Dear All
Our HR consultant has recently suggested that we revise our current 7 year (from end of employment) personnel file retention to 1 year only - the justification being that normal time limits for employment tribunal cases are 3 to 6 months from end of employment (under the Extension of Jurisdiction Order 1994). In addition, she feels that the common reason for 7 year retention of personnel files is to ensure correct retention of payroll and tax records and that if these are held by Finance, the 7 year HR retention isn't necessary.
However, it's my understanding that 7 years is an industry standard owing to the 6 year time limit for breach of contract claims under the Limitations Act 1980. I know that the time limit for breach of contract 'shall not apply to any claim for specific performance of a contract' but am I right in thinking that there will be cases where the 6 years stated in the Limitations Act applies to employment tribunals and well as civil courts?
I believe that the ICO advice is that a recruitment record shouldn't be held for longer than 6 years. I would think that records which might be relevant to a claim of breach of contract would be: signed contract and amendments; training records; appraisal records; sick leave records; correspondence relating to promotion or disciplinary action. Does anyone hold these records for a shorter time or see any argument to do so?
Many thanks,
Jenny Willis
The Postal Museum
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