What Records Must Employers Keep Under the Fair Work Act?

The Fair Work Act 2009 and the Fair Work Regulations 2009 require every Australian employer to keep specific employee records. The employer record keeping requirements under the Fair Work Act apply to all employers regardless of size — from sole traders with one casual to corporations with hundreds of staff. Records fall into several categories, and each must be maintained throughout employment plus the retention period.

Employee Details and Employment Terms

Employers must record the employee’s full name, date of birth, address, employment status (full-time, part-time, or casual), and the date employment commenced. You must also document the terms of employment, including the type of work, pay rate (hourly rate, salary, or applicable Modern Award rate), penalty rates, overtime rates, allowances, and loadings. If the employee is covered by a Modern Award, the award name and classification must be recorded.

Time and Wages Records

For employees paid by the hour, employers must log hours worked, including start and finish times, and any unpaid breaks taken (reg. 3.30(1) of the Fair Work Regulations 2009). For salaried employees, you must record the base salary and any deductions. Gross and net amounts paid, the pay period, and the date of payment must also be documented. Every employee must receive a compliant pay slip within one working day of payment.

Leave and Superannuation Records

Records must show all leave taken — annual, personal/carer’s, compassionate, and unpaid leave — including the type, start and end dates, and the balance remaining. Employers must also record superannuation contribution amounts, the date paid, and the fund name. Individual flexibility arrangements and any guarantee of annual earnings above the $190,100 high income threshold (from 1 July 2026) must also be documented in writing.

How Long Must Employer Records Be Kept?

Section 535 of the Fair Work Act 2009 requires employers to retain all time and wages records for 7 years. The 7-year period starts from the date the record was last changed or, for former employees, from the date employment ended. Records must remain readily accessible to a Fair Work Inspector throughout that period — storing them in a warehouse where retrieval takes days does not satisfy the requirement.

What Format Must Employer Records Be In?

The Fair Work Act does not mandate a specific format, but records must be:

• Legible — readable and not faded or damaged
• In English — or able to be easily converted to English
• Readily accessible — available within a reasonable time to a Fair Work Inspector
• Not false or misleading — knowingly keeping inaccurate records is a breach

Electronic records satisfy the requirement if they meet the above criteria. Many employers use payroll software to manage payroll compliance automatically. The key is ensuring the system can produce legible records on demand.

Record-Keeping Penalties for Employers

Failing to keep proper records is a contravention of the Fair Work Act 2009. The Fair Work Ombudsman can issue compliance notices requiring employers to rectify record-keeping failures, and serious or repeated breaches can result in civil penalty proceedings in the Federal Court. Under section 557 of the Act, if an employer fails to keep proper records and an employee alleges underpayment, the burden of proof shifts to the employer — meaning the employer must prove they paid correctly. Without records, that is nearly impossible.

This shift in onus of proof is one of the most significant consequences of poor record keeping. Employers who keep inadequate records in proceedings about penalties for underpaying employees often lose cases they might otherwise have defended.

Fair Work Inspector Powers: What Employers Should Expect

Fair Work Inspectors, appointed under section 631 of the Fair Work Act 2009, have broad powers to enter premises, inspect records, copy documents, and interview employees. They can issue compliance notices and, for serious contraventions, refer matters to court. When a Fair Work Inspector requests your employee records, you must produce them promptly — refusal or delay is itself an offence.

Common Record-Keeping Mistakes to Avoid

• Not recording casual hours — every hour worked by a casual must be documented, not just agreed hours
• Failing to track leave balances — the National Employment Standards require accurate leave records for all employees
• Inconsistent pay slip formats — pay slips must meet specific content requirements under Fair Work Ombudsman record-keeping rules
• Deleting records too early — the 7-year rule applies even after an employee leaves
• No system for superannuation tracking — employers must record contribution dates, amounts, and fund details

Employer Record-Keeping Checklist

Use this checklist to audit your current record-keeping practices against Fair Work Act requirements:

Proper record-keeping is not just a legal obligation — it protects your business. If you need help auditing your records or improving your HR best practices, Fair Work Centre provides employers with compliant document templates and direct employment lawyer advice. You can also download our free employment documents to get started immediately.