Dinesh Divekar
Business Mentor, Consultant And Trainer
Saswatabanerjee
Partner - Risk Management
Mhrmraj
Rbm Ir Solutions
B K BHATIA
Director Of Company
PSB
Asst. Professor
+3 Others

For How long does a company needs to store Employee records once the employee leaves the organization ?
11th April 2013 From India, Mumbai
we have to maintain all employees record in a separate file till their presence in the company. once he/she releaved or retired from company we have to close that file And keep in releaved employees yearly file. that file must contain all the personal info from his/her application, appointment letter till resignations letter original, experience letter copy, and pf closure document copies, and all settlement documents.
12th April 2013 From India
Dear friend,

Beginning from your name, you could have given little more information like why are you asking this query, are you the custodian of employee records, are you from HR and so on. These are the basics of business etiquettes.

Secondly, you need to use the correct heading while raising query. It is not "Employee Record Storage Time" but "Retention period for the documents of ex-employees".

If the separation of the employee was under normal circumstances then many companies preserve the employee file for at least for five years. However, if the separation is because of disciplinary reasons, it may be ten years or more.

In some companies, the records of past employees are divided in three categories viz green, yellow and red.

Green is the one where separation happened in absolute normal circumstances, yellow is the one where there was some problem and employee was told to put in papers. But in such case a note is preserved on why the employee was told to put in papers. Red is the one wherein employee was terminated or dismissed on disciplinary grounds. Retention period of the documents of these employees is obviously is for longer period. In some companies it is at least ten years. In modern HRIS there is provision to categories past employees accordingly.

There is no specific rule. You have to devise your own rule and retain the records.

Thanks,

Dinesh V Divekar

For How long does a company needs to store Employee records once the employee leaves the organization ?
12th April 2013 From India, Bangalore
If the company uses an automated HRMS, ex-employees information can be kept as historical data for any length of time, along with scanned copies of important personal documents.
Otherwise, Mr Dinesh has given above a very comprehensive reply to the query raised. His statement "There is no specific rule. You have to devise your own rule and retain the records" is important. In Govt. departments, to the best of my knowledge, retention of financial records of an employee (such as Payroll data) for a period of 10 years (after retirement) is mandatory.
12th April 2013 From India, Delhi
Dear Members, In certain context the employee record is to be maintained for many years like PF record. As employee can may come to get the details of the PF account even after 10 years.
12th April 2013 From India, Pune
Dear All,
I would welcome the question put forward by Nck Love. How long do we need to retain the record of ex employees or what is the retention schedule for such records. The replies posted above throw some light on the subject which is apparently experienced based response. Although it may be agreeable by many that there is no specific rule on this subject but I would record my opinion with reference to certain provisions of law of the land.
The Income Tax Act requires that a company should maintain its record for ten years. From this an inference can be drawn all records financial or otherwise should be retained for a minimum period of 10 years.
Secondly I would like to draw a reference to the Law of Limitation. After an employee leaves the job or is retired on attaining the age of retirement or is terminated/dismissed his full and final account is to be settled. After the date of settlement of final accounts, it is necessary to keep the record for a minimum period of three
12th April 2013 From India, New Delhi
Check the acts that apply to you
Payment of wages act requires registers to be kept for 3 years father the last entry
PF can raise a query for 8 years as can income tax (eg for Tds purpose).
So you need to keep records accordingly.
Now a days, lots of companies have started to digitalise their records, by converting it to scanned copies. We got the same done for a client recently. Then you can keep records for a very long time as the storage cost is negligible
13th April 2013 From India, Mumbai
My above reply has been posted incomplete. Please read further as under:
Secondly I would like to draw a reference to the Law of Limitation. After an employee leaves the job or is retired on attaining the age of retirement or is terminated/dismissed his full and final account is to be settled. After the date of settlement of final accounts, it is necessary to keep the record for a minimum period of three years. However with regard to PF liabilities, it is assumed that company is remitting all subscriptions and contributions to EPF A/c with the concerned RPFC. Therefore the employee has to contact EPF Dept. for transfer/withdrawal/settlement of his EPF claims. The company has to forward claim forms of such employees to EPF Dept. In case of an exempted establishment the company has to settle the EPF A/c within thirty days of his resignation/termination/retirement/superannuation.
And it has been correctly posted by Mr Bhatia that where a company uses HRMS or any other ERP Software Sy
13th April 2013 From India, New Delhi
Dear Love,
Normally any employees left their services records pertaining to them should be kept for minimum for 5 years.
In case for any employee/s for any pending issues like PF and Gratuity you can keep them safe until these issues are over.
Otherwise also you can keep all the left employees files / records minimum of 5 years and then you may destroy it....
- regards - venkat - bangalore -
15th April 2013 From India, Bangalore
I’ve also heard that companies keep records of ex-employees for 5-6 years only. Wondering how could they verify employment history of employees that left more than 5 years ago?
15th April 2013 From India, Pune
Generally any company records are to be maintained for 10 years as per the law. Old records should be archieved either in electronic or physical form and put in a safe store which is easily retrievalble.
18th April 2013 From India, Mumbai
Please enlighten me as to which law requires the records to be kept form10 years ?
18th April 2013 From India, Mumbai
Hi, I am attaching a article which talk about retaining of employee data. This will give a brief overview about asia pacific countries.
18th April 2013 From India, Mumbai

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File Type: pdf EmployeeDataPrivacyAsiaPacific.pdf (1.28 MB, 141 views)

Read part for india (page 55)
It does not talk of any law requiring to keep records for 10 years
It clearly says the requirement is of 3 years
And that companies keep records for 8 years for income tax purposes.
Incidentally, income tax rules require keeping accounts and supporting documents. Supporting documents are vouchers and bills. At best salary sheet. Rest of the documents are not required to be kept beyond 3 years
18th April 2013 From India, Mumbai
[Personnel Records Retention

The following retention periods are recommended for specific personnel documents:

Applications/Resumes (employed) 6 years after last action

Applications/Resumes (not hired) 6 years after selection process completion

Status/Change of Status Forms 6 years after updated

Job Descriptions 6 years after updated

Employee Performance Appraisals/Evaluations 6 years after termination

Retirement Correspondence 6 years after last action

Insurance Enrollment Notices 6 years after last action

Position Information Questionnaires & Reclassification Requests 6 years after updated

Leave Reports 6 years

Request for Leave Records 6 years

Time Cards 6 years

Payroll Records 5 years

Job Announcements 6 years after selection process completion

Medical Records Related to or Required by Employer 6 years after last action

I-9 Employment Eligibility Verification 3 years after hire or 1 year after termination, whichever is later

Lawsuits or Actions for Recovery of Overtime, Damages, Fees, or Penalties 2 years after the accrual of such claim for relief

Recommendations

If there is any legal action regarding an employee or former employee initiated by anyone, all records regarding the employee or former employee should be retained until the completion of the legal action or the end of the retention period, whichever is later.

Use of personnel records may extend the retention period for those records. To allow for the possibility of a defamation case regarding any personnel files, the retention periods for those records should be changed to six years after last action. This retention period would prevent the agency from disposing of the records until six years after the last action; i.e. reference for an ex-employee; ex-employee requesting information from his/her file; termination of employment.

Always check with legal counsel before destroying documents regarding employees who have been involved in legal action.
4th September 2014 From India, Mumbai
I would like to know where you got this 6 years cut off and what is the basis of it
4th September 2014 From India, Mumbai
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