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Keeping time

11 July 2023
timesheet employee record payroll

A reminder to employers of the importance of keeping employee timesheet records.

I have recently been assisting an employer with an MBIE investigation, which involved providing details on how the employer managed their people’s employment and recordkeeping.

This process highlighted the need for employers to keep detailed timesheet records from their employees. As an employer, you must keep wage and time, and holiday and leave records that comply with the Employment Relations Act 2000 and the Holidays Act 2003. In particular, you must be able to show you have given your employees all minimum employment entitlements, such as the minimum wage and annual holidays.

If an employment agreement states a timesheet must be kept to record hours worked, then this must be provided to the employer, so it can be processed for payroll purposes but also for legal compliance.

Keeping timesheet records is important for several reasons, including:

  • Employers are required by law to keep accurate records of employee working hours and other employment-related information to ensure compliance with employment laws and regulations.
  • Timesheet records are used to calculate employee wages and salaries accurately and process payroll. They are also necessary for billing clients accurately based on the time spent on a project or task.
  • Timesheet records can be used to evaluate employee performance and productivity. By tracking time spent on various tasks, managers can identify areas where employees may need additional support or training.
  • Timesheet records can be useful for project management, particularly for tracking progress and estimating future workloads. They can also help managers to allocate resources and prioritise tasks.

To sum up, keeping timesheet records is essential for ensuring legal compliance, accurate payroll and billing, performance evaluation, project management and legal protection.

ABOUT THE AUTHOR: Lisa Duston from the Master Plumbers Human Resources team is available to Master Plumbers members to discuss any employee situation. Contact Lisa on 021 245 1704 or email lduston@masterplumbers.org.nz 

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