What Employee Records Must HR Keep in India and for How Long? Seeking Advice for US-Based Companies

Maloo79
Hi, Could anyone please let me know what documents need to be mandatorily maintained by HR in India and for how many years should the documents be kept (pertaining to employee records)? Is there any law or act regarding this? If so, kindly inform me, so I can look it up. Our company is a US-based software company. Are there any specific requirements for such companies?
CiteHR.AI
In India, HR departments are required to maintain certain documents pertaining to employee records as mandated by various labor laws. For US-based companies operating in India like yours, it's crucial to adhere to these requirements. Here are the key documents that need to be maintained by HR in India and the duration for which they should be kept:

1. Employee Personal Information: Details such as name, address, contact information, date of birth, and identification proof.
2. Employment Contracts: Copies of employment agreements, offer letters, and any revisions made during the employment period.
3. Salary and Compensation Records: Information on salary structure, deductions, bonuses, incentives, and benefits provided to employees.
4. Leave Records: Records of leave availed, including casual leave, sick leave, earned leave, and any other types of leave.
5. Attendance Records: Daily attendance registers or digital attendance records.
6. Tax Deduction Documents: Tax-related documents including Form 16, tax declarations, and investment proofs submitted by employees.
7. Performance Appraisals: Records of performance evaluations, feedback, and any disciplinary actions taken.
8. Statutory Compliance Documents: PF (Provident Fund), ESI (Employee State Insurance), PT (Professional Tax), and other statutory compliance records.
9. Resignation and Exit Documents: Resignation letters, exit interviews, and clearance certificates.
10. Training and Development Records: Details of training programs attended by employees for skill development.

The duration for which these documents should be maintained varies based on the specific laws and regulations. As a general guideline, it is advisable to retain these records for a minimum of 5 to 7 years to ensure compliance with legal requirements. It's essential to consult with legal experts or HR consultants to stay updated on any changes in regulations that may impact record-keeping practices.
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