First published on Wednesday, July 31, 2024
Last updated on Monday, September 23, 2024
Employment record keeping, it’s the administrative task that’s about as exciting as watching paint dry, but it's essential. It involves keeping HR related document from employee records to health & safety documentation.
In Canada, keeping thorough and accurate HR records isn't just good practice—it's a legal requirement. So, let’s dive into the world of HR record keeping.
Why should you keep employment records?
First things first: why should you care about employee keeping requirements? Well, these records are your best friends when it comes to staying compliant with Canadian employment regulations.
They can be the backbone of your business operations, ensuring you can handle everything from payroll to performance reviews smoothly. Plus, they’re your go-to evidence if there’s ever a dispute.
In short, keeping employee records protect you, your employees, and your business.
The basics: what you need to keep
Let’s break down the must-haves in your employment records arsenal. You’ve got:
Personal details: Names, addresses, dates of birth. All the basics you need to identify your employees.
Employment contracts: Every employee should have a written contract. It’s like their work bible, outlining duties, salary, and terms of employment.
Right to Work documents: You need proof that your employees have the right to work in Canada if they’re not Canadian nationals. Think work permits, visas, and other relevant documentation.
Payroll Records: These detail wages, income tax deductions, E.I and CPP contributions.
Hours of Work records: This includes dates, times and hours worked, overtime, and holiday records.
Performance records: Appraisals, disciplinary records, and training logs. These help manage employee performance and development.
Health & Safety records: If there’s an incident at work, you need to document it. Plus, any health & safety training records.
Vacation records: Employers should keep records of their staff members vacation time earned, taken and their vacation pay.
Digital vs. paper: The eternal debate
You might be old school and love the feel of paper between your fingers, or maybe you’re a tech aficionado with a paperless office dream. Both methods are valid, but digital records are becoming the norm.
They’re easier to store, search, and back up. Plus, they’re kinder to the environment.
If you go digital, make sure you have robust data protection measures in place.
Canada’s data protection laws are no joke, and you need to keep your employees’ data secure. Think encrypted files, secure servers, and regular data audits. Or invest in an HR document storage system that comes with advanced security features.
The legal lowdown: employment document retention periods
Now, onto the legality of it all. In different Canadian jurisdictions, you’re required to keep certain records for specific periods, they vary from province to province but as a general rule:
6 years for payroll and tax records
3 years for performance records
3 years for hours of work records
3 years after the contract ends for employee contracts
3 years after termination of employment for Right to Work documents
5 years from when the worker is no longer employed at the company
While legally you only have to keep them for the retention periods mentioned, it’s best practice to keep them all for as long as possible in case there is ever a dispute.
You also need to be mindful of employees’ rights to access their records. In some jurisdictions, employees can request to see their personal data, and you must respond within a reasonable time frame or a maximum of 30 days (45 days in Alberta). However, this may be extended in certain circumstances.
So, keep your records organized and easily accessible. Which can be done effortlessly with a secure and cloud-based HR document library.
Want more information: See our in-depth guide on employee record retention.
Top tips for hassle-free record keeping
Stay organized: Keep everything in clearly labelled files or folders. If you’re digital, use reliable HR software that makes retrieval a breeze.
Regular updates: Make it a habit to update records regularly. Set reminders, so nothing slips through the cracks.
Train your team: Ensure everyone involved in HR knows what records need to be kept and how to handle them.
Back up everything: If you’re using digital records, back them up regularly. If you’re using paper, consider scanning important documents as a backup.
Audit regularly: Conduct regular audits to ensure compliance. It’s better to catch issues early than scramble during an inspection.
Store your employment records securely and in the cloud
Managing employee records might not be the most thrilling part of running a business, but it’s crucial. With the right approach, it doesn’t have to be a headache.
Stay organized, and stay compliant, and you’ll be able to focus on what really matters: growing your business and supporting your team.
Each HR document, policy, and record serves a purpose beyond just taking up space in your desk or filing system.
BrightHR’s unlimited HR document storage eliminates clutter, freeing you to maximize your documents. Experience the relief as you rest assured that your company’s data is safe and secure, and easily accessible.
Seeing is believing, and you’ll need to see our HR document storage space for yourself to discover how it allows you to safely store, access, manage, and complete your to-do list.
You can also see how our software lets you meet your specific business needs by booking a free demo with our experts.
