Employers are required to meet a number of record keeping requirements under both federal and state (WA) industrial laws.

 

Record keeping and state industrial laws

 

The federal industrial laws about record keeping apply to all national system employers. State laws in Western Australia apply to all other employers in Western Australia. For more information, visit State Industrial Laws

 

Record keeping and federal industrial laws

 

All national system employers must make records relating to their employees and keep them for at least seven years. If a business is sold or transferred to another person and the employees continue to work for the new employer, the former employer must transfer all records to the new employer who must keep them for the required time.

 

Access to records

 

Monetary penalties can be imposed for failure to keep records as described or to make copies available to employees and workplace inspectors.

Employers must ensure that records are not false or misleading. If errors are discovered in the records or alterations are required, the employer must correct the record soon as the error is noticed and an entry must be made which records the correction.

 

Employees

 

Employees are entitled to information about their employee records and to be told where their records are being kept. In addition, employers must allow employees and former employees to inspect and copy any of their employee records. Records must be given to the employee at the workplace within 3 working days or within 14 days if the record needs to be posted.

If the employee record is not kept where the employee works or worked, the employer must, as soon as practicable after receiving the request make the copy available at the workplace or post a copy of the employee record to the employee or former employee.

 

Workplace inspectors

 

Workplace inspectors are also entitled to inspect and copy employee records and documents which are at the workplace when they are conducting an inspection. They can also require employers to produce employee records and documents within 14 days of a written notice to do so. Workplace inspectors can also keep documents and records if necessary and if they do this they must allow the employer to make a copy.

 

Employment records

 

All employment records must contain the following:

• the name of the employer;
• the name of the employee;
• whether employment is full time or part time;
• whether employment is permanent, casual or temporary; and
• the date the employment began
• the ABN (if any) of the employer

These records can be kept on an employee details form. Here is an example of an Employee Details Form you can use to develop your own.

 

Hours

 

Records of hours of work are required for employees who are entitled to penalty rates or a loading for overtime worked. Records of hours of work must state:

• the number of overtime hours worked by the employee each day; or
• when the employee started and ceased working overtime;
• if an employer and employee reach an agreement regarding averaging of hours, a copy of the agreement must be kept.

If employees are required to fill in a time sheet it will be easier for you to keep records of their hours of work.

Use this example time sheet to develop your own: Full-time and regular part-time employees

 

Pay

 

In administering the payroll, you need to consider:

• pay periods;
• pay days;
• form of payment (cash, cheque, electronic funds transfer);
• provision of pay advice;
• directing payment to a person other than the employee who did the work, where necessary; and
• calculation of pay

Pay records must contain:

• details of the rate of remuneration paid to the employee;
• if the employee is causal or irregular part time with a guaranteed basic periodic rate of pay the employer must keep a record of the hours worked by the employee;
• details of bonuses, incentives, loadings, penalty rates and other monetary allowances or entitlements;
• gross and net amounts paid; and
• deductions

 

Pay slips

 

Employees must receive a pay slip which contains the following information within one day of any payment being made:

• the name of the employer;
• the name of the employee;
• the pay period;
• the date payment is made;
• if the employee is paid by the hour:
  • ­ the ordinary hourly rate
  • ­ the number of ordinary hours being paid
  • ­ the amount of payment for the ordinary hours;
• the gross amount of the payment;
• the net amount of the payment;
• if paid by salary, the rate at the date of the payment;
• details of any incentives, loadings, allowances, penalty rates;
• details of any deductions; and
• superannuation contributions made or liable to be made, including the name and number of the fund
• the ABN (if any) of the employer.

 

Find more information and a sample payslip at Pay slips – Fair Work Ombudsman.

 

Leave

 

Leave records must contain:

• any leave taken by the employee;
• balance of leave from time to time;
• a copy of any election to cash out annual leave; and
• record of the rate of payment for leave forgone and when payment was made.

Keeping leave records will be easier if you require employees to fill out a leave request form.

Termination

 

Termination records must contain:

• whether employment was terminated by consent, notice or summarily, or any other manner; and
• name of the person who terminated the employment of the employee.

 

Individual flexibility agreement

 

If you have an individual flexibility agreement you must keep a copy of:

• the individual flexibility agreement
• any notice or agreement to terminate the individual flexibility agreement.

 

Superannuation

 

Superannuation records must contain:

• name and number of the fund;
• amount of contributions made;
• period over which contributions made;
• date when contributions made;
• the basis upon which the employer became liable to make the contribution;
• a record of any employee election to fund;
• the date of any employee election to fund.

 

Tax

Your accountant will be able to set you right on the tax rates and compliance requirements. There are also some good software packages, usually associated with accounting programs such as MYOB and Quicken. These offer easy to use tax calculators in addition to providing the other requirements such as leave calculations and pay slips.

Larger organisations can contract payroll management services to do this work. Employers simply need to supply employee details and weekly time sheets and they do the rest.

 

Payment of wages and deductions

 

Method and frequency of payment

 

Employers must pay wages at least monthly (non award employees) and by one of the following methods:

• cash;
• cheque, money order, postal order or similar order, payable to the employee;
• electronic funds transfer to credit an account held by the employee;
• a method authorised under a modern award or an enterprise agreement

Wages must be in the form of money. This means that employers and employees cannot agree to wages being paid by other means such as ‘in kind’ for goods and services.

 

The Pastoral Award 2020 and payment of wages

 

The Pastoral Award 2020 provides that wages must be paid weekly or fortnightly.

 

Deductions from wages

 

Employers may only deduct money from an employee’s wages in limited circumstances:

• Employee authorisation:
• The deduction must be authorised in writing by the employee, and must be principally for the employee’s benefit (e.g. on-farm accommodation or utilities).
• If the deduction relates to goods or services provided by the employer, or costs from the employee’s use of the employer’s property, it may also be permitted.
• The written authorisation, must state the amount and purpose of the deduction. Example Authority to Deduct.
• The employee may withdraw the authority in writing at any time.
• If the employee is under 18, the deduction must also be authorised in writing by a parent or guardian.
• Employers should keep a copy of the authorisation with the employee’s employment records.
• Agreement or award authorisation: Deductions are permitted if authorised by:
• an enterprise agreement,
• a modern award, or
• an order of the Fair Work Commission.
• Legal or court authorisation: Deductions may also be made if authorised under:
• Commonwealth, State, or Territory legislation, or
• a court order (e.g. child support payments).
• Limitations:
• Even if authorised under an agreement or award, deductions that are unreasonable or primarily benefit the employer are not permitted.
• Employers must not directly or indirectly require employees to spend part of their wages unreasonably.
• Record-keeping:
• All deductions must appear on the employee’s payslip.

 

 

What is a reasonable deduction?

 

A deduction for goods or services is reasonable if they are provided in the ordinary course of the employer’s business and on the same or better terms as to the public (e.g. milk or meat).

It is also reasonable if it recovers costs directly incurred from the employee’s private use of the employer’s property, whether authorised or not (e.g. petrol for private use of a company vehicle).

For termination payments, deductions (e.g. for annual leave taken in advance) are only permitted if:

• authorised by the employee, or
• allowed under an award or enterprise agreement.

The Pastoral Award 2020 permits such deductions for award-covered employees. Award-free employees must provide written authorisation unless covered by an enterprise agreement.

Unauthorised deductions may attract penalties and can be recovered by employees.