Private Sector Labour Relations Division industrial inspectors have recently conducted a proactive compliance campaign focused on small businesses in the nail and beauty industry.
As part of the compliance campaign, 50 state system nail and beauty salons had their employment records analysed by industrial inspectors to ensure that employees are being paid correctly and that the mandatory employment records are being kept. Of these salons a total of 12 businesses, or nearly 25%, were found to have underpaid one or more employees. A total of $15,877 in underpaid wages was recovered and returned to employees.
Private Sector Labour Relations Division will be extending the proactive compliance campaign in coming months, with a focus on nail salon businesses. All state system nail salon businesses will receive a letter and information brochure as part of the education component of the campaign, and selected businesses will be audited by industrial inspectors from Private Sector Labour Relations to ensure that employees are receiving their correct pay rates entitlements, and business owners are maintaining correct employment records.
An estimated 1,500 businesses employing almost 11,000 employees operate in the personal care industry in WA. This industry includes hairdressing, nail and beauty salons. Approximately three-quarters of these employers are in the state industrial relations system, which covers sole traders, unincorporated partnerships and unincorporated trusts.
Information on minimum rates of pay and leave and other entitlements for nail and beauty industry employees is available on the Wageline website, or by contacting Wageline on 1300 655 266.
Keeping correct employment records and providing records to industrial inspectors when requested to do so is a legal requirement for all state system employers. Penalties can apply if employers fail to comply with these laws. The Wageline website includes six record keeping templates to assist employers meet their legal obligations for employment record keeping.
Employees in the industry who believe they may have been underpaid should contact Wageline on 1300 655 266 or visit the Making a complaint about underpayment of wages or entitlements page on the Wageline website.