Record keeping

It is important to maintain accurate, secure and compliant employee records. This also applies to casual employees. 
As a reminder, casual employment refers to a work arrangement where employees are typically engaged on an as-needed basis without a firm advance commitment to ongoing work.  
What information is required to ensure the practice is staying compliant? 
The key points to consider are legislative requirements and compliance, the types of employee records, security of the records, data accessibility and management.

Legal requirements and compliance

• Fair Work Australia requires practice staff to keep records on employee hours worked, pay, leave and other employment conditions with all records retained for a minimum of seven years.
• The Australian Taxation Office sets guidelines for employers regarding payroll tax, superannuation contributions and other financial obligations. Records of wages, super contributions, tax withheld and any other payments must be kept for a period of five years.
• The Privacy Act governs the collection, use and storage of personal data including employee records. The Office of the Australian Information Commission has outlined the 13 Australian Privacy Principles for businesses governed by the Privacy Act 1988. www.oaic.gov.au

Types of employee records
Prior to commencement:

• position description
• selection criteria
• approval for the position
• a copy of the advertised position
• resume
• reference checks
• employment agreement

On commencement of employment:

• employee’s full name, address and contact details
• bank details
• tax file number
• superannuation fund details
• emergency contact details
• right to work in Australia
• medical information

Ongoing employment:

• Agreements and communication
    - any contracts, agreements or correspondence outlining terms and conditions of employment
    - communication regarding changes in hours, pay rates or status (e,g offers to transition to permanent roles)
• Wages and payments
    - hourly rate, including casual loading (if applicable)
    - gross and net pay for each pay period
    - deductions made from wages
    - superannuation contributions (where applicable)
• Tax and compliance
    - tax file numbers and other tax-related documentation
    - compliance with state and national employment laws
• Hours worked
    - time records for each shift, including start and end times
    - breaks taken (if applicable)
• Leave entitlements (if relevant)
    - for long-term casuals, records of accrued entitlements such as long service leave
    - records of sick leave, annual leave, parental leave or any significant leave of absence
• Employment history
    - job title, start and end dates of each position, pay rates, job descriptions, promotions, disciplinary records and performance reviews
• Training and certifications
    - records of completed training such as safety certificates, professional development courses and mandatory compliance training.

Challenges in employee record keeping
The balance between the need for comprehensive records and respecting employee privacy can be a challenge. Ensure  access to sensitive records is restricted and used only for legitimate business purposes. The employee can request access to their personal information held by the practice under the Australian Privacy Principles.

The other challenge is the risk posed by cybersecurity as data breaches become more common. Practices must be diligent about protecting employee information from unauthorised access and conduct regular cybersecurity training.

A note on family and domestic violence
The Small Business Employer Guide to Family and Domestic Violence outlines the pay slip requirements for employees taking paid family and domestic violence leave. 
There are rules about how information about paid family and domestic violence leave must be reported on pay slips and what information must not be included. This is to reduce the risk to an employee’s safety when accessing paid family and domestic violence leave. 

Employers need to keep a record of leave balances and any leave taken by employees. However, pay slips must not mention paid family and domestic violence leave, including any leave taken and leave balances. An amount paid to an employee for taking paid family and domestic violence leave has to be recorded on a pay slip as ordinary hours of work or another kind of payment for performing work, such as an allowance, bonus or overtime payment. However, if an employee requests it, their employer can record time taken as paid family and domestic violence leave.

1800RESPECT is the national domestic, family and sexual violence counselling, information and support service. If you or someone you know is experiencing, or at risk of experiencing, domestic, family or sexual violence, call 1800RESPECT on 1800 737 732 or visit 1800RESPECT.org.au.

If you are unsure of the records you should be keeping, then reach out to the Workplace Relations Team on 07 3872 2264 or workplacerelations@amaq.com.au