Sometimes it feels like you need multiple shipping containers or storage units to store all your employee records. In addition to providing expert Workplace Relations advice, GTAG software can help you move to a paperless employee management system, stored securely in the cloud.

The Fair Work Act (the Act) and the Fair Work Regulations (the Regulations) provide a list of records employers must keep about their employees.

How long do I need to keep employee records?

The Act requires employee records to be kept for seven (7) years.

What form do I need to keep the records in?

The Regulations prescribe that records must be:

1.    in english;

2.    in legible form;

3.    in a format readily accessible to an inspector;

4.    accurate; and

5.    not false or misleading to the employer’s knowledge.

What happens if I don’t keep accurate records?

The Act not only says what records you need to keep and how long you need to keep the records, but also what can happen if you don’t.

Firstly, the record keeping obligations are a civil remedy provision, which means you could be fined for not keeping records or making them available for inspection when required.

Secondly, if an employer fails to meet their record keeping obligations, and an employee makes a claim, there is a presumption in favour of the employee and the employer must disprove their claim. Disproving such a claim with no or incomplete records can be a difficult task, exposing the business to additional costs.

There are also significant penalties where an employer makes or keeps records that are known to be misleading or if part of a systemic pattern of behaviour. Where ‘serious contraventions’ are made out, the employer could face maximum penalties of up to $126,000 for an individual or $630,000 for a corporation.

What do I need to keep?

The Regulations state that an employer needs to keep a record of:

• the employer's name; and
• the employee's name; and
• The nature of the employee’s status, i.e. whether the employee's employment is permanent or temporary, full-time, part-time or casual; and
• ·     the date on which the employee's employment began; and
• ·     the employer’s Australian Business Number (ABN); and
• ·     Pay Records, including rate/s of remuneration, gross and net amounts, any deductions, hours worked by the employee at their applicable rates, incentive-based payments, bonuses, loadings, penalty rates and any other separately identifiable amount and;
• ·     Overtime records, including the number of overtime hours worked and when the overtime commenced and ceased; and
• ·     Averaging of hour’s records, that must include a written copy of any agreement relating to the averaging of hours; and
• ·     Leave records including any leave taken by the employee, the balance of the employee’s entitlement, any the details of any agreement, rate and date of payment for cashing out leave arrangements; and
• ·     Superannuation contributions, including the amount of contributions, the period over which contributions were made, the name of the employee’s super fund, the basis on which the employer became liable to make the contribution, the record of election made by the employee and the date of any relevant election; and
• ·     Individual Flexibility Arrangement records, including a copy of the agreement and any copy of the notice or agreement that terminates the arrangement; and
• ·     Guarantee of annual earnings records, including a copy of the guarantee and any revocation; and
• ·     Termination of employment records, including the nature of the termination and whether the termination was by consent, notice, summarily or some other manner and the name of the person who acted to terminate the employment; and
• ·     Transfer of Business records, including the relevant parties (old employer, new employer and employee). An old employer must transfer all relevant employee records to the new employer when there is a transfer of business and the employee transfers to the new employer within the meaning of the Act. The New employer is also required to keep the records as if they had been made by the new employer at the time at which they were made by the old employer.

Who can view the records?

Employers must make a copy of an employee record available for inspection and copying upon request by the employee or former employee to whom the record relates within three (3) business days of receiving the request or post a copy of the record to the employee or former employer within fourteen (14) days of receiving the request where the employer keeps the records on the business premises where the employee worked. Where records are not kept at the premises where the employee worked the employer is required to make the copy available at the business premises where the employee worked or post a copy of the employee record to the employee or former employee as soon as practicable.

Fair Work Inspectors have power vested on them by the Fair Work Act to require a person, by notice, to produce a record or document. If you have received such a request, contact GTAG for further advice.

GTAG can help you meet your obligations. With some simple tips, our Industrial Relations Audits and our employee management system, you will have everything you need.  Contact us today on 02 8355 5111 or help@gtag.net.au.