The Fair Work Act 2009 requires Australian employers to keep detailed time and employment records for each employee — and penalties for non-compliance can reach AUD $93,900 per contravention for companies.
Keeping attendance and time records is not optional in Australia. The Fair Work Act, the Fair Work Regulations, and Modern Awards all impose specific record-keeping obligations. This article covers what records you need, how long to keep them, and the consequences of getting it wrong.
Key Takeaways
- Australian employers must keep records of hours worked, leave taken, and pay for each employee
- Records must be in English and legible, and stored for 7 years
- Penalties for record-keeping failures can reach AUD $93,900 per contravention for companies
- Electronic records are acceptable if they meet the legislative requirements
- The Fair Work Ombudsman conducts proactive audits and can issue on-the-spot fines
What Records the Fair Work Act Requires
The Fair Work Regulations 2009 (Part 3-6) specify the records employers must keep. The requirements are prescriptive — general notes or informal tracking are not sufficient.
Mandatory records
| Record type | What to record | Reference |
|---|---|---|
| Employee details | Full name, date of birth, commencement date, employment type | Reg 3.32 |
| Hours worked | Day and time the employee started and finished, including break times | Reg 3.32(2) |
| Hours of overtime | Hours of overtime worked on each day | Reg 3.32(3) |
| Leave taken | Type of leave, start date, and whether paid or unpaid | Reg 3.32(4) |
| Leave balances | Current balance of each type of leave | Reg 3.32(5) |
| Rates of pay | Base hourly rate, loadings, penalties, allowances | Reg 3.32(6) |
| Gross and net pay | Total gross pay, deductions, and net pay per pay period | Reg 3.32(7) |
| Superannuation | Contributions made, fund, and period | Reg 3.32(8) |
Hours of work records — the detail
The hours worked record must show:
- The date of each day the employee worked
- The time the employee started work
- The time the employee finished work
- Any breaks taken (start and end times of each break)
- The total hours worked each day
This is effectively an attendance record — it captures when the employee was present, when they left, and what breaks they took. For many employers, this is the most operationally demanding record to maintain.
Who Must Keep Records
Every employer covered by the Fair Work Act must keep these records. This includes:
- All private sector employers
- Commonwealth Government agencies
- Businesses of any size (there is no small business exemption for record-keeping)
There is no threshold below which record-keeping is not required. A business with 1 employee has the same obligations as a business with 1,000.
How Long to Keep Records
| Record | Minimum retention period |
|---|---|
| Time and attendance records | 7 years |
| Pay records | 7 years |
| Leave records | 7 years |
| Superannuation records | 7 years |
| Individual flexibility agreements | 7 years after expiry |
| Termination records | 7 years after termination |
The 7-year retention period is one of the longest in the world. It exists because employees can make underpayment claims for up to 6 years, and the FWO may audit at any time.
How Records Must Be Kept
Format requirements
Records must be:
- In English
- Legible and readily identifiable
- Accessibly for inspection
- Stored in a way that prevents loss, damage, or unauthorised alteration
Acceptable formats
| Format | Acceptable? | Notes |
|---|---|---|
| Paper timesheets | Yes | Must be legible and stored securely |
| Electronic spreadsheets | Yes | Must back up and maintain for 7 years |
| Attendance software | Yes | Must generate records meeting all requirements |
| Biometric systems | Yes | Must also capture start/finish times, not just identity |
| Paper sign-in sheets | Conditionally | Must also record finish times and breaks |
What is not acceptable
- Informal verbal records
- Records only in a language other than English (must be in English)
- Digital records that cannot be exported or printed
- Records stored only on a device that may be lost or wiped without backup
Penalties for Non-Compliance
The Fair Work Act imposes significant penalties for record-keeping failures:
Civil penalties
| Entity | Maximum penalty per contravention (2025-26) |
|---|---|
| Individual | AUD $18,780 |
| Company | AUD $93,900 |
Additional consequences
- Inference of underpayment: Under s.558C of the Fair Work Act, if an employer fails to keep required records, the FWC or a court may infer that the employee was paid according to the employee’s own estimate. This creates significant financial exposure.
- On-the-spot fines: The Fair Work Ombudsman can issue on-the-spot fines for record-keeping failures during inspections.
- Proactive audits: The FWO conducts proactive audit campaigns, particularly in industries with high casual or migrant employment.
- Name and shame: The FWO publishes the names of non-compliant employers, creating reputational risk.
Common Audit Triggers
The Fair Work Ombudsman typically audits employers in response to:
- Employee complaints about underpayment
- Industry-wide campaigns (hospitality, retail, cleaning, agriculture)
- Random selection in high-risk sectors
- Information from other government agencies
- Media reports of workplace issues
During an audit, the FWO will request all relevant records. If records are missing or incomplete, the inference provisions apply and the employer bears the burden of proving compliance.
Practical Steps for Australian Employers
1. Implement a compliant time and attendance system
Choose a system that:
- Records start time, finish time, and break times for each day
- Calculates total hours worked automatically
- Supports overtime, penalty rates, and allowance tracking
- Generates exportable records in English
- Stores data securely for 7 years
- Integrates with payroll to reduce double-handling
2. Set up compliance alerts
Your system should flag:
- Employees approaching maximum weekly hours under their Modern Award
- Missing or incomplete time records for any day
- Leave balances that may be incorrect
- Superannuation contribution deadlines
3. Train managers and employees
Ensure everyone understands:
- How to use the time recording system correctly
- The importance of accurate time records
- What happens if records are not maintained
- Who is responsible for reviewing and approving records
4. Audit your records quarterly
Regular internal audits should check:
- All employees have complete time records for every working day
- Break times are recorded, not just start and finish times
- Leave records match leave balances
- Records are stored securely and backed up
How Leave Balance Supports Australian Compliance
Leave Balance includes attendance tracking with automatic timestamps, leave tracking, and payroll-ready exports — all included in the flat rate of $10/month with no per-user fees.
Features relevant to Fair Work compliance:
- Automatic clock-in/out records start, finish, and break times
- Leave tracking with balances and history for audit purposes
- CSV export for payroll integration and audit response
- Audit trail for every record change
- Manager-scoped views for team-level oversight
- Overtime tracking with configurable thresholds
Unlike per-user tools that charge extra for attendance modules, Leave Balance includes everything in one flat rate. For a team of 50, this saves thousands per year compared to alternatives.
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Frequently Asked Questions
Do casual employees need time records?
Yes. All employees covered by the Fair Work Act — including casuals, part-timers, and fixed-term employees — require time and attendance records. The obligation does not depend on employment type.
Can I use a spreadsheet for time records?
A spreadsheet can meet the record-keeping requirements if it captures all mandatory fields (start time, finish time, breaks, overtime, leave) and is stored securely for 7 years. However, spreadsheets are error-prone and do not create automatic audit trails. Dedicated attendance software is more reliable.
What happens during a Fair Work audit?
The FWO will request time, pay, and leave records for a specified period. If records are complete and accurate, the audit typically closes quickly. If records are missing or incomplete, the FWO may use the inference provisions to estimate underpayments, issue infringement notices, or commence court proceedings.
How long do I need to keep employee records?
Seven years. This applies to time records, pay records, leave records, and superannuation records. The retention period starts from the date the record was created or the employee’s termination, whichever is later.
Do remote employees need to clock in and out?
If remote employees are covered by the Fair Work Act (which most are), their working time must still be recorded. Digital attendance tools work from anywhere with an internet connection and satisfy this requirement.
This article is general information, not legal advice. Consult an Australian employment lawyer or the Fair Work Ombudsman for advice specific to your situation.