Fair Work Time Tracking: What Australian Employers Must Know

Section 535 of the Fair Work Act 2009 is clear and binding. Employers must make and keep employee records for a minimum of seven years.

The records must be kept in legible English, be accurate, and be readily accessible to a Fair Work Inspector on request. They must not be false or misleading, and if you find an error you must correct it promptly and clearly.

Here is exactly what those records must contain, based on the Fair Work Act 2009 and Fair Work Regulations 2009:

 

What Must Be Recorded	What the Record Must Show
Employee details	Name, employment type (full-time, part-time, or casual), and date employment started
Pay details	Pay rate, gross and net amounts paid, and any deductions made
Hours worked	For casual and irregular part-time employees, every hour worked. For others, overtime hours each day, or when overtime started and finished where penalty rates apply
Penalty rates and loadings	Any bonus, loading, penalty rate, incentive payment, or other monetary entitlement paid
Leave	Leave taken and remaining leave balance for each type of leave the employee is entitled to
Superannuation	Amount of each super contribution, the period it covers, the date paid, and the name of the fund
Pay slips	Must be issued within one working day of payment and include gross and net amounts, super, and all applicable entitlements

 

Source: Fair Work Act 2009, section 535. For full details visit fairwork.gov.au or call the Fair Work Infoline on 13 13 94.

 

This is the part most business owners do not know about until it is too late.

The Financial Penalties

Non-compliance with record keeping obligations under sections 535 and 539 of the Fair Work Act is a civil remedy provision. The maximum penalty is up to $109,200 per contravention for a corporation, based on current penalty unit values. This figure is indexed periodically, so always confirm the current amount at fairwork.gov.au before quoting it elsewhere.

These penalties apply per contravention. If a Fair Work Inspector finds multiple record keeping failures across multiple employees over multiple pay periods, the fines can add up quickly.

IMPORTANT The reversed burden of proof. This is the most significant risk many employers are unaware of. Under section 557C of the Fair Work Act, if an employer fails to keep records or cannot provide a reasonable excuse for missing records, the burden of proof shifts. In any court proceedings, it is presumed that the employee was underpaid unless the employer can prove otherwise. Poor record keeping does not just expose you to a fine. It can turn an employee claim of underpayment into a presumption of guilt that you have to disprove.

Fair Work Inspections

A Fair Work Inspector has the power to enter your premises, request records, and inspect them. If records are not available on the spot, you must make them available within three business days at your premises, or post a copy to the Inspector within 14 days.

The Fair Work Ombudsman has significantly increased its enforcement activity around record keeping failures in recent years. Wage theft laws have made this even more serious. Businesses without clean records become a priority target for further investigation.

 

Paper timesheets and spreadsheets are not automatically non-compliant. A well-maintained spreadsheet can technically meet the requirements. The problem is that in practice, most manual systems have gaps.

They are easy to dispute

If an employee claims they worked overtime on a Tuesday three months ago, and your only evidence is a handwritten timesheet that the employee signed, there is very little to stop them from saying they signed under pressure or the times were filled in after the fact. A digital record created automatically at the moment of clocking is a completely different matter.

They are easy to lose

Seven years is a long time. Paper records get damaged, misplaced, or thrown out during office moves. If the records are not there when a Fair Work Inspector asks for them, you have a problem regardless of whether you originally had them.

They are easy to get wrong

Manual entry means human error. Forgotten overtime, incorrect start and finish times, casual hours that were not recorded. Each error is a potential compliance gap. And under Fair Work rules, a record you know is false or misleading carries its own penalty on top of everything else.

They cannot confirm who was actually there

A paper timesheet tells you what was written down. It does not tell you who was actually in the building. If an employee disputes their recorded hours, a manual system gives you very little to fall back on.

 

A biometric time clock does not just track time. It creates a tamper-proof, identity-verified record of exactly when each employee started and finished work, automatically, every single day.

Automatic record creation

Every clock-in and clock-out is recorded the moment it happens. There is no paper to fill in, no data to enter manually, and no way for a record to go missing because someone forgot to write something down. The timestamp is created by the device, not by a person.

Identity verification

When an employee clocks in on a FingerTec or Easy Clocking device, their identity is verified by their fingerprint or face before the clock-in is recorded. You are not recording what someone wrote on a piece of paper. You are recording that a specific, verified person was present at a specific time. That is a fundamentally stronger record for any Fair Work proceeding.

Seven years of digital records

Digital records do not get damaged in floods, misplaced in office moves, or thrown out by mistake. Your time and attendance data is stored securely, searchable, and accessible for the full seven-year period the Fair Work Act requires. Easy Clocking cloud systems store data in real time with cloud backup. FingerTec on-premise systems store data on your office PC or server within TCMSV3 or Ingress software.

Payroll integration

Fingertec and Easy Clocking devices capture employee clocking punches, which are processed by the time and attendance software to calculate hours worked. Those approved hours can then be automatically transferred to payroll systems such as Xero, eliminating manual data entry, reducing payroll errors, and providing a clear audit trail from clock-in through to payslip. Integrations are also available for other payroll platforms, including MYOB AccountRight, Employment Hero, and more. 

From the Nexus Biometric website: “Accurate, tamper-proof time records protect you in any wage dispute. Our biometric time clocks create an automatic audit trail you can rely on when it matters most.”

 

Since 1 July 2026, a significant change to superannuation law is in effect in Australia. Under the Treasury Laws Amendment (Payday Superannuation) Act 2025, confirmed by the ATO and the Fair Work Ombudsman, employers are now required to pay super guarantee contributions at the same time as wages rather than quarterly.

Contributions must be received by the employee's super fund within seven business days of each payday. The ATO now has real-time visibility, meaning payroll errors are identified faster than ever before.

What this means for time tracking. Under the old quarterly model, a payroll error from inaccurate hours could sit undetected for up to three months. Under Payday Super, any inaccuracy in hours or pay flows directly and immediately into a super error on the same day. Accurate time records are not just about Fair Work compliance anymore. They are the foundation of getting superannuation right on every single pay cycle. Source: ATO.gov.au and fairwork.gov.au/newsroom/news/payday-super-new-rules-starting-1-july-2026

Businesses that already have accurate, automated time tracking in place are well positioned for this change. Those still relying on manual timesheets have a real incentive to sort it out now.

 

Nexus Biometric sells both FingerTec and Easy Clocking devices, which between them cover every type of Australian workplace.

FingerTec: On-Premise with TCMSV3 and Ingress Software

FingerTec biometric devices capture employee clocking punches and synchronise them with the accompanying software, where attendance records are securely stored and managed. TCMS V3 Standalone is included at no additional cost with most FingerTec time and attendance devices. For organisations requiring multi-user access, centralised database management, or integrated door access control, TCMS V3 MySQL and Ingress are available as optional software solutions. As an on-premises system, the software is purchased outright with no ongoing monthly subscription fees. 

•     TA500. A reliable fingerprint time clock, ideal for small to medium-sized businesses with up to 100 employees. Includes a built-in battery backup to continue operating during short power outages. Supplied with TCMS V3 Standalone software at no additional cost.

•     TA700W. A compact, Wi-Fi-enabled fingerprint time clock designed for smaller offices and workplaces looking for a simple, cable-free installation. Includes TCMS V3 Standalone software at no additional cost.

•     Face ID4. A touchless facial recognition time clock, perfect for businesses seeking a fast, hygienic, and convenient way for employees to clock in and out. Includes TCMS V3 Standalone software at no additional cost.

•     Face ID5. A premium biometric solution featuring advanced facial recognition, palm and fingerprint verification for enhanced flexibility and accuracy. Supplied with TCMS V3 MySQL software, making it ideal for organisations requiring multi-user access and a centralised server database. A TimeTec TA cloud subscription is also available for businesses wanting real-time data and cloud-based management.  

•     R3. A versatile fingerprint device that can be used for time and attendance or expanded to include door access control when paired with Ingress software, making it an ideal solution for businesses wanting to manage both workforce attendance and building security from a single platform.

 

Easy Clocking: Cloud-Based with Automatic Payroll Integration

Easy Clocking Cloud is a modern workforce management platform that works with compatible biometric time clocks, allowing employee clocking data to be captured in real time and securely synchronised to the cloud. Once employee hours have been reviewed and approved, they can be automatically transferred to payroll systems such as Xero, with additional integrations available for MYOB AccountRight, Employment Hero, and other payroll platforms. A monthly subscription applies.

•     Mobile App. Ideal for office, remote and field-based employees, with GPS location capture and geofencing for mobile clocking. Employees can also submit leave requests and access their attendance information directly from the app.

How long do I have to keep employee time records under the Fair Work Act? Seven years. Under section 535 of the Fair Work Act 2009, employers must make and keep employee records for a minimum of seven years from the date the record is created. This applies to time records, pay records, leave balances, super contributions, and other prescribed information. For official guidance, visit fairwork.gov.au or call 13 13 94.

 

What happens if a Fair Work Inspector asks for records I do not have? If you cannot produce records or provide a reasonable excuse for why they are missing, the burden of proof shifts under section 557C of the Fair Work Act. A court can presume that an employee was underpaid, and it becomes your responsibility to disprove it. This goes well beyond just paying a fine. If you are in this situation, contact the Fair Work Ombudsman or a workplace relations professional.

 

Do biometric time clock records satisfy Fair Work record keeping requirements? A biometric time clock creates automatic, timestamped records of when each verified employee started and finished work. When used alongside payroll software that records pay rates, overtime, and entitlements, this forms a strong compliance record. You should ensure your system captures all prescribed information under Fair Work Regulations 3.31 to 3.44. If you are unsure whether your setup is fully compliant, contact the Fair Work Ombudsman or a qualified workplace relations professional.

 

What is changing with superannuation from 1 July 2026? As of 1 July 2026, Payday Super is in effect in Australia. Employers are now required to pay super guarantee contributions at the same time as wages, rather than quarterly. Contributions must be received by the employee's super fund within seven business days of each payday. Accurate time tracking is critical to getting every pay cycle right. For full details visit ato.gov.au/businesses-and-organisations/super-for-employers/payday-super.

 

Are employee fingerprints stored as images on biometric time clocks? No. Neither FingerTec nor Easy Clocking stores a photograph or image of a fingerprint. The device scans the finger, converts the data into an encrypted mathematical template, and discards the original scan. The template cannot be used to reconstruct a fingerprint. This is confirmed on the Nexus Biometric FAQ page and is standard practice across all reputable biometric time clock brands.

 

Where can I get official information about Fair Work record keeping requirements? The Fair Work Ombudsman at fairwork.gov.au is the best source. Their record keeping page covers all requirements, free templates, and an online training course. You can also call the Fair Work Infoline on 13 13 94. This article is general information only and does not constitute legal advice.

Fair Work record keeping is not a formality. Seven years of accurate, accessible records is a legal requirement under section 535 of the Fair Work Act. Getting it wrong can mean serious fines and it shifts the burden of proof against you in any underpayment dispute.

A biometric time clock does not solve every compliance challenge in your business, but it solves the hardest part: creating an accurate, tamper-proof, identity-verified record of every hour your employees work, automatically, every single day.

With Payday Super now in effect, there has never been a better time to get your time and attendance systems right. If you want to talk through the right setup for your workplace, email sales@nexusbiometric.com.au or visit nexusbiometric.com.au.

GENERAL INFORMATION ONLY This article is general information only and does not constitute legal advice. Fair Work obligations vary depending on your industry, applicable awards, enterprise agreements, and individual circumstances. For guidance specific to your business, visit fairwork.gov.au, call the Fair Work Infoline on 13 13 94, or speak with a qualified workplace relations professional.