Case Study: Westpac reintroduces timesheets to salaried staff

 

We recently came across an interesting story on Westpac reintroducing timesheets to salaried staff in a specific salary bracket. We found this case study interesting for many reasons and it raises a lot of questions. Should timekeeping be required for staff on packaged salaries up to 140K? What impact will this have on staff? Will other companies follow suit?

Background

Westpac will require salaried workers earning between $90,000 - $140,000 a year to fill out time sheets for the first time to guard against underpayments from working excessive hours and to ensure they receive the correct entitlements. Westpac had previously required time sheets for “unpackaged” staff, who are paid loadings and other entitlements separately up to $90,000 a year.

The move is part of a broader cultural change in the banking and finance sector following concerns that large amounts of unpaid overtime mean employees’ pay risks dipping below minimum hourly rates.

It is understood other banks and firms are either considering or already require salaried staff to record their hours.

Union welcomes move

The Finance Sector Union (FSU) welcomed the bank’s move. The FSU national secretary said the union had “widespread reports from staff that working unreasonable additional hours and unpaid overtime has become normal in many areas due to relentless job cuts”.

The secretary said big banks had long reaped the benefits of a culture that “encourages and expects workers to perform high levels of unpaid work as a career development tool and a way to demonstrate their commitment to the company”.

100-hour weeks claim

The Fair Work Ombudsman has been investigating Westpac about alleged underpayments since 2022.

The bank also settled a case last year by a former manager who said he was owed more than $300,000 for working up to 100-hour weeks and as long as 32 days straight.

But the case that shook the sector this year was the $10.3 million fine against the Commonwealth Bank – the biggest fine in the history of wage theft – for failing to ensure salaried staff were paid more than the minimum through regular pay reconciliations.

The banking sector is also closely watching an FSU test case against National Australia Bank on excessive hours, which is expected to define for the first time what counts as “reasonable additional hours” for white-collar salaried staff.

Without time records, firms faced huge underpayment risks, in particular from penalty rates that kick in as a result of staff not taking their meal breaks on time.

History on timekeeping

From manual time books in the 19th century to artificial intelligence today, the evolution of timekeeping in the office has come a long way. Here’s a look at the history of timekeeping and the various methods still used today.

Early Methods

  • Manual Timekeeping: In the 19th century, employers used handwritten time books to log workers' hours.

  • Bell Systems: Bells signalled work start and end times.

Industrial Revolution

  • Punch Clocks: Invented in 1888, these mechanical devices allowed workers to punch timecards, marking entry and exit times.

Early 20th Century

  • Electric Time Clocks: Electromechanical clocks in the early 20th century used electric power, improving reliability.

  • Bundy Clocks: Popularised by the Bundy Manufacturing Company, which later became part of IBM.

Mid-20th Century

  • Digital Time Clocks: Introduced in the 1960s and 1970s, these allowed for more accurate and tamper-proof recording.

  • Magnetic Stripe Cards: Used from the 1980s, these cards worked with electronic readers for efficient logging.

Late 20th Century

  • Computerised Systems: PC-based systems in the 1990s allowed sophisticated tracking and payroll integration.

  • Biometric Systems: Fingerprint and handprint recognition systems began to be used to prevent fraud.

21st Century

  • Cloud-Based Solutions: Modern systems use cloud technology for real-time tracking and remote access.

  • Mobile Apps: Employees can clock in via smartphones, with GPS ensuring location accuracy.

  • Advanced Biometrics: Facial recognition and retinal scans provide secure timekeeping.

  • AI Integration: AI analyses data to optimise scheduling and detect anomalies.

Final thoughts and predictions

So how will Westpac staff react to this change, and will they truly be safeguarded from working notoriously long hours? Despite the company and the Union supporting timesheets, we predict a cultural change in working habits won’t change overnight.

It is a good start towards encouraging a better work/life balance and to protect themselves against an underpayment fiasco, but will the staff’s daily workload decrease? Will they hire more staff? Will managers be held accountable if they pressure staff to turn over the same KPI’s?

Only time will tell, and we’ll be closely watching for any other companies copying the trend. Watch this space…

 
Andrea Chwalko