Record Retention Policy Template

As your organization grows, so does the volume and complexity of information you create and store — from employee records and payroll documents to contracts, tax filings, and customer data. A record retention policy provides a structured framework for managing that information responsibly.

Record retention policies ensure compliance with legal and regulatory requirements, mitigate risk, support audit readiness, and improve operational efficiency. They also guide employees on how long to keep certain types of records and when — and how — to securely dispose of them.

Without a clear policy, companies may hold onto records longer than necessary (increasing data security and storage risks), or destroy them too soon (potentially violating legal requirements).

What a Record Retention Policy Should Include

A well-structured record retention policy should cover:

• Policy purpose and scope: Why the policy exists and which teams, formats, and systems it applies to
• Definitions of “records”: What constitutes a record and which types are included (digital and paper)
• Roles and responsibilities: Who manages recordkeeping, enforcement, and oversight
• Retention schedule: How long specific types of records must be kept (e.g., tax forms, employee files, contracts)
• Storage requirements: Where and how records must be stored and who has access
• Disposal and destruction procedures: Secure methods for deleting, shredding, or archiving expired records
• Legal holds: Steps to preserve relevant records during litigation, audits, or investigations
• Compliance requirements: Laws, regulations, or industry standards the policy supports (e.g., HIPAA, IRS, GDPR)
• Policy enforcement and updates: How the policy is maintained, updated, and communicated to employees

Purpose of the Policy

The purpose of a record retention policy is to:

• Ensure records are maintained for the appropriate duration to meet legal, regulatory, and business needs
• Support consistent and secure recordkeeping practices across the organization
• Minimize risk by securely disposing of outdated or unnecessary information
• Improve operational efficiency and reduce storage costs
• Support compliance with laws such as IRS requirements, GDPR, HIPAA, or applicable state laws

Record Retention Policy Template

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1. Policy Statement

We are committed to managing company records in a responsible, legally compliant, and secure manner. This policy establishes guidelines for the retention, storage, and destruction of records to ensure information is available when needed — and disposed of when it’s no longer required.

All employees are expected to understand and follow this policy as it relates to their roles.

2. Scope

This policy applies to:

• All departments and business units
• All physical and digital records, regardless of format (e.g., paper files, PDFs, spreadsheets, emails)
• All systems used to create, store, or transmit company records
• All employees, contractors, and third parties with access to company records

This policy does not supersede any legal or regulatory requirements for data retention or destruction.

3. Definition of Records

For the purpose of this policy, “records” include any documents, files, or data that:

• Are created or received in the course of business
• Contain legal, financial, operational, or personnel-related information
• Are necessary for compliance, audit, or historical reference

Examples include:

• Employee files (e.g., I-9s, performance reviews, benefits documents)
• Financial records (e.g., tax filings, invoices, bank statements)
• Legal documents (e.g., contracts, non-disclosure agreements, litigation files)
• Operational documents (e.g., safety records, vendor communications, policy updates)
• Customer and client records (e.g., signed agreements, billing info, feedback)

4. Roles and Responsibilities

Department Heads and Managers are responsible for:

• Ensuring their teams follow the retention schedule
• Working with HR, Legal, or IT to determine proper storage and access

IT is responsible for:

• Securing electronic records
• Managing backup and recovery systems
• Supporting secure deletion procedures

HR and Legal are responsible for:

• Interpreting regulatory requirements
• Coordinating legal holds during litigation or audits
• Auditing compliance with this policy

All Employees are responsible for:

• Following the record retention schedule
• Reporting any unauthorized access, loss, or mishandling of records

5. Record Retention Schedule

Retention periods may be adjusted based on jurisdiction, regulation, or evolving business needs. Always check with Legal or HR before destroying a document outside of the retention schedule.

6. Storage and Access

Records must be stored in secure, accessible formats and locations, including:

• Secure file servers with access control
• Approved cloud-based storage systems
• Locked file cabinets or archives for physical records

Access to sensitive records (e.g., HR, financial, legal) is limited to authorized personnel only.

Backups of digital records must be maintained in accordance with our IT security and disaster recovery policies.

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7. Disposal and Destruction

When a record reaches the end of its retention period, it must be destroyed in a secure manner:

• Paper records should be shredded using a cross-cut shredder or certified shredding service
• Digital records must be permanently deleted from systems, backups, and devices using approved IT methods
• Records under litigation holds must not be destroyed until the hold is formally lifted

Documentation of destroyed records should be kept for [1 year] and include the type of record, date of destruction, and responsible party.

8. Legal Holds

If the company becomes aware of an investigation, litigation, or audit, a legal hold will be issued to preserve all relevant records. All destruction or modification of these records must cease immediately.

Legal holds override the standard retention schedule until formally released by Legal or HR.

Employees will be notified in writing when a legal hold is initiated and when it is lifted.

9. Compliance

This policy is designed to ensure compliance with laws and regulations including:

• IRS guidelines for tax record retention
• U.S. Department of Labor and EEOC employment recordkeeping rules
• HIPAA and other privacy regulations (as applicable)
• GDPR or similar global data protection standards

Failure to comply may result in disciplinary action, legal liability, or audit risk.

10. Policy Review and Updates

This policy will be reviewed annually by HR and Legal and updated as needed to reflect new laws or operational changes.

Employees will be notified of any major revisions. Questions about this policy should be directed to:

[Insert HR or Legal contact name]
[Insert email address]
[Insert phone number]

Frequently Asked Questions

1. Can I delete files that are over a year old if they’re not on the retention schedule?
Only if they are not considered official company records. When in doubt, check with your manager or HR before deleting.

2. How do I securely dispose of paper records?
Use a cross-cut shredder or place documents in designated shredding bins. Never place sensitive records in regular trash or recycling.

3. What happens during a legal hold?
All record destruction must stop for any documents that might be relevant. You’ll be notified if your files or emails are included in the hold.

4. Do I have to keep everything in both paper and digital form?
No. Unless a specific regulation requires it, electronic storage is sufficient as long as the record is secure, backed up, and accessible.

5. What if I accidentally delete a record I was supposed to keep?
Report it to your manager or IT immediately. We’ll do our best to recover it and review ways to prevent future data loss.

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