Her Fashion Box Kathleen Purkis underpaying staff $40,000
A Sydney based fashion company that found its feet on Channel Ten’s Shark Tank has been accused of exploiting staff and running an illegal unpaid internship program.
Her Fashion Box founder and owner Kathleen Enyd Purkis was offered a $200,000 deal when she appeared on Shark Tank in May 2016.
Investigators from the federal workplace watchdog allege the fashion company underpaid staff by more than $40,000 and paid others nothing at all.
Her Fashion Box founder and owner Kathleen Purkis was offered a $200,000 deal when she appeared on Shark Tank in May 2016
Documents submitted to the courts allege Ms Purkis grossly undercut the pay of three staff aged in their mid 20s.
Staff were allegedly underpaid in their minimum hourly rates, overtime, public holiday pay and annual leave entitlements.
The documents show one employee at Her Fashion Box was allegedly underpaid by $18,000 in one year.
Another employee who worked for the business as a graphic designer was allegedly underpaid by $15,500 over a two year period.
A third employee, also a graphic designer, allegedly worked two days a week for nearly six months without payment – before being thrown a one-off $1000.
Her Fashion Box founder and owner Kathleen Purkis grew the company in Sydney
Her Fashion Box founder Kathleen Purkis (far left) posing with friends during a night on the town
Fair Work Ombudsman Natalie James said they were alerted by a number of requests for assistance from staff at the company dating back to 2015.
Ms James said many of complaints stemming from the company were to do with the ‘unpaid internship’ Ms Purkis offered.
‘The law prohibits the exploitation of workers by characterising them as ‘interns’ or as doing ‘work experience’ when they are fulfilling the role of an employee,’ Ms James said.
Her Fashion Box founder and owner Kathleen Purkis was offered a $200,000 deal when she appeared on Shark Tank in May 2016
Ms Purkis (left) refused to hand over documents upon request, according to the Fair Work Ombudsman
‘Such workers must be paid minimum employee entitlements.’
‘Employers cannot simply choose to label an employee as an ‘intern’ in order to avoid paying their staff according to their lawful entitlements.’
Ms James said Ms Purkis refused to hand over documents to the Fair Work Ombudsman upon request.
She said Ms Purkis refused to comply with four demands from the Ombudsman.
Ms James said her agency took legal action on Wednesday.
Ms James (left) said Ms Purkis refused to hand over documents to the Fair Work Ombudsman upon request
Ms Purkis pictured on a Youtube clip advertising the contents of Her Fashion Box
The legal action is just the most recent in a string of legal issues Her Fashion Box has courted.
The New South Wales Fair Trading received complaints about the business in 2016 when consumers claimed they never received their products.
NSW Fair Trading said customers never saw their products, failed to get a refund, and struggled to close their accounts with the business – which continued deducting payments from their bank accounts.
Her Fashion Box faces maximum penalties of $51,000 per contravention, while Ms Purkis faces personal penalties of up to $10,200 per contravention.
The Fair Work Ombudsman is also seeking court orders requiring Ms Pukis to back-pay the employees in full.
Her Fashion Box did not respond to Daily Mail Australia’s requests for comment on Thursday.
Her Fashion Box offers ‘classic’, ‘feminine’ and ‘trendy’ boxes to its customers each quarter
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