How long must I keep employee records in hospitality?

Under the Fair Work Act, employers must keep employee records for 7 years. This includes time and wages records, leave records, superannuation contribution records, and any individual flexibility agreements. Records must be legible, in English, and readily accessible.

Fair Work Compliance Checklist for Hospitality Businesses in Australia

Q: What are the most common Fair Work violations in hospitality?

The most common violations in hospitality are: underpayment of penalty rates (especially weekend and public holiday rates), failure to keep accurate time and pay records, not paying casual loading correctly, not providing payslips or providing inaccurate payslips, and failing to pay superannuation on time. The Fair Work Ombudsman specifically targets hospitality for these issues.

Q: What happens if my restaurant fails a Fair Work audit?

Penalties for non-compliance can be severe. Individual penalties can reach up to $18,780 per contravention, and company penalties up to $93,900 per contravention. For serious or deliberate underpayment (wage theft), criminal penalties can apply including fines up to $7.825 million for companies. The Fair Work Ombudsman can also issue compliance notices, enforceable undertakings, and pursue court action.

Q: Do I need to give employees a Fair Work Information Statement?

Yes. Before or as soon as practicable after an employee starts, you must give them the Fair Work Information Statement (FWIS). For casual employees, you must also provide the Casual Employment Information Statement (CEIS). These are available free from the Fair Work Ombudsman website.

Published 22 February 2026 · By Fitz HR · 8 min read

The Fair Work Ombudsman has made hospitality a priority enforcement sector. Underpayment scandals involving high-profile restaurant groups have led to increased scrutiny across the entire industry, from large chains down to single-venue operations.

This checklist covers everything your pub, restaurant, cafe, or hotel needs to have in place to meet Fair Work requirements and avoid costly penalties.

1. Pay & Award Compliance

Correct Award applied: All hospitality employees covered by the Hospitality Industry (General) Award MA000009
Classification levels correct: Each employee assigned the right level (1–6) based on their actual duties, not just given the lowest level
Base rates at or above Award: No employee paid below the minimum Award rate for their level
Penalty rates applied correctly: Saturday (150%), Sunday (175%), Public Holiday (250%) rates calculated and paid
Evening loading correct: $2.81/hr flat loading for work between 7pm–midnight (Mon–Fri), not applied as a percentage
Night loading correct: $4.22/hr flat loading for work between midnight–7am (Mon–Fri)
Casual loading paid: 25% casual loading paid to all casual employees on every hour worked
Overtime calculated correctly: First 2 hours at 150%, thereafter at 200%
Superannuation paid: 11.5% super paid on time (due quarterly) for all eligible employees

Most common mistake: Applying evening penalty rates as a percentage multiplier (e.g. 110%) instead of the correct flat dollar loading. This results in underpayment and is one of the first things auditors check.

2. Record Keeping

The Fair Work Act requires employers to keep detailed records for 7 years. Missing or incomplete records can result in penalties on their own, even if you’ve been paying correctly.

Time records: Actual start and finish times for each employee, each day (not just rostered times)
Pay records: Rate of pay, gross and net amounts, deductions, and overtime hours
Leave records: Leave balances, leave taken (dates and type), leave loading paid
Superannuation records: Contributions made, fund details, dates of payment
Employee details: Name, start date, employment type, classification level, Award reference
Payslips issued: Within 1 business day of payment, including all required information

3. Employment Documentation

Written employment contracts: Issued to all employees before or on their start date
Fair Work Information Statement: Provided to all new employees
Casual Employment Information Statement: Provided to all new casual employees
Tax File Number declaration: Completed and submitted to the ATO
Superannuation choice form: Offered within 28 days of starting
Visa/work rights verified: VEVO check completed for any employee on a visa

4. Leave Entitlements

Annual leave: 4 weeks per year for full-time, pro-rata for part-time (accrues from day 1)
Personal/carer’s leave: 10 days per year for full-time, pro-rata for part-time
Compassionate leave: 2 days per occasion
Family & domestic violence leave: 10 days per year (paid, from 1 February 2023)
Public holidays: Entitled to be absent on public holidays (or paid penalty rates if they work)
Long service leave: As per state/territory legislation

            Casual employees do not receive paid annual or personal leave — the 25% casual loading compensates for this. However, they do receive unpaid carer’s leave, unpaid compassionate leave, and paid family & domestic violence leave.
        

5. Termination & Dismissal

Notice periods followed: Minimum notice as per the Award (1–4 weeks depending on tenure)
Final pay processed: All outstanding wages, unused annual leave, and any applicable notice payment within 7 days of termination
Written warnings documented: Performance issues documented through formal warning letters before termination
No unlawful dismissal: Not dismissing for discriminatory reasons, exercising a workplace right, or temporary absence due to illness/injury
Small Business Fair Dismissal Code: If fewer than 15 employees, follow the Small Business Fair Dismissal Code

6. Workplace Health & Safety

WHS policy in place: Written policy appropriate to your venue
Risk assessments completed: Kitchen hazards, slip/trip risks, manual handling, chemical handling
Incident reporting: Process for recording and reporting workplace injuries
First aid: Trained first aider on shift, stocked first aid kit, accessible first aid information
RSA compliance: All staff serving alcohol hold current RSA certification
Food safety: Food Safety Supervisor appointed, food handling certificates current

Frequently Asked Questions

What are the most common Fair Work violations in hospitality?

Underpayment of penalty rates (especially weekends and public holidays), failure to keep accurate time and pay records, incorrect casual loading, inaccurate or missing payslips, and late superannuation payments. The Fair Work Ombudsman specifically targets hospitality for these issues.

How long must I keep employee records?

7 years under the Fair Work Act. This includes time and wages records, leave records, superannuation records, and any individual flexibility agreements. Records must be legible, in English, and readily accessible.

What happens if my restaurant fails a Fair Work audit?

Individual penalties can reach $18,780 per contravention, company penalties up to $93,900 per contravention. For deliberate underpayment (wage theft), criminal penalties apply including fines up to $7.825 million for companies. The FWO can also issue compliance notices and pursue court action.

Do I need to give employees a Fair Work Information Statement?

Yes. Before or as soon as practicable after starting, you must provide the Fair Work Information Statement (FWIS) to all new employees. Casual employees must also receive the Casual Employment Information Statement (CEIS). Both are free from fairwork.gov.au.

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