Payroll record keeping and pay slip obligations under the Fair Work Act

The Fair Work Act sets out the information that an employer must maintain in his or her pay records, as well as the details of what must appear on an employee’s pay slip. Pay records must be in English; retained for seven years; must not be altered except for correction of an error and be readily accessible to a Fair Work inspector.

Pay records must show, for each employee;-

  • The name of the employer and the employee
  • The date of commencement of employment
  • Whether the employee is engaged as a permanent, part-time or casual
  • The rate of pay, including the gross and nett amounts and any deductions
  • Any allowances, penalties, loadings, bonuses or commissions paid
  • Leave taken and accrued – includes annual leave, sick leave, compassionate leave and long service leave
  • The amount of superannuation contributions made, the date on which each contribution is made, the period over which the contributions were made, the name of the superannuation fund and details in relation to choice of fund. (Employees are entitled to nominate which super fund they want the contributions to be paid into.)
  • If a penalty rate or loading must be paid for overtime hours worked, the number of overtime hours worked or when the employee started and ceased working overtime hours.
  • If the employee has agreed to an averaging of hours, a copy of the written agreement
  • If an employee’s employment has been terminated;
    •      The name of the person who terminated the employment
    •      The reason for the termination
    •      How the termination took place i.e. was it by consent, by notice, summarily or in some other manner
  • If the employee is a casual or irregular part-time employee who has a guaranteed rate of pay, the record relating to the employee must include a record of the hours worked by the employee.

Pay slips must show;-

  • The employer’s name
  • The ABN of the employer
  • The employee’s name
  • The employee’s classification (including whether full-time, part-time or casual) under the award
  • The basis on which the employee’s rate of pay is determined
  • The date of the payment to which the pay slip relates
  • The period to which that pay slip relates
  • The ordinary hours rate and number of hours in that period
  • The number of hours worked overtime and the amount paid for the overtime worked
  • The gross and net amount of the payment
  • Any loadings, allowances, bonuses or penalty rates paid under the award – such as tool allowance, first aid allowance, commissions etc.
  • Any deductions made from the employee’s pay
  • Superannuation details including the name of the fund and the amount contributed during that pay period.

Pay slips must be issued to each employee within one working day of payday in electronic form or hard copy even if an employee is on leave.

For more information seek guidance from your professional advisor or contact MTA Global – email to register and access AADA Industrial Relations and Workplace Health and Safety related services at a special member rate.

Ted Kowalski

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