The Importance of Employee Record Keeping
Introduction
An employee file, also known as a personnel record, is a collection of records that detail an employee's experience with your company, from their employment application until their departure letter.What is the significance of keeping records?
Good recordkeeping can aid in the retrieval of information. In the first place, it encourages the creation of complete and accurate records. It also entails properly maintaining and managing records so that you have access to information when you need it.
Why you need to maintain employee files
Having all of an employee's pertinent information in one location makes it simple to locate any relevant details about their role and responsibilities.
It also implies you'll be able to present whatever data you need if an employee files a claim against the organization. This is why it's very important to maintain an employee's personnel file current and to review all files on a regular basis to ensure that all necessary documents are included.
This will safeguard the company in the event of a lawsuit, as the employee file will serve as a record of the support and treatment the worker got while working for the company(Webber, 2019).
Why is it important to keep employee files up to date?
There are numerous reasons why keeping complete records in an employee's personnel file is critical. The following are a few of the most important reasons:
• Keeping track of employee performance and growth
• Keeping vital records for tax and payroll purposes.
• To enhance transparency.
• For legal compliance purposes, keeping records is beneficial.
What should be in an employee file?
Categories of Records
Common documents- General Employee Records
- Termination documents Recruitment Records
- Payment Records
- Performance and Disciplinary Records
- Confidential Employee records
- Medical Records
- Cover letter, curriculum vitae, and job application
- Education and previous employment information
- The Job Role is Described.
- Job offer letter and employment contract Contact information in event of an emergency
- Training records.
- Pay and benefits information (but not bank details)
- Forms for assessing performance.
Record keeping tenor and laws
- Employee records must be kept for one year following termination.
- All personnel records are kept for a 1 year after they have been terminated.- Commission on Equal Employment Opportunity (EEOC).
- For the past three years, all payroll records have been kept.Keep records for 3 years that show why employees of opposing sexes in the same firm are paid differently.- The Fair Labor Standards Act (FLSA) (FLSA).
- Any benefit scheme, seniority plan, or merit system during the duration of the plan or system's existence, as well as for at least one year after it ends.
- The Age Discrimination in Employment Act (ADEA) prohibits employers from discriminating against employees based on their age (ADEA).
- Leave and compensation data relating to the Family and Medical Leave Act (FMLA) will be kept permanently. This will aid you in the future while dealing with compensation claims.
- Keep records of payroll withholding for at least three years following the return-filing deadline.-Internal Revenue Service (IRS).
- For at least six years following the filing date, keep any benefits-related records with agency filings or beneficiary disclosures.
- Training records may be requested by government agencies to check that businesses are following industry-specific training laws.
- Personal information, wage payment dates, job hours, and any communication related to unemployment (voluntary and involuntary). These documents will aid in the construction of the unemployment history and will be used in the event that the terminated employee files for unemployment benefits(BizMerlinHR, 2018).
Where Should Employee Files be Kept?
Employee files should be kept safe and secure at all times.
The way you keep electronic files differs from how you keep paper records.
Employee files should be kept safe and secure at all times.
The way you keep electronic files differs from how you keep paper records.
Who Should have access to Employee Records
Employee confidentiality is critical. Employee file access should always be controlled to the greatest extent possible in order to comply with the law. Employee information should be kept on a need-to-know basis, in addition to legal compliance. This means that only employees who need to know the contents of a certain section of an employee's record should have access to it.
Conclusions
Employee record retention is an important function of human resources. To protect employee privacy, documents should be stored in a secure location or the cloud with controlled access. Many organizations now utilize electronic recordkeeping to save space, reduce environmental waste, and save time when searching for a certain document.References
Webber, M., 2019. CitrusHR. [Online]
Available at: https://citrushr.com/blog/hr-management/what-should-be-in-employee-file/#:~:text=An%20employee%20file%2C%20or%20personnel,application%20to%20their%20resignation%20letter.
[Accessed 27 04 2022].
BizMerlinHR, 2018. BizMerlinHR.
[Online]
Available at: https://www.bizmerlin.com/must-maintain-employee-records-the-what-and-why/
[Accessed 27 04 2022].
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ReplyDeleteAll the best !!!