Employers are required under Federal law to keep and maintain records for all of their employees.
Take our quick checklist to see if your business is following the requirements under the Federal Fair Work Act 2009 and the Fair Work Regulations 2009.
- Do you issue pay slips within one working day of payment?
- Do you keep employee records for seven years?
- Do you have leave and termination records?
- Have pay slips been issued with the correct information including the employer’s Australian Business Number (ABN)?
- Do you keep a record of the hours worked by all employees including casuals?
If the answer is ‘no’ or ‘not sure’ to any of the above questions, your business may not be complying with the legal requirements.
There are a variety of employee records that employers must keep such as:
- general records including the type of employment, the employer’s ABN and name, the date an employee started and the employee’s name;
- hours worked;
- pay records;
- leave records;
- superannuation contributions; and
- termination records.
Failure to keep any of the above records may result in associated penalties and fines. The Fair Work Ombudsman (FWO) regularly conducts audits and educational campaigns of businesses to ensure and enforce compliance in relation to employment records and documents. The FWO can issue employers with infringement notices, similar to on-the-spot fines, within 12 months of any alleged breach. Individuals can be fined up to $330 and a body corporate up to $1,650 per contravention from an infringement notice.
Other Necessary Documentation
It is also recommended that you follow best practice by making sure you have written employment contracts with all employees. Employment contracts are useful because they define the terms and conditions of the employment in relation to wages, duties and termination. These contracts may also save you from potentially costly disputes and help businesses protect themselves from possible disagreements that may arise.
Written contracts should include the following essential details:
- employee duties;
- status (full-time, part-time, casual, fixed term);
- position title and classification;
- whether an industrial instrument, e.g. a Modern Award, is applicable;
- wages; and
- termination provisions.
Employment contracts can also cover other areas such as leave entitlements, bonuses, confidentiality and organisational practices and procedures. In drafting employment contracts, it is important that the relevant Modern Award and the National Employment Standards under the Federal Fair Work Act 2009 are taken into account.
Need more help?
There is a team of dedicated and experienced Business Advisers that can assist you with any queries. The service is free for members and provides unlimited access to free verbal advice. Call the Telephone Advisory Service on 08 8300 0101.
Need Useful Resources?
Business SA has a publication available that can help you with understanding your legal requirements in relation to employment documentation and records. The Employment Documentation Package - 4th Edition has all of the required leave records as well as draft letters of appointment/contracts of employment that are ready to tailor to your business’ specific needs. It also contains all the essential pro forma employment letters, forms and checklists covering recruitment through to management and termination of employees to help you ensure your compliance.