Personnel file: Overview, definition, and example
What is a personnel file?
A personnel file is a comprehensive record maintained by an employer that contains an employee's employment-related information. This file typically includes details such as the employee’s job application, offer letter, performance evaluations, payroll information, disciplinary records, training certifications, and other relevant documents. Personnel files serve as an official record of the employment relationship and are often required for compliance with labor laws.
For example, an employee’s personnel file may contain their signed employment agreement, tax forms, and documentation of promotions or raises.
Why is a personnel file important?
Personnel files are important because they help employers maintain organized, accurate, and up-to-date records of their employees. For SMBs, maintaining personnel files ensures compliance with legal and regulatory requirements, supports performance management, and provides documentation in case of disputes or audits.
A properly maintained personnel file also protects both the employer and the employee by providing a clear history of the employment relationship, including records of performance, disciplinary actions, and benefits.
Understanding personnel files through an example
Imagine an SMB hires a new employee. The company creates a personnel file for the employee, which includes:
- Their signed job offer letter.
- Completed tax forms (e.g., W-4).
- Copies of training certifications.
- Records of performance reviews.
- Notes on any disciplinary actions, if applicable.
In another scenario, an employee disputes a termination decision. The employer refers to the personnel file, which contains documentation of prior warnings, performance reviews, and signed acknowledgments, to demonstrate that the termination was justified and aligned with company policies.
An example of a personnel file clause
Here’s how a personnel file clause might appear in an employment agreement or policy:
“The Employer shall maintain a personnel file for each Employee, which may include, but is not limited to, employment applications, tax forms, performance evaluations, disciplinary records, and training documentation. The Employee may request access to their personnel file in accordance with applicable laws and company policies. All personnel files shall be maintained securely and confidentially.”
Conclusion
A personnel file serves as a vital tool for documenting the employment relationship, ensuring compliance, and supporting effective workforce management. For SMBs, maintaining accurate and well-organized personnel files protects the business from legal risks, facilitates fair treatment of employees, and ensures regulatory requirements are met. Including a personnel file policy in employment agreements or handbooks provides clarity and promotes accountability for both employers and employees.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.