Employment Records

Employment Records

As an employer, you must keep accurate wage and time, holiday and leave records.
In particular, you must be able to show that you’ve correctly given your employees all minimum employment entitlements such as the minimum wage and annual holidays.
Good record-keeping protects the employer and the employee and prevents misunderstandings.
Your employees have the right to know everything you are recording on their file and have the right to see these records.
Records can be kept on paper or electronically (as long as the information can be accessed easily and converted into written form).
Keep wages and time records, and holiday and leave records for seven years (even if the employee has left).
Keep a signed copy of the employment agreement (employees must be given their copy if they ask for it) and a copy of the IR330 Tax Code Declaration.

Records that employers need to keep:

 The wages paid in each pay period and how these have been calculated. Including a record of all wage deductions, such as PAYE, student loan deductions and superannuation contributions, court ordered fines and any agreements for wage deductions.

 Dates employee last became entitled to annual holidays and sick leave and their current entitlement to annual holidays and sick leave.

 The dates of leave taken, including annual holidays, sick leave and bereavement, and payment received for each.

 Any annual leave cashed up as well as the date and amount paid for each entitlement year.

 The dates and number of hours worked on public holidays and the payment for these; the date (or 24-hour period) the public holiday or any part of it has been transferred to, and the date the employee became entitled to any alternative holiday (day-in-lieu).

 The dates of, and payments for, any public holidays or alternative holidays they didn’t work but were entitled to holiday pay.

 The cash value for any board and lodgings provided.

 The date when employment ended, and the amount of holiday pay they received at the end of employment.

 Requests to transfer public holidays or cash-up annual holidays (and whether or not these were agreed to).

 Records of the date employees become entitled to sick and bereavement leave (to avoid disputes).

 Evidence of compliance with health and safety responsibilities.

 Evidence of rest and meal breaks provided (or compensation for these).

 Copies of employees’ personal contact details, such as their email addresses, home phone and mobile numbers, if they want to provide these. Emergency contact details.

 Employees’ bank account details if this payment method has been agreed to.

 Details of employees’ work permits, if applicable.

For an employee on a salary, usual hours include any additional hours worked that are consistent with the employment agreement. However, an employer must record additional hours if they’re required, to have records in enough detail to show that they’re complying with minimum entitlements.

For employers with fully computerised payroll software, maintaining the records can be easier, but it is still necessary to check the payroll system to make sure it accurately records any changes to employees’ hours and pay.

For employers with manual systems, it can be harder to stay on top of recording everything.

If you don’t understand or you don’t think you’re keeping accurate records of everything required, you can contact us.

Monday, 17th December 2018

"Kessels & Associates Ltd (trading as Kessels Ecology) has been a very satisfied client of DB Chartered Accountants for several years now.

We appreciate the professional yet approachable manner of David, Pam and the rest of the team.

They have a genuine interest in our business – a small but busy environmental science service consultancy - and are always on hand to assist. We value being able to regularly meet with David and to assess how the business is tracking one on one, with the opportunity to discuss future plans and options. David is also able to provide advice on a broad range of business development and strategy matters, which we’ve greatly valued.

We can’t recommend David and his team highly enough."

Gerry Kessels & Helen Percy
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