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Do you know how to keep proper employee and payslip records?

The days of getting your weekly pay in a nice little envelope containing cash and a payslip are pretty much gone. As an employer, if your employee payments are set up to happen automatically it is easy to overlook the fact that your employees must be given payslips every time they get paid.

The Fair Work Ombudsman has been doing random inspections lately and this is exactly what they are looking for – businesses that are not following correct payslip procedure.

Thankfully their mission has been focused more on education rather than penalisation, because they have the power to issue an infringement notice on the spot. If you are an individual it can cost you $510 per contravention or $2550 for companies and other legal entities.  

So in that light let’s take a look at what you should be doing when you pay your employees.

Each employee should be given a payslip, hardcopy or electronic within one (1) day of being paid, whether they are at work or on leave.

The payslip should include the following information:

  • the employer name and ABN
  • the employees nmae
  • date of payment and period of payment eg 1/3/2013 - 8/03/2013
  • the gross and net amount of payment
  • any loadings, allowances, bonuses, penalty rates etc

It should also include the following information if relevant

  • the hourly pay rate and number of hours worked at that rate and the total paid if the employee is paid at an hourly rate.
  • any deductions and or superannuation - how much and where the payment is going to (eg details of fund or account including name, numbers, account numbers).

If the payslips are issued electronically they need to

  • include the same information as a hard copy,
  • be in a format that is easy to print
  • be sent via email or into a personal electronic account.

You also need to ensure that any employee who is sent electronic payslips are able to view or print them privately.

For more information see the Fair Work website

Are your employment agreements in writing?

Just as correct payslips help you to keep a proper record of the employees working hours, a written agreement allows you to clearly set out the conditions and obligations of the employment arrangement between you and the employee.

This gives both parties a clear picture of where they stand and minimises the potential for misunderstanding and conflict.

If you would like to know more about employment agreements, click here to see our wide range.

 

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