Understanding employee files
An employee file is the central repository for all documentation related to an individual's employment. Well-organised files support HR operations, support compliance, and provide essential information when needed for decisions, disputes, or audits.
File purposes
- Employment documentation
- Compliance evidence
- Performance history
- Reference for decisions
Key requirements
- Secure storage
- Restricted access
- 7-year retention
- Privacy compliance
Required documents
Employee files should contain these essential documents:
Standard file contents
Australian record keeping
- Pay records: Pay rates, hours worked, gross and net pay
- Leave records: Leave taken and balances
- Superannuation: Contributions and fund details
- Time records: Hours worked for hourly employees
7-year retention requirement
Under the Fair Work Act, employee records must be kept for 7 years after they're made. This applies even after an employee has left - don't dispose of files prematurely.
Access and privacy
Who can access
- The employee themselves
- HR with legitimate need
- Direct manager (limited)
- Legal/compliance as required
Privacy obligations
- Secure physical/digital storage
- Need-to-know access only
- Respond to access requests
- Secure disposal when due
Common file management mistakes
Inconsistent organisation
Different filing systems for different employees makes information hard to find. Use a standardised structure across all employee files.
Missing documents
Key documents not filed or lost over time. Implement checklists to ensure all required documents are collected and filed, especially during onboarding.
Inadequate security
Leaving files accessible to unauthorised people. Employee files contain sensitive personal information and must be properly secured, whether physical or digital.
Key takeaways
Well-maintained employee files are essential for compliance, decision-making, and dispute resolution. Implement consistent organisation, ensure proper security, and meet the 7-year retention requirement.
RosterElf's employee management helps Australian businesses maintain organised staff records alongside rostering and time tracking.
