What kind of information must be included in my employee records?
In Plain English
If you're an employer, you need to keep specific records for each of your employees. These records must be legible, in English, and easily accessible for inspectors.
The records must contain: * Your company's name and ABN (if you have one) * The employee's name * Whether the employee is full-time, part-time, or casual * Whether the employee is permanent, temporary, or casual * The date the employee started working for you * The rate of pay, including gross and net amounts, and any deductions * For casual or irregular part-time employees with guaranteed pay, the hours they worked * Details of any incentive-based payments, bonuses, loadings, penalty rates, or other allowances * If overtime is paid, records of the overtime hours worked * If there's an individual flexibility arrangement, a copy of the agreement and any termination notices * If you've guaranteed annual earnings, a copy of the guarantee and any revocation dates * How the employment ended (e.g., resignation, dismissal) and who made the decision * If a business transfer occurred, employee records concerning a transferring employee must be transferred to the new employer
You must keep these records for seven years (Fair Work Act 2009 section 535(1)). You also have to provide pay slips to employees within one working day of paying them (Fair Work Act 2009 section 536(1)).
Detailed Explanation
Employers have specific obligations regarding employee records, as outlined in the Fair Work Regulations 2009 and the Fair Work Act 2009.
Form and Accessibility:
- Employee records must be legible, in English, and readily accessible to an inspector (Fair Work Regulations 2009 regulation 3.31).
Content of Employee Records:
The Fair Work Regulations 2009 regulation 3.32 specifies the following information must be included in employee records:
- Employer's name (Fair Work Regulations 2009 regulation 3.32(a))
- Employee's name (Fair Work Regulations 2009 regulation 3.32(b))
- Whether the employment is full-time or part-time (Fair Work Regulations 2009 regulation 3.32(c))
- Whether the employment is permanent, temporary, or casual (Fair Work Regulations 2009 regulation 3.32(d))
- The date on which the employment began (Fair Work Regulations 2009 regulation 3.32(e))
- The employer's Australian Business Number (ABN), if any, on or after 1 January 2010 (Fair Work Regulations 2009 regulation 3.32(f))
Pay Records:
Regulation 3.33 outlines the requirements for pay-related information:
- The rate of remuneration paid to the employee (Fair Work Regulations 2009 regulation 3.33(1)(a))
- The gross and net amounts paid to the employee (Fair Work Regulations 2009 regulation 3.33(1)(b))
- Any deductions made from the gross amount paid to the employee (Fair Work Regulations 2009 regulation 3.33(1)(c))
- For casual or irregular part-time employees with a guaranteed rate of pay, the hours worked (Fair Work Regulations 2009 regulation 3.33(2))
- Details of incentive-based payments, bonuses, loadings, penalty rates, or other monetary allowances or separately identifiable entitlements (Fair Work Regulations 2009 regulation 3.33(3))
Overtime Records:
- If a penalty rate or loading is paid for overtime hours, a record specifying those overtime hours (Fair Work Regulations 2009 regulation 3.34)
Other Records:
- If an individual flexibility arrangement is in place, a copy of the agreement and any termination notices (Fair Work Regulations 2009 regulation 3.38)
- If a guarantee of annual earnings is provided, a copy of the guarantee and the date of any revocation (Fair Work Regulations 2009 regulation 3.39)
- Upon termination of employment, a record of whether the termination was by consent, notice, summarily, or in some other manner, and the name of the person who acted to terminate the employment (Fair Work Regulations 2009 regulation 3.40)
- In the event of a transfer of business, the old employer must transfer employee records concerning a transferring employee to the new employer (Fair Work Regulations 2009 regulation 3.41)
Record Keeping Duration:
- Employers must keep employee records for 7 years (Fair Work Act 2009 section 535(1)).
Pay Slips:
- Employers must provide pay slips to employees within one working day of paying them (Fair Work Act 2009 section 536(1)).
Failure to comply with these obligations may result in civil penalties (Fair Work Act 2009 section 535(1), 536(1)).