At a minimum, employers should retain employee records for the amount of time required by law. In addition, employers should assess potential liabilities and business needs and enlarge periods of record retention if the practice makes good business sense. If working in a labor environment, follow the terms of the Collective Bargaining Agreement (CBA).
Strive to ensure confidentiality of information. Employers should decide whether certain information should be kept in a separate file and/or communicated on a strict need-to-know basis.
Documenting accurately and consistently empowers employers to demonstrate objective, legitimate and business-related reasons for their actions. Best practices in record retention, especially when those records represent accurate reflections of an employee's life cycle, guard against potential liability.