Personnel files: Overview, definition, and example
What are personnel files?
Personnel files are records maintained by an employer that contain important information about an employee’s job history, performance, and personal data related to their employment. These files typically include documents such as the employee’s resume, employment contract, performance reviews, disciplinary records, training records, payroll information, and any correspondence between the employer and employee. Personnel files are used for administrative, legal, and operational purposes, and they help ensure compliance with labor laws and company policies.
For example, an employee's personnel file may contain their job application, documentation of any disciplinary actions, and records of salary increases.
Why are personnel files important?
Personnel files are important because they serve as an official record of an employee’s employment history and are often required for legal compliance, payroll processing, and performance evaluation. These files help businesses manage their workforce by tracking important milestones such as promotions, salary changes, or disciplinary actions. Personnel files also play a key role in ensuring that a company is in compliance with labor laws, such as those related to equal employment opportunities, health and safety, and workplace rights.
For businesses, maintaining accurate and up-to-date personnel files ensures efficient HR management, legal compliance, and effective decision-making in areas such as promotions, terminations, or employee benefits.
Understanding personnel files through an example
Imagine a business that conducts annual performance reviews for its employees. The HR department keeps a copy of each employee’s performance review in their personnel file. In addition, if an employee has received any warnings or commendations, these are also added to the file. This allows HR to track the employee’s performance over time and make informed decisions about promotions or training needs.
In another example, an employee requests a leave of absence for medical reasons. The employer updates the employee’s personnel file with the necessary documentation, including the medical leave request and approval, ensuring proper record-keeping and compliance with company policy and applicable laws.
An example of a personnel file clause
Here’s how a personnel file clause might look in an employee handbook or contract:
“The Company maintains personnel files for each employee, which include personal information, job history, performance records, and any other relevant documentation. Employees have the right to review their personnel files upon request, in accordance with applicable laws and company policy. The Company will ensure that all personal information is kept confidential and used solely for business and legal purposes.”
Conclusion
Personnel files are a vital tool for businesses to manage employee information, track performance, ensure compliance with laws, and make informed decisions about staffing. Properly maintained personnel files help ensure that all employment-related data is accurate, up-to-date, and easily accessible when needed.
By implementing clear policies on the creation, maintenance, and access to personnel files, businesses can ensure that they comply with legal requirements and maintain effective human resources practices.
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.