By Cam Lucadou-Wells
A hairdressing chain with a salon in Fountain Gate has underpaid staff across Melbourne an estimated $288,000, according to the Fair Work Ombudsman.
Siajj Pty Ltd, which operates Best Cuts and 67 Colours in Fountain Gate, was found to have underpaid 48 staff a total of $88,000 at its Wantirna South salons between January 2015 and July 2016.
Due to Siajj’s “inadequate record-keeping”, FWO inspectors were unable to calculate the total underpayments for 150 staff across seven salons.
FWO estimates a further $200,000 may be owed to the remaining workers.
“When we come across inadequate record-keeping that prevents our inspectors from determining whether employees are receiving their minimum entitlements, we take these matters very seriously”, Fair Work Ombudsman Natalie James said.
Siajj had failed to pay correct minimum wages, casual loading, weekend and public holiday penalty rates, annual leave loading and leave loading upon termination.
It also failed to implement written agreements for part-time staff, didn’t keep adequate records for part-timers and casuals and incorrectly accrued annual leave entitlements.
As a result of the breaches, Siajj has entered an enforceable undertaking with the FWO.
The undertaking includes a comprehensive review of its payment systems at its other five salons, including the Fountain Gate outlet, and to pay back outstanding wages.
It has also agreed to write apologies to affected employees, to publish an apology on Facebook and make a $10,000 “contrition payment” to Springvale Monash Legal Service.
“In this case, it was determined that entering into an Enforceable Undertaking with this employer, whose representatives expressed contrition at the contraventions, would result in the best outcome for underpaid employees because they are more likely to receive outstanding wages,” Ms James said.
The Fair Work Ombudsman has an online Hairdressing Assist tool at fairwork.gov.au/hairdressingassist.
More details at Fair Work Infoline on 13 13 94 or fairwork.gov.au.
