As HR consultants, we are often asked about the record-keeping obligations businesses must be across in Australia. With so many changes to workplace laws over the last couple of years, it's more important than ever to stay on top of your record-keeping duties. Let's dive into what the Fair Work Act 2009 and Fair Work Regulations 2009 require from employers.

The basics of record-keeping

First things first: all employers in Australia must keep certain records for each employee. These records need to be:

• Kept for at least 7 years
  
  
• In English and legible
  
  
• Readily accessible to Fair Work Inspectors
  
  
• Not altered unless it's to correct an error
  
  
• Not false or misleading

It might seem like a hassle, but good record-keeping protects both you and your employees. Plus, it's the law!

What records do you need to keep?

Here's a breakdown of the essential records you need to maintain:

1. General employment records
   • Employer’s name and employer’s ABN
     
     
   • Employee's name and start date
     
     
   • Whether they're full-time, part-time, casual, or temporary
     
     
2. Pay records
   • Pay rate
     
     
   • Gross and net amounts paid
     
     
   • Any deductions
     
     
   • Details of incentives, bonuses, loadings, penalty rates, or other entitlements
     
     
     
3. Hours worked
   • For casual and irregular part-time employees, you need to record hours worked
     
     
   • For other employees, you need to record overtime hours
     
     
     
4. Leave records
   • Any leave taken including the type (annual, personal etc)
     
     
   • Leave balances
     
     
     
5. Superannuation contributions
   • Amount paid
     
     
   • Date of payment
     
     
   • Employee's chosen super fund.  You also need to keep information that support the reason you are paying into that fund such as paperwork from the employer with their superannuation fund nomination information, as well as the date of their choice.
     
     
     
6. Individual flexibility arrangements
   • If you've made any, keep a copy of the written agreement
     
     
   • Documentation in the event and Individual Flexibility Agreement is terminated
     
     
7. Termination records
   • If an employee leaves, record the reason why (e.g. notice given by employee, summarily, by agreement)
     
     
   • Record of who terminated the employment
     

The importance of payslips

Don't forget about payslips! You must provide these to employees within one working day of payday. They can be electronic or paper, but they need to include specific details like pay rate, gross and net pay, and any deductions.

Why this matters

You might be thinking, "Why all the fuss?" Well, proper record-keeping isn't just about compliance. It helps you:

• Avoid disputes with employees
  
  
• Prove you're paying correctly if questioned
  
  
• Manage your business more effectively
  

Plus, the consequences of non-compliance can be severe.? Up to $66,600 per contravention, or up to $666,000 for serious contraventions. That's not small change!

Tips for staying compliant

1. Clear processes: Whether you use a manual or automated HR system, clear processes for you, your leadership team and your employees will keep you up to date and out of trouble.
   
   
2. Regular audits: Conduct internal audits to ensure your records are up to date and accurate.
   
   
3. Train your team: Make sure anyone handling employee records understands and delivers on the requirements.
   
   
4. Stay informed: Keep up with changes to workplace laws. As always, HR Staff n’  Stuff will alert you to any relevant changes via our newsletter and/or blog.  Make sure you subscribe to keep up to date!

Record-keeping might not be the most exciting part of running a business, but it's crucial. By staying on top of your compliance obligations, you're not just following the law – you're setting your business up for success. To help you out, we have a checklist that you can download and print out and use to help you stay on top of your compliance obligations.

Remember, if you're ever unsure about your obligations, don't hesitate to contact the HR Staff n’ Stuff team with your questions. It's always better to be safe than sorry when it comes to workplace compliance.