If you were audited tomorrow, could your business produce the exact documents Fair Work expects?
- Employment contracts
- Timesheets
- Payslips
- Leave records
- Right to work checks
- Performance documentation
- Policies and acknowledgements
Chances are, you’re missing something. And that could cost you thousands.
For many small-to-medium businesses in Australia, record-keeping is a silent compliance risk — one that only surfaces when it’s too late.
Why Record-Keeping Matters More Than You Think
- It’s a legal obligation
The Fair Work Act 2009 and Fair Work Regulations 2009 set out strict requirements for what records must be kept, for how long, and in what format. - It’s your best protection in a dispute
In unfair dismissal or underpayment cases, the onus of proof is often on the employer. If you can’t produce records, the assumption is: you didn’t do it. - Penalties are increasing
The Fair Work Ombudsman can issue infringement notices or take businesses to court for failing to keep proper records — even if wages are paid correctly.
Common HR Record-Keeping Mistakes
- Only keeping contracts — not position descriptions or variations
- Failing to track leave approvals and balances
- Not documenting performance conversations or warnings
- Using paper files that are easily lost or damaged
- No consistent process for onboarding documents
- Not collecting or renewing VEVO checks for visa holders
- Forgetting to retain records for former employees
Each one of these could be a red flag in an audit or claim.
What Fair Work Expects You to Keep
Here’s a non-exhaustive list of what’s required under law:
✅ Employee Details
- Full name, start date, date of birth (if under 21)
- Employment type (full-time, part-time, casual)
- Job title and classification (e.g. Award coverage)
✅ Wage & Payment Records
- Gross and net pay
- Hours worked and overtime
- Loadings, allowances, bonuses
- Deductions made
- Superannuation contributions
✅ Leave Records
- Type and amount of leave taken
- Leave balances
- Any agreements around leave loading or cashing out leave
✅ Termination Records
- Date and reason for termination
- Notice provided and payments made
- Exit interview documentation (if applicable)
✅ Other Essentials
- Right to work evidence
- Policy sign-offs
- Health and safety training records
- Disciplinary actions and investigations
And most records must be kept for at least 7 years.
How to Build a Stronger Record-Keeping System
1. Digitise Everything
Paper is no longer practical. Use cloud-based document management or an HRIS like Frappe Employment OS to:
- Store contracts, policies, and forms
- Automate expiry notifications (e.g. visas, certifications)
- Track performance and compliance logs
2. Create an HR Compliance Checklist
Build a new starter checklist that includes:
- Signed contract
- Fair Work Information Statement
- Super and tax forms
- ID and visa check
- Policy acknowledgements
3. Automate Reminders for Expiry-Based Documents
Things like:
- Driver’s licences
- First aid certificates
- Working with Children Checks
These are easy to miss — until something goes wrong.
4. Use Templates and Version Control
Avoid situations where outdated contracts or policies are in circulation. Have one source of truth and lock editing permissions.
5. Train Managers
They’re often having the conversations that need to be documented — performance, behaviour, feedback — but don’t always know how or where to record them.
What Happens If You Don’t Get It Right?
- Fair Work Penalties: Civil penalties for failing to meet record-keeping obligations. As of 2024, this can exceed $18,000 per breach for individuals and more for corporations.
- Legal Costs: Without documentation, legal disputes become harder to defend — and more expensive.
- Loss of Government Contracts: Some industries require verified compliance before bidding.
- Reputational Damage: Word travels fast — especially in unionised or award-heavy sectors.
Case Example: What Bad Record-Keeping Looks Like
A small construction firm terminated a site supervisor due to performance issues. The employee claimed unfair dismissal. When the matter reached the Fair Work Commission, the employer had:
- No written warnings
- No performance improvement plan
- No proof of meeting minutes
- No employee acknowledgment of company policies
Outcome? The dismissal was deemed harsh and unjust, and the employee was awarded 12 weeks’ pay — not because the reason for termination was invalid, but because the process couldn’t be proven.
External Help Can Strengthen Compliance
HR advisory services like Hack Your HR specialise in:
- Building compliant HR documentation frameworks
- Conducting HR audits
- Providing templates and checklists aligned to Fair Work expectations
- Offering dispute support backed by proper records
It’s often cheaper to prevent risk than defend it.
Final Word: Your Best Defence Is in the File Room
Most business owners don’t get caught for underpaying wages or being malicious — they get caught for not documenting the right things.
If you can’t produce records on demand, you’re exposed. And in today’s increasingly regulated HR environment, ignorance is not a defence — but a liability.
Now’s the time to tighten your HR compliance systems. Your future self (and your legal team) will thank you.