Lovisa faces class action lawsuit
Australian jewelry retailer Lovisa is facing legal action in the form of a class action lawsuit, which alleges underpayment of employees and other related grievances. The company disclosed this development in a statement to the ASX, revealing that it had been served with a class action lawsuit filed in the Federal Court of Australia by Adero Law. The lawsuit specifically targets alleged underpayments made to employees during the period from January 23, 2019, to January 23, 2025.
Adero Law, the law firm representing the employees, has highlighted additional questionable practices at some stores, including accusations that management instructed staff to forgo meal and toilet breaks during long shifts, work unpaid pre- and post-shift hours, and enter into agreements that required extra work during busy periods without proper compensation. These practices are said to run counter to the Lovisa Enterprise Agreement 2014, which outlines the minimum pay rates and entitlements for employees.
The scope of the investigation by Adero Law extends to all types of employees at Lovisa stores, such as casual, part-time, and full-time workers, including team members, stylists, managers, and other in-store staff. The aim of the legal action is to reclaim any underpayments resulting from breaches of the employment agreement from 2019 to the present.
In response to these allegations, Lovisa emphasized its commitment to adhering to the Fair Work Act and the terms of the Enterprise Agreements of 2014 and 2022. The company stated it has mechanisms in place to ensure compliance with labor laws and intends to defend itself against the class action lawsuit. Further updates on the case will be provided as necessary.
The exact amount of damages sought by the class action lawsuit remains undisclosed. Ragtrader, in pursuit of more information, has reached out to Adero Law for additional details. The legal battle between Lovisa and its employees highlights the importance of fair compensation practices and adherence to labor laws within the retail sector.