Keeping records might not be the most exciting part of running a business, but it's a non-negotiable. Good record keeping can save you from headaches down the road. Here’s a simple, practical guide to getting it right.
Why it's important
You might think, “I’ll remember this” or “I’ll sort it out later” But when it comes to employee records, "later" can lead to big problems.
Solid records are your safety net—they help you stay compliant with legal obligations, protect you in disputes, and make your business run smoother. Imagine trying to resolve a pay dispute or deal with a legal claim without any evidence or documentation...
What to keep
You don’t need to keep every bit of paper, but there are key documents you should have on file.
Here’s a quick rundown:
Employee Information:
Employment contracts and position descriptions.
Records of any changes to employment terms.
Payroll Records:
Payslips, tax details, and superannuation contributions.
Leave balances and records of leave taken.
Timesheets or work hours.
Performance Management:
Performance reviews and appraisals.
Records of any certifications or licences.
Documentation of any disciplinary actions or warnings.
Health and Safety:
Incident reports and risk assessments.
Training records.
Any workers’ compensation claims or medical certificates.
Termination:
Details of exit interviews, resignation letters, or termination notices.
Final pay calculations, including unused leave payouts.
How long to keep
In general, aim to keep employment records for at least 7 years, but this can vary depending on the type of document and your local legislation. For example, payroll records usually need to be kept for seven years, while some health and safety documents might require to stay with you for longer.
Here’s a table summarising the common HR documents and their retention periods based on Tasmanian legislation and general best practices:
Document | Retention Period | Notes |
Employment Contracts | 7 years after termination | To cover any legal disputes or claims related to employment. |
Personal Information (e.g., contact info, emergency contacts) | 7 years after termination | Ensure this information is updated regularly. |
Payroll Records (including payslips, tax details, superannuation) | 7 years | Essential for compliance and audits. |
Leave Records (e.g., annual leave, sick leave) | 7 years | Necessary for managing entitlements and disputes. |
Performance Reviews and Appraisals | 7 years after the review or termination | Useful for addressing performance-related issues. |
Training Records | 7 years | Important for compliance with training requirements. |
Health and Safety Records (e.g., incident reports, risk assessments) | 5 years after the event | Some records may need to be kept longer depending on the nature of the record. |
Workers’ Compensation Claims | 7 years after the claim is closed | For handling any future disputes or claims. |
Termination Records (e.g., resignation letters, termination notices) | 7 years after termination | Important for any potential disputes or unemployment claims. |
Don't take this table for granted though, check the specific requirements for your industry/sector or seek personalised advice.
Make sure your business complies with Fair Work laws!
If you have concerns about this topic, or need help with compliance, send me an email at sandra@hrconsultingtas.com.au.
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DISCLAIMER:
The content provided on this website serves as a general information resource on the topics discussed, and should not be considered tailored to specific individual circumstances or a replacement for legal advice. While we exert significant effort to ensure the accuracy of our information, HR Consulting TAS cannot ensure that all content on this website is consistently accurate, exhaustive, or current. Recommendations by HR Consulting TAS and any information acquired from this website should not be regarded as legal advice.
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