Forvis Mazars Logo
Forvis Mazars Logo
Published: October 29, 2019

Not keeping accurate records of time sheets and pay slips could cost you

Filing out time sheets is boring! No one likes doing it, but not completing them substantively increases the risk for an employer being unable to defend a claim for underpayment of wages and a civil penalty (fine) under the Fair Work Act, 2009 (the Act).

The Act now provides that in a claim for underpayment of wages there is a reverse onus on the employer to disprove the claim. What this means in practice is if an employer has not kept accurate time and wages records, including pay slips, it will be very difficult to defend a claim for underpayment of wages, particularly where the claimant provides a record of hours allegedly worked. Where an employee provides records (which do not need to be formal), for example it could be notes in a diary or notes kept on a mobile device, this record will be treated as accurate unless the employer can prove otherwise.  It is not difficult to see how this creates substantive risk for employers who are not able to prove via time sheets and pay slips the actual hours worked and payments made.

To comply with the Act and provide a solid defense to a spurious claim for underpayment, employers must keep accurate employee records and must retain them for 7 years.  This time frame is important because claims for wage underpayments can be made going back 6 years from the date of the claim.

It is a fallacy that for employees engaged as salaried employees, employers are not required to keep the same time and wage records as other Award based full-time, part-time and casual employees. Time and wage records must be maintained for all employees and any failure to do so would be a breach of the Act.

In addition to time records, it is also imperative that employers provide accurate and compliant pay slips for all employees. The Fair Work Regulations set out the specific requirements for a pay slip and strict compliance is required. That is, although there is some latitude in relation to the form of a pay slip, there is no latitude when it comes to the mandatory inclusions. To check if your organisations pay slips are compliant the download the checklist here.

If you require advice or assistance with your record keeping requirements, contact us on mazarshr@mazars.com.au or 3218 3919.

Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.
Published 29 October 2019

Share this post:
Forvis Mazars Logo
Need bespoke HR solutions?
Like no other, our outsourced HR service provides you with operational and strategic human resource and industrial relations support when you need it and when you want it.
All rights reserved. This publication in whole or in part may not be reproduced, distributed or used in any manner whatsoever without the express prior and written consent of Forvis Mazars, except for the use of brief quotations in the press, in social media or in another communication tool, as long as Forvis Mazars and the source of the publication are duly mentioned. In all cases, Forvis Mazars’ intellectual property rights are protected and the Forvis Mazars Group shall not be liable for any use of this publication by third parties, either with or without Forvis Mazars’ prior authorisation. Also please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice. Content is accurate as at the date published.
Related articles

Take our HR Risk Check

Gain immediate insights into how well your organisation is performing on HR compliance. This quick check will help you mitigate risk by giving you instant feedback.
Forvis Mazars Logo
Head office
Street address:
Level 11, 307 Queen Street, Brisbane Qld 4000
Postal address:
GPO Box 2268, Brisbane Qld 4001
Email:
hrconsulting.au@forvismazars.com
Phone:
+61 7 3218 3919
© Forvis Mazars HR. All rights reserved
|
Privacy Policy