General
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Maintaining Employee Records

4 Lessons None

About this course

Employers have a legal obligation to make and keep accurate records for all of their Employees, and issue pay slips to each Employee. These record keeping and pay slip obligations provide risk management for your business by helping to ensure that Employees receive their correct wages and entitlements.

How to Maintain Employment Records:  

Employers are required to ensure that Employee records are in a legible form and in English, are in a form that is readily accessible to a Fair Work Inspector, not altered unless for the purposes of correcting an error, and must not be false or misleading to the Employer’s knowledge.

The following employment records (when applicable) must be made and kept by an Employer for 7 years:

1.General employment record.  A general record of each Employee that specifies the names of the Employer and Employee, the Employer’s ABN (if any), the nature of the employment (e.g. part time, full time and permanent, temporary, casual), and the date on which the Employee’s employment began.

2.Pay record.  A record of Employee payments must include the rate of remuneration paid to the Employee, the gross and net amounts paid to the Employee, and any deductions made from the gross amount paid to the Employee. The payment records must also mention any other forms of payment that the Employee is entitled to be paid, such as incentive-based payments, a bonus, loading, penalty rates, or another monetary allowance or separately identifiable entitlements. If casual or irregular part-time Employees are guaranteed a rate of pay based on a period of time worked, this must also be included in the Employee pay record.

3.Overtime hour’s record.  A record must be made for any Employee entitled to be paid a penalty rate of loading for overtime hours. The overtime hour’s record must specify the number of overtime hours worked by the Employee during each day, and (if relevant) when the Employee started and ceased working overtime hours.

4.Averaging of hour’s record.  If an Employer and Employee agree in writing to an averaging of the Employee’s hours of work, the Employer must make and keep a copy of the agreement.

5.Leave record.  If an Employee is entitled to leave, a record must be made of the leave entitlements, setting out any leave that the Employee takes, and the balance (if any) of the Employee’s entitlement to leave from time to time. If an Employer and Employee agree to cash out an accrued amount of leave, the Employer must make and keep a copy of the agreement. The agreement must specify the rate of payment for the amount of leave cashed out and when the payment was made to the Employee. ClinLegal have put together a fantastic ‘Leave Application’ form, available on our website through industry specific packages.

6.Superannuation contributions record.  If an Employer is required to make superannuation contributions for an Employee, a record must be kept of these contributions. The record must state the amount of the contributions made, the date on which each contribution was made, and the name of the superannuation fund to which the contribution was made. The record should also indicate the basis on which the Employer became liable to make the contribution, including a record of any election made by the Employees as to the fund to which contributions are to be made, and the date of any relevant election. Employers who contribute a defined benefit interest in a defined benefit fund do not need to record these contributions within the Employee records.

7.Individual flexibility arrangement record.  If an Employer and Employee agree in writing on an individual flexibility arrangement, the Employer must make and keep a copy of the arrangement, and a copy of any notice of or agreement to terminate the arrangement. Not sure how to put together an individual flexibility arrangement? Please see ClinLegal’s contracts.

8.Guarantee of annual earnings record.  If an Employer makes a guarantee of annual earnings to an Employee, the Employer must make and keep a copy of the guarantee. If the Employer revokes the guarantee of annual earnings to an Employee, the Employer must also record the date of the revocation.

9.Termination of employment record.  A record must be made and kept for any termination of employment. The record must state whether the employment was terminated by consent, by notice, summarily, or in some other manner (be specific), and the name of the person who acted to terminate the employment.

10.Transfer of business record. This refers to businesses transferred under the Fair Work Act 2009. At the time of transfer, the old Employer is required to provide to the new Employer all Employee records concerning a transferring Employee. If the transferring Employee becomes an Employee of the new Employer after the business transfer, the new Employer must ask the old Employer to provide the Employee’s records. The old Employer must give the records to the new Employer.

Course Structure

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Who can access Employee records?

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How to Create Pay Slips

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Quiz

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