That's a crucial distinction.
HR records in India are governed by a complex and overlapping set of central
and state-level labour laws. Compliance heavily relies on maintaining specific,
detailed statutory registers and documents as prescribed by these laws.1
The new Labour Codes (Code
on Wages, Industrial Relations Code, etc.) are consolidating many old laws,
but implementation is phased and state-dependent. Therefore, compliance
currently relies on the rules of the existing Acts.
Here is a breakdown of the
essential HR records and their general retention guidelines under major Indian
labour legislation:
🇮🇳 Mandatory HR Records in India
(Statutory Registers)
Indian laws mandate the
maintenance of specific records, often in a "Register" format (which
can be digital or physical).2 Key registers required by various acts
include:
1. Attendance, Leave, and
Working Hours3
|
Act / Code |
Register Required |
Purpose |
|
Factories Act, Shops &
Establishments Act, & Code on Wages |
Muster Roll / Register of
Attendance |
Daily start/end time,
attendance, rest intervals, and overtime (O.T.). |
|
Factories Act & Shops
& Establishments Act |
Register of Leave with Wages |
Tracks Earned
Leave/Privilege Leave accrued, taken, and balance. |
|
Factories Act, Shops &
Establishments Act |
Overtime Register |
Documents all overtime hours
worked and the payment made. |
2. Compensation and Social
Security4
|
Act / Code |
Register Required |
Purpose |
|
Payment of Wages Act,
Minimum Wages Act, & Code on Wages |
Register of Wages |
Comprehensive record of
wages paid, showing gross wages, deductions (PF, ESI, Tax), and net payable
amount. |
|
Payment of Bonus Act |
Register of Bonus
(Form C/D) |
Records calculation,
allocation, and payment of the annual bonus. |
|
EPF & MP Act, 1952 |
Form 11 |
Employee's PF Declaration
(must be collected during onboarding). |
|
ESI Act, 1948 |
Register of Employees
(Rule 32) |
Details of employees covered
under ESI. |
|
Payment of Gratuity Act,
1972 |
Register of Gratuity
Nominees |
Tracks employee nominations
for gratuity. |
3. Welfare, Safety, and Other
Records5
|
Act / Code |
Register Required |
Purpose |
|
POSH Act, 2013 |
ICC Proceedings |
Records of the Internal
Complaints Committee (ICC) meetings and inquiries. |
|
Factories Act |
Register of Accidents |
Detailed records of
accidents/injuries and reports sent to authorities. |
|
Contract Labour (R&A)
Act |
Muster Roll, Wage Register,
and Registers for Advances/Deductions |
Mandated for the Principal
Employer and Contractor to track contract workers. |
⏳ HR Record Retention Requirements in India
Retention periods are defined
by the specific law governing the document. While the new Codes aim for
uniformity, many existing laws still dictate the minimum period.
|
Act/Record Type |
Retention Period
(Minimum) |
Key Legal Reference |
|
ESI Records
(Employee Register, Accident Book) |
5 years
from the date of the last entry. |
ESI (General) Regulations,
1950, Rule 32, 66 |
|
Minimum Wages Records
(Wage & Attendance Registers) |
3 years
after the date of the last entry. |
Minimum Wages Central Rules,
1950, Rule 26A |
|
Payment of Wages Records |
3 years
after the date of the last entry. |
Payment of Wages Rules, 1937 |
|
EPF Records
(Challans, Returns, Contribution Details) |
Commonly recommended to keep
for 7-10 years due to general revenue/audit practices, though not
explicitly stated in the EPF Act. |
General Audit Practice |
|
Personal Data/Sensitive
Personal Data |
Must not be retained longer
than is necessary for the purpose of collection (e.g., employment). |
IT Rules, 2011, and the new DPDP
Act, 2023 (Digital Personal Data Protection Act) |
|
General Personnel Files
(Contracts, Appointment Letters) |
Recommended retention of 5-7
years after employee separation to cover the statute of limitations for
civil claims. |
General Statute of
Limitations for Civil Suits |
Key takeaway: The
retention period is often counted from the date of the last entry or the
date of separation, not the hire date.6
🔒 Special Considerations and
Compliance
1. Data Protection (DPDP Act,
2023)7
The new Digital Personal
Data Protection Act, 2023 significantly impacts HR:8
- Consent: Employers must
obtain clear, explicit, and informed consent from the employee (Data
Principal) for collecting, storing, and processing their personal data
(Aadhaar, PAN, Bank Details, etc.).9
- Purpose Limitation:
Data can only be used for the purpose for which it was collected.10
- Storage Limitation: Data
must be deleted or anonymized once the purpose of its collection is no
longer being served (e.g., after the retention period mandated by labour
laws expires).11
2. State vs. Central Laws
In India, labour laws are
often a concurrent subject, meaning both Central (Federal) and State
Governments can legislate. The Shops and Establishments Act is a state
law, and its record-keeping forms and retention periods vary significantly from
state to state (e.g., Karnataka's Rules differ from those in Maharashtra).12
3. Format of Records
The Ministry of Labour &
Employment has encouraged the digitization of labour records and
consolidated the required information into fewer, uniform electronic registers
to promote Ease of Doing Business. This means digital record-keeping is
accepted, provided the records are accessible and tamper-proof for inspection.
To get the most accurate information, you should check the specific rules under the Shops and Establishments Act for the state where your organization is registered.
