What happens to employee data when they leave?

When an employee exits, their data stays behind. Learning how to best manage old data can save you time and effort at the end of a working relationship.

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What happens to employee data when they leave?

The new ever-changing workforce

At the start of the COVID-19 pandemic, we saw a wave of layoffs change the employment landscape, but that was just the beginning. As the economy bounced back and employers geared up to start rehiring, something had fundamentally changed.

An appetite for more flexible work had grown out of the necessity of remote work, and many employers found the ability to work from home was no longer considered a big perk. It had become table stakes. Conversations about employment were starting with the perks (which had become mandatories), with employees even opting for lower pay in favour of more flexibility and a greater work-life balance.

In addition, those who’ve resisted returning to work—or at least to the way they worked before—the job market’s seen a huge increase in job switching, with millions of employees worldwide leaving jobs they’d been at for years for something new, something contract-based, or simply resigning.

In this new landscape—where employee turnover is less a threat than a guarantee—the way you manage employee data after termination, resignation, or at the end of a part-time contract is more important than ever.

What happens to employee data?

When an employee leaves your organization, their data doesn’t. But who has access to it might change. Having a procedure in place for revoking employee resignation and termination is treated as equal with regard to final wage payments. The time period in which you’ll need to make final payments varies, but it’s worth noting that in British Columbia final wages are due to your former employee within 6 days of the date of their leaving, and in Alberta, they’re due within 10 days after the end of the employee’s last pay period.

You’ll also owe ROEs and T4s to your former employees (and to the Government of Canada). While you do have a choice to provide old employees with T4s immediately, you don’t owe them to your ex-employee for the Government of Canada until on or before the last day of February of the following year. However, losing track of this data and failing to produce these documents could lead to serious issues.

Conceptual Screenshot for Employee Information

How to easily manage old data

Avanti’s HCM software was designed with the entire life of your data in mind. This means that it’s set up to handle employee exits and the data management that comes with them. With Avanti, you can make your former employee’s data accessible to them via the Avanti Self-Service Portal (ASSP) after they leave, without having to give them access to anything else, and you can choose which parts of ASSP to give them access to. If you’d rather not give old employees access to your system at all, you can set up Avanti to automatically email T4s and other documentation to them.

With Avanti, handling all of the duties associated with an employee exit, all that’s left is for you to set up an exit interview and proper offboarding to make sure that everyone understands the expectations and responsibilities of both former employer and former employee.

Additional Reading

An HCM that manages your employee data lifecycle from hire to exit

To learn more about how Avanti can keep all of your employee data organized, and make employee onboarding and exiting easier, talk to one of our experts today.

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