Employee Files: Why Privacy Matters
Protect the employer AND the employee.
Employers need to keep information on employees. What that information is and how long to keep it, takes some consideration. Consider two scenarios.
Scenario #1: An employee who leaves the organization can seek legal action at anytime, years in the future. If that former employee has the records to prove their case in court and your non-profit destroyed their employee paperwork years ago, it might be difficult to refute the claim.
Scenario #2: Your non-profit has kept all employee files since incorporation. During a recent office move a box of employee files with sensitive information like social insurance numbers and employee birth dates was accidentally sent to the general trash instead of being sent for secure shredding. Imagine the horror of telling those employees they are at risk for identify theft and it’s your fault.
This needs a policy.
A non-profit executive director is responsible for having a strong employee document retention policy. One that protects both the organization and the employee. There are three factors to consider when drafting the policy.
Organizations will want to keep employee files as long as necessary to be protected in legal matters. To learn those legal requirements, it helps to read through the provincial employment Act.
Digital or hard copy?
Organizations will want to decide if employee files will be kept digitally or in hard copy format. Both options have different privacy risks to consider. Digitally stored files need to meet legal requirements for being accessed at a later date.
Finally, organizations will need to decide what documentation to keep. Will employee files with birth dates and social insurance numbers be kept, or will it be limited to time sheets, work plans, and annual evaluations?
Ideally, an executive director will book a consultation with a lawyer to get a professional legal opinion that is more tailored for their specific organization. A lawyer can advise on how long to keep files, in what format, and which specific documents to keep. A lawyer can also advise on the risks of document storage.
Trust is key. Ask the team.
The policy on keeping employee records is an excellent topic for an executive director to discuss with the staff team. No matter the size of the team, letting employees have input on how their personal information is collected and stored goes a long way to building trust.
Not sure how to get started? Follow these steps...
Employee records and the inherent privacy needs/risks is a high priority policy. Executive directors can get started on drafting the right policy for their non-profits in two steps.
- Conduct a document audit. Take a close look at how employee records are being handled right now. Write down all the steps for how employee files are created, where they are stored when the employee is first hired, and where those files are located years after the employee has left. Spend some time searching through boxes in the storage room if you need to do it. Write down all the details.
- Talk to a lawyer. Book a consultation with a lawyer to learn the best way to mitigate risk for the organization and ensure privacy for the employees. Even if budgets are tight, this policy is one of the top five that needs to have professional legal advice.
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