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The Fair Work Ombudsman has commenced legal action in the Federal Circuit Court against the operators of the Bestie House Salon in the Adelaide CBD.

Facing court are Ms Yi Yang and Ms Xurui Zhang.

The regulator investigated after receiving requests for assistance from two visa holders from China, who were employed on a casual basis as beauticians at Bestie House Salon.

A Fair Work Inspector issued a Compliance Notice in April this year after forming a belief that Ms Yang and Ms Zhang had failed to pay the two employees their full wages and entitlements for work performed between September 2018 and June 2019.

The inspector believed that the employees had been underpaid their minimum wages, casual loadings and penalty rates for weekend and public holiday work under the Hair and Beauty Industry Award 2010.

The Fair Work Ombudsman alleges that the Ms Yang and Ms Zhang, without reasonable excuse, failed to comply with the Compliance Notice. The notice required them to calculate and back-pay the workers’ entitlements.

The Fair Work Ombudsman is seeking penalties against Ms Yang and Ms Zhang and a court order requiring them to comply with the Compliance Notice, which includes rectifying any underpayments in full, plus interest.

Ms Yang and Ms Zhang each face a maximum penalty of $6,300. A directions hearing is listed in the Federal Circuit Court in Adelaide on 16 October 2020.