Are Timesheets Required For Salaried Employees in Australia?
Because salaried employees must be paid at least the award condition rates for their roles to satisfy the Better-Of-Overall test (BOOT), it is critical that they create and maintain timekeeping records in an accessible format, available for auditing by the relevant authorities at any time.
What the Law Says
Salaried employees need to be able to demonstrate that, for the times they work, they will be paid more than if they were on the award, for the times worked, to pass the BOOT test. This requires salaried employees to have timesheet records in order to undertake the test.
In Australia, salaried employees—including those on annualised salary arrangements—are subject to strict timekeeping requirements to ensure they are not underpaid compared to modern awards. Employers must maintain accurate records of hours worked, including start/finish times and unpaid breaks.
Do Salaried Employees Need Timesheets?
Salaried, as well as hourly paid employees, need timesheets with the days’ start, finish and break times records to satisfy the Better Off Overall Test (BOOT)
https://www.fairwork.gov.au/pay-and-wages/paying-wages/record-keeping
You can test a sample of your employee’s BOOT test by requesting it to be sent to bootest@inzenius.com
Risks of Not Keeping Timesheets for Salaried Employees.
If a claim of underpayment is made against the employer for unpaid salary, the commission will require substantial evidence in their defence that the employer did not breach the BOOT, including the required timesheet records. If these records are not available in the format required with sign off by the employee they statements of the employee will be undisputed and form the basis of the determination of compliance with the BOOT
You can test a sample of your employee’s BOOT test by requesting it to be sent to bootest@inzenius.com
Salaried employee contracted days and hours (rosters), together with their employee accepted timesheet with actual worked times, is required for all classes of employees earning less than the statutory maximum pay and benefits per annum, currently at aprox $183,100 per annum
If it is in the opinion of the commission that the activity of undepayment was systemic and should have be known to the employer ta crime may have been committed with penalties of: 3 times the amount of the underpayment or the court can determine that amount for an individual: 5,000 penalty units ($1,565,000); or for a body corporate: 25,000 penalty units ($7,825,000). These penalties could be in addition to the business having to repay shortfalls discovered after a detailed, time-consuming audit, and to the $ costs incurred over the past 6 years for each employee impacted by the payroll shortfalls.
Best Practice for Employers
The simplest best practice for employers is to adopt the policy of all staff submitting their acceptance of timesheets, including salaried employees
Use an all-in-one Rostering, Timekeeping, and comprehensive and compliant Leave and automated Award interpreted from the approved Timesheet system
That’s Inzenius
Inzenius Timekeeping records are validated against the Roster times to create the Timesheet for automated Payroll processing
Timekeeping Compared to Roster
