Employee Files and Documents: What to Include and How to Store

Employee files and documents are the foundation of a well-organized human resources program. Keeping on top of employee information can help your HR department stay compliant, support your workforce more efficiently, and make better strategic decisions. 

This guide breaks down what you need to keep in your employee files, what shouldn’t be there, and how to stay organized and compliant in the long run. 

What Are Employee Files and Documents (and Why You Need Them)

Employee files and documents are the records that companies maintain on each employee. Typically, your employee files will include basic demographic information about your workforce, their hiring documentation, and possibly data on their performance history. 

It’s worth investing time and effort to keep this information up to date because proper documentation helps you to: 

1. Stay Compliant With Workforce Regulations

Well-organized employee data ensures you’re complying with local labor laws, tax regulations, and industry-specific requirements. Plus, missing documents can lead to legal risks or penalties. 

2. Enhance Performance Management Strategy

Employee files include information on performance evaluations. This can give you a handy bird’s eye view of your overall workforce performance and internal mobility, and help you manage any turnover smoothly. 

3. Simplify Payroll and Benefits Management 

Well-organized records on employee’s role and employment status ensure that employees receive the correct pay, benefits, and tax deductions. 

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Employee Files and Documents: What to Include

Legal requirements may vary by geography, but in general, your employee files should include: 

Employee’s Personal Information

• Employee name, address, and contact information 
• Date of birth
• Emergency contact info
• Employee benefits

Hiring and Onboarding Information 

• Job application 
• Resumé and cover letter
• Employment history
• Enrollment forms
• Job offer letter
• Signed employment contract
• Job description and responsibilities
• Manager and department 
• Employment type (full-time, contractor, freelancer, part-time etc.) 
• Start date 
• Tax forms
• Salary records and benefits enrollment

Performance Data

• Employee’s performance appraisals and feedback
• Promotion and disciplinary records
• Compensation history 
• Time and attendance records

Training and Development Information 

• Skills and competencies 
• Training and certification records

Legal and Compliance Documents

• Confidentiality agreements and non-compete clauses
• Workplace policy and employee handbook acknowledgments

Post-Employment Data

• Resignation letters
• Termination documents
• Exit interview records 

What Not to Keep in Employee Files

It’s also worth noting that not everything should go into your employee personnel files. Typically, the following sensitive information should be stored in a separate, confidential, and/or medical file, with even more restricted access: 

Private Information

• Bank account details
• Social security number or tax ID 
• Background check reports 
• Payroll records 
• Tax withholding information 

Employee Investigation Documents 

• Details of misconduct investigations 
• Legal documentation 
• Documentation about disciplinary actions 

Worker Eligibility Documents

• I-9 forms 
• Copies of driver’s license 
• Copies of passport or photo ID

Medical Records 

• Doctor’s notes and certifications 
• Medical leave documentation 
• Workplace accommodation requests 
• Worker’s compensation claims
• Health insurance information 

How Long to Hold Onto Employee Files

To stay compliant, you’ll need to safely store your employee information for a specific amount of time. Here are the general US guidelines for the various types of employee information and their recommended retention periods, according to the Society for Human Resource Management (SHRM): 

How to Collect and Store Employee Files and Documents

Employee records contain sensitive information, so storing them securely should be a top priority. Here are the best practices for keeping your employee files safe: 

1. Set access permissions.

Restrict access to employee records based on user roles. Only authorized personnel should be able to view or modify sensitive employee information. Conduct regular audits to make sure that only authorized users are able to access this data. 

2. Use compliant digital storage.

Make sure you’re using a secure location to store this information. For instance, an HRIS with encryption and backup features can help you make sure that you’ll never lose access to the data. 

3. Create policies for retention based on the latest regulations. 

Make sure that you’re following current local and federal laws on how long you should be storing employee information. 

4. Keep up to date on evolving data regulations. 

Data compliance regulations frequently change, so it's important to stay updated on policies like GDPR and HIPAA guidelines. 

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