New requirements relating to timesheets for salaried employees

By Russell Drake


With the introduction of the Minimum Employment Standards Legislation in April this year employers now have an added duty with respect to keeping timesheets for salaried employees. Traditionally an employer was not required to have a salaried employee complete a timesheet where this “was not required for the calculation of remuneration”.

The amendment to Section 130 of the Employment Relations Act 2000, now segregates the hours worked by a salaried employee into two elements:

Section 1C – the usual hours with these being those hours generally agreed with the employee for day to day work to be completed within and;
Any additional hours to be worked by the employee (outside of the usual hours)
To comply with this requirement it may not be essential for an employer to require the salaried employee to complete a timesheet for any hours worked as usual hours, these being those stated within the employee’s employment agreement “hours of work clause”. The employee would however be required to record any additional hours being any hours worked outside of the periods specified in the Hours of Work clause of the IEA. In effect the employee could therefore be required to maintain an ‘exception report’ detailing the day the additional hours are worked, the number of additional hours worked (ideally identifying the starting and finishing times) and the nature of the activities undertaken.

This new requirement may cover any situation where an employee attends to work responsibilities (including attending meetings or completing their usual duties) on evenings and weekends. Although the working of such hours will not generally affect the remuneration to be paid to the salaried employee the purpose of the Act’s amendment is to ensure that workers do not work such hours that could result in them being paid below the minimum legal wage rate for each hour of work completed.    

Simple practices can therefore be implemented by employers to ensure ‘exception reporting’ can be completed without this becoming an unnecessary burden. As with any legislative change, Workplace Inspectors from MBIE do have the power to impose penalties on employers who do not comply with the new time recording requirements.

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