Fair Work is Checking Payroll Records
Is Your Business Prepared?
The Fair Work Ombudsman (FWO) is currently carrying out surprise inspections on small businesses around Australia, checking that employers are keeping proper staff records. If you employ people in your business, now is a good time to review your record-keeping systems and make sure everything is in order.
Spot Checks Happening Nationwide
Recently, the FWO visited about 50 businesses across cities including Sydney, Melbourne, Perth, Hobart, Adelaide and Cairns. The focus was on small retailers and service-based businesses – places like bakeries, florists, phone repair shops, beauty salons, and car washes.
These industries often hire younger workers or people from migrant backgrounds, who may not always be fully aware of their rights or feel confident enough to speak up if something’s not quite right.
Inspectors looked at payslips, timesheets, and whether employees had been given the correct Fair Work Information Statement or Casual Employee Information Statement. If important records were missing or poorly kept, businesses were issued fines on the spot. Penalties ranged from $1,878 for individuals to $9,390 for companies.
The FWO says that missing or messy records are often a red flag for potential underpayments or other issues. In the last financial year, they handed out 760 fines across the country, adding up to almost $1 million.
This isn’t about punishing honest mistakes. It’s about making sure businesses are doing the right thing and treating their workers fairly. And from a practical point of view, keeping accurate records also makes payroll, audits, and fixing errors much easier.
What Employers Are Expected to Keep on Record
If you employ staff, there are legal requirements for the types of records you must keep. These include:
- Employee name, start date and whether they are full-time, part-time or casual
- Pay rate, hours worked, and details of any overtime, allowances or deductions
- Start and finish times for staff working irregular hours
- Leave balances and records of any leave taken
- Superannuation contributions, including payment dates and fund details
- Copies of any relevant agreements, like leave in advance or flexible work arrangements
- If an employee leaves, the date and reason for their termination
These records must be kept for seven years, and need to be easy to read, in English, and available if Fair Work asks to see them. Employees are allowed to access their own records at any time. Records should only be changed to correct genuine errors, and it’s illegal to create false or misleading records.
Getting this right protects your staff, but it also protects you as a business owner.
How a Bookkeeper Can Help
Having a qualified bookkeeper on your side is one of the best ways to stay on top of your employer responsibilities. Bookkeepers understand what needs to be recorded, how it should be stored, and how to make sure your systems stay up to date and compliant.
As your bookkeeper, we can help you:
- Review your current payroll and record-keeping setup
- Make sure timesheets, pay runs, leave, and super are all properly tracked
- Ensure the right employee documents are given and securely stored
- Fix mistakes or bring records up to date if something’s been missed
- Be ready and confident if Fair Work ever knocks on your door
If you’re not sure whether your business is fully compliant, a bookkeeper can help you find the gaps and show you how to fix them.
Need a Hand Getting Your Records in Order?
We understand how busy running a small business can be, and how easy it is for paperwork to fall behind. If you’d like help reviewing your systems or making sure your payroll and employee records are all in good shape, we’re here to support you.
Let’s take the stress out of compliance and get things sorted. Reach out today for a friendly chat about how we can help.
FWO Resources
The FWO offers pay slip and record-keeping templates to help employers get it right. The FWO’s Small Business Showcase also offers a range of tailored resources for small business employers. The FWO provides an online learning centre for employees and employers, including this course, which specifically covers record-keeping and pay slips. Small businesses can also audit their own compliance with their obligations with this checklist.
Employees can keep track of their hours worked through the Record My Hours app.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. A free interpreter service is available on 13 14 50. Information can also be provided to the FWO anonymously, including in 16 languages other than English.