A recent record-keeping blitz being conducted by the Fair Work Ombudsman (FWO) is a timely reminder for employers are aware of their record keeping obligations, and potential consequences of non-compliance.
FWO investigators conducted unannounced visits to businesses in Hobart, Adelaide, Melbourne, Sydney, Perth, and Cairns, with a particular focus on industries known to employ vulnerable workers. The operation focused in on:
- Retail outlets (mobile phone repair shops, discount stores)
- Food services (independent butcher shops, bakeries, specialty grocery stores)
- Personal care businesses (hair and beauty salons, beauty supply shops)
- Service providers (drycleaners, car wash operations)
The FWO reported that poor or non-existent record-keeping frequently serves as the first indicator of more serious workplace law breaches. In the 2023-24 financial year alone, the FWO issued:
- 760 infringement notices (up from 626 the previous year)
- $986,616 in total penalties (a 33% increase year-on-year)
Individual businesses can also face fines for non-compliance of:
- $1,878 per contravention for sole traders and individual employers
- $9,390 per contravention for incorporated businesses
Record keeping obligations
Under the Fair Work Act 2009 (Cth), employers have strict obligations regarding employment records. Employers must maintain accurate documentation for all employees, including:
- General Employment Records:
- Full name and contact information
- Employment start date
- Employment type (full-time, part-time, temporary, casual)
- Individual Flexibility Agreements
- Guarantees of Annual Earnings
- Termination records
- Pay Records:
- Rate(s) of pay including bonuses and incentives
- Averaging of hours agreements
- Overtime, penalty rates and allowances applied
- Any deductions from wages
- Superannuation contributions
- Leave Records:
- Leave taken
- Leave balances
- Cashing out agreements
All records must be kept for seven years, even after an employee ceases employment, and must be true and accurate.
Who can access records?
Employee records should be kept private and confidential. Only the employer and certain authorised individuals (such as management, payroll, accountants etc) should be able to access these records.
Current and former employees also have rights to access their own employment records. If an employee requests copies of their employment records, their employer must provide them.
If these records are stored onsite at the workplace, employers must make the records available within 3 business days of the request or, post a copy of the records within 14 days of receiving the request.
If the employee records are stored offsite (not on work premises), then the employer must make a copy available at the premises or post a copy, as soon as practicable, after receiving the request.
How employers can protect themselves
With the FWO signalling more compliance blitzes to come, employers should consider proactively reviewing their record-keeping practices to ensure compliance. This may include conducting compliance audits and implementing robust and accurate record keeping systems.
HR Legal can assist employers in meeting their workplace obligations – don’t delay, contact us today!
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This article was produced by HR Legal. It is intended to provide general information only in summary format on legal issues. It does not constitute legal advice, and should not be relied on as such.
