0497 002 124
0419 796 550

Would you Survive a $116K Whack to Your Business?

Survive Your Business

As I recently said in an article, “Ignorance of the law is not an excuse.”

In today’s Adelaide Advertiser, 02/10/2018, I found there is something worse than ignorance of your legal obligations. Ignoring a court order.

Zeal Beauty Salon was dissolved in 2014 and phoenixed to become Adelaide Hair Extensions.Phoenixing is the process of shutting down a business to avoid payment of debt such as employee superannuation and holiday pay. Then starting up a new entity with no real changes.

After the company switch, which staff were unaware about, an employee was changed from being a permanent into a casual employee Staff who questioned employment matters were sacked so the employee remained silent for fear of losing her job.

In 2017 the employee took the manager and salon to court and was awarded $2075.40 in back pay.

The salon did not pay the former employee as ordered and was ordered back to court. The salon manager and business failed to appear in court as directed.

As a consequence, Adelaide Hair Extensions have now been ordered to pay $98,000 damages for failing to provide pay slips, keep employee records and for underpaying workers.

It was also ordered to pay $16,000 on top of the $2075.40 backpay.

No mention in the article was made about the possible unfair dismissals, suggesting the company has dodged a bullet with those matters.

Compliance with the Fairwork Act and payroll obligations does not have to be difficult. Nebula Salon Manager in partnership with Wagloch can ensure you are compliant in all of these areas. Salon Manager also provides access to very reasonably priced consultants and lawyers in both HR and WHS when you have a matter requiring expert advice.

It will be interesting to see what happens from 1st July 2019 where all employers will need to report their payroll activity every pay run. Why is the Australian Taxation Office (ATO) phasing this in with 20+ employee, employers already required to do this from 1st July 2018?

Simple! The unscrupulous and lazy minority are forcing the honest majority to jump through more hoops to try and stop employees and the ATO from being ripped off.

As to the question. Would you Survive a $116K Whack to Your Business? Could you?

Go to www.salonmanager.com.au to find out how we can help.