Cosmetic Injectables Underpayment of Wages Case

A current case in court is a timely reminder of just how important it is to ensure you are paying your staff correctly.

Last month, the Fair Work Ombudsman started legal action against a cosmetic injectables and skin clinic in Sydney for failing to pay staff correctly and non-compliance with the Nurses Award 2010.

The Clinic’s employing entity Rachael Louise Medispa Pty Ltd and its sole trader Rachael Louise Birch, were known to the FWO as a Compliance Notice had been previously issued to company and Ms Birch requiring them to backpay underpaid staff. The company failed to comply with the Compliance Notice and as a result, Ms Birch could personally face a penalty up to $6,600 and Rachael Louise Medispa Pty Ltd could face a maximum penalty of up to $33,000 as well as back-paying the underpaid workers.

While this case focuses on the heath and beaty sector, the key takeaway for all employers, regardless of the industry or sector, is that the FWO is committed to enforcing its power to ensure businesses and individuals are held accountable when they do not pay staff correctly and fail to comply with award terms.

HIES will follow this case and provide updates on the outcome.

If you think your business has made a mistake, we encourage you to undertake a self-audit to ensure staff are classified and paid correctly for all hours worked. Where applicable, make any necessary back payments, and keep in mind that staff can make unpaid wages claim with the FWO for up to 6 years from when the payment was incorrectly made.

Contact HIES for advice and support about wage rates and award compliance.