What is the necessity for the company to have a document retention policy?

The documents of the organisation can be easily retained today, thanks to the digital age. This was not possible in the earlier business days. .The companies have therefore decided to upgrade their IT systems so that it becomes easier for them to digitise the paper records. This, of course is not possible unless and until the company has a comprehensive policy.

Need of a document policy

  • Legal compliance

The organisation that has the document retention policy can fulfil all the legal obligations in order to preserve the documents. These may be very important records that are relevant to the potential litigation. Hence it is considered to be a good tool and can be sued to facilitate the legal compliances with any other requirements of record retention.

  • Preparedness for litigation

The company needs to be well prepared for any kind of litigation cases. The document retention policy helps the company to reason on the top due to these documents. If for any reason the policies of the company are renewed, then the professionals should have the understanding as to where the documents are actually being stored.

  • Costs

The retention policy is for a specific time period and if this rule is not maintained, and then the documents might be discarded. The digital space therefore is not wasted and limits the regular costs of retention. If the company gets engaged in litigation case, or becomes an M& A target, then the retention of document will definitely help to save cots.

The retention policy of the documents should have a list of varied documents as well as the length of time that these documents can be maintained. The policy should be clear enough to claim who is responsible to supervise the compliance with the policy. The policy is formulated in such a way that it will advise the employees hold on the obligation of the company’s litigation addressing the protocol.

Jonathan Rice

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