Melbourne cosmetic clinic operators penalised

The Fair Work Ombudsman (FWO) has secured $28,195 in penalties against the operators of a Melbourne cosmetic clinic following breaches of the Fair Work Act.

The Federal Circuit and Family Court imposed a $23,496 penalty against Port Melbourne Cosmetic Clinic Pty Ltd, which operates the Bayside Skin and Laser Clinic, and an additional $4,699 penalty against the company’s sole director, Robin Abdelmalek, for his involvement in the contraventions.

Breaches identified

The penalties followed the company’s failure to comply with a Compliance Notice requiring it to back-pay two employees, and for issuing a false and misleading pay slip to one of those employees.

The two affected workers, a part time nurse and a full time clinic manager, were employed between August and October 2022. The back pay was only provided after the FWO initiated legal proceedings.

The breaches related to underpayments identified under the Nurses Award 2020 and the National Employment Standards, including:

• Partial payment of the nurse’s final two weeks of employment;

• Failure to pay accrued annual leave on termination; and

• Failure to pay the clinic manager one week’s notice of termination.

Court findings

In handing down her decision, Judge Catherine Symons stressed the importance of deterrence:

“General deterrence must serve a purpose that ensures that any penalty imposed is not seen as ‘the cost of doing business’. Penalties must be set at a level which demonstrates that there are serious consequences for non-compliance, to deter others from failing to comply.”

Judge Symons also highlighted the critical role of pay slip compliance:

“There is a continued need to remind the community of the important role that pay slips play in the protection of employee entitlements.”

Regulator’s position

Fair Work Ombudsman Anna Booth reinforced the seriousness of failing to comply with Compliance Notices:

“Employers who fail to act on these notices risk substantial penalties in addition to the need to pay workers amounts required by such notices.”

She also warned that providing false or misleading pay slips undermines employees’ ability to understand and check their pay.

Key takeaways for employers

• Compliance Notices must be acted upon promptly,  failure to do so may lead to legal proceedings and additional penalties.

• Pay slip accuracy is not optional,  it is a legal requirement to provide correct pay slips within one business day of payment.

• Courts are taking a strong stance on deterrence, making penalties substantial enough to prevent non-compliance being treated as a “cost of doing business.”