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NEW RECORD KEEPING AND PAYSLIP RULES IN FORCE
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The revised record keeping and payslip obligations that were put into law in December last year have now become operational. On 27 March 2007, the moratorium period during which employers could not be prosecuted ended. From that date, all employers are subject to the new rules and may be prosecuted for breaches.

The new rules, embodied in the new Part 19 of the Workplace Relations Regulations, contain provisions for the keeping of certain records and payslips and allow workplace inspectors to prosecute employers when they have committed breaches.

Overtime Hours

It is now prescribed that if an employee actually works overtime hours and a penalty rate or loading (however described) must be paid for those overtime hours worked, the employer must record:

• the number of overtime hours worked by the employee
• when the employee started and ceased working overtime hours.

 

But note that the Regulations continue to require employers to keep records of hours worked by casuals and irregular part-time employees when they are paid on an hourly basis.

 

What information must employers include in payslips?

As of 27 March 2007, employers who engage workers under the WorkChoices system are required to issue payslips to each worker. The payslips must include:

• employer’s name
• employee’s name
• payment date
• payment period
• gross and net payment amounts
• any loadings, allowances, bonuses, incentive-based payments, penalty rates or other separately identifiable entitlement paid
• for workers paid an hourly rate – the ordinary hourly rate of pay and number of hours worked at that rate and the amount of payment at that rate
• for workers paid an annual rate (salary), that rate as at the last day in the payment period
• any deductions (which must be authorised by the worker in writing) made from the pay including (a) the amount and purpose of each deduction (including superannuation) and (b) the name and number of the fund or account into which the deductions were paid
• for employers who are required to make superannuation contributions for workers (a) the amount of each superannuation contribution the employer made, or is liable to make, during the pay period and (b) the name of the super fund into which the contributions were made or will be made.

(Note that employers who contribute a defined benefit interest in a defined benefit fund do not need to fulfil the super contribution reporting requirements).

 

What time and wage records must employers keep?

 As of 27 March 2007, employers who engage workers under the WorkChoices system are required to keep accurate and complete time and wages records. The records should be in a condition and form that allows a workplace inspector to access the records and determine whether correct entitlements are being received by a worker. The records must include:

• employer’s name
• employee’s name
• employee’s commencement date
• if the worker undertakes part-time or full-time work and whether they are permanent, temporary or casual
• if a penalty rate or loading must be paid for overtime hours actually worked, the number of overtime hours worked or the start and finish times of those hours
• if the worker is a casual or irregular part-time worker who is guaranteed a basic periodic rate of pay, the hours worked by that worker
• if the worker has agreed to a averaging of hours, a copy of the written agreement
• the employee’s rate of pay
• the gross and net amounts paid and the details of any deductions
• any allowances, penalty rates, loadings, bonuses or incentive-based payments paid
• leave accrued, leave taken and the balance of the leave from time to time
• details of any leave which the worker has elected to forego, including the rate of pay for the leave foregone, the date of payment and a copy of the written election
• super fund name and contribution details (amount, date of payment, period) if required to be made under an award, agreement or election (except those made under a defined benefit interest in a defined benefit fund)
• termination details including (a) the name of the person who terminated the employment (b) whether the employment was terminated by consent, notice or summarily etc) (c) date of termination

The records must be kept in plain English and in an easy to read, accessible form. They must be kept for seven years.

Fines

The records can be accessed by employees, former workers and workplace inspectors – with penalties prescribed if employers fail to provide or cooperate. If a request for access is made, the records must be given within three business days at the employer's premises or, if they are mailed, within 14 days. If these requirements are not met, or the above details are not recorded, then a workplace inspector can issue an infringement notice.

From 27 March 2007, minimum infringement notice penalties are $110 for an individual and $550 for a body corporate. But the civil remedy provisions have been tightened up, with a court now being able to order penalties of up to $1,100 for an individual and $5,500 for a body corporate that breaches the record keeping provisions.

Workplace inspectors may issue infringement notices to employers for specific breaches of the record keeping provisions as an alternative to court proceedings.

Contact the Employers Hotline™ on (02) 9264 2000 if you need to know more.