Q: What information am I allowed to keep on my staff and after they leave, how long do I have to or should I keep that information?
Dec 13 2007
Answered by: Peter Done Ask a question
You can retain whatever information you need to retain for however long you need to keep it. The key word is “need”. You must be able to justify your need.
Legislation dictates the keeping of records for minimum periods in some circumstances. Pay, tax and NI records must be kept for six years plus the current year by HM Revenue rules. VAT records must be kept for the same period (although the Excise can only go back three years to claim additional revenues).
The Working Time Regulations 1998 require that records of hours worked, any compensatory rest awarded, night hour work limits not breached etc, must be kept for two years and pay records required by the National Minimum Wage Act 1998 must be kept for three years.
Accident records are different and your insurer may also dictate periods for records to be kept. Pension records are normally the responsibility of the pension trustees/provider but a prudent employer keeps their own as well. Work details necessary for references must also be kept.
Even the Data Protection Act 1998 has no specific periods identified- it all depends on what records and why you feel you must keep them. If you can justify your need you can keep it.
It does state that “personal data…shall not be kept for longer than necessary…” There is at least one further reference to timescales in the Part 1 Code regarding the retention of applicants’ details, who are not called to an interview, which states that such details should not normally be held for longer than four months.
As a Code it is not law but only guidance. However, four months is undoubtedly a too short period since an investigation of discrimination can be brought in exceptional circumstances for up to five years after the event complained about. For most employers keeping such information for up to a year would be more reasonable, justifiable and safe.
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