Creative businesses that have employees must comply with laws relating to employment records.
Businesses should also know about business taxation and other business records.
Why it matters
Some employment records are required by law.
Employment records can help show an employee was paid the correct amount. They can also help with resolving any disputes about pay or super.
If an employer doesn’t keep the required records, they can be fined or penalised.
An employer may also be required to backpay employees if they cannot show what an employee was paid.
What to include in an employee record
Some employers and employees in the creative arts industries may have slightly different record-keeping requirements depending on which employment system they are in.
Things that are commonly included are:
Relevant personal details and employment status
An employer must record general information about the employee and employer. This includes:
- the employer’s ABN (if they have one)
- the employee’s name and address
- whether the employee is full-time or part-time (permanent or temporary), or a casual employee
- the date the employee’s employment began.
if the employee is under 21:
- their date of birth (to ensure they’re being paid the correct junior rate if a junior rate applies)
Pay
An employer must record an employee’s pay arrangements. This includes:
- the rate of pay paid to the employee
- the gross and net amounts paid to the employee
- any deductions made from the gross amount paid to the employee
- the hours worked by the employee if the employee is a casual or irregular part-time employee
- any incentive, bonus, loading, penalty rate, monetary allowance or separate entitlement that the employee is entitled to be paid (including details of these payments and specific amounts paid).
Hours
An employer must record information about working hours.
What exactly is required will depend on the type of arrangements in place for the hours worked by the employee.
For example, when an employee is entitled to penalty rates, or has an agreement with the employer to average their ordinary hours.
Overtime
If an employee is entitled to an overtime penalty rate or loading for overtime hours the employee works (for example, as required under their award or enterprise agreement), the employer must keep a record of:
- the number of overtime hours worked by the employee each day, or
- when the employee started and stopped working overtime hours.
Averaging of hours
If an employee and employer agree in writing to average the employee’s hours of work, the employer must keep a copy of that written agreement
Leave
If an employee is entitled to take paid or unpaid leave, an employer must record and identify:
- any leave the employee takes
- the balance of the employee’s leave entitlements
- a copy of any agreement that the employee and employer have made for the cashing out of accrued leave, including the rate of pay for the leave cashed out and when the payment was made.
Long service leave
State and territory laws may also have separate requirements about recording long service leave. Contact the long service leave agency in your state or territory to find out:
- Australian Capital Territory — WorkSafe ACT
- New South Wales — NSW Industrial Relations
- Northern Territory — NT Government
- Queensland — Queensland Industrial Relations
- South Australia — SafeWork SA
- Tasmania — WorkSafe Tasmania
- Victoria — Wage Inspectorate Victoria
- Western Australia — Department of Energy, Mines, Industry Regulation and Safety
Superannuation
Generally, employers must pay employee super (make a super contribution for the benefit of the employee).
Learn more about superannuation.
Employment ending
An employer must record other information in some circumstances. For example:
- if an employee has an individual flexibility agreement — a copy of the agreement and changes to it
- If an employee has an agreement to take annual leave in advance — a copy of that agreement
- If an employee is part-time — a copy of their agreed part-time hours
- a guarantee of annual earnings.
Some awards or enterprise agreements may require the employer and employee to have written agreements about certain things. An employer must keep any records required by an award or agreement
Other information
An employer must record other information in some circumstances. For example:
- if an employee has an individual flexibility agreement — a copy of the agreement and changes to it
- if an employee has an agreement to take annual leave in advance — a copy of that agreement
- if an employee is part-time — a copy of their agreed part-time hours
- a guarantee of annual earnings.
Some awards or enterprise agreements may require the employer and employee to have written agreements about certain things. An employer must keep any records required by an award or agreement.
In practice:
Records required by an enterprise agreement
Sofia works as a screen crew member in pre-production. Her employment is covered by an enterprise agreement which entitles her to an overtime penalty for overtime hours worked beyond her ordinary hours.
Sofia’s employer keeps a record of the start and finish times of the overtime she has worked, the overtime penalty rate she is entitled to and the overtime amounts paid to Sofia. This information forms part of the employee record relating to Sofia.
Keeping employment records
Under most workplace laws, employers must keep employment records for at least 7 years.
Employment records:
- must be accessible to a relevant inspector (such as a Fair Work Inspector from the Fair Work Ombudsman)
- must be legible
- must be in English.
Employee access to their records
An employee can ask to see their own employee records at any time, including after their employment has ended.
Keep learning:
Pay slips
An employer must give payslips to employees.
Pay slips help employees check they are being paid correctly and can help with identifying and sorting out pay issues as quickly as possible.
Getting pay slips right
Pay slips must be given to the employee within 1 working day of pay day.
They can be electronic or on paper.
The Fair Work Ombudsman’s website has information about what must be included on a payslip.
They also set out important pay slip rules for paid family and domestic violence leave.
Getting pay slips wrong
There may be fines or penalties for employers who do not provide payslips or do not include the required information in payslips.
Failure to provide payslips with the required content may result in the employer having to pay a fine, a court-ordered penalty. In some cases, an employer may need to backpay an employee if they cannot show that they paid them the correct amount.
Keep learning:
More in this section:
Setting up as an independent contractor
There are lots of independent contractors in the creative industries. When you work as an independent contractor, you have your own business. This page has information to help you work out if it’s the right business structure for you and some basics on setting up.
Setting up as a company
There are lots of things to consider when deciding whether a company is the right structure for your creative business. Setting up as a company can offer benefits, but it is not straightforward and can be costly.
Setting up or joining a co-operative
A co-operative is a business structure that exists to benefit its members. It can be a useful business structure to support creative professionals working in creative industries.
Registering your business
Most creative businesses need to be registered for different things so they can operate.
Business tax
Having some knowledge of how a business works with the tax system is important for any creative business – even if tax is usually something you’re not very interested in.
Business insurance
Business insurance can protect the business and the owner if things go wrong. Some insurances are required by law. Others can be a good idea.
Record keeping for businesses and organisations
Keeping the right business records will help you keep things on track and meet your business obligations.
