What is a document retention policy?
Large companies require a huge amount of data that needs to be stored like company profiles, clients etc. With the advancement of technology, scores of data can be stored in small drives. These data need protection and this upgrade in data keeping security has given rise to the retention of document policy adopted by most companies.
Why do we need a document retention policy?
Along with several organizational purposes, this policy has several other benefits.
- Legal procedures: most companies are required to have these policies so that all this data can be used if the company is under jurisdiction and potential or pending litigations are issued. There are also legislative requirements for storing certain data for a stipulated period of time like tax papers and so on.
- Storage and cost cutting: some documents are required to be kept for a certain time, as stated earlier. As much as it helps legally, knowing what information is kept where and for how long can help in removing congestion and open up more storage space for important documents. It is also economic when litigations are concerned where the company might have to pay excess money to retrieve some documents that can help their case.
What should be present in such a policy?
A thorough list of the required documents must be made which should always include the time period for which it should be stored and where it is stored so that it can be traced when required along with company policy and legal and litigation obligations. It should make clear the authority of the supervisor and inform all the employees of the legalities. It is a great tool to avoid any legal complications and even when such situations arise, they can be tackled skilfully.