As an employer, you must keep certain records in relation to your workers. There are also other records you should keep as a matter of good practice.
You must ensure that you collect, store and process these records securely.
Workers are entitled to receive a copy of information held about themselves and can seek compensation for damage or distress suffered as a result of a breach of the Data Protection Act. The Information Commissioner's Office also has the power to issue monetary penalties to organisations for serious breaches of the Act. This means that you should take care when recording information about your staff.
This guide explains what records you should keep, how long you must keep them for and offers advice on how to set up a staff records system. It also explains your legal obligations as an employer and your workers' rights regarding information you hold on them.