Lovisa has been served with a class action lawsuit over alleged underpayment of staff and other related claims.
The jewellery and accessories retailer confirmed the news in a statement to the Australian Securities Exchange (ASX) on Thursday, saying it intends to defend the representative class action in the Federal Court of Australia.
The lawsuit, led by law firm Adero Law, is based on allegations of underpayment and other workplace issues dating back to January 2019 and the firm is investigating whether Lovisa failed to properly compensate its employees, particularly when it comes to overtime and breaks.
Pedestrians in front of a Lovisa jewelry store in Wellington, New Zealand. (Source: Mark Coote/Bloomberg via Getty Images)
According to Adero’s website, it became aware of practices in certain stores such as staff instructed not to take meal breaks or toilet breaks during periods of extended shifts, to work hours outside their shifts without compensation, and work additional hours during Christmas sales periods without payment of appropriate overtime rates.
All Lovisa staff are covered by the Lovisa Enterprise Agreement 2014, which sets out the minimum pay and benefits employees are entitled to. Adero Law said it is looking into whether this agreement may have been breached for team members, store managers, senior stylists, and other in-store workers.
Meanwhile, Lovisa said it will defend against the class action, explaining it takes its obligations under the Fair Work Act and the Lovisa Enterprise Agreements of 2014 and 2022 “very seriously”.
This includes obligations to pay overtime, with processes in place to monitor compliance with employment laws, it said.
“Lovisa intends to defend the class action proceedings and will provide further updates to the market as and when appropriate,” the jewellery retailer said in a statement.
Lovisa has previously faced allegations of dodgy pay and work conditions. In 2023, a former Lovisa warehouse worker alleged that he witnessed the use of faulty equipment, filthy bathrooms, and mouldy boxes that posed a health risk to workers, during his two years at the company.
A former warehouse worker has previously alleged dodgy work conditions at the company. (Source: Bet_Noire / Getty Images)
Speaking to news.com.au, Daniel Sedigh — who began work in the Aussie jewellery giant’s Hawthorn warehouse in 2015 — said he regularly had to work with rusty box cutters, unstable ladders with broken wheels, and dodgy trolleys.
“The wheels to these ladders just didn’t work,” he told the publication.
“When you’re on it, it’s very wobbly. It’s fine if you are up one or two levels. But if you have to go up all the way up — things get scary.
“You don’t have anybody there — like the protocol wasn’t for somebody just stop their packing to hold the ladder for you.”
According to news.com.au, Sedigh reportedly sent an email imploring Lovisa’s Human Resources department to address his concerns.
At the time, he also told the publication he was considering joining Adero Law’s potential class action lawsuit against the company.
Prior to this, a number of people believed to be former workers at Lovisa also took to TikTok to slam the company.
One TikToker claimed they were berated by a manager for not being at work at 10 AM on a day where they were rostered to start at 1.15 PM. When they explained they were attending a doctor’s appointment having a heart monitor installed, they alleged management pressured them to leave the appointment to attend work.
Another TikToker, who commented on the video, said they were allegedly berated for not coming into a shift despite being hospitalised.
According to Adero Law, individuals, including former workers, can join the class action if they worked for the company between 2016 and 2022.
Lead image: Mark Coote/Bloomberg via Getty Images
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