Former franchisee to appear in court over alleged underpayment

Sarah Stowe

The former franchisee of Lattouf Hair & Day Spa Castle Hill is set to face court after allegedly failing to back-pay an apprentice hairdresser. 

Fair Work inspectors investigated Viper Industries Pty Ltd, as well as the company’s sole director and owner Jack Younes following a complaint from the employee.

They uncovered the apprentice, who was aged 18 and 19 during the period of employment, was allegedly underpaid a total of $6,471 between July 2012 and October 2013.

In April Younes and his company were issued with a Compliance Notice requiring that the underpayment be rectified within 21 days.

The Fair Work Ombudsman alleges they did not responded to either the Compliance Notice or a follow-up letter in June.

Under the Fair Work Act, business operators must comply with Compliance Notices issued by Fair Work inspectors or make a court application for a review if they are seeking to challenge a Notice.

“Our inspectors made extensive efforts to engage with this business operator to try to resolve the matter voluntarily, but were not been able to secure sufficient co-operation,” Fair Work Ombudsman Natalie James said.

The Fair Work Ombudsman also stated it has received several complaints from young workers employed by Younes in the past – and has contacted him on at least 35 occasions.

“The number of complaints from workers and the lack of co-operation from Mr Younes is very concerning.

“Young workers can be vulnerable if they are not fully aware of their rights or are reluctant to complain, so we treat cases involving young workers particularly seriously,” she added.

Younes faces a maximum penalty of $5,100 and Viper Industries faces a maximum penalty of $25,500.

The Fair Work Ombudsman is also seeking Court Orders for Viper Industries to back-pay the apprentice in full.

A directions hearing is listed for the matter on October 15.