Employee Records: What Should Employers Keep?

Written by: Izz Murtada

Every company, big or small, has employees. And every employee comes with paperwork. Many employers think of this as boring office work. But in Malaysia, keeping good employee records is not just a nice habit. The Employment Act 1955 (Act 265) says employers have a duty to do it.

In this article, we explain what employee records are, which documents to keep, how to stay organised, and why it all matters. We keep it simple, so everyone can follow.

What Are Employee Records?

Employee records are the papers and information about each person who works for you. Think of it as a “story” of the employee’s time at your company, from the first day to the last.

The Act is clear on this. It says every employer must prepare and keep one or more registers with information about each employee. The exact details to be recorded are set by regulations made under the Act.

So this is not a choice. It is a legal duty.

Common Documents HR Should Maintain

The Act does not list every single paper you must keep. But from the Act and from good HR practice, these are the common ones.

1. Written employment contract. The Act says a contract of service for more than one month must be in writing. It must also include a clause on how either side can end the contract.
2. Wage and payment records. The Act says a contract must state the wage period, which cannot be more than one month. Keeping clear records of salary and payments helps both sides.
3. Records for female employees. The Act says employers must keep a register of payments made to female employees under the maternity part of the Act.
4. Foreign employee details. If you hire a foreign employee with approval, the Act says you must give the Director General of Labour the details within fourteen days from the date of employment.
5. Other papers about the job. These can include the employee’s personal details, job title, start date, leave records, warning letters and the date the job ends. These help you answer questions quickly when they come up.

Keeping Records Organised

Having records is one thing. Being able to find them is another.

The Act says every register must be kept so that every detail in it can be checked for at least six years after it was written. That is a long time, so a good system matters.

Here are some easy tips:

• Give each employee one file, either on paper or on the computer.
• Use the same names and folders for every file.
• Keep private papers in a locked cabinet or a computer folder with a password.
• Do not throw away, change or damage a register. The Act treats this as an offence.
• Decide who in the company can open the records.

The Act also gives some room. An employer can apply in writing to the Director General to keep the information in another way. If approved, the employer can follow the approved method.

Updating Employee Information

Records must not be left to gather dust. People change. They move house, get a new phone number, get promoted, get a pay rise or change their bank account.

The Act does not set out a step by step way to update records. But it makes sense to update them when something changes. Old and wrong information can cause problems, such as salary sent to the wrong place or an urgent call that cannot reach the family.

A simple habit helps. Ask staff to tell HR when their details change. Some companies also ask everyone to check their details once a year.

When you update a record, do not erase the old one in a way that hides it. The Act says registers must not be destroyed, changed or damaged. Make a clear note of the change instead.

Why Proper Documentation Matters

Good records protect everyone. Here is why.

It is the law. The Act says an employer who does not keep a register, or does not keep it for at least six years, commits an offence. So does an employer who destroys, changes or damages the register. The Act also has a general penalty of a fine of up to fifty thousand ringgit for offences with no other penalty stated.

Officers can ask to see them. The Director General may require an employer to show contracts of service, wage books, registers and other papers about the employees. The officer can also copy them, or even take them if needed. If your papers are in a mess, this can be stressful.

It helps solve disputes. If there is a disagreement about pay, leave or the terms of the job, clear papers show what was agreed.

It builds trust. Employees feel respected when the company handles their information with care.

It saves time. With good records, HR can answer questions in minutes, not days.

Need a Hand With Your Records?

Keeping employee records neat, up to date and in line with the Act takes time. Many business owners are too busy running the company to do it well. That is where Kita Strategies can help. We are an HR company that supports employers in Malaysia with HR matters, from setting up proper employee files to making sure your documents follow the law. If you would like a friendly chat about your HR needs, we are happy to help.