Payslips and Record Keeping

Payslips and accurate record keeping are essential to protecting workers from wage theft. The Fair Work Act 2009 (Section 536) and the Fair Work Regulations 2009 (Reg 3.46) detail the rules around payslip requirements and record keeping. This includes:

• Keeping a record of hours worked and wages paid
• Issuing payslips to each employee
• Recording any leave taken and the balance of leave remaining

Payslips

Your employer must give you a payslip within one working day of your pay day. It should be sent to you electronically or as a hard copy.

The Fair Work Act 2009 and the Fair Work Regulations 2009 set out what must be included on your payslip. All payslips in Australia must have:

• The employer’s name and ABN (if any)
• Your name
• The date of the payment
• The pay period
• The gross (before tax) and net (after tax) amount of payment
• Any loadings, allowances, bonuses, penalty rates or other payments
• Any deductions made

There are other payslip requirements depending on your employment type and entitlements, including:

• If your employer is required to pay superannuation contributions,
  • The amount of the contribution
  • The name, or name and number, of the superannuation fund the contributions were made
• If you are paid at an hourly rate
  • What the ordinary hourly pay rate is
  • The number of hours paid at that rate
  • The amount of payment made at that rate
• If you are paid an annual rate of pay (salary), what the rate of pay was on the last day of the pay period.

Record Keeping

Your employer is required by law to keep accurate employee records. They must be in English and must be kept for seven years. They are private and should only be accessed by you, your employer and any relevant payroll staff.

You can give your union access to your records if you need support in a workplace matter. Employers must also make records available to Fair Work inspectors if they are investigating your workplace.

 The records your employer must keep are explained below.

General records

General records include your name, the date you started employment and your type of employment (permanent, temporary, casual, full or part-time).

Whether a small business or a large corporation, every employer must keep the records of their employees required by the Fair Work Act and the Fair Work Regulations. By ensuring these records are kept, both parties can ensure employees are correctly paid and are afforded all leave and other entitlements as required by law.

Pay records

Pay records must include your rate of pay, your ordinary hourly rate, the gross and net amount of your pay, any deductions and any other types of payments like penalty rates, bonuses or leave loading. This makes it easier for employers to keep track of payments and to generate a payslip in Australia.

Leave records

If you are entitled to leave, your employer must keep a record of any leave taken and the balance of your remaining leave. Records should also include any agreements made with your employer about using leave in advance or cashing out your leave.

Hours of work records

Your employer must keep records of your hours of work in the following cases:

• If you are a casual worker or irregular part-time employee who is guaranteed a pay rate set by the time you work
• If you are entitled to a penalty rate or loading for overtime hours worked

They must also keep a record of any written agreements with you about your hours such as taking time off instead of being paid for overtime hours.

Superannuation contributions records

When paying you, your employer must keep a record of any superannuation contributions made, the pay period they relate to, the date of each contribution, and the fund’s name. A record must be kept if you have requested super contributions be paid into your chosen fund.

Ending employment

Employers must keep track of any employee who has had their position terminated within the company. This means recording how the employment was terminated – whether it was a mutual agreement or some other way, whether notice was provided and if so, how much, and the name of the person who ended the employment.

Other records

In addition to the records already mentioned, your employer must keep a record of any other agreements you have made with them. This might include individual flexibility arrangements, annualised wage arrangements, annual earning guarantees and employee transfer records.

What Happens if Adequate Records Aren’t Kept?

If an employer does not keep adequate employment records  they can be fined.  They can also be taken to court and can be penalised.

In addition, if an employee alleges that they were underpaid, contrary to a requirement under a modern Award or Enterprise Agreement, but their employer did not keep adequate employment records as required by the Fair Work Act and Regulations, it will be for the employer to disprove the allegation (rather than it being for the employee to prove, as is usual).

Adequate records also help to ensure that payroll is run smoothly and efficiently. It can be difficult to determine things like an employee’s correct pay rate or leave entitlements without records. This can lead to errors and overpayments, which can be costly for businesses.

Your rights

Your employer is required by law to keep employment records and issue payslips. You have the right to a copy of your employee records, and you can give your union permission to access them. Contact your union immediately if you suspect your employer has not been meeting its legal responsibilities.

Failure to meet Record Keeping or Payslip Obligations

A failure to provide payslips or meet record keeping requirements attracts significant penalties. Businesses that don’t comply may be fined, and directors of companies can be personally liable for offences.

To avoid breaking the law, employers must ensure that they:

• Give their employees a payslip within one day of paying them their wages
• Keep employee records for at least 7 years
• Ensure that all employee records are kept up to date, accurate and complete.

If an employer breaches these requirements and fails to comply, they may be subject to  a fine of up to $6,660 per breach.

If they are taken to court, penalties can be imposed on the company up to $66,600 per breach. If a breach is found to be a ‘serious contravention’ companies can have penalties imposed of up to $666,000 per contravention.

False or Misleading Records

The Fair Work Act prohibits any person from making or keeping employee records or providing payslips that are known to be false or misleading. It also requires that a person does not knowingly or recklessly provide false or misleading information to the Fair Work Ombudsman or a Fair Work Inspector. This includes purposely omitting information relevant to your employment with them.

If a false or misleading information is material, a penalty of up to $66,000 can be imposed on the company.

If you’re unsure of certain information pertaining to your payslip speak to Australian Unions today for support.

Payslip in Australia – Frequently Asked Questions

What is a payslip?

A payslip is a record that an employer provides to an employee after each pay period with details of the employee’s earnings, deductions and leave entitlements for that pay period. An employee may receive their payslip via email or post or in some cases, it may be able accessible through their employer’s internal payroll system.

Are payslips a legal requirement in Australia?

Yes, payslips are a legal requirement in Australia. The Fair Work Act 2009 requires employers must give their employees a payslip within one day of paying them their wages. The payslip must contain certain information, such as the employee’s name, the date of payment, the amount paid, the ordinary hourly rate, and any deductions made. If an employee is paid electronically, they must be able to easily print out their payslip when needed.

What are the requirements for a payslip in Australia?

All employers in Australia are legally required to issue payslips to their employees. The payslip must include:

• The employee’s name
• The employer’s Australian business number (abn) and name
• The date of payment
• The pay period
• The gross and net amounts of pay (including any overtime or penalty rates)
• Amount of pay and number of hours worked
• Any deductions from the employee’s pay
• Any loadings, allowances bonuses, penalty rates or other paid entitlements separate to the employee’s wage
• The employee’s superannuation details (if applicable)
• Leave entitlements the employee receives (if applicable)

What happens if payslips are not given?

Every employee is entitled to a payslip, and an employer who fails to provide one may be subject to fines and penalties.

If an employee is not given a payslip, they can request one from their employer. If the employer refuses or does not provide a payslip within 7 days, the employee can make a complaint to the Fair Work Ombudsman.

Before taking this step, it’s always worth reaching out to your union. You can also contact us for support.

Potential fines and penalties for non-compliance:

The Fair Work Act 2009 sets out stiff fines for employers who contravene the payslip requirements, including:

• civil fines of up to $6,660 per contravention for a corporation and $1,332 per contravention for an individual; and
• Penalties of up to $66,000 for a corporation and $13,320 per contravention for an individual.

Are payslips confidential?

Payslips are private and confidential. However, fair Work Inspectors and Union Officials may access employee records.  There may be some circumstances where an employer is required by law to provide payslips to a third party, such as a government agency.

It’s important to keep payslips in a safe and secure place, as they can be used to verify income and employment history. If you’re ever unsure about the confidentiality of your payslip, it’s best to check with your employer.

Are handwritten payslips legal?

Yes, a payslip can be in either paper or electronic form.

Whether handwritten or sent electronically through a template, your payslip must be legible, as employees must be able to read each payslip without any issues.

Should a payslip include sick leave?

Whether a payslip should show sick leave depends on the award or enterprise agreement that covers your employment. Some awards require an employer to include details of sick leave entitlements on payslips, while others do not.

If you are unsure whether your payslip should include details of your sick leave entitlements, you should check your relevant Award or enterprise agreement or seek advice from Fair Work Australia.

What types of records should your employer keep?

In Australia, employers must keep the following records:

• General records ;
• Pay records;
• Hours of work records;
• Leave records;
• Superannuation contribution records;
• Records of individual flexibility arrangements;
• Records of annualised wage arrangements;
• Records of guarantees of annual earnings;
• Records of termination;
• Records of transfers of business; and
• Payslips.

These records must be kept for a period of 7 years.

Can payslips be emailed?

Yes, payslips can be delivered electronically, including by email. This is generally the best practice. However, there are a few conditions that must be met:

• The employer must be confident that the email will remain confidential between the parties (eg. by ensuring it is sent to a secure email address)
• The employer must ensure that the employee is able to access and print or store a copy of the payslip in private, if they wish to do so.

Why is it important to keep records in the workplace?

There are a number of reasons why it is important to keep accurate and up-to-date records of employee pay in the workplace.

First and foremost, these records can be used to ensure that employees are paid correctly and on time during the appropriate pay period.

They can also be used to check that deductions have been made correctly, and to track employee leave entitlements.

If you feel as though your workplace is not keeping track of your payment records properly, speak to the support centre at Australian Unions today.

Who has access to employment records?

Employment records are private and confidential. Only the employer, payroll staff, the employee and other necessary individuals should be able to access these records.

If an employee wishes to view their records, the employer must make them available without hesitation – even if the employee has ceased working for that particular company.

Additionally, the cours and the Fair Work Commission can require employee records to be produced in relation to a claim by an employee, to determine whether they have been paid properly.

Can a potential employer ask for an old payslip?

It is important to note that it is not unlawful for potential employers to ask job applicants questions about their salary history, their expectations, or even ask for an old payslip. However, this information must be kept private.

How can unions help with my payslip issues?

If you’re struggling to understand your payslip or feel that you aren’t getting paid what you deserve, get in touch with our team at Australian Unions.

Payslips and accurate record keeping are essential when protecting the rights of workers.

In terms of payslips and record keeping, your union can help analyse your net pay, find discrepancies between your payment and contract, and ensure your employer is being held responsible for appropriate record keeping.

They can also look at your hourly wages, overtime hours, annual salary, and more to determine if you are being underpaid or otherwise taken advantage of.

For more information on our services and how we can help, contact us today.

Seeking more information on payslip requirements? Contact our team at Australian Unions for high-quality advice and expert knowledge or join your union today.

Cover photo credit: Alexander Grey on Unsplash