Good record keeping is more than just an administrative task for employers in Australia; it's a legal obligation under the Fair Work Act 2009.
The Act sets out strict requirements for how employers must manage employee records and payslips. Accurate records ensure compliance with workplace laws, help resolve disputes, and provide transparency for both employers and their workforce.
“In the event of a dispute or investigation, the onus is on an employer to prove that they did the right thing,” advises Steve Forster, Employment Law Expert at Xemplo. “Compliance record keeping is essential for this purpose and can also help you to avoid disputes by providing clear and consistent information to your workforce.”
Failure to comply can result in significant penalties, so it’s essential for businesses, regardless of size, to understand what is required. This article outlines the key record keeping obligations for Australian employers, what must be included in each record, and how long records must be retained.
General requirements for employee records
All employers must keep records for every worker they engage. These records must:
- Be legible and in English
- Be retained for at least seven years (the "retention period’)
- Be readily accessible to the individual worker, a Fair Work Inspector, or other authorised personnel
- Not be altered unless correcting an error, and corrections must not make the record misleading
There can be additional record keeping requirements imposed by specific state legislation. In this guide, we cover requirements for all employers in Australia. Employers must also ensure records are kept confidential and are not provided to anyone other than the employee, their representative, or relevant authorities.
Learn more: Fair Work record-keeping obligations
Records of employment terms
Employers must keep a written record of each employee’s employment terms, including:
- The employee’s name, commencement date, and employment status (full-time, part-time, or casual)
- The nature of their employment agreement, including whether they are covered by an award, enterprise agreement, or individual contract
- Any flexibility arrangements that vary award or agreement terms
The simplest way to achieve this is to issue a legally compliant contract that clearly outlines the terms of employment. With Xemplo’s employment contract builder, employers can access a library of compliant contract clauses to create customised contracts that meet Fair Work requirements.
Pay records
Pay records are one of the most critical obligations that an employer must meet. Employers must record:
- The rate of pay (hourly, salary, or piece rates)
- Gross and net amounts paid
- Any bonuses, penalty rates, or other entitlements
- Any deductions, including superannuation contributions
- The total number of hours worked for casuals and hourly staff
These records must clearly show how an employee’s pay was calculated and align with payslip information. Pay records must also be available to the worker when payment is made and later on request. Where adjustments to normal expected payment are made, a full audit trail explaining the adjustment and reason must be available.
Learn more: Fair Work payslip requirements
With Xemplo’s payroll features, employees can access their entire history of payslips online, reducing admin time for HR teams.
Hours of work records
For employees paid on an hourly basis, employers must record:
- The number of hours worked each day
- The start and finish times, where relevant
For employees on salaries, records of hours generally don’t need to be kept unless overtime or penalty rates are involved. However, you must periodically check that the salary you are paying sufficiently covers any entitlement the employee would have received under a relevant modern award or agreement. Keeping accurate time and attendance data is essential regardless of the remuneration structure, as it supports compliance checks and ensures employees are paid correctly.
With Xemplo’s timesheeting features for employers and staffing agencies, your workforce can quickly and easily complete their time and attendance information online from anywhere using the Xemplo web portal or mobile app.
Overtime & averaging of hours
If an employer and employee agree to average hours of work (for example, across a roster cycle), this agreement must be recorded in writing. This ensures employees can verify that they have received correct entitlements.
Employers must also keep records of:
- Any overtime worked
- The basis on which overtime or penalty rates were calculated
Employers who agree on averaging of hours or have a specialised agreement (such as an EBA) can configure the Xemplo Contract Builder to produce contracts with the required conditions and clauses.
Leave records
Employers are required to maintain comprehensive records of leave, including:
- The type and amount of leave accrued (annual leave, sick leave, carer’s leave, long service leave where applicable)
- Leave taken by the employee
- Current leave balances
Accurate leave records help avoid disputes about entitlements and are particularly important when employment ends, as unused leave must be paid out. They also help your wider team understand workforce availability and trends.
Xemplo manages the entire leave request cycle – including applying for leave, approval, and the management of all leave history for a worker in one place.
Superannuation records
Superannuation is another area where strict record keeping applies. Contributions must be made by an employer for all worker activity that is eligible under the Superannuation Guarantee legislation. Employers must keep records of:
- The amount of superannuation contributions made for each employee
- The dates contributions were paid
- The name of the superannuation fund and the basis on which the employer calculated contributions
These records must demonstrate compliance with Superannuation Guarantee obligations and help ensure employees receive their correct entitlements. For every worker in Xemplo, you can record their preferred fund details, including distribution between multiple funds, as well as payments made (on a worker payslip).
Termination of employment records
Termination is one of the most critical record-keeping points in the worker lifecycle. It’s vital that an employer documents everything that occurs and, before the end of employment, ensures that all worker information is complete and accurate. When an employee leaves, employers must keep records that show:
- Whether the termination was initiated by the employer or the employee
- The date the employment ended
- If notice was provided, the details of that notice (including whether it was paid in lieu)
Termination records are vital in the event of disputes about redundancy pay, notice periods, or unfair dismissal claims. All information must be retained for the full retention period (seven years), even if a worker has left your employment.
Payslips
In addition to records, employers must issue a payslip to each employee within one working day of payment. Payslips can be electronic or paper but must contain:
- The employer’s and employee’s details
- The pay period
- Gross and net pay
- The rate of pay and hours worked (if paid hourly)
- Any allowances, loadings, deductions, or bonuses
- Superannuation contributions and fund details
Payslips provide employees with transparency and evidence of their entitlements. Failing to issue accurate payslips can result in heavy fines. It’s also vital to ensure workers can easily access their payslips to verify payment and raise issues early so they can be rectified.
Record keeping for awards & agreements
Where employees are covered by a modern award or enterprise agreement, employers must also keep records relating to:
- The classification level under the award/agreement
- Any written agreements about annualised salary arrangements or averaging of hours
- Records of any individual flexibility agreements that vary award conditions
This ensures that entitlements under the relevant industrial instrument are met and clearly documented. With Xemplo, workers can be assigned to the correct award and classification based on their role; the platform also provides a library of award definitions, classifications, and rates for easy assignment.
Access to records
Employees have the right to request access to their own employment records and, in some cases, the disposal of certain personal information not subject to retention requirements.
In turn, employers must provide a copy within a reasonable timeframe. Fair Work Inspectors also have authority to access and inspect records to ensure compliance. Failure to grant access may result in penalties and further scrutiny from regulators.
Where a worker requests disposal of information you have retained, you should carefully check Fair Work requirements or consult an employment law expert to understand your obligations.
Keeping compliant records, make it as easy as possible
Record keeping may seem like a back-office task, but like we said before, it's a cornerstone of compliance with Australian workplace law. From pay and hours to leave and termination, each category of records plays a role in protecting both employers and employees.
Businesses that neglect these responsibilities risk significant fines, legal disputes, and reputational damage. On the other end of the spectrum, employers who embrace strong record keeping practices are better positioned to manage compliance, resolve issues quickly, and create a fair workplace for all.
With the right processes and systems in place, it can also be simple and straightforward. By keeping accurate, accessible, and up-to-date records in an easy to use, compliance-focused HR solution for at least seven years, employers not only meet their legal obligations but also build a culture of transparency and trust.
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