Time and attendance compliance is fundamental to running a legally compliant restaurant. Every shift your staff work must be accurately recorded, breaks must be tracked, overtime must be calculated correctly, and records must be defensible if Fair Work comes knocking. The restaurant industry faces particular challenges here—fast-paced environments, staff clocking in and out multiple times during split shifts, confusion about when breaks were actually taken, and managers too busy during service to verify timesheets. When time tracking fails, the consequences follow quickly: underpayment claims, payroll disputes, Fair Work penalties, and the administrative nightmare of reconstructing months of missing or inaccurate records. Proper time and attendance systems aren't just about compliance—they're about operational efficiency, accurate payroll, and protecting your business from costly mistakes. Modern restaurant-specific time tracking solutions integrate with rostering and payroll, automatically calculate penalty rates, and create tamper-proof audit trails.
This guide explains the specific time and attendance compliance requirements for Australian restaurants, common mistakes that trigger Fair Work investigations, and practical systems that meet legal requirements while making operations smoother.
Quick summary
- Restaurants must keep detailed records of start/finish times, breaks, and overtime for 7 years
- Records must be tamper-proof and include employee acknowledgement or approval
- Manual timesheets and spreadsheets are prone to errors and difficult to defend
- Digital time clocking creates accurate, defensible records with automatic penalty calculations
Legal time and attendance requirements for restaurants
Under Fair Work regulations and the Hospitality Award, restaurants must maintain specific time and attendance records:
- Start and finish times: Exact times when each employee started and finished work, not just rostered times. If someone started at 5:58pm instead of 6:00pm, the actual time must be recorded.
- Unpaid break times: When breaks started and ended, with clear indication they were unpaid. Simply noting "30 min break" isn't sufficient—you need actual break start and end times.
- Overtime hours: Any hours worked beyond ordinary hours must be clearly identified. This includes work performed before scheduled start times or after scheduled finish times.
- Penalty rate periods: Records must show when work was performed during evening, weekend, and public holiday periods that attract penalty rates under the Hospitality Award.
- Employee acknowledgement: Records should be signed, acknowledged, or approved by the employee. This confirms they agree the recorded hours are accurate.
- Record retention: All time and attendance records must be kept for seven years and be readily accessible if Fair Work requests them during an investigation.
Common time tracking mistakes in restaurants
These mistakes occur frequently in busy restaurant environments and can lead to compliance issues:
Recording rostered hours, not actual hours
Paying employees based on rostered shifts rather than actual time worked. If someone worked 5:45pm to 10:15pm but was rostered 6:00pm to 10:00pm, you must pay the actual hours including the extra time.
Rounding time inappropriately
Rounding clock-in times to roster start times systematically disadvantages employees. While minor rounding is sometimes acceptable, it must not consistently favor the employer.
Not tracking break times
Deducting standard break times without recording when breaks were actually taken. If an employee worked through their break during a rush, they must be paid for that time.
Allowing buddy punching
One employee clocking in for another creates false records. GPS verification or biometric systems prevent this, but many restaurants still use honor systems that are easily abused.
Missing employee sign-off
Time records that employees never see or approve are weak evidence if disputes arise. You need proof employees agreed their recorded hours were accurate.
Editable spreadsheet records
Spreadsheets can be altered without audit trails. If Fair Work questions your records, you can't prove they haven't been changed after the fact to hide underpayments.
How to track breaks correctly in restaurants
Break tracking is particularly challenging in restaurants where service pressures often mean breaks are interrupted, shortened, or skipped entirely. The Hospitality Award requires unpaid breaks of at least 30 minutes for shifts over 5 hours. Here's how to track them compliantly:
Clock out for breaks
Require employees to clock out when starting an unpaid break and clock back in when returning. This creates an accurate record of break duration and timing, which is defensible if questioned.
Track interrupted breaks
If a break is interrupted (e.g., kitchen calls waitstaff back during a rush), they clock back in. The interrupted break doesn't count as a proper break, and the employee must be given another opportunity for their full break entitlement.
Monitor break compliance
Use time and attendance software that flags when employees haven't taken required breaks. This helps managers support compliance even during busy periods.
Document missed breaks
If operational requirements mean an employee can't take their full break, document this and ensure they're paid for the break time. You can't deduct unpaid break time if the break wasn't actually taken.
Technology solutions for restaurant time tracking
Modern time and attendance systems designed for restaurants solve most compliance challenges:
Mobile time clocking
Staff clock in and out from their phones with GPS verification, eliminating buddy punching and providing accurate timestamps.
Tamper-proof records
Time entries are locked with audit trails showing any edits, who made them, and when. This creates defensible evidence for Fair Work compliance.
Employee approval
Employees review and approve their timesheets through the app, creating proof they acknowledged the recorded hours.
Automatic penalty calculations
System automatically tags hours worked during evening, weekend, and public holiday periods for correct penalty rate application in payroll.
Compliance alerts
Automatic warnings when overtime limits are approaching, breaks haven't been taken, or rostered shifts don't match clocked hours.
Rostering integration
Time clocking integrates with roster systems so you can compare planned vs actual hours and identify patterns.
Best practices for restaurant time and attendance
Beyond technology, these practices improve time tracking accuracy and compliance:
- Clear policies: Document your time clocking policy—when to clock in, how breaks work, what happens if someone forgets to clock out. Provide this to all staff during onboarding.
- Manager oversight: Assign shift supervisors to review time records daily, not weekly. Early identification of missing clock-ins or unusual patterns prevents problems from accumulating.
- Regular audits: Compare time records to payroll monthly. If you paid someone for 38 hours but time records show 42 hours worked, investigate immediately. Use HR systems to track these reviews.
- Training for managers: Ensure managers understand their legal obligations around time recording, break entitlements, and penalty rate triggers. Ignorance isn't a defense if Fair Work finds violations.
- Address patterns quickly: If an employee consistently clocks in late or forgets to clock out, address it promptly through coaching rather than letting it become a discipline issue later.
- Backup systems: Have a process for when technology fails—if the system is down, use paper backups that are later entered into the system with notes explaining the circumstance.
Handling time and attendance disputes
When employees dispute recorded hours, proper records protect your business:
- Burden of proof: Initially falls on the employer to prove hours worked. If you have accurate, tamper-proof time records with employee acknowledgement, you can demonstrate compliance. Without them, Fair Work may accept the employee's version of events.
- Investigation triggers: Common dispute sources include employees reviewing old payslips and noticing missing penalty rates, Fair Work audits of restaurants following complaints from other workers, and employees seeking unpaid entitlements after termination.
- Resolution approach: When disputes arise, compare time records to payroll immediately. If there's a genuine error, remedy it promptly and voluntarily. This demonstrates good faith and reduces penalties if Fair Work is involved.
Frequently asked questions
What time and attendance records must restaurants keep?
Under Fair Work regulations, restaurants must keep records showing start and finish times for each shift, unpaid break times, overtime hours worked, penalty rate periods (evenings, weekends, public holidays), and employee sign-off or approval of the records. These records must be kept for seven years and be readily accessible if Fair Work requests them.
Can restaurant staff clock in and out on their phones?
Yes, mobile time clocking is legally acceptable and increasingly common in restaurants. The system must accurately record times, prevent buddy punching through GPS or biometric verification, and maintain tamper-proof records. Mobile clocking through time and attendance software is often more reliable than paper timesheets or manual systems prone to errors.
How do I track unpaid breaks in restaurants?
The most reliable method requires employees to clock out when starting an unpaid break and clock back in when returning. This creates an accurate record of break duration. Some systems allow managers to deduct standard break times, but this is less defensible if the employee worked through their break or took a shorter break during a rush.
What happens if restaurant time records don't match payroll?
Discrepancies between time records and payroll can indicate underpayment and trigger Fair Work investigations. If employees worked more hours than they were paid for, you may face back-pay liability, penalties, and reputational damage. Regular audits comparing time records to payroll help catch errors before they become compliance issues.
Do I need to track penalty rates separately in time records?
While not strictly required to record penalty rates separately in time records, it's highly recommended. Clear records showing which hours were ordinary time versus penalty periods make payroll easier, reduce disputes, and provide evidence of compliant payments if questioned. Modern time and attendance systems tag penalty periods automatically based on when shifts were worked.
Can I use a spreadsheet for restaurant time and attendance?
While spreadsheets are technically legal, they're problematic because they can be easily altered without audit trails, are prone to manual entry errors, don't integrate with rostering or payroll, and lack features like automatic penalty calculations. For Fair Work compliance and operational efficiency, dedicated time and attendance software is strongly recommended.
Related RosterElf features
Workforce management software built for shift workers
RosterElf gives Australian businesses the tools to manage rosters, track time, and support your compliance efforts—all in one platform designed for shift-based teams.
- Mobile time clocking with GPS verification
- Tamper-proof records with audit trails
- Automatic penalty rate calculations
Disclaimer: This article provides general guidance only and does not constitute legal or employment advice. Time and attendance record-keeping requirements may vary by award and jurisdiction. Always verify current requirements using official Fair Work Ombudsman resources before making employment decisions.
