What an FWO audit asks for and how to be ready

An FWO audit usually asks you to prove who worked, when they worked, which award or agreement applied, and whether every payment was correct. Be ready with contracts, classifications, time records, payslips, payroll calculations, super records and payment evidence.

What is an FWO audit?

The Fair Work Ombudsman, or FWO, checks whether employers are meeting workplace laws. An audit may be part of a targeted compliance campaign, a response to an employee complaint, or a wider investigation into an industry or location.

In construction, the review often goes further than comparing a weekly wage with a base hourly rate. The inspector may need to check daily hire rules, overtime, rostered days off, allowances, travel entitlements, casual loading and work performed on different sites.

An inspector may ask voluntarily for records or use formal powers, including a notice to produce records or documents. Read the request carefully. It should tell you what is required, which employees and periods are covered, and the due date.

Do not ignore it. Do not guess. And do not alter an old record to make it look right.

The records an inspector is likely to request

Start with the employment basics. The inspector will usually want the employee's commencement date, employment type, classification and applicable industrial instrument. That could be a modern award, an enterprise agreement or another lawful arrangement.

They may then ask for:

• employment contracts and variation letters
• position descriptions and classification assessments
• rosters, timesheets and site attendance records
• start and finish times, breaks and overtime approvals
• payroll reports and pay rate histories
• payslips and proof that net wages were paid
• allowance, travel and expense records
• annual leave and personal leave records
• rostered day off accruals and deductions
• superannuation calculations and payment evidence
• individual flexibility arrangements
• records for deductions or salary sacrifice
• termination calculations and final payslips

As at September 2026, employee records generally need to be kept for 7 years. They must be legible, in English and readily accessible to a Fair Work inspector.

As at September 2026, a payslip must generally be given within 1 working day of payment, even if the employee is on leave. Electronic payslips are allowed if employees can access and print them privately.

What each group of records proves

Think of the audit as a chain. The contract leads to the award. The award leads to a classification and pay rule. The timesheet supplies the hours. Payroll applies the rule. The bank and super records show that payment happened.

Audit area	Records that help prove compliance	Common construction risk
Employment status	Contract, commencement record, casual or permanent status	A worker is called a subcontractor but works like an employee
Award coverage	Duties, trade, work location and employer activities	Using the wrong construction award or assuming every site worker has the same coverage
Classification	Position description, tickets, duties and supervision level	Paying for a lower level than the work actually performed
Hours and breaks	Timesheets, rosters, site access data and approvals	Missing pre-start meetings, clean-up time or overtime
Wages and penalties	Payroll register, rate history, payslips and bank evidence	Applying the current base rate but missing overtime or weekend penalties
Allowances and travel	Site records, kilometres, receipts and allowance rules	Treating one flat allowance as covering every entitlement
RDOs and leave	Accrual ledger, roster and leave requests	Accruals do not match the award, agreement or payroll settings
Superannuation	Contribution report and fund or clearing house evidence	Calculating super on the wrong earnings base or paying late
Termination	Notice, final calculation and payment evidence	Missing unused leave, notice or another final entitlement

Numbers your payroll team should have right

As at September 2026, the National Employment Standards provide a maximum of 38 hours a week for a full-time employee, plus reasonable additional hours. An award or agreement can set how ordinary hours are arranged and when overtime starts.

As at September 2026, the compulsory super guarantee rate is 12%. The calculation still depends on which payments form part of the relevant earnings base. A 12% setting does not prove that every contribution is correct or on time.

Intentional underpayment became a federal criminal offence on 1 January 2025. As at September 2026, poor records can also create a serious evidence problem. If an employer fails to keep required records, the employer may have to disprove an employee's allegation about hours or payments, unless there is a reasonable excuse.

Award rates usually change following the annual wage review. Use the pay guide that applied to each pay period under review. Do not apply today's rate to an older period, and do not assume last year's payroll setting is still current.

How to build an audit pack

Pick one employee and one pay period first. Follow the whole calculation from start to finish.

1. Confirm employment type, award coverage and classification.
2. Match the roster and timesheet to site attendance information.
3. Split ordinary hours, overtime, weekends, public holidays and leave.
4. apply the rates, loadings and allowances that applied in that pay period.
5. Compare your calculation with the payroll register and payslip.
6. Match net pay to the bank payment.
7. Check the super calculation and payment evidence.

If that chain works, repeat it across a sample of employees, sites, classifications and pay periods. Include awkward cases. Check a new starter, an apprentice, a casual, someone who worked overtime and someone who left the business.

Our payroll operations hub explains how to keep payroll inputs, approvals and payment evidence organised. You can also use the compliance audit tool to work through the records and checks before responding.

Check construction entitlements separately

Construction payroll often fails at the edges, not at the base rate. A worker may receive the right hourly rate but still be underpaid because a site allowance, overtime rate, travel entitlement or rostered day off rule was missed.

Map each entitlement to evidence. If an allowance depends on site conditions, keep the site information. If overtime depends on start and finish times, keep actual time records rather than a standard 7.6-hour entry. If payroll changes a submitted timesheet, record who changed it and why.

Also check whether different groups are covered by different awards or an enterprise agreement. Office staff, electricians, plumbers, joiners and general on-site workers may not share the same rules.

How to respond when the request arrives

Nominate one person to manage the response. Keep a list of every requested item, its source, who checked it and when it was supplied.

Provide complete records in a clear order. A short index helps. Keep copies of exactly what you send. Use secure delivery because payroll files contain bank, tax and personal information.

If you find an error, do not hide it or backdate records. Work out the affected employees and pay periods. Recalculate the entitlement using the rule that applied at the time. Then get advice on back pay, super, tax, interest and any other correction required.

Payment alone does not repair weak records. Keep the recalculation, approval, payment evidence and explanation together.

A simple readiness routine

Run a small internal check each quarter. Review current classifications, pay rates, timesheet quality, allowances, leave, super and final payments. Add another review when annual award rates change or a new enterprise agreement starts.

The aim is simple. Your records should let another payroll person reproduce a payment without relying on memory. If they can see the rule, the hours, the calculation and the payment, you are in a much better position when FWO comes knocking.