Proper Record Keeping

Employers regularly receive requests from employees for access to their ‘employee records’. But what exactly do employers need to produce when faced with these requests?

Recent Federal Court decisions provide helpful guidance on what must be produced upon request and, importantly, what does and does not qualify as an ‘employee record’.

What records must be provided, when and in what form

When an employee requests their records, the employer must make a copy available for inspection and copying.

If the record is kept at the employee’s workplace:

• a copy must be available at the premises within three business days.

• or posted to the employee within 14 days.

If records are kept elsewhere, a copy must be made available or posted as soon as practicable.

Records that employers must make, keep and produce on request under the Regulations include:

• General records: Basic particulars such as the employer’s name, employee’s name, employment type and commencement date.

• Pay records: Records relating to an employee’s pay, including the rate of remuneration, the gross and net amounts paid, and any deductions from the gross amount paid.

• Entitlements details: Where an employee is entitled to a bonus, loading, penalty rate, allowance or other separately identifiable entitlement, records must set out the details of that entitlement (including sufficient particulars so an employee can understand the basis and calculation). Payment of an ‘all inclusive’ or annualised salary does not displace these obligations.

• Overtime: If a penalty rate or loading must be paid for overtime hours, the employer must keep a record that specifies either the number of overtime hours worked each day or the start and finish times of overtime.

• Agreements: Copies of specific agreements, such as agreements to average hours, cash out annual leave, or individual flexibility arrangements (IFA).

• Leave: Records relating to leave, including when leave is taken and how much leave an employee has remaining.

• Superannuation contributions: Records relating to superannuation contributions made behalf of the employee.

• Termination of employment: If an employee’s employment is terminated, the employer must record:

o whether the employment was terminated by consent, notice, summarily or in some other manner (specifying the manner); and

o the name of the person who acted to terminate the employment.

It should be noted that the failure to keep proper records can lead to large fines being imposed on employers.