17 June 2023: Employee Records and Payslip Requirements

Jul 17, 2023

Employee Records and Pay Slip Requirements

The Fair Work Act 2009 (‘the Act’) and the Fair Work Regulations 2009 (‘the Regulations’) require employers to make, keep and maintain accurate and complete records for all employees and to issue pay slips within one working day of being paid. Failure to comply with the following requirements may give rise to civil penalties of up to $8,250 per breach, so it is important you are mindful of the below obligations.

Employee Records

The below employee records must be kept by the employer for a period of 7 years, must be properly maintained and must be legible and readily accessible to an inspector.

Employers must keep an accurate record in respect to each of its employees that clearly states the employee’s full name, the employee’s employment status (full-time, part-time, permanent, temporary or casual) and the date on which the employee’s employment began.

Note: the best way to keep this information in one place is by having employment contracts for all employees, including all casual staff.

The Regulations also require you to keep a record in respect of each employee about:

  • Their pay, including:
    1. the rate of remuneration paid to the employee; including the gross and net amounts paid
    2. any deductions made from the gross amount paid to the employee;
  • the details of any incentive-based payment, bonus, loading, penalty rate, allowance or separately identifiable entitlement;
    1. for casual and irregular part-time employee, the number of hours worked;
    2. for any overtime hours worked, the number of overtime hours worked each day and the start and finishing time of the overtime hours.
  • Averaging arrangements, specifically a copy of the agreement reached between employer and employee about the averaging of the employee’s hours of work.
  • Leave entitlements, including a record of each respective leave balance, and of any leave that the employee takes. If an agreement is made to cash out an accrued amount of leave, the record must include a copy of the agreement, the rate of payment for the amount of leave cashed out and when the payment was made.
  • Superannuation contributions including a record of the amount of the contributions made, when the contribution was made and for which period and the name of the fund to which the contribution was made.
  • Termination of employment, including whether the employment was terminated by consent, by notice or summarily or in some other manner, as well as the name of the person who acted to terminate the employment.
  • Individual Flexibility Arrangement, including a copy of the agreement and a copy of any notice terminating that agreement.
  • Guarantee of annual earnings, including a copy of the guarantee and any revocation of the guarantee, pursuant to section 330 of the Act.

Pay Slips

Employers are required to provide pay slips to employees within 1 business day of payment being made, either electronically or as hard copy. The pay slip must include:

  • the name and ABN of the employer, and the name of the employee;
  • the period to which the payslip relates, and the date on which payment was made;
  • the gross and net amount of the payment, and any deductions from the gross amount;
  • any amount paid to the employee that is a bonus, loading (including casual loading), allowance, penalty rate, incentive-based payment or separately identifiable entitlement;
  • if the employee is paid at an hourly rate, the rate of pay for the ordinary hours, the number of hours worked and the amount of payment made at that rate;
  • if the employee is paid at an annual rate of pay, the payslip was include the rate as at the latest date to which the payment relates; and
  • the details of the superannuation contributions, including to which fund and the amount paid.

Although the Regulations do not require leave balances to be recorded on payslips, it is considered best practice to do so.

Note: The Regulations prohibit the recording of family and domestic violence leave on an employee’s payslip, including whether the employee has accessed this leave type, or displaying their accrued family and domestic violence leave balance on the pay slip.

Wage Guides - If you have not yet received our wage guides, please call us on 07 3221 6999 or email er@qha.org.au for a copy.