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Keeping appropriate time records
NATIONAL
Members are required to comply with record-keeping obligations provided in the Fair Work Regulations 2009 (the Regulations) and in any applicable modern award or enterprise agreement.
Overtime
Where an employee is entitled to receive a penalty rate, loading or overtime pay in respect of overtime hours worked by the employee, members are required to make and keep records specifying the number of overtime hours worked on each day and the time that the employee started and ceased working those overtime hours.
Overtime hours are those hours of work that are not ordinary hours of work. Members are to refer to the applicable modern award or enterprise agreement to determine what hours are considered overtime work hours.
Examples of record-keeping that satisfies these obligations in the Regulations include: • Making and maintaining records of rosters that state the specific number of overtime hours worked each shift, including the start and finish times that the overtime hours were worked;
• Requiring employees to complete timesheets that specify the specific number of overtime hours worked each shift, including the start and finish times that the overtime hours were worked, then keeping these timesheets as a record; and
• Maintaining a logbook of each employee’s hours of work which notes the specific number of overtime hours worked each shift, including the start and finish times that the overtime hours were worked.
Averaging of hours
For particular full-time and casual employees covered by the General Retail Industry Award (the GRIA), provisions in respect of averaging of hours can be applied. If a member and an employee agree in writing to an averaging of the employee’s hours of work, the member is required to make and keep a copy of this agreement.
Payslips
Members are required to provide all employees with a payslip within one working day of paying an amount to the employee in relation to the performance of work. Amongst other things, payslips must specify any separately identifiable amount paid to the employee that is overtime pay, a loading or penalty rate. This means that members must be able to identify and record overtime hours, ordinary hours, or hours attracting penalty rates in order to note in payslips any amounts payable in respect of overtime pay, loading or penalty rate.
How long should time records be kept?
Employee records in respect of each employee, as noted in the Regulations, must be kept for at least 7 years.
Under the GRIA, there are certain agreements between a member and an employee that must be kept as a time record. These agreements are as follows: • Individual flexibility arrangements; • Length of work cycle (full-time employees only); • Number of days in the work cycle (full-time employees only); • Maximum length of shifts (full-time employees only); • Substituting rostered days off (fulltime employees only); • Banking rostered day off (full-time employees only); • Minimum consecutive days off; • Regular work on Sundays; • Breaks between work periods on consecutive days; • Substitution of public holiday shift (shift workers only); • Annual leave in advance;
• Substitution of public holidays; and • Agreement to increase guaranteed hours of work (part-time employees only).
Employers who do not comply with their record-keeping and payslip obligations are in breach of the Fair Work Act 2009, Regulations, and the relevant modern award or enterprise agreement. If a breach is established, civil penalties may apply. If you require further advice in respect of record keeping, please contact our Employment Law team on 1800 888
