What Should You Keep in Employee Personnel Files?

The employee personnel files, also known as a personnel record, are a collection of documents containing all necessary details about an employee's time with you, from their application form to their resignation letter.

You may be unsure what to include in an employee personnel file or how long you should maintain the information. Below is an employee personnel files checklist to assist you in gathering all of the necessary paperwork and addressing your concerns.

 

Why do you need personnel files?

Personnel files are used to keep track of crucial paperwork for your staff. It is subject to inspection during government audits and may be demanded as evidence in wrongful termination cases. Both of these are compelling reasons to keep correct, up-to-date files.

Consider the following two scenarios:

 

Scenario 1: Lawsuit for Wrongful Termination

Amy was let go from your company due to poor performance. She received three negative performance assessments in 18 months and failed to accomplish her objectives. As a result, you fired her for poor performance.

You receive a call from an HR lawyer a few days later. Amy claims she was fired because she was beyond the age of 40. She claims you are treating her unfairly because of her age.

The HR department would check her file and discover nothing but tax paperwork and her job application. You never submitted her performance evaluations, and it is now your word vs hers. You may need to contact an attorney.

To avoid this, document staff performance reviews in the employee's personnel file and your reasons for termination, such as comments on constructive performance dialogues. Documenting why Amy was fired would not fully prohibit her from claiming wrongful termination, but it would make it plain why she was fired and the poor performance that led up to it.

Better yet, include a policy requiring employees to report events in your employee handbook and have them sign any anti-discrimination or harassment preventive measures.

 

Scenario 2: Independent Contractor 

Arif worked as a part-time independent contractor for your company, but you let him go since you required a full-time employee in the office. You offered the position to Arif, but he declined; as a result, you listed the position on a jobseekers' website, found a terrific candidate, and hired them.

A day later, you receive a call from Arif's attorney, who claims you violated an implied contract. What he meant by that is unclear. When Arif's contract in his personnel file is examined, it is discovered that the folder is more than a year old. You go through your emails and notice that your manager wrote to Arif and told him that he may continue working until January 1st, which is still many months away. Arif has a case against you now.

To avoid this, every employment contract, contract agreement, and other legal documents must be kept in the employee's personnel file folder and be signed by both parties. Contracts must also be updated with current dates and revised as needed.

 

Checklist for employee file folders

You can use the employee file folder checklist to ensure you have all the documentation required for that employee's file. Attaching the checklist inside the folder is a smart idea if you use a paper file folder. 

Then, each time you access it, you will be able to see what you have and what you do not have in the employee's personnel file. Alternatively, an electronic copy is preserved online, along with all of the worker's other employment paperwork, as a "master list."

 

What Should You Keep in Employee Personnel Files?

Employee file contents will differ from person to person, but you should include a few critical elements.

The following items should be included in an employee's personnel file:

• CV/Resume, cover letter, and job application

• Education and previous employment information

• Job description

• Employment contract and job offer letter

• Letter of confirmation

• Contact information for emergencies

• Training logs

• Information on pay and benefits

• Performance evaluation forms

• Bonus letters and increments

• Reports on disciplinary actions

• Resignation letter from an employee

• Documentation of exit interviews

• Any additional employment-related documentation

 

Do not include these in employee personnel files!

The employee's personnel file should not contain any information unrelated to their job, including their race or specifics about a disability.

Additionally, it is recommended only to put facts in the employee's file and avoid adding any observations or comments.

 

Who has access to employee personnel files?

You should ensure that employee files are protected, and access is restricted due to the sensitive information they may include, such as home addresses or the specifics of any disciplinary actions. Employees, their direct managers, and HR personnel should be the only people who have access to their files.

 

Personal Data Protection Act

The Personal Data Protection Act of 2019 (PDPA) establishes a comprehensive framework for safeguarding personal data and privacy rights. According to the law, employers may not process staff's personal data without their approval, and that consent must be documented in writing.

When employees are hired, the company obtains personal data about them, such as contact information, bank accounts, and personal identifiers.

The PDPA's notice and choice principle requires employers to notify employees in writing that personal information is being processed.

Companies should inform employees about using their personal data as soon as they request it.

The retention principle of the PDPA bans companies from retaining personal data for longer than is necessary for its intended purpose. HR's responsibility is to ensure that personal data is permanently destroyed after the timeframe ends.

 

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