Hairdressing employer ordered to pay long service leave payment

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The Industrial Magistrates Court has ordered a hairdressing salon owner to back pay a former employee $4230.75 in unpaid long service leave and pay in lieu of notice.

In March 2014, Mr Ahmad Hamdan, who operated the N Style Hair Studio in Heathridge, sold his hairdressing business and failed to notify a 57-year-old hairdresser that her employment would not continue with the new owners.

At that time, the hairdressing employee had provided over seven years’ continuous service at the hair salon and was entitled to be paid out proportionate long service leave.

Labour Relations Compliance and Education Director Joseph Lee said today it was important that employers were aware of their long service leave payment obligations.

“Under the Long Service Leave Act 1958, where an employee has provided more than seven years’ continuous service and the employment relationship ends, generally an employer is required to pay the employee a proportionate amount of their long service leave entitlement,” Mr Lee said.

The Industrial Magistrates Court also fined Mr Hamdan $250.00 for failing to provide the employee with appropriate notice of termination and ordered that a further $500.03 be paid to the employee as interest for the delay in making the payment.

“As it has transpired, it has cost the employer more than if he had simply paid the employee correctly at the appropriate time,” Mr Lee said.

“I urge all employers who are unsure of their long service leave payment obligations to contact the Department of Commerce’s free and confidential Wageline service on 1300 655 266.”

 

Labour Relations
Media release
22 Feb 2016

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