Unpaid internships have long been a controversial topic in Australia’s workplace landscape. While some placements are lawful when tied to vocational study, businesses must remember that productive work requires lawful payment under the Fair Work Act. A recent case involving Sydney start-up Her Fashion Box Pty Ltd highlights the serious consequences of ignoring these obligations.
Her Fashion Box Pty Ltd
Her Fashion Box was fined $274,278, with director Kathleen Purkis fined $54,855, after underpaying three employees $40,543 between 2013–2015. The Ombudsman secured $329,133 in penalties, noting one graphic designer was wrongly treated as an unpaid intern, paid only $1,000 for six months’ work, leaving her underpaid $6,913. Complaints from the workers prompted the investigation, said Ombudsman Sandra Parker.
Labelling staff as interns doesn’t excuse avoiding lawful entitlements.
Australian law requires minimum award pay for productive work, with unpaid placements only allowed if linked to study. Her Fashion Box underpaid a graphic designer $15,511 over two years and another full-time worker $18,119 in one year.
Judge Manousaridis ruled Ms Purkis failed to pay worker entitlements, imposing a strong penalty to deter others, and noted Her Fashion Box also breached the law by ignoring four Fair Work notices.
Source: www.fairwork.gov.au
Title: Fashion start-up penalised
Read Time: 3 minutes.
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