What counts as hours worked
Accurately determining what time counts as "hours worked" is essential for correct pay calculations and Fair Work compliance. Not all time spent at work necessarily counts—and some time away from the workplace does count.
Generally counted
- Time performing duties
- Required training/meetings
- Setup and cleanup time
- Travel between work sites
Generally not counted
- Unpaid meal breaks
- Commuting to/from work
- Time completely off duty
- Voluntary activities
The applicable Modern Award may have specific rules about what time is counted. When in doubt, if the employer requires or permits the activity, the time should generally be paid.
Tracking hours worked accurately
Australian employers must keep accurate records of hours worked. This isn't just good practice—it's a legal requirement with potential penalties for non-compliance.
What records must show
Modern time and attendance systems capture this information automatically through digital clock-in/out, eliminating manual timesheets and reducing errors.
Hours worked categories
For pay calculation purposes, hours worked are categorised into different types, each potentially attracting different rates:
- Ordinary hours: Regular hours within the standard work pattern (paid at base rate)
- Overtime hours: Hours beyond ordinary hours (paid at penalty rates)
- Penalty hours: Weekend, public holiday, or unsociable hours (paid at penalty rates)
- Leave hours: Paid leave counted as hours worked for accrual purposes
Record-keeping requirements
Under Fair Work regulations, employers must keep records of hours worked for 7 years. If records are inadequate or missing, the burden of proof in underpayment claims may shift to the employer. Accurate, contemporaneous records are your best protection.
Common hours worked scenarios
Counted as hours worked
- Pre-shift briefings or meetings
- Mandatory training sessions
- Equipment setup/cleanup if required
- Travel between job sites during day
Usually not counted
- Unpaid meal breaks (30+ minutes)
- Commuting from home to first location
- Voluntary social events
- Time completely relieved of duties
Common mistakes tracking hours worked
Recording rostered hours instead of actual hours
If employees start early, finish late, or work through breaks, recording only rostered hours leads to underpayment. Track actual times.
Not paying for required pre-shift time
Briefings, uniform changes, or setup required before "official" start time must be paid. This is a common source of underpayment claims.
Rounding hours down
If rounding is used, it must be neutral over time. Systematically rounding down shortchanges employees and can constitute wage theft.
Not recording breaks accurately
If breaks aren't recorded, you can't verify that minimum break entitlements were provided or that working through breaks was paid correctly.
Key takeaways
Hours worked includes all time an employee spends performing duties, plus required training, meetings, and certain travel. Australian employers must keep accurate records of actual hours worked—not just rostered hours—for at least 7 years. Inadequate records can shift the burden of proof in underpayment claims.
Time and attendance software like RosterElf captures actual clock-in/out times and break durations automatically, ensuring accurate hours worked records for compliant payroll processing and Fair Work compliance.
