Employee file checklist and guide

Employee files sit at the intersection of operations, legal exposure and trust. They are the records that explain how someone was hired, how their role evolved, how decisions were made and how the employment relationship concluded. When those records are incomplete or poorly organized, the business loses clarity at exactly the moments it needs it most, whether that’s responding to an audit, addressing a workplace complaint or explaining a termination decision.

Well-maintained employee files reduce ambiguity. They create continuity as managers change, teams grow and policies evolve. They also reduce the amount of interpretation required when facts matter, which is often the difference between a straightforward resolution and a prolonged dispute. This guide is designed to help Canadian employers build employee files that are structured, defensible and practical to maintain over time, without over-collecting information or introducing unnecessary risk.

Why you need employee files

Employee files provide a factual record of the employment relationship. They document what was agreed at the outset, what expectations were communicated and how the relationship developed over time. This record is essential for making fair, consistent decisions and for explaining those decisions when they are questioned by employees, regulators or legal representatives.

From a compliance and risk standpoint, documentation gaps are rarely neutral. Missing acknowledgements, inconsistent records or undocumented changes weaken an employer’s position even when decisions themselves were reasonable. Well-maintained files help demonstrate that policies were communicated, standards were applied consistently and decisions were grounded in documented facts rather than informal recollection.

Employee files also support operational efficiency. They reduce duplicated work, limit reliance on individual memory and make it easier for HR, payroll and leadership teams to access accurate information when they need it. As organizations scale, this consistency becomes harder to achieve without a structured approach to recordkeeping.

What to keep in employee files

An employee file should reflect the full lifecycle of employment in a clear and intentional way. It should capture how the employee joined the business, how their role and conditions changed, how performance and conduct were managed and how the relationship ended. Each document included should serve a defined purpose and contribute to an accurate account of employment history.

This does not mean storing every possible document in a single folder. It means maintaining a curated set of records that are relevant, appropriate and useful. Files that are too sparse create risk through omission, while files that are overly cluttered create risk through irrelevance and poor access control. A well-designed employee file strikes a balance between completeness and restraint.

Employee file checklist: essential documents to include

The following checklist outlines the core documents that should be included in a standard employee file.

Job application and resume: Records the information provided by the employee during the hiring process and supports transparency around selection decisions.

Offer letter and acceptance: Confirms the role, compensation and start date as originally agreed.

Employment agreement or contract: Sets out the legally binding terms of employment, including notice provisions and role scope.

Proof of eligibility to work in Canada: Demonstrates compliance with right-to-work requirements.

Emergency contact details: Provides essential information for workplace safety and emergency situations.

Payroll and tax information: Supports accurate payroll processing and statutory reporting obligations.

Banking details for payroll: Ensures wages are paid correctly and on time.

Compensation changes: Documents salary adjustments, bonuses or changes to pay structure with clear approval records.

Policy acknowledgements: Confirms that employees have received and understood workplace policies and expectations.

Health and safety acknowledgements: Demonstrates that safety obligations and procedures were communicated.

Confidentiality and data protection acknowledgements: Records understanding of information handling responsibilities.

Performance reviews: Documents feedback, expectations and outcomes over time.

Training and certification records: Confirms qualifications, completed training and compliance with role requirements.

Disciplinary records: Provides factual documentation of conduct issues, warnings or corrective action taken.

Performance improvement plans: Outlines expectations, support provided and review outcomes.

Time off and attendance records: Tracks vacation, sick days and job-protected leave accurately.

Accommodation documentation: Records agreed adjustments while limiting access to sensitive details.

Resignation or termination records: Documents how and why employment ended.

Final pay records: Confirms compliance with final pay obligations.

Exit interview notes: Captures feedback where collected, without editorial commentary.

What shouldn’t be in employee files

Employee files should not become catch-all repositories for every piece of information related to an individual. Certain information introduces unnecessary privacy risk or lacks relevance to employment decisions and should be excluded from standard personnel files.

Medical information beyond what is strictly required for accommodation or leave purposes should be stored separately with restricted access. Informal notes, personal opinions, speculation or unsubstantiated allegations should not be included, as these records often cause more harm than value during disputes. Information unrelated to employment, such as personal lifestyle details or offhand commentary, has no place in a personnel file.

Maintaining discipline around what is excluded is just as important as maintaining completeness. Clean files are easier to manage, easier to defend and less likely to expose the business to avoidable privacy issues.

Who has the right to see your personnel records?

Access to employee files should be limited to individuals with a legitimate business need. These records contain personal and sensitive information, and unrestricted access increases the risk of misuse or accidental disclosure.

In most organizations, full access is limited to HR and selected senior leaders. Managers may require access to specific documents related to performance or leave, but should not automatically have visibility into an employee’s entire file. Employees themselves generally have the right to access their own records under applicable privacy legislation, subject to reasonable processes.

Clear access rules and documented permissions help protect confidentiality and reinforce trust between employees and the organization.

How to organize employment contracts in employee files

Employment contracts should be easy to locate and clearly versioned. They define the legal framework of the employment relationship and are often referenced long after they are signed, particularly in disputes or audits.

Best practice is to store the original signed agreement alongside any amendments, role changes or variations in a dedicated section of the employee file. This ensures that key terms such as compensation, notice periods and role scope can be confirmed quickly without ambiguity. That’s why many employers centralize contracts, amendments and role changes in one secure digital system — like Employment Hero — so the right version is always the one you’re looking at.

Book a demo and see what changes when everyone works from the same employee file.

Importance of accurate leave records in personnel files

Leave records have a direct impact on payroll accuracy, workforce planning and perceptions of fairness. Inconsistent or incomplete tracking creates confusion and can result in underpayments, overpayments or disputes about entitlements.

In Canada, leave entitlements vary by province and change over time. Accurate records help demonstrate that entitlements were granted correctly and consistently. They also provide clarity when employees return from extended leave or exit the business, where outstanding balances often become contentious.

How long to keep employee files

Employee records are subject to retention requirements that vary by document type and legislation. Some records must be retained for several years after employment ends, while others should be securely destroyed once they are no longer required.

Clear retention policies help businesses manage risk by ensuring records are available when needed and disposed of responsibly when they are not. Retention is not simply about holding onto information. It is about maintaining the right information for the right amount of time.

Where to keep employee files

Physical storage systems offer familiarity but limited flexibility. They are harder to secure, difficult to scale and time-consuming to maintain, particularly for distributed teams.

Digital storage provides centralization, version control and controlled access when implemented properly. A single, central system reduces duplication and ensures that HR, payroll and leadership teams are working from the same information. Fragmented storage across drives, inboxes and personal folders increases the likelihood of gaps and inconsistencies over time.

​​Book a demo to see how centralized employee records actually work in practice.

Managing employee personnel files securely

Handling employee data securely requires deliberate controls. Access should be restricted, permissions reviewed regularly and changes logged. Informal workarounds, such as emailing documents or storing them in shared folders, introduce unnecessary exposure.

Digital systems support stronger security practices by centralizing records, enforcing access rules and maintaining audit trails. These safeguards protect both the organization and its employees and help demonstrate responsible data handling practices.

Best practices for maintaining employee records

Employee files require ongoing maintenance to remain reliable. Waiting until an audit or dispute to review documentation often reveals gaps that could have been addressed earlier with minimal effort.

Effective practices include updating records promptly after key events, standardizing documentation processes across the organization and conducting periodic reviews to ensure accuracy and completeness. Consistency, rather than volume, is what makes employee files useful over time.

Using HR software to streamline personnel records management

As organizations grow, manual recordkeeping becomes increasingly fragile. HR software centralizes employee files, standardizes documentation and controls access, reducing administrative effort and risk.

Employment Hero’s HR software, onboarding software and employee management software help Canadian employers manage personnel records as part of a broader people strategy. When employee files are accurate, organized and accessible, HR teams spend less time chasing information and more time supporting better decisions across the business.

Use our employee file checklist to audit what you have, identify gaps early and put a system in place that’s accurate, defensible and easy to maintain as your business grows.