Few of us enjoy dealing with paperwork, but taking
the time to properly create and maintain employee personnel files will pay off
in the long run. You will have all the important documents relating to each
employee in one place, easily available when its time to make decisions on
promotions or layoffs, to file tax returns, or to comply with government
audits. And if you have to fire a problem employee, careful documentation will
protect you from legal danger.
In the worst-case scenario, a personnel file may
turn into evidence in a lawsuit brought by a disgruntled former employee. Make
sure that you include all periodic evaluations, raises, commendations, and
disciplinary actions in your personnel files so you always have easy access to
the information you need -- and to protect your company in case of a
lawsuit.
This article explains what to keep in -- and keep
out of -- employee personnel files. For help creating sound and effective
personnel policies,
What to Keep in a Personnel File
You should begin a personnel file for each employee
on the date of hire. Most, but not all, important job-related documents should
go in the file, including:
- job description for the position
- job application and/or resume
- offer of employment
- receipt or signed acknowledgment of employee handbook
- COPY OF AGE CERTIFICATE
- PF / FPF, ESI Form
- Gratuity Forms
- Mediclaim Proposal Form
- Conveyance declaration form
- Copy of ID / Address Proof
- performance evaluations
- forms relating to employee benefits
- forms providing next of kin and emergency contacts
- complaints from customers and/or co-workers
- awards or citations for excellent performance
- records of attendance or completion of training programs
- warnings and/or other disciplinary actions
- notes on attendance or tardiness
- any contract, written agreement, receipt, or acknowledgment between the employee and the employer (such as a noncompete agreement, an employment contract, or an agreement relating to a company-provided car), and
- documents relating to the worker's departure from the company (such as reasons why the worker left or was fired, unemployment documents, insurance continuation forms, and so on).
Reviewing Personnel Files
You should establish a time to periodically review
each employee's personnel file, perhaps when you conduct the employee's annual
evaluation. During this review, consider whether the documents in the file are
accurate, up to date, and complete. Some questions to consider:
- Does the file contain every written evaluation of the employee?
- Does the file reflect all of the employee's raises, promotions, and commendations?
- Does the file show every warning or other disciplinary action taken against the employee?
- If your policies provide that written warnings or other records of discipline will be removed from an employee's file after a certain period, have they been removed?
- If the employee was on a performance improvement plan, a probationary or training period, or other temporary status, has it ended? Has the file been updated to reflect the employee's current status?
- If the employee handbook has been updated since the employee started working for you, does the file contain a receipt or acknowledgment for the most recent version?
- Does the file contain current versions of every contract or other agreement between you and the employee?
What Not to Keep in a Personnel File
Your personnel files should not be a receptacle for
every document, note, or thought about the employee. Here are some areas to be
careful about:
Medical records. Do not put medical records into a
personnel file. If your worker has a disability, you are legally required to
keep all of the worker's medical records in a separate file -- and limit access
to only a few people. Even for workers who are not disabled, you may have a
legal obligation to keep medical records private
Unnecessary material. Although an employee's
personnel file may contain any other job-related documents,