Dear All, I would appreciate it if anybody could tell me whether there is any legal requirement to maintain employees' personal files. If yes, kindly provide me with the list of documents and records to be maintained in the same.
Thanks in advance.
Best Regards,
Yuva.
From India, New Delhi
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1Thanks in advance.
Best Regards,
Yuva.
From India, New Delhi
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The Importance of Maintaining Employee Records
This question is funny in a sense. If it's only a legal requirement, then are you going to maintain employees' records? If there are no legal requirements, then are you not going to keep a record of employees? Those who have learned HR will never ask such a question. Whether legally required or not, it is the prime function of HR to have a record of each and every employee and to maintain it well.
This helps us to sort out individual as well as group complexities leading to complicated situations. The record of an employee, if maintained properly, reflects the personality of the employee. In short, I will say, legally we are not bound to maintain personal records of an employee, but it is the need and function of HR. Please take steps to create and maintain records of employees. It is going to help you certainly.
Regards,
Adv. K. H. Kulkarni
From India, Kolhapur
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This question is funny in a sense. If it's only a legal requirement, then are you going to maintain employees' records? If there are no legal requirements, then are you not going to keep a record of employees? Those who have learned HR will never ask such a question. Whether legally required or not, it is the prime function of HR to have a record of each and every employee and to maintain it well.
This helps us to sort out individual as well as group complexities leading to complicated situations. The record of an employee, if maintained properly, reflects the personality of the employee. In short, I will say, legally we are not bound to maintain personal records of an employee, but it is the need and function of HR. Please take steps to create and maintain records of employees. It is going to help you certainly.
Regards,
Adv. K. H. Kulkarni
From India, Kolhapur
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Legal Requirements for Employee Personal/Service Records
The reference to legal requirements regarding personal/service records of an employee can be traced to Rule 10-B of the Industrial Employment (Standing Orders) Central Rules framed under the Industrial Employment (Standing Orders) Act 1946. This rule states that service record matters relating to service cards, token tickets, certification of service, change of residential address of workers, and record of age shall be maintained. If your establishment is covered under the Industrial Employment Standing Orders Act (please check whether Central Rules are applicable to you in Delhi), this is one provision to take notice of.
Further, employment is a contract within the meaning of the Indian Contract Act 1872, and the rights and obligations of the employer and the employee are governed by the terms of employment stipulated in the appointment letter. This letter is the basis of the contract between the employer and the employee and thus constitutes a legal document for any future reference regarding any dispute in respect of the rights and obligations of the employer or the employee. Hence, a copy of the appointment letter duly acknowledged by the employee shall be properly preserved in a file concerning the workman.
Similarly, there may be many such personal information items which have legal significance for the future, like Income Tax certificates in Form-16 or ESI and P.F codes of the employees, which may have to be referred to in the future and need to be preserved as legal evidence under respective statutes.
Hope this helps in understanding the legal requirement for maintaining personal files.
Regards,
B. Saikumar
HR & Labour Law Advisor
From India, Mumbai
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The reference to legal requirements regarding personal/service records of an employee can be traced to Rule 10-B of the Industrial Employment (Standing Orders) Central Rules framed under the Industrial Employment (Standing Orders) Act 1946. This rule states that service record matters relating to service cards, token tickets, certification of service, change of residential address of workers, and record of age shall be maintained. If your establishment is covered under the Industrial Employment Standing Orders Act (please check whether Central Rules are applicable to you in Delhi), this is one provision to take notice of.
Further, employment is a contract within the meaning of the Indian Contract Act 1872, and the rights and obligations of the employer and the employee are governed by the terms of employment stipulated in the appointment letter. This letter is the basis of the contract between the employer and the employee and thus constitutes a legal document for any future reference regarding any dispute in respect of the rights and obligations of the employer or the employee. Hence, a copy of the appointment letter duly acknowledged by the employee shall be properly preserved in a file concerning the workman.
Similarly, there may be many such personal information items which have legal significance for the future, like Income Tax certificates in Form-16 or ESI and P.F codes of the employees, which may have to be referred to in the future and need to be preserved as legal evidence under respective statutes.
Hope this helps in understanding the legal requirement for maintaining personal files.
Regards,
B. Saikumar
HR & Labour Law Advisor
From India, Mumbai
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