Record Keeping Requirements

Record Keeping Requirements

All employers need to retain certain information on their employees, to ensure compliance with legislation as well as to support personnel administration and be prepared to deal with employee relations issues as they arise.

Retaining Personal Data Correctly

The retention of personal data is regulated by the Data Protection Act 1998 and GDPR. Key principles include:

• Data must be obtained and processed in a lawful and fair manner
• Data held must be adequate, relevant and not excessive
• Files should be reviewed regularly to remove any out-of-date information
• Records should be kept up to date

Creating & Storing Employee Files

For many companies, manual files are the most convenient way to retain employee files. However, more companies are moving towards electronic records. Personnel files, of both past and present employees, should always be stored securely and confidentially:

• Filing cupboards should be locked or files should be stored in a locked room
• Only those staff who need to use the data should have access to it
• Electronic records should be password protected
• Files should not be removed from their normal place without good reason

Employees Accessing Their own File

Under the Data Protection Act and GDPR, employees have a right to access their personnel file and obtain information with regard to why data is being stored and how it is being processed/used.

If an employee wishes to see details of any data an employer holds on them they should usually make the request in writing, this is known as a Data Subject Access Request. On receipt of such a request, you as employer have one month to respond to the query. An employer may not charge a fee in most circumstances.

With this in mind, employers should:

• Never record something that they wouldn’t want a tribunal to see
• Hold only factual information (no criticisms or comments about an employee’s personal circumstances or beliefs)
• Only hold information pertaining to the individual in question on file otherwise you may infringe on another employee’s Data Protection Rights

There are exceptions to an employee’s right to view information held on them. These exceptions are:

• Information held for management planning e.g. plans to make a worker redundant
• Information as to an employer’s intention in respect of negotiations with an employee
• References for the employee
• Information about the prevention or detection of a crime
• Information that may affect the price of a company’s shares

Employees’ right to access their own files continues after they have stopped working with a company.

How long to retain personnel files

Areas where statutory retention periods exist

• Statutory Maternity Records e.g. Mat B1, SMP calculations: 3 Years after the end of the tax year in which the maternity leave ends
• Certificates (not disability related): 3 years after the end of the tax year to which they relate
• Records relating to working time: 2 years from the date they were made
• Medical Records relating to Lead, hazardous substances, Asbestos: 40 years from the date of last entry

Other suggested retention periods:

• Health and Safety documentation including H&S assessments: Permanently
• Pension Information: 12 years after the benefit payable under the policy has ended
• Disciplinary Documentation: For the length of the warning, this is usually 6 /12 months
• Data relating to unsuccessful job applicants: 1 year

All other information such as, training information, appraisal documentation, grievance information, information in regard to their dismissal, payroll and salary records, bonuses overtime: A minimum of 6 years after the termination of employment (this is based on the 6 year time limit within which legal proceedings must be commenced. After this 6 year period it is recommended that it will be sufficient simply to maintain the ex-employee's name, job title when in service, start and end dates and final salary details)

This is a guidance note. Whilst every effort has been made to ensure that the information provided is accurate and up to date, these notes are not intended to be a substitute for specific legal advice.