It’s easy to get confused about how long to keep employee records in Australia.
There are some documents that you’re legally obligated to hold on to for seven years. Then other records are best practice to store for at least five years. It’s crucial to know what items you need to keep. Failing to meet your record-keeping requirements breaches the Fair Work Act 2009 and can result in significant fines.
Now is a perfect time to review what employee records you have and which ones you need to start storing. At the same time, you should explore the most efficient way to manage these vital documents. Before you meet with your HR department, find out more about your obligations here.
How Long to Keep Employee Records in Australia
If you have staff members, then you need to keep employee records. There are some you’re legally required to keep. Others are best practices in the instance of a complaint or issue arising.
| Type of Record | Example | How Long to Keep These Employee Records |
|---|---|---|
| Legally Required Employment Records |
|
7 Years |
| Best Practice Employment Records |
|
7 Years |
| Tax and Super Records |
|
5 Years |
| Rosters and Timesheets |
|
7 Years |
Some employee records are specific to the state you operate in. For example, in NSW, there is the Long Service Leave Act 1955. It requires every employer to keep details for at least six years. You should refer to the Industrial Relations website of your state to ensure you’re meeting your local obligations.
Best Practices for Maintaining Employee Records
The HR department is often responsible for handling and protecting employee records. However, it’s good for executives and IT professionals to understand how documents are maintained and if best practices are followed.
Categorise Employee Records
An excellent first step is to get organised. Instead of having piles of boxes alphabetised by employee name, categorise your employee records by the type of document you’re keeping. For example, use a framework such as:
- Recruiting records – applications, interview notes and test results.
- Training documents – all items relating to employee training.
- HR information – onboarding documents, contracts and terms of employment
- Financial records – payslips, tax information and super contributions.
- Employee details – performance reviews, promotions, disciplinary records and terms of dismissal.
- Rosters and timesheets – information on the time worked and annual and personal leave details.
- Health information – incident reports and workers compensation details
Assign Expiration Dates
You don’t need to hold on to documents forever. It’s also unlikely you have the space to maintain employee records for everyone you have hired. Once both parties have completed an item, the timer can start on how long you need to keep it.
Destroying expired records must be completed with care. The Australian Privacy Principle 11 states that you must take reasonable steps to de-identify or destroy personal data as soon as it is not required for its primary purpose. You’ll want to ensure employee records are irreversibly destroyed to reduce the risk of a security or privacy breach. Securing a Certification of Destruction can assure you meet your compliance obligation.
Go Paperless
Manually maintaining employee records physically is time-consuming and a security risk. It leaves your organisation open to breaches and incidents caused by human error. Paper documents are also easy to lose and can degrade over five to seven years.
Digitising vital documents like employee records is an efficient solution. It’s easier to store and maintain this information. You can also retrieve the details you need in seconds instead of searching through boxes for a piece of paper. Some solutions will even work with you to schedule the destruction of documents when they’re no longer required.
Establish Security Levels
Many employee records contain sensitive information such as medical and bank account details. It’s one of the reasons why it’s restricted to the HR department. But with paper records, limiting access to these items can be difficult unless they’re contained in a locker.
You can assign access to specific personnel when moving to a paperless solution. This reduces single points of failure and ensures document requests can continue to be completed. You can even share documents securely with third parties, such as Fair Work Australia, if they’re conducting an audit.
How to Efficiently Maintain Employee Records
As an employer, you must be aware of your record-keeping requirements. Maintaining employee records is a legal requirement. You can try to keep these documents in a physical location. But, seeking a paperless solution is more efficient as it can save time retrieving information and reduce the risks of manual errors.
Do you want expert advice and help managing your employee records efficiently and hassle-freely? Compu-Stor is an Australian-owned family business specialising in information and records management solutions and services. From document, media and data storage to digital scanning, business process automation and consulting services, Compu-Stor provides a wide range of outsourced solutions using the latest technologies and methodologies to deliver secure and efficient services.
Through its Digital Transformation Solutions, Compu-Stor helps maximise the accessibility, security, and flow of information within organisations. With offices across Australia, Compu-Stor works with its customers to provide cost-effective and secure solutions tailored to their needs.
Contact us today for a free initial exchange to see how we can help you: 1300 559 778
For more information, visit our website at https://www.compu-stor.com.au/ .
