Electronic timesheets for labour hire work best when the host supervisor approves the hours actually worked, and the agency, as the employer, turns those hours into pay and keeps the records. A good setup gives both sides one version of every shift, so the invoice matches what the crew did on the floor.
This guide covers who approves what, what to record, cut-off times, rounding and disputed hours. It is written for host supervisors and accounts payable leads who sign off agency hours.
This is general information only. Check the linked Fair Work Ombudsman pages, or get advice, for your own situation.
Who handles labour hire timesheet approval?
The host supervisor approves the hours worked, and the labour hire agency is responsible for paying the worker. The Fair Work Ombudsman describes the arrangement this way: labour hire employees work for the host but are paid by their labour hire employer. The supervisor confirms what happened on the floor, and the agency decides what it means for pay. The host is not fully insulated, though: the Fair Work Ombudsman says a business can be held legally responsible when contractors in its supply chain do not follow workplace laws, and a regulated labour hire arrangement order can require pay no less than the host's enterprise agreement rate.
On a Melbourne warehouse dock, the supervisor can confirm that three pickers started at 6.00 am and finished at 2.30 pm. The agency works out overtime and penalty loadings from those approved times and the award or agreement that covers each worker.
Name one approver for each shift and one backup for leave days. Sign-off then stays simple: the accounts payable lead matches the approved hours to the agency's invoice instead of approving them a second time.
What should an electronic timesheet record for each shift?
An electronic timesheet should record the actual start, finish and unpaid break times for every worker, plus enough context for the agency to price the shift. These fields cover most hosted crews:
- Worker name and the agency's order reference.
- Start and finish times as worked, not as rostered.
- Unpaid break start and end.
- Shift type: day, afternoon, night, weekend or public holiday.
- Overtime or an extended shift, flagged on the day.
- The approver's name, date and time.
Break and shift-penalty rules depend on the worker's award or agreement. The Fair Work Ombudsman notes that awards and registered agreements set the rules for paid and unpaid rest and meal breaks, including their length, when they are taken and how they are paid. The timesheet should capture what happened. The agency applies the rule.
How should cut-off times and rounding work?
Set a written cut-off for each shift's approval and for each pay period, and agree the rounding rule with the agency before the first shift. For example, supervisors approve a day's timesheets by the end of the next business day, and the agency's weekly pay run uses everything approved by a set time on Monday.
Agree in advance what happens when no approval arrives. The worker's pay is the agency's responsibility, so a missing sign-off should trigger a reminder to the named approver, then the backup, not silence.
Whether and how times can be rounded is a question for the agency and the applicable award or agreement, so get the agency's rule in writing. The practical point is to write the rule down and show it on the timesheet.
How do you settle timesheet disputes before the invoice?
Flag the single disputed line, settle it with the agency, and approve the corrected hours before the invoice is raised.
- Query the line on the timesheet. Leave the other lines approved.
- State the difference plainly, for example: worker records a 3.00 pm finish, supervisor records 2.30 pm.
- Check the evidence: site entry log, scanner or machine log, the roster, and the worker's own note.
- Have the agency and the supervisor agree the correct time, tell the worker the outcome, and record who agreed and why.
- Approve the corrected line, so the invoice hours follow the corrected time.
- Review the dispute log monthly for patterns, such as one shift or one approver.
For example, a 15-minute difference on each of 20 workers across five shifts is 25 hours on one invoice. The post on labour cost per hour for blue-collar roles shows how an hourly rate becomes a full cost per productive hour once on-costs are added.
Which timesheet records must the agency keep?
The agency, as the employer, must make and keep the time and wages records, and keep them for 7 years. The Fair Work Ombudsman's record-keeping page says time and wages records must be readily accessible to a Fair Work Inspector, legible and in English, and cannot be changed unless the change corrects an error. For a casual employee paid by time worked, the hours worked must be recorded.
The same page says records must not be false or misleading, and that an inspector can issue an infringement notice if records are not made or kept, or are incorrect. That is why an edit trail matters: a correction should leave the original entry, the new entry and a reason.
The host should keep its own copy of approved timesheets and matching invoices so it can reconcile without asking the agency each time. Timesheet copies are your own policy choice, but invoices are tax records, and business.gov.au says most business records must be kept for 5 years. The post on seasonal staffing review numbers to keep covers which figures are worth holding after a peak.
If you use more than one agency in a peak, each will have its own cut-off and format. Settle on one standard for every supplier, as the post on using multiple labour hire suppliers in peak season suggests.
What should you ask for in a timesheet system?
Ask for a system that records actual times, shows every change with a reason, and lets a supervisor approve from the floor. Questions to put to any provider, without naming a product:
- Can a supervisor approve on a phone or shared tablet, including where wifi is weak, such as a cold store or the back of a yard?
- Does it record actual times and show who changed an entry, when, and why?
- Can one line be queried without blocking the rest of the sheet?
- Does it lock approved timesheets and flag later edits?
- Can you export approved hours by shift, worker and cost centre to match invoices?
- Who holds the records, and can you get a copy on request?
Technology has limits here. A system does not fix unclear shift times, a missing approver, or a supervisor who approves forty lines at once on a Friday afternoon.
When you book a crew, agree the approval steps with the agency before the first shift. Chandler Personnel provides labour hire in Melbourne, and the request staff form is the place to start an order.
Related Resources
- Fair Work Ombudsman record-keeping requirements
- Fair Work Ombudsman guidance on labour hire
- Fair Work Ombudsman guidance on breaks
- Labour hire in Melbourne
- Using multiple labour hire suppliers in peak season
- Seasonal staffing review numbers to keep
- Labour cost per hour for blue-collar roles
Frequently Asked Questions
Who signs off a labour hire timesheet?
The host supervisor signs off the hours worked on site, because that person saw the shift. The agency then applies the worker's award or agreement and pays the worker. The accounts payable lead at the host matches the approved hours to the agency's invoice.
How long must labour hire timesheets be kept?
The Fair Work Ombudsman says employers have to keep time and wages records for 7 years. In labour hire the employer is normally the agency, so the agency holds that duty. The host can set its own period for approved timesheet copies, but invoices generally follow the 5-year business record-keeping rule.
What if the supervisor disagrees with the hours on a timesheet?
Query that single line before the invoice is raised and leave the other lines approved. Check the site entry log and roster, then record the agreed time and the reason.
Can an electronic timesheet be edited after approval?
Time and wages records cannot be changed unless the change corrects an error, according to the Fair Work Ombudsman. A good system keeps the original entry, the corrected entry, the reason and who agreed.
Do electronic timesheets replace paper ones?
The Fair Work Ombudsman's record-keeping page does not set a format, so ask the agency how it will produce the record. What the page does require is that time and wages records are legible, in English and readily accessible to a Fair Work Inspector.
Electronic Timesheets Settle Hours Before Invoices
Electronic timesheets for labour hire work when one named supervisor approves actual times, the agency applies the pay rules, and every change leaves a reason. The system itself matters less than the agreement behind it: who approves, by when, how rounding works, and how a disputed line is settled. Write those four points on one page and send it to your agency before the next crew starts.
