Record Keeping

The following questions and answers are for information purposes only. For actual interpretation and application purposes refer to the Employment Standards Act and regulations, or contact an Employment Standards Officer in the Labour Services Office on the 3rd Floor of the Law Centre, 2130-2nd Avenue, Whitehorse, Yukon or call (867) 667-5944 (toll free within the Yukon 1-800-661-0408 extension 5944).

1. What types of records must be kept?
   
   Employers must keep complete and accurate records of the employee's address, the number of hours worked by the employee in each day and each week, the employees gross earnings and deductions, accumulated overtime, time off with pay in lieu of overtime pay, vacations taken by the employee, leaves of absence taken by the employee, the employee's conditions of employment.
   
   In addition to these payroll records employers are obligated to keep records of any written agreements to take time off in lieu of overtime, written agreements to average hours over a two week pay period, employee's wage statements and written notice of a reductions in an employee's wage rate.
   
   These records must be kept for all employees, including those paid by salary or by any other method.
   
   Employee records must be kept in the principal place of business in the Yukon Territory, regardless of where the head office is located. Employers are required to provide payroll records to the. Director of Employment Standards in Whitehorse upon official notice to the effect. (Notice to Supply)
   
   
2. How long do employers have to keep these records?
   
   Employers are required to keep payroll records for a period of 12 months after work is performed or services are supplied by an employee.
   
   
3. Why does the Director of Employment Standards need the authority to levy a $500 administrative penalty for record keeping violations?
   
   To encourage employers to comply with the minimum record keeping requirements as provided for in the Employment Standards Act. The only option which was available to the Director in matters where an employer did not maintain the required records was to initiate formal charges. Prosecutions under the Act are costly, cumbersome and lengthy. The levy of the $500 administrative penalty provides an immediate consequence for those few employers who refuse to keep proper employment records.
   
   
4. Which record keeping violations can an employer be fined for?
   
   The record keeping sections of the Employment Standards Act which may attract a penalty if violated are:
   
   

   s. 9(1) - written agreement to take time off in lieu of overtime;
   
   s. 11 - written agreement to average hours of work over a two (2) week period;
   
   s. 62 - employment records including the employee's name and address, the number of hours worked in each day and in each week, the employee's gross wages and deductions, overtime accumulated in each week, time off in lieu of overtime, vacations taken, leaves of absence taken, and the conditions of employment of the employee;
   
   s. 62(3)- the director may require an employer to supply any of the records referred to in s. 62(1) and the employer shall supply the information within such reasonable time as specified in the notice;
   
   s. 63 employee wage statement and;
   
   s. 66 written notice of a reduction of the employee's wage rate.
   

5. What advantage does keeping proper records give an employer?
   
   By maintaining proper records as required in the Act, employers have evidence of the exact number of hours employees worked, and what the employees were paid for. In the event of a wage complaint being filed against the employer, these records will be requested by the Director of Employment Standards.
   
   The onus is on the employer to maintain accurate records and proof that employees have been paid in accordance with the Act. In the absence of employer records, there is provision in the Employment Standards Act that allows employee's records of hours to be used in the calculation of wages. An employer's best defense against an inflated wage claim is complete and accurate payroll records.
   
   Employers that choose not to comply with the record keeping provisions of the Act, will face financial penalties of $500.00 for each violation and hours worked will be determined either by examining the employee's records or other means.