How Long Should Private Companies Keep Employee Records Under Indian Labour Laws?

Hi, I want to know how long a private company needs to retain employee records as per Indian Labour Laws. Is there a specific mention of this in any act? Thanks, Priyanka

There is no such direction for private companies. However, it is advisable to maintain records of employees such as wages register, muster rolls, registers for ESI and EPF, etc., for at least five years for potential verification by the relevant authorities. If feasible, refrain from discarding any registers or returns related to employees.

Regards,

Madhu.T.K

Dear Priyanka,

Under the Minimum Wages Act of 1948, an inspector can demand registers and records for a period of the last three years, while this period is twelve months in the case of the Payment of Wages Act of 1936. Please review other applicable Acts for your Unit accordingly.

Regards,
R.N. Khola
Sr. Associate

Dear Reg,

How long should the old employee files/records be kept? Is there a clear law regarding how long a company should keep employee records such as resumes, offer letters, and appointment letters, apart from salary, PF, ESI, and other statutory files? Since there are many versions available, is there any clarity on this?

Comments appreciated.

Here you go!

Employment records

Employment records include, but are not limited to, job announcements and advertisements; employment applications, background investigations, resumes, and letters of recommendation of persons not hired, etc. Unless otherwise specified in the DRS, such records should be retained for a minimum of one (1) year.

Employee records

Employee records include, but are not limited to, employment applications, background investigations, resumes, and letters of recommendation of current and past employees, records relating to current and past employees' performance reviews and complaints, etc. Unless otherwise specified in the DRS, such records should be retained for a minimum of three (3) years following unemployment with the Organization.

Payroll records

Payroll records include, but are not limited to, wage rate tables; salary history; current rate of pay; payroll deductions; time cards; W-2 and W-4 forms; bonuses, etc.