What to Keep in Employee Files

369 views

Published on

Tips on maintaining accurate employee files

Published in: Education
  • Be the first to comment

  • Be the first to like this

What to Keep in Employee Files

  1. 1. What to Keep in Employee Files? Kathryn Kissinger HR Services 2014
  2. 2. Employee Files Employers know that documentation is important, but what items should be kept in the Employee files? How long do you keep them? And why are they important? Kathryn Kissinger HR Services 2014
  3. 3. How Long? In most cases, the complete employee record should be kept for a minimum 3 (three) years after the employee’s last date of employment with your organization. There are some items from the file that must be kept longer under Canada Revenue Agency (CRA) guidelines, such as payroll, T4, RRSP and related information. These records must be retained from the start of employment until a minimum of six years from the end of the last taxation year to which the employment relates. Kathryn Kissinger HR Services 2014
  4. 4. What To Keep? Offer of Employment, Signed and Dated. (3 years after departure) These documents show under what circumstances the employee was hired: wages and benefits offered (including vacation and sick days), compensation method, scope and hours of the work, and reporting responsibility. Both parties (worker and employer) must sign and date the offer/contract for the agreement to be valid. Written records will help eliminate the “I didn’t know that was my job!” arguments. Kathryn Kissinger HR Services 2014
  5. 5. Resume Used To Obtain Position (3 years after departure) This is used to validate that the employee possesses the skill and education levels for the position. The employer can be held liable by third parties for the inadequate or dangerous job performance of an employee whose references were not properly screened. Providing misleading or inaccurate information on their resume, in most cases, is just cause for termination of employment. Kathryn Kissinger HR Services 2014
  6. 6. Social Insurance Number (SIN) (6 years after departure) It is a requirement under Canada Revenue Agency legislation that employees provide a Social Insurance Number. It is used to track the employee’s file for purposes of Income Tax, CPP, and Employment Insurance, and to verify that the employee is legally entitled to work in Canada. If an employee presents you with a SIN that begins with the number “9”, ask the employee for verification of their employment status, as 9 indicates a temporary SIN issued to persons not normally entitled to work without a valid permit from Citizenship and Immigration Canada. Kathryn Kissinger HR Services 2014
  7. 7. Correct and Updated Address, Telephone And Emergency (Alternate) Contact Information. (3 years after departure) Should you be required to send the employee work related mail, or provide this information to Revenue Canada or other appropriate officials, it is helpful to have correct information on hand. For example, a T4 slip. As well, in the event that an emergency or accident occurs, the employer will need to know who to contact. Kathryn Kissinger HR Services 2014
  8. 8. Time Sheets With Vacation Pay And Time Off Clearly Recorded (6 years after departure) This is to document the employee’s earnings and how they were calculated in the event that the employee disputes the amount. These records must be kept in accordance with CRA retention rules. Ensure that overtime, vacation time and vacation pay records are clearly distinct and traceable. It is a good idea to have the employees submit a written request for vacation to help simplify this process. Kathryn Kissinger HR Services 2014
  9. 9. Copies Of All T4 Slips Issued (6 years after departure) As with the SIN, this is a requirement of Canada Revenue Agency and these records must be kept in accordance with CRA retention rules. Kathryn Kissinger HR Services 2014
  10. 10. Performance Review Documents Including Warnings And Discipline Given (3 years after departure) Performance Reviews are helpful in tracking employee performance and can indicate when there is a problem that needs to be addressed. If discipline is necessary due to poor performance or breach of contract, verbal and written warnings will provide consistent documentation of the issues to support the employer’s actions. Kathryn Kissinger HR Services 2014
  11. 11. Verification Of Changes In Pay (Raises, Bonuses etc.) (6 years after departure) When granting a raise in pay, such as the result of collective bargaining, an increase in the minimum wage, or bonus paid as the result of good performance, you should always notify the employee in writing of the raise, so that the reason for the increase is clearly documented for both parties. This is especially important where the employee has merit or commission levels to obtain before bonuses are paid out. The notification should clearly indicate how the bonus is calculated. Kathryn Kissinger HR Services 2014
  12. 12. Proof Of Training/Instruction. (3 years after departure) Signed and dated proof that your employee has received all necessary training and instruction, has received new policies and procedures, and responsibility as key holder if appropriate, should also be kept in the employee’s file. This is a requirement under both Employment Standards and Health and Safety legislation. Employers are required to prove that they have provided adequate training for the workplace circumstances to all employees, and if there is no record in the file, the Ministry will presume that the training did not occur. Under Health and Safety legislation, if an employee refuses to attend training, they can be held responsible including having their employment terminated for non-participation. Kathryn Kissinger HR Services 2014
  13. 13. Questions? Please contact me any time with your questions regarding your Employee Files, or any other Human Resources need.  Web: www.kissingerhrservices.com info@kissingerhrservices.com  Phone: 519-758-1952  Mail: KGRPO Box 24052, 185 King George Rd. Brantford, ON N3R 7X3 Kathryn Kissinger HR Services 2014

×