Tips on maintaining accurate employee files

1. What to Keep in Employee Files?
Kathryn Kissinger HR Services 2014

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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