Record Keeping Obligations
Employers should keep more than just the records required by law
The information employers must keep in employee records and pay slips is extensive. However, employers often need to keep additional records in order to be able to comply with the obligations relating to pay and conditions. Our Wage Compliance Record Keeping information sheet contains an extended list of the records employers may need to keep.
IncreaseD Penalties
The penalties which apply to certain civil remedy provisions - including those relating to non-compliance with record keeping obligations - increased in February 2024:
from a maximum of $93,900 to $469,500 for businesses with more than 15 employees
to $4,695,000 for serious contraventions done knowingly or recklessly.
Similar increases will apply to all penalties from 1 January 2025 and intentional underpayments will become a criminal offence punishable by a maximum of 10 years imprisonment or $7,825,000 (or three times the value of the underpayment) for a company.
Common mistakes
keeping the records the regulations require but not other records that a modern award or enterprise agreement require
using cookie-cutter employment contracts or templates which do not contain all of the information required by a particular modern award or enterprise agreement
using part-time employment contracts which do not specify the weekly hours, the days of the week and the start and finish times on each of those days for part-time work - which a significant number of modern awards require
time sheets which omit the times at which breaks actually start and finish, especially for employees covered by certain modern awards or enterprise agreements
failing to conduct VEVO checks and keep any additional records to demonstrate compliance with visa requirements or limitations on work
What should employers do?
use the checklist in our Wage Compliance - Record Keeping information sheet to ensure you are keeping all of the required records
consider a free wage audit or an obligation-free call or email
ensure that employment contracts re up-to-date, compliant - just some of the things that should be covered include ordinary hours, days of work, start and finish times and averaging arrangements
keep rosters and time sheets for each pay period for all employees covered by modern awards and enterprise agreements
Contact Hennings Lawyers to discuss how you can prevent or resolve the risk of underpayments and other non-compliance.
