Whenever Primary Employers Tasmania give presentations to employers we stress the need for all employees, no matter their role, to keep a record of the hours worked by an employee. There are various reasons for doing this, but the main one is to ensure that the employee is correctly paid.

We often hear that an award-based employee is paid a ‘salary’ and this covers all hours of work. However, the awards specifically provide that an annual salary has to be explained to the employee and that the employee should be aware of what the award would pay for working that same number of expected hours. This should be in writing and should indicate clearly what the salary covers, particularly the maximum hours of work expected.

At the end of each year, it is also required to conduct an “audit’’ to ensure that the employee is no worse off than if they had been paid under the award. Without knowing how many hours the employee actually worked, and therefore what overtime payments should have been made, it is impossible to confirm whether the employee has been appropriately compensated or not.

We recommend checking the hours worked more regularly as it may be the case that the employee is doing so many hours that the salary will not cover award entitlements. Knowing this the employer can look to ensure that the hours worked are kept within the required limit. If not, it may well be that the employee will be entitled to additional payment to cover the shortfall in the salary compared to the award entitlements.

On the other hand, such a check could show that the employee is nowhere near doing the expected hours and therefore needs to be provided with additional hours to ensure value for money.

Though a manager is not covered by an award, and therefore there is no provision for overtime payments as there is for award-based employees, it should be noted that the National Employment Standards set out that the notional hours of work for any employee is 38 hours per week.

We recently dealt with a claim by a manager who upon resignation claimed that he was doing more hours then expected and thus thought he should be paid for supposed ‘overtime’. However, the contract did set out that though it was anticipated that the hours would be 38 hours per week he was expected to work the hours required to fulfil his duties and that the salary took into account that more than 38 hours per week may be required. This protected the employer from the employee pursuing it further.

By having timesheets signed and provided by the employee an employer can ensure that they are meeting award entitlements, and in the case of all employees that the employees are not being put at risk by working to many hours which could affect their health and well-being.