Retaining Employee Data – What Employers Need to Know

Not sure what information you’re allowed to keep about your employees, or how long it should be stored? You’re not alone. Many employers find data retention rules confusing, but it’s an area that can’t be ignored.

Holding on to outdated CVs, contracts saved on desktops, or boxes of old files could leave your business at risk of breaching data protection laws. The penalties for getting it wrong can be significant, so it’s important to understand the basics.

Why Employee Data Retention Matters

The Data Protection Act (DPA) and General Data Protection Regulation (GDPR) don’t set out exact timeframes for every type of record. Instead, they focus on principles:

• Personal data should only be kept for a valid business reason.

• It must not be stored longer than necessary.

• Information held should be relevant and proportionate.

  
  

That means it’s up to employers, as the data controller, to have clear rules in place that cover how long documents are kept and when they’re destroyed.

Common Pitfalls for Employers

It’s easy for businesses to slip into bad habits, such as:

• Holding on to old files “just in case”.

• Keeping sensitive paperwork in drawers or shared drives without proper controls.

• Not reviewing or updating records regularly.

These practices increase the chance of non-compliance, as well as the risk of data breaches or complications if an employee submits a Subject Access Request (SAR).

Using HR Systems vs. Paper Records

Storing employee data in a secure HR software system can make compliance much easier. These systems often have built-in tools to help you manage retention periods and restrict access.

But even if you have digital systems in place, don’t forget about older files. Boxes of paperwork in storage or forgotten folders on shared drives also need to meet GDPR standards.

How Long Should You Keep Employee Data?

There isn’t one single rule for all records, but as a general guide, many employee files should be retained for six years after employment ends. This timeframe covers most civil claim limits.

Other examples include:

• Payroll and tax records – 6 years

• Pension information – up to 12 years

• Recruitment and interview notes – around 6 to 12 months

• Certain Health and safety documentation – in some cases up to 40 years

  
  

A good approach is to set up a data retention policy that clearly states how long each type of document is kept and how it will be securely disposed of once no longer required.

What This Means for Employers

Managing employee data correctly helps you:

• Stay compliant with GDPR and avoid potential fines.

• Safeguard employee privacy and build trust.

• Keep records accurate, relevant, and easy to find.

• Reduce unnecessary clutter and improve efficiency.

How Kirby HR Consultancy Can Help

At Kirby HR Consultancy, we work with businesses to make sure their employee data is handled securely and lawfully. From creating retention policies to recommending HR software solutions, we can help you put the right systems in place.

Need any help with Data Protection/GDPR?

Kirby HR Consultancy can provide the advice and tools you need to do it safely, legally, and effectively.

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