Record Retention Policy

The HR department deals with a multitude of employee records, from onboarding documents to performance reviews and termination documentation. Without a proper record retention policy in place, it can be overwhelming to keep track of what needs to be kept and for how long.

Record Retention Policy

Policy Brief & Purpose

The purpose of this Record Retention Policy is to establish guidelines and procedures for the retention, storage, and disposal of records in order to maintain compliance with legal, regulatory, and operational requirements. This policy aims to ensure the proper management of records throughout their lifecycle, from creation to destruction, while promoting efficiency and minimizing risk for the organization.

Scope

This policy applies to all employees, departments, and subsidiaries within the organization who generate, receive, maintain, or dispose of records in any form, including, but not limited to, electronic, digital, physical, and verbal records. It encompasses records created and received in the course of conducting business and includes, but is not limited to, financial records, customer records, employee records, legal documents, contracts, and any other records necessary for the organization's operations.

Policy Elements

1. Definition of Record Retention

Record retention refers to the process of retaining and managing records for a specified period of time according to legal, regulatory, operational, and historical requirements. It involves the maintenance, storage, and disposal of records in compliance with applicable laws, regulations, and industry best practices.

2. Compliance with Legal and Regulatory Requirements

All records must be retained in accordance with applicable laws, regulations, contractual obligations, and industry standards. The organization shall establish and maintain a comprehensive understanding of the relevant legal and regulatory requirements related to record retention and ensure compliance with such requirements.

3. Record Classification and Identification:

Records shall be classified based on their nature, significance, and legal and regulatory obligations. A record classification scheme shall be developed and maintained to aid in the identification, organization, and retrieval of records. Each record should be properly labeled, including relevant metadata, to accurately identify its content, creator, and creation date.

4. Record Retention Periods:

The organization shall establish record retention periods for each type of record based on legal, regulatory, operational, and historical requirements. These retention periods should take into consideration factors such as the organization's industry, specific legal mandates, contractual obligations, and the need for future reference or legal defense.

5. Record Storage and Security:

All records, regardless of format, shall be stored securely to prevent unauthorized access, loss, damage, or destruction. Effective security measures, including physical safeguards, access controls, encryption, password protection, and backup procedures, shall be implemented to protect records from unauthorized disclosure or alteration.

6. Record Disposal and Destruction:

At the end of their retention periods, records shall be disposed of in a secure and appropriate manner. The organization shall establish procedures for the systematic and confidential destruction of records, ensuring that sensitive and confidential information is properly shredded, deleted, or destroyed to prevent unauthorized retrieval or use.

7. Records Management Responsibilities:

Clear roles and responsibilities shall be assigned to individuals or departments responsible for record creation, maintenance, retention, and disposal. Regular training and awareness programs shall be conducted to educate employees on the importance of record management and their obligations under this policy.

8. Record Audits and Monitoring:

Periodic audits and monitoring shall be conducted to assess compliance with this policy, identify areas for improvement, and ensure consistent adherence to record retention requirements. The organization shall maintain proper documentation and records of record management activities, including retention schedules, disposal reports, and audit findings.

9. Policy Review and Updates:

This policy shall be reviewed periodically to ensure relevance and effectiveness in meeting the organization's record retention needs. Any necessary updates or revisions to the policy shall be communicated to all employees and stakeholders.

10. Exceptions:

Exceptions to this policy may be granted in cases where legal or regulatory requirements necessitate deviation from the designated retention periods. Any exceptions must be documented, approved by authorized personnel, and clearly communicated to all relevant parties.

By adhering to this Record Retention Policy, the organization aims to maintain an efficient and secure record management system that supports its legal, regulatory, and operational obligations while safeguarding sensitive information and promoting effective records management practices.

Conclusion

In conclusion, a Record Retention Policy is an essential tool for businesses to minimize the risk of legal disputes, maintain accurate and organized records, and optimize operational efficiency. The provided template serves as a valuable starting point for businesses to develop their own customized Record Retention Policy, tailored to their specific needs and industry requirements.