Employee records that document the individual’s personal and professional details need to be maintained. This also helps to meet stipulated guidelines and regulations.
What employee records should a company maintain?
Keeping accurate and updated employee records is important to avoid future litigations. It also acts as a record that employers can go back to. Especially, in case they are looking for specific details with respect to an ex employee. In addition to this, it can also be a form of supportive data that companies can access while rehiring a former employee.
Accurate personal and professional data a company should have…
The Human Resources department of a firm needs to have files that document the personal and professional details of each employee. This includes…
- Basic details
Like the full name, age, mailing address, blood group, emergency contact number, etc.
- Hiring documents
These would include the resume, a copy of the last salary drawn, resignation letter, employee’s experience letter, etc.
- Employee assessment sheet
Based on the test and interviews taken during the hiring process, this assessment sheet gives a prospective employer a basis to conduct a proper evaluation of the candidate’s skills and knowledge.
- Background verification form
A background check is run to eliminate a dishonest candidate. This is done post selection, and before hiring the prospective employee. Employment details are verified with an ex employer. All of it helps validate the information provided by the employee.
- Personal documents to verify the identity of an employee
A copy of documents like Aadhaar card, Pan card, etc, also need to be maintained as they validate the identity of the employee.
- Nomination details
The information is needed to contact a nominee in the case of an emergency. This is mainly because a nominee would be the immediate beneficiary of an insurance cover or of any pending dues.
- Employee related agreements
This can include a non-competition agreement, confidentiality or nondisclosure agreement.
- Compliance documents
An employer also needs to maintain provident fund records, form 16, and monthly tax deducted at source records.
- Other documents related to compensation and employee performance
Some companies may also maintain separate files on each employee. These records detail their relationship and performance and compensation received during their tenure with the company. These may also include timesheets with details of daily work and delivery timesheets.
Benefits of diligent record keeping
Maintaining and updating all of these documents diligently can help an employer save time while performing administrative duties. It also gives employers a good understanding of the talent employed and improves overall productivity. This in turn helps to define a structure and limits access to confidential information so that there is no room for misuse.