Employers should maintain detailed records for all of their current and past employees. The Separation Folder helps employers keep track of files relating to an employee’s separation. This folder may contain information about an employee’s last day, benefits, reasons for separation, and more.
Why the Separation Folder is important
It is important for employers to maintain a complete record pertaining to an employee’s separation, even if the separation is on good terms. Not only should an employer maintain the employee record for his or her own internal use, but the employer may also want to have the records in the event that the employee files a lawsuit against the employer for reasons related to the separation. Employees have up to two years to file a lawsuit related to wrongful termination. Therefore, employers should keep their separation records for at least two years.
In addition to information about an employee’s performance, the employer may need to provide information pertaining to an employee’s pay or taxes. In the event that the employer or the employee is audited, having financial information for each employee in one location is essential in helping to find important information efficiently. Financial information should be retained for at least seven years for each employee.
There are many other forms and pieces of information that employers may wish to keep pertaining to an employee’s separation. This provides easily accessible tabs that help employers stay organized and efficient – no matter what they’re looking for.