Dealing with disciplinary records
Data protection regulations and data retention regulations are often spoken of in terms of client and financial data. However, these regulations don’t just apply to the data that you have on your customers – they also apply to the data that you hold on your employees.
If you’re not familiar with rules on the retention of HR records, you could be at risk of damaging employee morale and trust, losing important personal data, financial penalties due to non-compliance, and an increased administrative burden.
There are many important regulations on the retention of HR records. Some of the most significant are listed below.
Tax records
The Income Tax (Employments) Regulations states that the retention period should be no less than three years after the end of the financial year to which they relate.
There are a myriad of records and papers when it comes to income tax, which can make it hard to know how long to hold on to them for – but three years as a minimum should keep you covered.
Wage and salary records
The Taxes Management Act states that the retention period for these records should be six years after the day they were created. Remember to include other factors, including overtime, bonuses and expenses. When it comes to employee record retention, the devil is in the detail.
Health and safety records
Surprisingly, health and safety records do not have a definitive retention period. As claims can crop up at any time, it is generally advised that these are kept on a permanent basis.
Pensions records
As pension schemes have become a legal requirement for companies of a certain size across the UK, they have become popular for smaller businesses too. As such, the retention periods for these documents have become more important. If your company offers a pension scheme, it is advised that you keep records pertaining to them for 12 years from the ending of any benefit payable under the policy.
Accident books and records
These records need to be kept for different periods of time depending on the type of accident and who was involved in it. According to The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations, accident books and records must be kept for three years from the date of the last entry.
However, if the accident involves a child or young adult, then records must be kept until that person reaches the age of 21. If the accident involved chemicals or asbestos, the records must be kept for much longer – a whopping 40 years from the date of the last entry!
Recommended (non-statutory) retention periods
For many types of personnel records, there is no definitive retention period – this leaves it up to the employer to decide how long to keep these records. Whilst it is important to consider the time limits for potential tribunal or civil claims when making these decisions, these timeframes are largely dependent on judgement and experience. They can also depend on the amount of physical space the company has going spare to house these documents.
As a rule of thumb, if you’re in doubt, it is a good idea to keep records for at least six years (five in Scotland), to cover the time limit for bringing any civil legal action.
Getting to grips with personnel records retention regulations can feel like a mountain to climb. By working with a records management service, you don’t need to know the ins and outs of the rules and regulations. A dedicated third-party provider can take on the burden of document retention for you, and you can focus on your business.
Need to work with an expert on the retention of HR records for your organisation? Contact us today!
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