Employee file: what files do modern HR teams keep?

Employee file management is a core HR responsibility, but it’s also one of the most time-consuming — especially with hybrid and remote work complicating file storage. Nearly half (48%) of employees struggle to find documents quickly,* and with workloads increasing for 71% of managers last year,** these inefficiencies add up. 

As HR takes on a more strategic role, reducing administrative work without compromising compliance is key. That’s where platforms like Leapsome come in: simplifying secure file management and people enablement in one space. 

This article explores how document management software and best practices can help you get the most out of your People data while keeping your HR operations efficient.

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*Adobe Acrobat, 2023

**Leapsome’s Workforce Trends Report, 2024
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What is an employee file?

An employee file — also known as an employee personnel file or employee record — is a collection of documents related to an individual’s employment within a company. These files are typically organized into categories covering the entire employee lifecycle. 

Employee files should contain essential job-related information, like employment contracts, compensation details, and performance records. Legal requirements for maintaining these files vary by jurisdiction, with local governments and regulatory authorities specifying which documents employers must retain and for how long. Beyond compliance, organizations often maintain additional records for internal purposes, such as tracking performance trends and optimizing operations.

To ensure compliance with data protection regulations, HR teams must regularly update employee files, implement strict data privacy measures, and limit access to authorized personnel only. Accurate and secure record-keeping is crucial, as these files may be subject to audits or legal scrutiny.

🤫 Keep it confidential. Employee files contain sensitive information and must be handled with strict confidentiality. While access rules vary by region, they’re typically restricted to HR and senior leadership.

In many jurisdictions, employees have the right to review their own records and request corrections to ensure accuracy. Always follow applicable data privacy laws when managing employee files.

What documents do employee files contain?

While the specific contents of an employee file vary based on legal requirements and organizational policies, they typically include:

• Personal information — Full name, contact details, home address, date of birth, emergency contact information, and national identification or social security number (where legally required). Visa documents or work authorization records if applicable.
  
  Employers must ensure these records are updated for identification, communication, and emergency response purposes.

• Employment records — Job application, CV, offer letter, employment contract, job description, start date, and end date (if applicable). These documents help ensure alignment between the employee and employer, support performance evaluations, and provide a record for resolving disputes.

• Payroll and compensation records — Salary structure, bonuses, benefits, tax forms, bank details, and payslips. This may also include employee participation plan agreements such as stock options or phantom stock, and contract amendments.

• Performance records — Performance appraisals, peer and manager feedback, self-assessments, and promotion history. Maintaining these records helps track employee development, supports promotion and compensation decisions, and ensures transparency in performance evaluations.

• Training and certification records — Completed training programs, professional certifications, and compliance training (e.g., workplace safety, anti-harassment, data protection). This data helps demonstrate legal compliance with industry regulations and a commitment to ongoing employee development.

• Leave and attendance records — Sick leave, vacation leave, parental leave, other time-off records, and attendance logs. Maintaining these documents supports labor law compliance and helps manage payroll calculations and anticipate team capacity. 
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What documents are you legally required to keep in employee files?

As mentioned, legal requirements for employee files vary across countries and, sometimes, between regions in the same country. Make sure to consult an HR compliance professional and review the specific regulations applicable to your business’s location.

In the United States, requirements can differ by state. Employers are typically required to store and update specific documents for legally mandated periods. For example:

• New York Labor Law mandates businesses to retain payroll records for at least six years.
• The California Equal Pay Act requires employers to keep payroll records for three years.

Regarding industry best practices, the Society for Human Resource Management (SHRM) recommends that employers keep the following records in their employee files:

• Pre-employment documents — Job descriptions, job applications, resumes, signed acknowledgments of receipt and agreement with the company’s employee handbook, code of conduct, and emergency notification forms.

• Employment documentation — Performance evaluations, promotion and transfer records, compensation details, awards or recognitions, and records of attendance and completion of training programs. It also covers warnings, formal disciplinary actions, attendance or tardiness notes, and any contracts or written agreements between the employee and employer.

• Separation of employment documents — Exit interviews, separation checklists, notes on the reason for separation, resignation letters, unemployment-related documents, separation agreements, correspondence, and reference statements.

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💡 Keep certain records separate. In some regions, such as the United States, data privacy laws require certain documents to be stored separately from employee files. Compliance with these regulations helps protect sensitive information and ensure legal adherence.

The documents that typically require separate storage include:
✔ Medical records
✔ Credit information (if collected for employment purposes)
✔ Immigration forms
✔ Complaint and investigation records

Best practices for organizing employee files

Streamlining employee file management is crucial for saving time and boosting administrative efficiency — and it starts with adopting best practices.

These recommendations help standardize employee records while keeping People data secure, confidential, and aligned with relevant labor and data protection laws.
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Use a digital file management system

Trying to manage files across multiple platforms leads to inconsistency, inaccuracy, and confusion. Adopting a unified solution is essential, with 78% of HR leaders agreeing they need a single source of truth for People data.

Cloud-based file storage systems like Google Drive, SharePoint, or OneDrive offer secure, accessible storage. However, to make the most of digital file management, your best bet is to implement a comprehensive HRIS like Leapsome’s.

HR platforms like Leapsome allow People teams to centralize employee data and create a single source of truth for all records. They also support a range of other HR functionalities, like time tracking, absence management, compensation management, and performance reviews, enabling HR leaders to streamline their tech stack and reduce software spending.

🙋 Need help choosing a digital file management solution?

Our detailed guide on the best employee file management software tools for 2025 covers key features, top use cases, pros, and cons — all to help you find the best option.

Ensure clear document categorization

Correctly categorizing your documents is essential if you want to build a more efficient and compliant digital employee file system.

Employee files tend to fall into the following groups:

• Personal information
• Employment records
• Payroll and compensation records
• Performance records
• Training and certification records
• Leave and attendance records

Clearly defining these categories isn’t just a best practice — it’s also a legal requirement in many cases. In the United States, federal regulations like the Americans with Disabilities Act (ADA), Health Insurance Portability and Accountability Act (HIPAA), and Immigration Reform and Control Act (IRCA) mandate that medical records and I-9 forms be stored separately to protect employee confidentiality and ensure compliance with regulations.

Even when not legally required, correctly categorizing and organizing employee files offers significant benefits. A well-structured digital file system:

• Simplifies government audits and legal compliance
• Speeds up document retrieval for HR teams
• Provides a clear record of employee history for decision-making
• Prevents unnecessary document duplication

To enhance file organization further, consider maintaining a consistent file-naming structure, such as using dates, last names, and document types (e.g., “mmddyyyy-lastname-type”). This approach ensures easy retrieval of specific files when multiple versions exist.

💡 An Adobe Acrobat survey found that nearly two-thirds of employees have had to recreate documents simply because they couldn’t find the original.

Investing in an efficient digital document management system like Leapsome can eliminate these inefficiencies and improve HR productivity and compliance readiness.

Prioritize compliance & security

Employee files are subject to strict data privacy regulations and labor laws, such as the EU General Data Protection Regulation (GDPR) and the US Fair Labor Standards Act (FLSA), respectively. That makes compliance a top priority when structuring your employee file system. Failure to meet regulatory requirements can lead to legal penalties, security breaches, and operational risks. 

Some best practices for secure and compliant document management include: 

• Categorizing files properly — Organize records clearly and according to legal requirements in your jurisdiction to maintain compliance and facilitate audits.

• Providing compliance and ethics training — Ensure HR teams, managers, and employees understand document retention rules and data privacy regulations.

• Establishing security and access controls — To protect confidentiality and minimize risk, restrict employee file access to authorized personnel only.

• Defining a disaster recovery plan — Work with IT security specialists to implement secure file backups and recovery protocols in case of data loss or breaches.

• Use HR software for automation — Implement secure, cloud-based HR tools like Leapsome’s HRIS to automate data collection, ensure compliance, and streamline file management.

🤩 Support compliance with Core HR

Leapsome’s HRIS helps HR teams keep documents organized and safeguard employee data.

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Adopt HR software with self-service features 

Modern HR platforms offer self-service features, allowing employees to access and update their records without HR assistance. 

With a secure document management system, employees can:

• Access and download personal files — Payslips, feedback reports, employment contracts, and PTO balances
  
• Update personal information — Address, phone number, tax forms, certifications, and emergency contact details
  
• E-sign documents — Employee handbooks, compliance forms, and NDAs
  
• Request changes and approvals — Leave requests, personal data corrections, and status updates

💡 To maintain security and compliance, self-service portals should include:

✔ Automated document tracking — Flagging expiring files, enforcing document retention policies, and streamlining approvals
✔ Access controls — Single sign-on (SSO), multi-factor authentication (MFA), and role-based permissions
✔ Encrypted storage — Protecting sensitive HR records and supporting compliance with data privacy laws</tip box>

Conduct regular audits & updates

Creating an accurate and compliant employee file isn’t a one-time task — it requires ongoing review to ensure all records meet regulatory requirements and reflect real-time data.

HR process automation can simplify this. Powered by Leapsome AI, our tools help identify automation opportunities and schedule regular reminders to update important records, reducing manual effort and supporting compliance.

While specific documentation rules vary by region, here are key questions HR teams should regularly ask to keep employee records in order:

• Are we retaining employee documents for the required period?
  
• Are we securely disposing of records in compliance with data privacy laws?
  
• Have all documents been updated with the latest employee information?
  
• Are sensitive files stored separately from personnel files where required?
  
• Do we need to renew or remove any outdated records?
  
• Are employee file access privileges adequately configured?
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Future-proof your employee file system

Managing employee files can be time-consuming — especially with evolving regulations and workforce changes.

By following best practices and adopting efficient document management software, you can maintain an accurate filing system while staying compliant with data privacy and labor laws.

With a solution like Leapsome’s HRIS and people enablement platform, you can go one step further — combining secure document storage and sharing with essential HR tools, including time tracking, compensation management, performance reviews, and learning and development. 

Built-in automation, AI-powered analytics, and core HR capabilities mean you can manage everything from a single, streamlined platform. Simply import employee files, integrate performance data, and create a centralized, compliant HR system.

😍 Get more out of your People data

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Disclaimer: This article is for informational purposes only and doesn’t offer legal advice. While we’ve done our best to ensure accuracy and completeness, we can’t guarantee everything is up-to-date or error-free. For tailored advice, we recommend consulting a legal professional.
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Frequently asked questions about employee files

Who keeps employee files?

Human resources departments and People teams are primarily responsible for maintaining employee files. However, some document types may be handled by other departments. HR and payroll teams typically handle payroll records and tax forms, ensuring accuracy and compliance. Finance teams require an overview for reporting, while managers might keep copies of performance evaluations and feedback. Ultimately, HR oversees the process, ensuring accuracy, security, and compliance.
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Who can access employee files?

Access to employee files is typically restricted to HR professionals and relevant managers. However, access privileges might depend on your organization’s document management system settings and compliance requirements. In most countries, employees also have the right to view and amend personal records within their files.

To maintain compliance and data integrity, organizations should educate employees on secure document handling. This includes proper procedures for uploading, updating, and storing documents, securely amending personal records, and disposing of outdated files in accordance with privacy laws. 
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How long do you need to keep employee files?

The retention period for employee files depends on the type of record and the legal requirements in your region. In the United States, federal and state laws dictate how long certain records must be kept. According to SHRM, many employers follow a seven-year retention plan as a general guideline. However, specific requirements vary depending on the type of personnel record and local regulations.