The retention of employment records after termination is often a neglected aspect of employee management. Post termination claims and a 7-year statutory retention requirement means employers must start to manage this area more effectively.

A recruitment consultant was terminated after his 4-year employment with a recruitment agency ("agency"). 12 months after the termination of his employment, the former employee now claims that he suffered from acute depression and anxiety attacks from alleged racial discrimination during his employment. He claims that he was the subject of consistent verbal humiliation, as well as denial of sick leave requests and opportunities for training and promotion which were offered to other employees.

He lodges a complaint with the Human Rights and Equal Opportunity Commission, seeking damages as well as past and future medical expenses.

The agency rejects the claim, pointing to several instances of the former employee's absenteeism, failure to provide medical certificates and falsification of timesheets. The agency claims that procedural fairness was provided to the recruitment consultant in his termination.

When defending the claim, the agency is unable to produce complete records for the terminated employee from its archives. The Court weighs up the evidence available in the circumstances and finds that the agency has breached the applicable discrimination legislation, ordering it to pay its former employee damages and costs in the order of $70,000.

  • Employers must retain certain employment records for at least 7 years post termination.

  • Retained documents may form crucial evidence in complying with discovery obligations or in defending against post termination claims made by employees.


  • Written documentation may become pivotal where conflicts as to the evidence arise.

  • Records relevant to workers compensation or discrimination proceedings may include sick leave records, work attendance records and any correspondence or file notes in respect of the employee during the course of their employment or in relation to the termination of employment.

  • PeopleInsite provides a platform to store and archive all employment documentation in a secure format.

  • Unique employee storage facilities ensure companies can manage and maintain accurate records for all employees (current and past) in an online environment.

  • PeopleInsite's archiving system ensures that companies can comply with legislative requirements to keep employee documentation for a period of 7 years.


  • Rather than an abundance of archive boxes and expensive storage costs, PeopleInsite can manage all documentation for past and current employees in a cost effective way.

  • Maintaining sophisticated employee records management through PeopleInsite will ensure your organisation can minimise the exposure to risk in the event of a complaint.

  • See what other organisations have to say about PeopleInsite.

    For more information on PeopleInsite, contact us on (02) 9964 9716 or email info@peopleinsite.com.au

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