An employer’s guide to HR record keeping

HR record keeping, it’s the administrative task that’s about as exciting as watching paint dry, but it's essential.

In Australia, keeping thorough and accurate HR records isn't just good practice — it's a legal requirement. So, let’s dive into the world of HR record keeping.

Why should you keep HR Records?

First things first: why should you care about HR records? Well, these records are your best friends when it comes to staying compliant with Australian employment law.

They’re the backbone of your business operations, ensuring you can handle everything from payroll to performance reviews smoothly. Plus, they’re your go-to evidence if there’s ever a dispute.

In short, good HR records protect you, your employees, and your business.

The basics: what you need to keep

Let’s break down the must-haves in your HR records arsenal. You’ve got:

• Personal details: Names, addresses, dates of birth. All the basics you need to identify your employees.

• Employment contracts: Every employee should have a written contract. It’s like their work bible, outlining duties, salary, and terms of employment.

• Right to Work documents: You need proof that your employees have the right to work in the UK. Think passports, visas, and other relevant documentation.

• Payroll Records: These detail wages, deductions, and National Insurance contributions.

• Working Time records: This includes hours worked, overtime, and holiday records.

• Performance records: Appraisals, disciplinary records, and training logs. These help manage employee performance and development.

• Health & Safety records: If there’s an incident at work, you need to document it. Plus, any health & safety training records.

Digital vs. paper: The eternal debate

You might be old school and love the feel of paper between your fingers, or maybe you’re a tech aficionado with a paperless office dream. Both methods are valid, but digital records are becoming the norm.

They’re easier to store, search, and back up. Plus, they’re kinder to the environment.

If you go digital, make sure you have robust data protection measures in place.

You need to keep your employees’ data secure. Think encrypted files, secure servers, and regular data audits. Or invest in an HR document storage system that comes with advanced security features.

The legal lowdown: HR document retention periods

Now, onto the legality of it all. In Australia, you’re required to keep certain records for specific periods:

• 7 years for payroll records

• 7 years for performance records  

• 7 years for working time records

• Between 5 and 30 years depending on the type of document for health & safety documents

While legally you only have to keep them for the retention periods mentioned, it’s best practice to keep them all for at least 7 years, in case there is ever a dispute.

You also need to be mindful of employees’ rights to access their records. Under the Privacy Act 1988, employees can request to see their personal data, and for best practice, employers should aim to comply within 30 calendar days.

So, keep your records organised and easily accessible. Which can be done effortlessly with a secure and cloud-based HR document library.

Top tips for hassle-free record keeping

• Stay organised: Keep everything in clearly labelled files or folders. If you’re digital, use reliable HR software that makes retrieval a breeze.

• Regular updates: Make it a habit to update records regularly. Set reminders, so nothing slips through the cracks.

• Train your team: Ensure everyone involved in HR knows what records need to be kept and how to handle them.

• Back up everything: If you’re using digital records, back them up regularly. If you’re using paper, consider scanning important documents as a backup.

• Audit regularly: Conduct regular audits to ensure compliance. It’s better to catch issues early than scramble during an inspection.

Store your HR documents securely and in the cloud with BrightHR

HR record keeping might not be the most thrilling part of running a business, but it’s crucial. With the right approach, it doesn’t have to be a headache.

Stay organised, and stay compliant, and you’ll be able to focus on what really matters: growing your business and supporting your team.

Each HR document, policy, and record serves a purpose beyond just taking up space in your desk or filing system.

BrightHR’s unlimited HR document storage eliminates clutter, freeing you to maximise your documents. Experience the relief as you rest assured that your company’s data is safe and secure, and easily accessible.

Seeing is believing, and you’ll need to see our HR document storage space for yourself to discover how it allows you to safely store, access, manage, and complete your to-do list.

You can also see how our software lets you meet your specific business needs by booking a free demo with our experts.