How to implement digital clock-in
A complete guide to implementing digital time and attendance systems in Australian workplaces. Compare clock-in methods, navigate privacy requirements, and integrate with payroll. Includes setup steps, policy templates, and cost analysis.
Written by
Georgia Morgan
General information only – not legal advice
This guide provides general information about implementing digital time and attendance systems in Australia. Always consult the relevant Modern Award and privacy legislation for your specific situation. It does not constitute legal, HR, or professional advice and should not be relied on as a substitute for advice specific to your business, workforce, or circumstances.
Why switch to digital clock-in?
Paper timesheets and manual clock-in systems are prone to errors, time theft (buddy punching), and create extra work at payroll time. Digital time and attendance systems automate time capture, improve accuracy, and provide real-time visibility into attendance. If you're comparing different clock-in methods, our article on GPS vs tablet time clocks compares mobile and fixed clock-in options.
Modern systems integrate with rostering and payroll software, eliminating double-handling of data and ensuring employees are paid correctly for the hours they work. According to the Australian Bureau of Statistics, businesses that digitise time tracking reduce payroll processing time by up to 80%.
Key benefits at a glance
- Eliminate buddy punching with photo verification
- Reduce payroll processing time by 80%
- Ensure Fair Work compliance with automatic record-keeping
- Real-time visibility into who's working and labour costs
- Seamless integration with Xero and MYOB
6 steps to digital clock-in implementation
Follow this process for a successful implementation that ensures adoption, compliance, and ROI.
Assess your requirements
Determine what features you need based on your business operations, locations, and workforce.
Consider:
- Single location vs multiple sites
- Mobile workforce vs fixed workplace
- Integration with payroll and rostering systems
- Number of employees and clock-in points needed
Choose your clock-in method
Select the technology that best suits your workplace and workforce.
Consider:
- Mobile app with GPS: Best for mobile workers, uses GPS verification
- Tablet kiosk: Good for fixed locations, simple to use
- Biometric: Prevents buddy punching, requires hardware
- QR codes: Contactless, easy to implement
Select and configure software
Choose time and attendance software and configure it for your business needs.
Consider:
- Ensure it integrates with your Xero or MYOB payroll software
- Set up locations, departments, and cost centres
- Configure break rules and overtime thresholds
- Set up manager approval workflows
Develop policies and communicate
Create clear policies about clock-in requirements and communicate them to staff.
Consider:
- Document when and where employees must clock in/out
- Explain consequences of missed clock-ins or time theft
- Address privacy concerns about GPS or photo verification
- Update your employee handbook and contracts
Train employees and managers
Ensure everyone understands how to use the system and their responsibilities.
Consider:
- Demonstrate how to clock in and out
- Explain how to handle missed clock-ins or corrections
- Train managers on approving timesheets and running reports
- Provide written guides and support contacts
Launch and monitor
Go live with the system and monitor for issues during the transition period.
Consider:
- Consider a pilot period with a small group first
- Have paper backups available initially
- Monitor for issues and address them quickly
- Gather feedback and make adjustments
Go digital with clock-in
RosterElf offers GPS and tablet clock-in options with automatic timesheet generation and compliance tracking. Built for Australian small businesses.
Clock-in method comparison
Choose the method that best suits your business needs and workforce type.
Mobile app with GPS
Pros:
- Works anywhere
- GPS location verification
- Photo capture option
- Notifications and alerts
Cons:
- Requires smartphones
- Needs mobile data or WiFi
- Battery dependent
- Some employee resistance
Best for: Mobile workforces, multiple locations, field workers
Learn moreTablet kiosk
Pros:
- Simple to use
- No personal devices needed
- Visible for all staff
- Can add photo verification
Cons:
- Fixed location
- Hardware costs
- Can create queues
- Single point of failure
Best for: Retail, hospitality, factories, single locations
Learn moreBiometric (fingerprint/face)
Pros:
- Prevents buddy punching
- No cards to lose
- Accurate identification
- Fast and contactless (face)
Cons:
- Higher hardware cost
- Privacy concerns
- May not work for all (fingerprints)
- Requires maintenance
Best for: High-security environments, time theft concerns
QR code/NFC
Pros:
- Contactless
- Low cost
- Works with any smartphone
- Easy to update locations
Cons:
- Can be photographed/shared
- Needs location codes at each site
- Requires smartphone
Best for: Multiple sites, contactless requirements, budget-conscious
💡 Not sure which method to choose?
Most businesses use a combination: tablet kiosks for on-site staff and mobile GPS for field workers. RosterElf supports both in one platform.
Privacy and legal considerations
Digital clock-in systems must comply with Australian privacy laws and Fair Work requirements.
GPS location tracking
Requirement: Disclose location data collection in employment contracts and policies
Reference: Privacy Act 1988
Solution: Only collect location at clock-in/out moments, not continuously
Photo capture
Requirement: Obtain consent and explain how photos will be used and stored
Reference: Privacy Act 1988
Solution: Secure storage, limited access, clear retention policies
Time records retention
Requirement: Keep employee time records for 7 years
Reference: Fair Work Act 2009
Solution: Ensure your system can archive and export historical data
Workplace surveillance
Requirement: Notify employees of surveillance and comply with state-specific laws
Reference: State surveillance legislation
Solution: Include surveillance notices in workplace policies
Important: State-specific surveillance laws
If using GPS tracking or photo verification, check your state's workplace surveillance legislation. NSW, Victoria, ACT, and SA have specific requirements for notifying employees about surveillance. Consult Fair Work's privacy guidance for details.
Business benefits of digital clock-in
Why thousands of Australian businesses have switched to digital time tracking.
Reduced time theft
Prevent buddy punching and early/late clock-ins
Real-time visibility
See who's working now, who's late, and attendance patterns with live dashboards
Labour cost control
Track hours against budget in real time
Common implementation mistakes
Learn from these common pitfalls when implementing digital clock-in systems.
No employee consultation
Risk: Resistance, low adoption, privacy complaints.
Solution: Explain the benefits, address concerns, and involve staff in selection where possible.
Inadequate training
Risk: Missed clock-ins, incorrect data, frustrated employees.
Solution: Provide hands-on training, written guides, and ongoing support.
No backup process
Risk: Chaos when technology fails.
Solution: Have a paper backup process and communicate it to all staff.
Ignoring privacy requirements
Risk: Legal issues, employee complaints, union concerns.
Solution: Comply with privacy laws, especially for GPS and photo capture. Be transparent.
No integration with payroll
Risk: Double handling of data, errors, wasted time.
Solution: Choose software that integrates with your payroll system or rostering software.
Digital clock-in best practices
Optimize your system for accuracy, compliance, and employee adoption.
Set geofences appropriately
Define location boundaries that account for GPS accuracy while preventing remote clock-ins
Set up approval workflows
Define which managers can approve timesheets and corrections
Monitor adoption rates
Track who is using the system and provide additional support where needed
Review and optimize
Regularly review time data for patterns and opportunities to improve scheduling
Integration with payroll systems
Seamless integration eliminates manual data entry and reduces payroll errors.
The key benefit of digital clock-in is automatic payroll integration. Instead of manually entering hours from paper timesheets into Xero or MYOB, approved clock-in times export directly to your payroll system with correct award rates applied.
Without integration
- Manual timesheet entry into payroll
- Transcription errors and disputes
- 2-4 hours of admin per pay period
- Manual penalty rate calculations
With integration
- One-click export to Xero/MYOB
- Zero transcription errors
- 15 minutes admin per pay period
- Automatic award rate application
RosterElf integrates with Xero, MYOB, KeyPay, and other major Australian payroll systems. Clock-in times are automatically matched to rostered shifts, with variances flagged for manager review before export.
ROI and cost savings
Digital clock-in systems typically pay for themselves within 2-3 months through time savings and error reduction.
Typical savings for a business with 20 employees:
Reduced payroll admin time
From 3 hours to 20 minutes per pay period
$140/week
Eliminated time theft
Average 15 minutes per shift (buddy punching, early clock-ins)
$300/week
Reduced timesheet disputes
Fewer payroll corrections and investigations
$80/week
Avoided underpayment risk
Automatic break and penalty rate compliance
Priceless
Total savings per year
Typical ROI: 300-400% in first year
$27,000
💡 Calculate your own savings:
Use our payroll cost calculator to estimate how much time and money you'll save with digital timesheets. Also check the underpayment risk calculator to assess compliance risk.
Industry-specific clock-in guidance
Different industries have unique time tracking requirements. Explore guides tailored to your sector.
Aged Care
Care minute compliance and shift rostering
Learn moreChildcare
Educator ratios and qualification tracking
Learn moreHospitality
Split shifts and penalty rate management
Learn moreRetail
Trading hours and casual workforce management
Learn moreHealthcare
24/7 operations and fatigue management
Learn moreSecurity
Site-based tracking and patrol verification
Learn moreFrequently asked questions
- While employers can implement time tracking systems as part of workplace management, you should inform employees about: what data is collected, how it's used and stored, who has access, and how long it's kept. If using GPS tracking or photos, additional privacy considerations apply under the Privacy Act and state workplace surveillance laws.
- Costs vary widely. Mobile app solutions like RosterElf typically cost $1-3 per employee per month and include time tracking as part of rostering software. Dedicated time and attendance systems may charge separately. Hardware costs for kiosks or biometric readers can range from $200-$2000 per device. Consider the return on investment from reduced time theft and payroll errors. Use our payroll cost calculator to estimate savings.
- Yes, most modern time tracking apps work on personal smartphones. However, consider: whether employees are comfortable using personal devices for work, data usage costs, and what happens if someone doesn't have a smartphone. Provide alternatives like tablet kiosks for those who prefer not to use personal devices.
- Your system should have a process for this. Typically: the employee notifies their manager, a timesheet correction is requested, the manager approves (or denies) the correction, and the corrected time is recorded. Document the process in your policy and track patterns of missed clock-ins. Learn more about timesheet approval workflows.
Regulatory sources and further reading
This guide is aligned with Australian record-keeping and privacy requirements.
Related guides
More resources for time and attendance management
Stop chasing timesheets
Join thousands of Australian businesses using RosterElf for accurate time tracking and timesheet approval. Built for Australian small businesses.