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If an employee leaves the company, why should continue to maintain your records? There are several reasons why, but one of the main reasons is that the government federal states that companies must retain personal data for a specified period of time. Also some states have additional requirements beyond the requirements of the federal government. Some of these requirements depend on the number of employees, while some are only for government contractors and subcontractors. Regardless, most employers covered by the records retention requirements.
Much of the requirements began with the enactment of the Civil Rights Act of 1964, which was established in an effort to protect applicants from discrimination. Title VII and the Americans with Disabilities Act are important events to demand the retention of records. For example, these laws require employers to keep applications and other personnel related records with regard to hiring, promotion, transfer, the tests used in employment, demotions, layoffs and terminations for a period of one year from the date of the action or make the record.
There are many other requirements for record retention of personnel records and related with the use of data. It is vitally important to make sure you know what your state requires, which may be different from the federal government requirements. California is a good example how some of the requirements are different and are crucial to ensure compliance. For example, California requires employers to maintain payroll records two years of work in the state code and four years under the state Unemployment Insurance Code, but the federal government requires three years from the date the last entry under the Act, Fair Labor Standards. In general, a good rule of thumb is to keep the files as much time required.
Also is a good idea to establish a procedure for auditing the records of their own organization to ensure that the files are in order, you have more data current and terminated employee files have been removed from the files of active employees. Just be sure to follow the guidelines set by the state and / or federal requirements, whichever is greater.
About the Author:
Staff Files® HR software from Atlas Business Solutions, Inc. is an easy and affordable way to store your personnel files. You can easily change an employee’s status from Active to Inactive or Terminated to allow your company to continue to store the personnel files of employees who have left the company. This also enables you to filter the former employees’ personnel records from the current employees’ files. Learn more and download a FREE demo at www.staff-files.com.
Article Source: ArticlesBase.com – Why should I keep the personnel files of former employees?
