The Employee File and Its Importance for Companies

The employee file is a document that contains all relevant information about a company’s employees, from hiring to termination. This file is essential for carrying out various labor-related actions, such as payroll management, tracking working hours, performance evaluation, and more. In this article, we will highlight some key facts about the employee file that can be highly beneficial for businesses.

Contents of the Employee File

The employee file should contain relevant information about the worker, such as personal identification, contact details, academic background, work experience, employment contracts, salary payment records, and more. Additionally, it is important to note that all information contained in the file must remain confidential and be used exclusively for work-related purposes.

Legal Obligation to Keep the Employee File Updated

Companies are legally required to keep their employees’ files updated. This means they must record any changes in employee information, such as address, salary, work schedule, and other relevant details.

Retention Period for Employee Files

The employee file must be retained for a minimum period of five years after the termination of the employment contract. If the employee has requested compensation or benefits, the file must be kept for a longer period, which may vary depending on the labor laws of each country.

Consequences of Not Keeping Employee Files Updated

Companies that fail to maintain updated employee files may face serious legal consequences. For example, they could be fined or even sued by affected employees.

Employee Access to Their Own File

Employees have the right to access their employee file at any time. This allows them to verify the accuracy of the information and correct any errors. Additionally, they may request a copy of their file if they need it for other work-related purposes.

Limitations on Third-Party Access to Employee Files

Third-party access to employee files is restricted by law. Only individuals with a legitimate interest, such as labor attorneys, company lawyers, or judges, are allowed access to this information.

Protection of Personal Data in Employee Files

Employee files contain sensitive personal information, making data protection crucial. Companies must ensure that this information is handled confidentially and complies with all applicable data protection regulations.

Using the Employee File for Performance Evaluation

The employee file can be used to assess employee performance. The information contained in the file can serve as a basis for making decisions regarding promotions, performance evaluations, recognition of achievements, and other important aspects of human resource management.

Importance of the Employee File in Labor Disputes

In labor disputes, the employee file can be a key tool in defending a company’s interests. For example, if an employee files a lawsuit for wrongful termination, the company can use the employee file to prove that all legal procedures were followed and that the employee’s rights were respected.

Digitalization of Employee Files

Digitizing employee files can be an excellent option to streamline management and access. This helps prevent errors and data loss while allowing access to employee records from anywhere at any time. However, it is important to implement security measures to protect employees’ personal data.

If you are interested in digitizing your employee files, Sora offers a Digital Employee File service that not only digitizes all your labor documents but also provides the option to automate them. Want to learn more?