Paper light employment files
Grant Machum and Guy-Etienne Richard
Maintaining employment files requires physical space and can be costly. Nowadays many employers are moving away from keeping paper files to electronic storage. This brings up two issues:
- Are employers required to keep a paper file if it is in electronic format?
- How long do employers need to retain employment files?
Are employers required to keep a paper files?
If employers decide to keep the records electronically, they must ensure they have a process that protects the integrity and the security of the information, and a written procedure outlining that process. For example, digital copies should be exact copies of the original and kept in a non-changeable form. This will help ensure the electronic copies are admissible in court.
Alberta is the only Canadian province which does not allow employment files to be stored solely in electronic format. The Electronic Transactions Act General Regulation specifically excludes employment records, suggesting that a paper copy should be kept on site.
All other provinces allow electronic files to be kept without the need for a paper copy. Legislation applicable in the various provinces varies slightly and employers are advised to consult the specific legislation in their province to ensure compliance.
How long do employers need to retain employment files?
The minimum period that employee records must be kept for varies across the provinces, as well as the various legislation. For example, provincial employers in Nova Scotia should keep the following legislation in mind:
- The Nova Scotia Labour Standards Code requires that records be maintained for three years.
- The Limitation of Actions Act generally requires that a claim be brought within two years of the date the claim is “discovered”.
- The Occupational Health and Safety Act and the First Aid Regulations both require that documents relating to incidents or orders be kept for five years.
- The Workers’ Compensation Act does not specify a retention period, but allows claims for injury or disease up to five years after a workplace accident.
- The Income Tax Act allows Revenue Canada to perform an audit within six years from the end of the tax year.
Accordingly, retention period can vary greatly depending on the nature of the document and province. The table below provides a general overview of the relevant periods (in years) for various employment matters for each province.
Legislation |
NL |
NS |
PEI |
NB |
QC |
ON |
MB |
SK |
AB |
BC |
Employment Standards |
4 |
3 |
3 |
3 |
3 |
3 |
3 |
5 |
3 |
2 |
Workers Compensation |
6 |
5 |
3 |
1 |
— |
2 |
4 |
3 |
2 |
3 |
Occupational Health & Safety |
2 |
5 |
3 |
3 |
5 |
1 |
5 |
5 |
2 |
3 |
Limitation of Actions |
6 |
2 |
6 |
2 |
3 |
2 |
7 |
2 |
2 |
2 |
Human Rights |
1 |
1 |
1 |
1 |
2 |
1 |
2 |
1 |
1 |
2 |
Income Tax |
6 |
6 |
6 |
6 |
— |
6 |
6 |
6 |
6 |
6 |
Revenue Administration |
7 |
— |
— |
— |
6 |
— |
— |
— |
— |
— |
Depending on the nature of the documents (e.g. records of accidents, payroll, personal information, criminal records, etc) the retention period may vary.
Limitation legislation generally allows claims to be brought up to an absolute maximum of 15 to 30 years from the date of incident. However, there are some exceptions: where a physical altercation has occurred at work, such as assault, battery, or sexual abuse (or you suspect such an altercation may have occurred), records should be kept indefinitely. Such a claim, in particular the injury it causes, may not be “discovered” by the employee until years after the fact.
As retention periods can vary greatly, we would be pleased to advise on the specific legislative requirements for your documents.
This update is intended for general information only. If you have questions about the above information, and how it applies to your specific situation, please contact a member of our Labour & Employment group.
Click here to subscribe to Stewart McKelvey Thought Leadership.
Archive
By Peter McLellan, QC In the 1970s the issue for employers was long hair and sideburns. In the 1980’s it was earrings for men. Today the employer’s concerns are with tattoos and facial piercings. What are…
Read MoreBy Jennifer Taylor Introduction It sounds simple: Two disputing parties, hoping to resolve their disagreement without drawn-out court proceedings, will mutually agree to a settlement on clear terms; release each other from all claims; and move…
Read More2015 ends with changes in workplace laws that our region’s employers will want to be aware of moving into 2016. Some legislation has been proclaimed and is in force, some has passed and will be…
Read MoreThe Island Regulatory and Appeals Commission (the “Commission”) has issued a holiday reminder to municipalities in Prince Edward Island about the importance of preparation, accuracy, and transparency when making decisions related to land use and…
Read MoreBy Brian G. Johnston, QC On the same day that the Nova Scotia government announced its projected deficit had ballooned to $241 million, it also introduced Bill 148, the Public Services Sustainability (2015) Act (“Act”). The stated purposes…
Read MoreBy Jennifer Taylor – Research Lawyer Nova Scotia’s Cyber-safety Act1 is no more, after a successful Charterchallenge to the legislation. In Crouch v Snell, 2015 NSSC 340, Justice McDougall of the Supreme Court of Nova Scotia found the entire statute—enacted in…
Read MoreBy Jennifer Taylor Introduction: Did Ontario have jurisdiction? Arguments about access to justice are not enough to oust the general principles of jurisdiction, according to a recent Ontario case. In Forsythe v Westfall, 2015 ONCA 810, the…
Read MorePART I: THE NSCA DECISION IN BRINE “Disability insurance is a peace of mind contract”: that’s the opening line of the Nova Scotia Court of Appeal’s long-awaited decision in Industrial Alliance Insurance and Financial Services Inc…
Read MoreThe taxation of estates, testamentary trusts and certain “life interest trusts” such as alter ego, joint partner and spousal trusts, and the rules for charitable donations made on death through an estate are changing significantly…
Read MoreSeveral important changes in the tax rules that apply to charitable gifts will be coming into effect in the near future. Some of the new rules take effect in 2016, and others will apply beginning…
Read More