RECORD KEEPING REQUIREMENTS – “D” DAY IS TODAY

The Record Keeping and Pay Slip requirements (‘Requirements’) in the Workplace Relations Regulations 2006 are enforceable from today, 27 March 2007.

The Requirements have been watered down considerable from those that were set out at the commencement of the WorkChoices legislation a year ago. They are now a much more simplified set of requirements which reduce the administrative burden on employers. For most employers this will mean, instead of having to record all hours worked, they will only have to record overtime hours where an employee actually works those overtime hours. A summary of the Requirements is set out below.

Record Keeping

Employers are required to keep the following time and wages records:

• the name of the employee and employer;
• the date the employee commenced employment with the employer;
• whether the employee undertakes full-time or part-time work and whether they are engaged as a permanent, temporary or casual employee;
• the rate of remuneration, including the gross and net amount paid and any deductions from the gross amount;
• any penalties, loadings, bonuses, incentive-based payments, other monetary allowances or separately identifiable entitlements paid to the employee;
• leave taken, leave accrued, leave balance and details of any leave which the employee has elected to forgo;
• if a penalty rate or loading must be paid for overtime hours actually worked - the number of overtime hours worked or when the employee started and ceased working overtime hours;
• if the employee is a casual or irregular part-time employee, who is guaranteed a basic periodic rate of pay, the record must include the hours worked by the employee;
• if the employee has agreed to an averaging of the employee’s hours of work, a copy of the written agreement;
• if the employer must make superannuation contributions for the employee (excluding those made to a defined benefit fund) – the amount of the contributions made; the period over which the contributions were made; the dates on which the contributions were made; the name of the superannuation fund; and details in relation to the choice of fund; and
• if an employee’s employment has been terminated – the name of the person who terminated the employment; how the termination took effect (by consent, by notice, summarily or in some other manner) and the date of termination.

Records must be kept in written format in English and retained for 7 years. The records can be kept on a computer so long as they can be printed. Workers or former workers have a right to access their own records. They also need to be available for inspection by workplace inspectors if required. Reasonable assistance is to be provided to a workplace inspector seeking to inspect and copy records. Failure to do so may result in a penalty being applied.

Pay Slips

Employers are required to provide each employee with a pay slip that includes the following information:

• the name of the employee and employer;
• the date of payment and the period to which the pay slip relates;
• the gross and net amount of payment;
• any deductions from the gross amount including the name, or the name and number of the fund or account into which each deduction was paid;
• any bonuses, loadings, monetary allowances, penalties, incentive-based payments or other separately identifiable entitlements paid;
• for employees paid an hourly rate – the ordinary hourly rate of pay, number of hours worked at that rate and the amount of payment at that rate;
• for employees paid an annual rate – that rate as at the latest date to which the payment relates; and
• if the employer must make superannuation contributions for the employee (excluding those made to a defined benefit fund), the amount of each contribution the employer makes or is liable to make during the period to which the pay slip relates, and the name of the superannuation fund.

There is no longer a requirement to include the name of any relevant award/workplace agreement and the employee’s classification on the pay slip.

Pay slips must be issued to employees with this information within one day of the payment of wages to the employee. Pay slips may be issued electronically, for example by email but certain requirements apply.

MAIN IMPLICATIONS FOR EMPLOYERS

• These requirements are considerably less onerous compared to the initial requirements. Majority of the information set out above should already be retained by employers.
• The main requirements are for employers to keep records of overtime hours actually worked by employees and records of all hours worked for casual or irregular part-time employees.
• If you do not have records containing the above details, ensure that you put them in place as a matter of urgency.
• A failure to comply with the requirements is a breach of the legislation and may result in court proceedings being commenced against the employer (particularly if they are serious, wilful or repetitive in nature). Workplace inspectors have the discretion to issue infringement notices as an alternative to court proceedings.
• If court proceedings are commenced and the employer is found to have breached the requirements, penalties may be imposed of up to a maximum of $33,000 per breach.
• The Office of Workplace Services has provided templates to assist employers to comply the requirements. When used correctly, the templates will ensure that employers are meeting their record keeping and pay slip obligations. Please let us know if you would like us to forward a copy of these to you.

If you have any questions in relation to this Update, please contract us.