How to track employee hours
Accurate time tracking ensures employees are paid correctly, prevents payroll disputes, and keeps you compliant with Fair Work regulations. Whether you choose paper timesheets, mobile apps, or biometric systems, the right method depends on your team size and work environment.
Written by
Georgia Morgan
General information only – not legal advice
This guide provides general information about tracking employee hours for Australian businesses. 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 accurate time tracking matters
Tracking employee hours isn't just about payroll—it's about compliance, fairness, and avoiding costly disputes. Under Australian workplace laws, employers must keep accurate time and attendance records for all employees and be able to produce them during Fair Work audits.
According to Fair Work Ombudsman, employers must keep time and attendance records for 7 years, showing start/finish times, break periods, and overtime. The right tracking system makes this easy and automatic.
Sample digital timesheet
Here's what a typical digital timesheet looks like with key data highlighted.
Weekly timesheet
Employee: Sarah Johnson | ID: EMP-1234
TIME ENTRIES
| Date | Clock in | Clock out | Hours |
|---|---|---|---|
| Mon 16 Dec | 8:00 AM | 5:00 PM | 8.0 |
| Tue 17 Dec | 8:00 AM | 5:30 PM | 8.5 |
| Wed 18 Dec | 8:00 AM | 5:00 PM | 8.0 |
SUMMARY
A typical timesheet includes:
- Date — Each shift date
- Clock in/out — Start and end times
- Hours — Total hours worked
- Breaks — Paid and unpaid breaks
- Overtime — Extra hours beyond ordinary
Six ways to track employee hours
From paper timesheets to biometric systems, each method has trade-offs in cost, accuracy, and features.
Paper timesheets
Employees manually write start/end times. Simple but error-prone and time-consuming.
Best for: Tiny teams (1-3 staff)
Spreadsheets
Excel or Google Sheets with formulas. More organized but still requires manual input.
Best for: Small teams (3-10 staff)
Time clock / punch cards
Physical device where employees swipe cards. Prevents some fraud but hardware costs.
Best for: Single-site businesses
Biometric systems
Fingerprint or facial recognition. Most secure, prevents buddy punching entirely.
Best for: High-security sites
Mobile apps
Clock in from phones with GPS tracking. Flexible and great for remote teams.
Best for: Remote/field staff
Integrated with payroll. Automated, accurate, and simplifyd for growing businesses.
Best for: Growing businesses (10+ staff)
Try the fair work Ombudsman's free app
For very small businesses, Fair Work offers a free Record My Hours app where employees can log their own hours. It's basic but meets compliance requirements for simple timekeeping.
Time tracking setup checklist
Complete these items before rolling out your time tracking system to employees.
Time tracking method selected
EssentialChoose between paper, apps, biometric, or software
Policy document created
EssentialRules for clock-in/out, breaks, and corrections
Software or app configured
EssentialSystem set up with pay periods and rules
Mobile access enabled
Employees can clock in from phones if needed
GPS tracking configured
Location verification for field teams
Payroll integration tested
EssentialTime data flows to payroll correctly
Employee training completed
EssentialStaff know how to use the system
Privacy policy updated
GPS and biometric consent documented
Audit schedule set
Regular timesheet review process
Backup process established
EssentialRecords stored securely for compliance
How to track employee hours
Follow these steps to implement accurate time tracking for your business.
Choose your tracking method
Select a method that suits your team size, work environment, and accuracy needs.
Key actions:
- For office teams: Digital apps or spreadsheets work well
- For field teams: GPS-enabled mobile apps ensure location verification
- For high-security environments: Biometric systems prevent buddy punching
- Start simple and upgrade as your business grows
Set clear policies
Establish rules for clocking in/out, breaks, overtime, and time corrections.
Key actions:
- Define when employees should clock in (on arrival or at workstation)
- Clarify paid vs unpaid break requirements
- Set overtime approval procedures
- Document how to correct timesheet errors
Implement the system
Set up your chosen method and train employees on proper usage.
Key actions:
- Configure software with your pay periods and award rules
- Provide clear instructions on how to clock in/out
- Run a trial period to identify issues
- Ensure mobile access if employees work remotely
Monitor and verify hours
Regularly review timesheets for accuracy, anomalies, and compliance.
Key actions:
- Check for missing clock-ins or unusual patterns
- Verify overtime hours against approved requests
- Compare GPS data against scheduled locations
- Address discrepancies promptly with employees
Integrate with payroll
Connect time tracking data to your payroll system to automate calculations.
Key actions:
- Export time data in a format compatible with your payroll system
- Automate award interpretation and penalty rates
- Set up approval workflows before payroll processing
- Keep audit trails for Fair Work compliance
Audit and improve
Regularly review your time tracking process for accuracy and efficiency.
Key actions:
- Conduct monthly audits of timesheet data
- Survey employees about system usability
- Identify bottlenecks in approval workflows
- Update policies as regulations or needs change
Time tracking tips
Follow these principles for accurate, efficient time tracking.
Automate when possible
Reduce human error and save time with automated clock-ins, calculations, and alerts.
Enable mobile access
Allow employees to clock in from their phones for flexibility and real-time tracking.
Integrate with payroll
Connect time data directly to payroll systems for accurate, simplifyd wage calculations.
Use GPS for field staff
Verify employee locations for remote or multi-site teams with geofencing capabilities.
Regular audits
Review timesheets frequently to catch errors, fraud, or compliance issues early.
Clear communication
Ensure employees understand how, when, and where to clock in and out.
GPS tracking and employee privacy
If you use GPS tracking to verify employee locations, you must comply with Australian privacy laws:
Learn more about GPS tracking compliance in our workplace policy guide.
Track hours with RosterElf
Automate time tracking with mobile apps, GPS verification, and smooth payroll integration.
Mobile clock in/out
Employees clock in from their phones or tablets. Works anywhere, anytime.
GPS location verification
Verify employees are at the right location with geofencing and GPS tracking.
Automatic payroll integration
Time data flows directly to your payroll system. No manual entry, no errors.
Real-time reporting
View attendance, overtime, and timesheet approvals in real-time dashboards.
No credit card required
Method comparison
See exactly how each time tracking method compares across key features.
Setup time
Accuracy
Prevents buddy punching
Location verification
Mobile access
Payroll integration
Cost
Best for
| Feature | Paper | Spreadsheet | Biometric | Mobile app | Software |
|---|---|---|---|---|---|
| Setup time | 5 minutes | 30-60 minutes | 2-4 hours | 30 minutes | 1-2 hours |
| Accuracy | Low | Medium | Very high | High | Very high |
| Prevents buddy punching | No | No | Yes | GPS helps | With biometric |
| Location verification | No | No | No | Yes (GPS) | Yes (GPS) |
| Mobile access | No | Limited | No | Yes | Yes |
| Payroll integration | Manual | Semi-manual | Often limited | Varies | Automated |
| Cost | Very low | Low | High upfront | $2-8 per user/month | Variable |
| Best for | Tiny teams (1-3) | Small teams (3-10) | Large sites | Field teams | Growing businesses |
Common time tracking mistakes
Learn from others' errors. These mistakes lead to payroll disputes and compliance issues.
No clear policy on breaks and overtime
Consequence: Employees unsure when to clock out for breaks, leading to payroll disputes and Fair Work issues
Solution: Create clear policies and communicate them through your time tracking system
Manual data entry from paper timesheets
Consequence: Time-consuming, error-prone, and increases risk of payroll mistakes and underpayments
Solution: Use digital time tracking that integrates with your payroll software
No location verification for field staff
Consequence: Unable to verify employees were actually at client sites, leading to billing disputes
Solution: Implement GPS tracking through mobile time and attendance apps
Ignoring timesheet anomalies
Consequence: Fraud goes undetected, compliance risks increase, and payroll costs spiral
Solution: Set up automated alerts and regular audits using time tracking software
Not keeping proper records
Consequence: Cannot prove compliance during Fair Work audits, risk of fines and penalties
Solution: Maintain digital records with audit trails through HR software
Download free time tracking templates
Get started with our library of free HR templates. Written by HR experts, ready to customise.
Frequently asked questions about tracking employee hours
- The best method depends on your business needs. For small teams (1-10 staff), spreadsheets or simple mobile apps work well. For growing businesses (10+ staff), dedicated time and attendance software with payroll integration is most efficient. For field teams, GPS-enabled mobile apps ensure location verification. For high-security environments or large sites, biometric systems prevent buddy punching.
- To track hours for payroll: (1) Implement a time tracking system (app, software, or biometric), (2) Have employees clock in/out for shifts and breaks, (3) Review and approve timesheets regularly, (4) Export or integrate time data with your payroll system, (5) Verify calculations match award rates and penalties, (6) Keep records for 7 years as required by Fair Work.
- You don't legally need software, but it's highly recommended for businesses with 5+ employees. Software eliminates manual errors, automates payroll calculations, supports compliance with Fair Work record-keeping requirements, and saves significant time. Manual methods (spreadsheets, paper timesheets) become error-prone and time-consuming as teams grow.
- Time tracking software typically costs $3-10 per employee per month. Basic apps start around $3/user/month, while comprehensive workforce management systems with payroll integration cost $8-10/user/month. Many providers offer free trials. The cost is usually offset by reduced payroll errors, time savings, and improved compliance.
- Yes, most modern time tracking systems allow employees to clock in/out themselves via mobile app, web portal, or biometric terminal. Self-service tracking improves accuracy, reduces administrative burden, and gives employees visibility of their hours. Managers can review and approve timesheets before payroll processing.
Regulatory sources
This guide is aligned with official Australian workplace regulations on hours of work and record-keeping.
Simplify time tracking
RosterElf provides GPS clock-in, automatic timesheet generation, and real-time attendance monitoring. Built for Australian small businesses.
Related guides
More resources for time and attendance management.
Stop chasing timesheets
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