Health and Safety Records retention: an overview
Inactive records can easily become a major issue for businesses of all sizes. Several types cause issues for businesses, but those created by the HR department can be particularly problematic. Here’s why.
On average, small and medium businesses employ between 100 and 500 people, but even in companies with as little as 12 employees an excessive amount of human resource (HR) documentation is processed.
As a responsible entrepreneur, you are legally bound to keep the records on file, even though the majority of these records are not needed in the day-to-day operation of your business. But fear not, there are various resources available to assist those tasked with records keeping.
What’s the point of keeping inactive files?
Depending on the nature of your business there are a variety of records that will crop up in your daily operation, such as invoices, health and safety records, personnel files and procurement contracts.
Some of these files will be needed more frequently than others. It is when documents are no longer required for day-to-day operation, but must be kept for administrative, historical, or legal purposes that they are regarded as ‘inactive records’.
The majority of these fall within the HR department, such as Offer of Employment, Letter of Appointment, monthly payslips, and performance reviews. However, these are deemed essential by the British Standards Institution, which issued the national standard BS76000 – a first of its kind to recognise the importance of valuing people in organisations.
It provides a framework for organisational improvement and measurement, which can be externally audited and its correct implementation can be recognised by a certification. Notably, the BS76000 cannot be implemented if there is no evidence or measurement of what is taking place within the company. This is where documentation plays a key role.
Regardless of the BS76000, your company is required to store all HR records in hard copy or electronically, and to keep the information in a well-organised system for easy retrieval and to comply with relevant legislation.
No ‘one size fits all’ retention period
Companies are expected to retain an inordinate amount and type of HR documentation such as recruitment applications (six months to one year), pension benefits (six years from the end of the scheme year in which the event took place), and training records (six years from end of employment) – which are all unlikely to be called upon after being generated.
Other types of inactive record include:
- Accounting records (must be retained for three years for private companies and six years for public companies)
- Income tax and NI returns (must be retained for not less than three years after the end of the financial year to which they relate)
- National minimum wage records (must be retained for three years after the end of the pay reference period following the one that the records cover).
These are clearly defined retention rules and once the file is complete, the best course of action is to store it safely for the legally required timeframe. With such varied and sometimes lengthy retention periods, these files can easily be forgotten as they sit in storage boxes or on digital servers. However, you are legally required to destroy the paper file or electronic file once it reaches the termination date.
With this in mind, it is advisable to make use of a third-party records management service that will expertly safeguard and destroy your inactive files once the termination date arrives.
Need help with auditing and storing your inactive records? Contact a member of the team at Access Records Management today.
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