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Security Issues with Employee Paperwork

When you’re hiring a new team member, there’s usually a slew of paperwork to work through and get in order: cover letters, resumes, reference checks, multi-page contracts, payroll information, time sheets and vacation records.

So, what do you do with all this paperwork once it’s obsolete or if your employee transitions into another company? How long should you hold on to these records? And when the time does come to destroy sensitive documents such as the employee records listed above, what’s the best and most secure way to go about it?

How to Store Employee Paperwork

Once paperwork is complete, it should be stored safely in a locked metal filing cabinet. Only the members of your team who absolutely need access to these files should be key holders. This will generally include someone from your HR team and someone working in payroll.

Contracts, payroll information, time sheets and vacation records should be stored for the duration of your employees’ employment periods for easy reference.

Depending on your city, province or state’s version of the Employment Standards Act, you may need to retain some of these pieces of paperwork for up to three years after the employee has stopped working for you — whether they left of their own accord, or if their employment was terminated. Your company might even have a policy in place dictating when you’re supposed to safely destroy these pieces of paperwork per protocol. Incorporating this as part of your company policy is highly recommended for large organizations.

So, when the time comes to destroy these sensitive documents, why is it important to destroy them effectively and not simply, say, throw them in the bin?

Why You Should Destroy Employee Paperwork

Employee contracts often hold vital pieces of personal information, such as names, dates of birth, and addresses, which could be used in cases of identity theft. In 2021, in the U.S. alone, it was estimated that 15 million Americans had their identity stolen, totaling almost $52 billion in losses.

Payroll information will include personal details, bank account numbers and tax data. In the wrong hands, this could be used to hack online bank accounts and open new ones!

If your team fills in vacation records, having home addresses exposed could also leave room for burglary. For example, if Pat in accounting mentions in a vacation request, “I’ll be taking my usual two weeks off in mid-September just like last year,” records such as these let unscrupulous thieves know when a team member will be away and when their house or apartment will be sitting empty.

If disposed of improperly, and the paperwork ends up in the wrong hands, it can reflect very poorly on your company’s privacy protocols, leaving you open to potential lawsuits, poor morale, and bad press. It will also affect your current teams’ sense of security and their overall trust in the leadership.

How to Safely Destroy Employee Paperwork

So, for these reasons and more, seek out a local shredding company to assist you in ethically and securely disposing of employee paperwork. You can often find a team that will come to you (removing the hurdle of safely transporting paperwork to a separate location). Some companies will offer a Certificate of Destruction too, which is sure to give employees peace of mind.

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