Employment records have traditionally been maintained in manila-style folders in locked filing cabinets. Physical files can be stolen, misplaced or destroyed. SHRM also cautions that employers must give special consideration to where and how they maintain these files, limiting access to only those with a need to know and protecting applicants and employees from discrimination, identity theft, and breach of privacy.
Most payroll providers, including Gusto , allow your employees to electronically sign and store files in a paperless system. This helps your office remain somewhat paperless, as documents like paystubs are also online.
In addition, when it comes time to purge records, you can do so electronically. No need to pay for storage or shredding of documents after their retention dates have passed.
Example of electronic signature and storage of employee documents using Gusto. Most of the software and services we recommend provide for online document storage. You can read more about the best providers in our article on best payroll software. Think of personnel files as a track record of important paperwork for your employees. Personnel files can be viewed during a government audit or subpoenaed in case of a wrongful termination lawsuit.
Those are both good reasons to maintain accurate up-to-date files. Cindy was fired from your company for performance. She had three poor performance reviews in 18 months, and she was not meeting any of her goals. A few days later, you get a call from an HR attorney. Cindy has claimed she was fired for being over the age of She says you are discriminating against her because of her age.
You look in her file and find nothing in the folder but tax forms and her job application. Her performance reviews were not filed. You may need to call your attorney. Johnny was a part-time independent contractor with your company whom you chose to terminate because you needed a full-time employee in the office.
You offered the role to Johnny and he said no; therefore, you posted the role on Indeed , found a great candidate and hired them. A day later, you hear from an attorney for Johnny who says you broke an implied contract.
You have no idea what he is talking about. You look through your emails and see that your boss wrote Johnny said he could keep working through January 1st, which is several months away. Johnny now has a case against you. Employment document retention requirements vary by federal agency and state laws.
More information can be found in our article on document retention. As the business owner, you will need access to employee personnel files. However, in larger companies, this access is often limited to human resources HR team members certified in HR compliance.
A best practice would be to ensure that someone with responsibility for HR or payroll is the one managing the employee files. All requests to view documents within those files should come through that person for approval.
Or, the payroll rep may need to see a benefits enrollment form in order to process deductions properly. None other than the designated HR rep or the business owner should otherwise have access to the entire file. Personnel files may seem outdated, but they are actually an important part of your business procedures to protect you from liability.
They are generally required for compliance such as if you were audited and considered a best practice. These are the better options for security and can ensure that your employee data and documents are up-to-date and stored properly. Visit Gusto. You must be logged in to post a comment. Skip to content. Equal Employment Opportunity EEO Information The EEOC provides a voluntary option for job candidates to self-identify their disability or veteran status maintaining records related to these documents is required if you have or more employees.
Take an inventory First, you will need to take an inventory of what you already have for each employee. Figure out what you are missing and from whom Use the employee file folder checklist listing what you want for each file, as it includes our list of forms from above. Hold a meeting Hold a company-wide meeting and explain why you are creating personnel files.
The word, documentation, crops up frequently in the world of employment and Human Resources. But, the meaning of documentation and why you might want to document particular employment events is thoroughly covered in this article, " The Importance of Documentation in Human Resources.
Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. Please seek legal assistance , or assistance from State, Federal, or International governmental resources, to make certain your legal interpretation and decisions are correct for your location.
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Recommended Personnel Files. Amy Tiffin Content Executive. You may be confused about what should be in an employee file or wondering how long you should keep the information for. It also means you can produce any necessary records in the event of an employee making a claim against you. This will help to protect you in the case of a claim against you, as the employee file will serve as a record of what support and treatment the individual received within the business.
Employee file contents will vary from person to person, but we think there are a few key aspects that should be included. Steer clear from including any observations or opinions about the employee in their file: the information should be limited to just facts. Due to employee files containing private information, such as home address or details of any disciplinary action, you should ensure they are protected, and access limited.
Only the employee themselves, their direct manager and HR staff should be able to view their files. For past employees, the general rules are:. The days of keeping employee documents in a locked, fire-proof cabinet are fast becoming history for many businesses.
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