Fair Work Ombudsman
At a glance
- Yeon Beauty Salon Pty Ltd
- $291,000
- 1
- MA000173
What happened
Yeon Beauty Salon Pty Ltd, trading as ‘Yeon Art Hair’ in Eastwood, Sydney, and its sole director and manager, the Respondent, underpaid a South Korean employee between 2015 and 2019. The employee worked as a hairdresser and was sponsored by the company on a subclass 457 visa. She was required to make unlawful cashback payments to her partner to cover leave entitlements and visa related costs. Fair Work Inspectors investigated after the employee requested assistance. The investigation revealed underpayment of minimum wages, tool allowance, overtime pay, and penalty rates, along with false payslips and failure to keep records.
What was decided
The Federal Circuit and Family Court imposed a $100,000 penalty against Yeon Beauty Salon Pty Ltd and a $39,091.50 penalty against the Respondent. Both parties were ordered to pay the employee $103,036.25 (plus interest) and Yeon Beauty Salon Pty Ltd an additional $49,577.17 (plus interest) in compensation. The Judge stated penalties should be high enough to discourage repetition of the breaches.
What it means for employers
Employers must ensure they comply with minimum wage laws, penalty rates, and other entitlements under the Hair and Beauty Industry Award 2010 and the Fair Work Act. Requiring employees to make cashback payments is unlawful. Accurate record-keeping and payslip issuance are essential. Visa holder employees are entitled to the same protections as Australian citizens.
What it means for employees
Employees, particularly those on temporary visas, should be aware of their workplace rights and seek assistance from the Fair Work Ombudsman if they suspect underpayment or other breaches. The Assurance Protocol protects visa holders who seek help from the Fair Work Ombudsman.
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