Australian jewellery chain Lovisa is being taken to court over allegations of underpayments and other related claims.
The jeweller confirmed the news in an ASX statement, indicating that the business was served with a representative class action proceeding that has been filed in the Federal Court of Australia by Adero Law. The allegations of underpayments to staff are during the period from January 23, 2019 to January 23, 2025.
On the law firm’s website, Adero claims it is also aware of other practices occurring at certain stores, including allegations that management was directing staff to not take meal breaks or toilet breaks during extended shifts, directing staff to work pre-shift and post-shift hours without compensation, and offering ‘Individual Flexibility Agreements’ that require workers to perform additional hours during Christmas sales periods “in contravention of industrial instruments without payment of appropriate overtime rates.”
According to Adero, Lovisa employees working within the stores are covered by the Lovisa Enterprise Agreement 2014, “which specifies the minimum rates of pay and allowances that each person is entitled to expect upon the performance of work.”
“We are investigating the underpayments on behalf of casual, part-time and full-time employees of Lovisa,” Adero’s website post states. “This includes team members, senior stylists, assistant store managers, store managers, inventory managers and any other in-store employees.
“We would seek to recover underpayments due to breaches of the Lovisa Enterprise Agreement 2014, owed to current and former employees from 2019 to current date.”
In the ASX statement, Lovisa reported that it takes its obligations under the Fair Work Act and the Lovisa Enterprise Agreements of 2014 and 2022 “very seriously,” including obligations to pay overtime. Lovisa added it has processes in place to monitor compliance with employment laws.
“Lovisa intends to defend the class action proceedings and will provide further updates to the market as and when appropriate.”
It is unclear how much in damages the class action lawsuit is seeking. Ragtrader has reached out to Adero Law for further updates.