a humanitarian visa, worked at the salon between February 2019 and September 2020. The business failed to pay the worker all entitlements owed under the National Employment Standards and Hair and Beauty Industry Award 2010, including minimum apprentice wage, penalty rates, and annual leave. The Fair Work Ombudsman issued Compliance Notices, which were not followed. The worker was back-paid $13,760 after legal action commenced.
What was decided
The Federal Circuit and Family Court imposed a $13,336 penalty on R&A Barbers Zone Pty Ltd and a $2,664 penalty on Arsin Yousif. The court found the worker was 'particularly vulnerable' and was 'taken advantage of'. The penalties are intended to deter future breaches and send a message to other employers. The judge highlighted the need for employers to understand that underpaying employees carries a cost that outweighs any benefit. The Fair Work Ombudsman emphasised the importance of complying with Compliance Notices and protecting vulnerable workers.
What it means for employers
Employers must comply with Compliance Notices issued by the Fair Work Ombudsman. Failing to do so can result in significant court-imposed penalties. Businesses should be particularly aware of their obligations to vulnerable workers, such as young workers and visa holders. Taking action to protect these workers is a priority for the FWO.
What it means for employees
Employees, especially those who are young or visa holders, should seek assistance from the Fair Work Ombudsman if they believe they are being underpaid or not receiving their entitlements. The Assurance Protocol protects visa holders who seek help.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →