Minimum pay rates for staff – legal employment obligations of beauty salon business owners

Owners of beauty salon businesses which operate in the state industrial relations system must provide the legal minimum pay rate to all staff. It is unlawful for employers to pay employees less than the minimum rate of pay.

Industrial inspectors at the Department of Energy, Mines, Industry Regulation and Safety can initiate court action against employers in the Industrial Magistrates Court for not paying the correct rates of pay.

Beauty salons in the state industrial relations system are those where the businesses operate as:

• sole traders (e.g. Jane Smith trading as Jane’s Beauty),
• unincorporated partnerships (e.g. Jane and Bob Smith trading as Jane’s Beauty)
• unincorporated trust arrangements (e.g. Jane and Bob Smith as trustees for the Smith Family Trust trading as Jane’s Beauty).

Key employment obligations you must comply with:

• Pay all staff at least the minimum rate of pay relevant to their age and for every hour worked in the business. Minimum pay rates for full time, part time and casual staff are in the table below.
• Keep employment records for all employees of the business. The information you need to keep is detailed below. Employers can be penalised up to $5,000 for not keeping employment records, or for keeping inadequate or fraudulent records.
• Provide leave entitlements for all staff as required by the Minimum Conditions of Employment Act 1993 and the Long Service Leave Act 1958. A quick reference guide to leave obligations is provided below, and extensive information on all types of leave is on the Wageline website.

The Employment obligations in beauty salons page on the Wageline website gives beauty salon business owners more information on employment obligations or contact Wageline on 1300 655 266.

Employment records

Business owners must keep employment records for all employees of the business which detail:

• the employee’s name
• the employee’s date of birth if under 21 years of age
• the date the employment started
• total number of hours worked each week (this does not apply to employees earning $45,000 or more per year)
• the gross and net amounts paid to the employee
• all pay deductions and the reasons for them
• all leave taken, whether paid, partly paid or unpaid
• all information required to calculate long service leave entitlements and payment

Employment records must be in English. Employment records can be either written or electronic. Records must be retained for seven years after employment has ended.