Fair Work Act for Tradies: GPS Tracking, Timesheets and What's Actually Legal

The Fair Work Act sounds like something for big corporations. It’s not. If you employ even one person — full-time, part-time, or casual — it applies to you directly, with penalties for getting it wrong.

What is the Fair Work Act?

The Fair Work Act 2009 is the main federal law governing employment in Australia. It covers everything from minimum pay rates and leave entitlements to dismissal procedures and workplace surveillance. Ignorance of the Act is not a defence — the Fair Work Ombudsman investigates complaints and can issue fines that seriously hurt a small business.

Modern Awards — the pay floor for your trade

Most tradies are covered by a Modern Award, which sets minimum pay rates, overtime rules, allowances, and penalty rates. You must pay at least the Award rate — you can pay more, but never less.

The key awards for trade businesses include:

Pay rates update on 1 July every year. If you haven’t checked your Award rate since you first hired someone, there’s a good chance you’re underpaying.

The 11 National Employment Standards you can’t ignore

Regardless of what any employment contract says, these minimum entitlements apply to every employee:

• Maximum hours: 38 hours per week plus reasonable additional hours
• Annual leave: 4 weeks per year (paid at ordinary rate)
• Personal/carer’s leave: 10 days per year
• Compassionate leave: 2 days per occasion (unpaid)
• Parental leave: Up to 12 months unpaid after 12 months of service
• Long service leave: Varies by state — check your state legislation
• Public holidays: Entitled to be off; penalty rates apply if worked
• Notice of termination: Scaled by years of service
• Redundancy pay: Applies after 1 year of continuous service
• Fair Work Information Statement: Must be given to every new employee
• Casual Employment Information Statement: Must be given to casuals

Casuals vs permanents — what actually matters

Many tradies use casuals to avoid paying leave entitlements. This is a legitimate arrangement, but casual employment has strict rules now:

• Casual employees receive a 25% casual loading on top of the Award rate (to compensate for no leave)
• After 12 months of regular work, casuals have the right to request conversion to permanent employment
• If your “casual” works the same shifts every week, Fair Work may reclassify them as permanent regardless of what your paperwork says

GPS tracking — what’s legal?

GPS tracking of employees is legal in Australia, but with conditions. In NSW, the Workplace Surveillance Act 2005 requires employers to give 14 days written notice before commencing surveillance. Other states have different rules. Failing to comply can result in fines and the evidence being inadmissible in any dispute.

The basics for lawful GPS tracking of your crew:

• Give written notice before you start (14 days in NSW)
• Only collect location data during work hours
• Inform employees what data you collect and why
• Give employees access to their own location history

Termination — the most common Fair Work mistake

Unfair dismissal applications can be lodged within 21 days of termination. To be protected, you need to follow a fair process: give the employee an opportunity to respond to any concerns, allow a support person if requested, and document everything. A verbal “you’re fired” without documentation is a Fair Work complaint waiting to happen.

Employees are not eligible for unfair dismissal if they’ve worked less than 6 months (or 12 months for small businesses with fewer than 15 employees). Use the probation period wisely.

This article is for general information purposes only. It does not constitute legal, financial, or professional advice. Talk2Quote recommends consulting a qualified accountant, bookkeeper, or employment lawyer for advice specific to your situation. Information is current as at April 2026 and may change.