The law requires companies to keep an employee file

To talk about the legal responsibilities and needs of businesses is to refer, among many other things, to the existence of an employee file for each employee they have. In Mexico, for example, Article 804 of the Federal Labor Law (LFT) stipulates that the employer has the obligation to preserve and present employee documents in court, but what documents are these? In this blog, we present everything you need to know to keep your company's employee files in order.

What is an employee file?

Simply put, an employee file is the collection of various employee documents that each employer must maintain. The importance of this compilation is to have all the necessary information so that, in the first place, the business owner can protect themselves against any legal situation, as well as make decisions regarding the career path of their collaborators.

What documents should the labor file include?

To speak about the necessary documents in these files, we must first define that we can base this on several aspects. One of them is based on the essential documents needed to issue pay stubs, another establishes the responsibilities of the employer and those corresponding to the employee, and yet another stipulates personnel development.

That is, in general, an employee file should contain a series of documents related to their employment relationship with the company. Below are some of the documents commonly found in an employee file:

1. Job application: This document is used to collect basic information about the employee, such as their name, address, telephone number, and previous work experience.
2. Employment contract: This document establishes the terms and conditions of the employment relationship between the employee and the company. It includes information about salary, working hours, benefits, and any other relevant conditions.
3. Identification documents: It is important to include a copy of the employee's identification document, such as their ID card or passport.
4. Proof of payment: Proof of payment, such as pay stubs, shows the amount of money the employee has received for their work. These documents are necessary to prove that the employee has regularly received their salary.
5. Performance evaluations: Performance evaluations record the employee's progress in their job. This can include goals achieved, improved skills, and any other relevant achievements.
6. Disciplinary file: If the employee has had issues at work, it is important to document these incidents in a disciplinary file. This can include warnings, suspensions, and any other disciplinary actions taken.
7. Training documents: Training documents show what training the employee has received during their time at the company. This can include training courses, workshops, and any other professional development activities.
8. Letters of recommendation: Letters of recommendation are useful if the employee is looking for job opportunities in the future. These letters can be written by managers or coworkers and can highlight the employee's skills and achievements.

For practical purposes, these documents can be divided into different types, for example: 

Recruitment: These are all the documents that the employee provides to you during the hiring process, including:

• CV/Resume

• ID

• CURP

• RFC

• Proof of address

• General information
  
  

Personal: All employee-specific information is stored here, such as:

• Job offer

• Job application

• Letter of recommendation

• Psychometrics

• Training

Labor/Employment: All documents related to the relationship between the employee and the employer can be integrated here, such as:

• Employment contract

• NDA

• Policies

• Regulations

• Permits/Leaves

How to keep an employee file up to date?

To maintain an updated employee file, it is necessary to follow some important steps. Here are some suggestions:

1. Gather basic information: The first step is to gather basic employee information, such as their full name, address, phone number, ID number, start date, and current position. This information should be collected at the time the employee is hired and updated as necessary.
2. Maintain labor records: It is important to maintain accurate records of employment details, such as hours worked, vacation days, leaves of absence, performance evaluations, and any other records that may be required. These records must be regularly updated and accurate.
3. Keep an emergency contact list: The employer must have an updated list of the employee's emergency contacts. This is important in case someone needs to be reached in an emergency or if the employee is unable to communicate.
4. Maintain training and development records: It is important to keep a record of the employee's training and development to track their progress and plan future development opportunities.
5. Maintain compensation records: It is important to maintain an accurate record of the employee's compensation, including salaries, benefits, and any other form of compensation. This is essential to ensure that the employee receives fair compensation and to help the company track its labor costs.
6. Regularly update the file: It is critical to regularly update the employee file to ensure that all information is accurate and current. This may include reviewing labor records, updating the emergency contacts list, reviewing training and development records, and updating compensation records.

If you need help updating your labor files, at Sora we have created our Digital File, a platform that helps you manage your company's employee files with less effort.