KEEP TIME & WAGE RECORDS TO PROTECT YOUR SALON FROM LEGAL ACTION

Home / HABA Blog / KEEP TIME & WAGE RECORDS TO PROTECT YOUR SALON FROM LEGAL ACTION

Posted February 13, 2017

Part of the value that HABA provides to its members is representation in legal litigation and legal advice when things get a little hairy in salon. We have often represented salons where there is a distinct lack of record-keeping, making it difficult to prove your case as the salon owner / employer in issues of staff employee claims.

Record keeping is a requirement of the Fair Work Act 2009. Records include everything from wage records, payslips, leave records, records of superannuation and rosters – anything that has to do with your employees in salon. All records must be written in plain English and accessible for employees (or former employees by request) and authorised persons – like government inspectors or union representatives. These records can be digital so long as they can be printed if requested.

Download a really comprehensive factsheet on Time & Wage Record Keeping in our Members Area.

Follow the guides below to ensure that the records you keep for your salon are correct and therefor legally valid to ensure that you comply with the legal standard for workers and to ensure that your salon is protected at all times.

 

General records

• The name of the employer
• The name of the employee
• Whether the employee is full-time, part-time or casual
• Whether the employee is permanent, temporary or casual
• The date the employee began employment

---

Termination

• Whether the employment was terminated: by consent; by notice; summarily; or in some other manner (specifying the manner), such as abandonment of employment or redundancy.
• The name of the person who terminated the employment.
• The date of termination and notice provided (if applicable).

---

Wages Records

• For all employees: the employee’s rate of remuneration, and details of the gross and net amounts paid to the employee, and details of deductions made (i.e. tax)
• If the employee is entitled to a penalty of loaded rate for working overtime:
• The number of overtime hours worked each day; or
• When the employee started and finished working overtime hours
• If the employer and employee agree to an hour averaging arrangement, ensure there is a copy of the agreement
• If the employee is a casual and is paid on an hourly rate, the hours worked by the employee must include the casual loading rate
• If the employee is permanent part time and the hours have been varied ensure there is a written agreement
• If the employee is entitled to an incentive pay system, bonus, loading, penalty, other monetary allowance or separately identifiable allowance- details of these additional entitlements

---

Pay Slips

• The name and ABN of the employer
• The name of employee
• The date on which the payment was made
• The period to which that pay slip relates
• If the employee is paid at an hourly rate:
• The ordinary rate; and the number of hours in that period the employee was employed at that rate; and
• The amount of the payment made at that rate

OR

• If the employee is not paid at an hourly rate of pay
• That rate as at the latest date to which the payment relates
• The gross amount of the payment
• The net amount of the payment
• Any amount paid that is an incentive payment, bonus, loading, monetary allowances, penalty rate or other separately identifiable entitlement
• The details of each amount deducted from the gross amount including the name, or the name and number, of the fund or account into which the deduction was paid
• If the employer is required to make superannuation contributions:
• The amount of each contributions; and
• The name of any fund into which the contribution was made

---

Leave Records

• Details of the accrual of all types of leave (e.g. annual, personal/carer etc.)
• Details of any leave taken:
• Period of the leave
• Date of the request for leave
• Type of leave taken (e.g. annual, unpaid, personal/carer, time in lieu etc.)
• Leave commencement and completion date and total number of days
• Authorisation of leave
• The balance of the entitlement to that leave

---

Superannuation

Where the employer is required to make superannuation contributions:

• The amount of the contributions made
• The period over which the contributions were made
• The dates on which the contributions were made
• The name of fund to which the contributions were made
• The basis on which the employer became liable to make the contributions, including:
• A record of any election about fund identity; and
• The date of any relevant election.

---

By keeping strong records, salon owners are protected by evidence in the issue that underpayment issues or annual leave entitlements questions are raised. These are your last line of defence in issues of litigation are raised, and by having them you are assured a fair and accurate outcome of any investigation.

 

If you have any further questions, please call HABA on (02) 9221 9911 or lodge a ticket through our Members Area, and one of our industrial relations specialists can help you develop a record keeping policy for your salon or advise you in the case of legal action.