Jewellery chain Lovisa to defend new class action over staff underpayment claims

Fashion jewellery chain Lovisa says it will defend a fresh class action over allegations of underpayments and claims it directed staff not to take meal and toilet breaks.

Lovisa in a statement to the Australian Securities Exchange on Thursday acknowledged it had been served with a class action filed in the Federal Court by Canberra-based Adero Law.

The allegations of underpayments cover the period from January 23, 2019, to January 23, 2025.

Lovisa said it took its obligations under the Fair Work Act and its enterprise agreements “very seriously”. This included obligations to pay overtime and have 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,” the company said.

On the law firm’s website, Adero claimed it was also aware of other practices occurring in certain stores, including claims that management directed staff not to take meal and/or toilet breaks during extended shifts and directed staff to work pre-shift and post-shift hours without pay.

According to Adero, there are now over 300 registered group members in the lawsuit, with each having worked for Lovisa between 2018 and 2024.

“Adero Law understands that its sales staff is comprised predominantly of young women (often school or tertiary students) in part-time roles, often guaranteeing as little as four hours per fortnight,” it said.

Adero alleges Lovisa employees were regularly required to arrive at work 15-20 minutes before the start of their shift, regardless of whether they were rostered to open the store or start later in the day.

The law firm was told these workers were not paid overtime, or at all, for the additional minutes they worked.

Employees were also required to stay back at the end of their closing shift to clean up and balance the till.

Staff were also allegedly required to undertake training in their own time, unpaid. Former employees claim they were compensated only with Lovisa gift cards.

Other allegations include failing to pay travel, clothing and other allowances, and regularly requiring staff to purchase product out of their own money, which they were then required to wear while working.

Staff were also allegedly told to clock in and out of their shift based on their rostered time, rather than the actual hours worked.

Adero claimed Lovisa also offered “individual flexibility agreements” that required staff to perform additional hours during Christmas sales periods in contravention of industrial instruments and without payment of appropriate overtime rates.

“We are investigating the underpayments on behalf of casual, part-time and full-time employees of Lovisa,” Adero said on its website.

“This includes team members, senior stylists, assistant store managers, store managers, inventory managers and any other in-store employees.”

Lovisa has previously faced allegations of dodgy pay and work conditions. A former Lovisa warehouse worker in 2023 claimed he witnessed the use of faulty equipment, filthy bathrooms and mouldy boxes.

The Melbourne man at the time also noted high staff turnover and constant issues with shifts and pay.

Lovisa is chaired by billionaire businessman Brett Blundy, who holds a 39 per cent stake in the listed retailer. It has 927 stores in 49 countries.