A government-led compliance campaign has been carried out, focused on small businesses in the nail and beauty industry in Western Australia.

As part of the compliance campaign, 50 nail and beauty salons had their employment records analysed by industrial inspectors to ensure that employees were being paid correctly and that the mandatory employment records were 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.

The compliance campaign will be ongoing, with a focus on nail salon businesses in the coming months.

“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,” said a representative of the Western Australian state industry regulation body.

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.

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.

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