Record-keeping and pay slip requirements – what you need to know
As an employer, you have specific record-keeping and pay slip obligations that you must comply with. These obligations can be found in the Fair Work Act 2009. It is important to familiarise yourself with these obligations to ensure compliance with the relevant laws and to ultimately protect your employees and your business.
Record-keeping
- All employee records must:
- Be readily accessible
- Be legible and in English
- Be stored for seven years
- Not be altered unless for the purposes of correcting an error
- Not be false or misleading to your knowledge
Ultimately, employee records are private and confidential. Generally, records must only be accessed by:
- The particular employee to which the record relates to
- Yourself as the employer
- Payroll staff
- Fair Work Inspectors and organisation officials (e.g. trade union)
What information must be kept in employee records?
The Fair Work Act 2009 outlines specific information that must be included in all employee records. Broadly, you are required to keep the following records:
- General employee records (i.e. employee’s name, type of employment etc)
- Employee pay records
- Hours of work records
- Leave records
- Superannuation contribution records
- Individual flexibility records
- Guarantee of annual earning records
- Termination records
For more information about the required information for each of the above points, please visit: https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/rights-and-obligations/record-keeping-pay-slips
Pay slips
As an employer, you are required to issue pay slips to each employee. They must be issued in electronic or had copy form, within one working day of pay day (even if an employee is on leave). Pay slips are to be issued and stored securely and confidentially.
The Fair Work Act 2009 details the specific information that must be included on all pay slips. Please visit https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/rights-and-obligations/record-keeping-pay-slips#What-information-must-be-included-on-the-pay-slip for a full list of items/information that must be included on pay slips.
Contravention
The penalties for contravention of your record-keeping and pay slip obligations is severe and potentially damaging for your business.
Fair Work Inspectors have the authority to issue employers with an infringement notice for failing to meet their record-keeping and pay slip obligations under the Fair Work Act 2009.
The maximum fines payable in an infringement notice are:
- $1,260 per contravention for an individual
- $6,300 per contravention for a company
However, employer’s may be taken to court if it is found that their failure to meet their obligations is serious, misleading or repetitive.
The maximum fines payable in court are:
- $12,600 per contravention for an individual
- $63,000 per contravention for a corporation
The maximum fines payable for serious contraventions are:
- $126,000 per contravention for an individual
- $630,000 per contravention for a corporation
Should you require further information on the above, please contact us on 03 9111 5660.
This is general advice only. Liability limited by a scheme approved under Professional Standards Legislation.
Published Jan 22, 2019
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