Creating a Document Retention Policy

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Document Retention Policies are an important and necessary consideration for businesses and organizations of all sizes. Not only do they protect them from legal and regulatory risks, but also from potential lawsuits, helping to maintain their reputation and trust. By setting out procedures for storing documents securely, Document Retention Policies provide an important framework for adhering to legal or industry regulations as well as keeping organizations organized and freeing up resources.

Genie AI provides free access to a comprehensive library of templates which can be used to create a tailored Document Retention Policy suitable for any business or organization. With millions of data points teaching our AI system what a market standard document retention policy looks like, you’ll have the confidence that your document is accurate, up-to-date with the latest legislation and best practice guidance - all without having to pay a lawyer!

Creating your own Document Retention Policy doesn’t need to be complicated. Genie AI offers step-by-step guidance on how to create a policy specific to your organization’s needs. Once you have the template in place it is essential that it is followed closely by everyone in your organization so that all necessary documents are kept in an organized manner, securely stored when appropriate and disposed of properly when no longer needed. In case of litigation, having this policy in place will ensure that all relevant documents are accessible when needed which could make winning any legal proceedings significantly easier while reducing costs at the same time.

All businesses and organizations must take into consideration their own unique circumstances when creating their Document Retention Policy; however by using Genie AI’s community template library it can help make the process simpler than ever before. Read on below for our step-by-step guidance on developing your own policy or visit us now for access to our template library today.

Definitions (feel free to skip)

Objectives: Goals or aims.
Scope: Range or extent.
Risks: The possibility of harm or loss.
Retention Period: The length of time a document must be kept.
Access: The ability to view or use something.
Storage System: A system for organizing and storing documents.
Comprehensive: Complete or thorough.
Stakeholders: Individuals or groups who are affected by an organization’s actions.
Classified: Categorized or organized.
Audit Trail: A record of changes made to documents.
Enforcing: Carrying out or implementing.

Contents

• Establishing the Purpose and Scope of the Document Retention Policy
• Identifying the objectives of the policy
• Establishing the scope of documents to be retained
• Identifying and Evaluating Key Documents
• Creating a list of key documents
• Assessing the legal and regulatory requirements for each document
• Evaluating the risks associated with each document
• Determining Retention Periods
• Researching applicable laws and regulations
• Setting document retention periods for each document
• Defining Access and Use of Documents
• Determining who has access to documents
• Establishing rules for sharing documents
• Establishing a System for Document Storage and Retrieval
• Selecting an appropriate document storage system
• Setting up a system for easy retrieval of documents
• Documenting the Document Retention Policy
• Writing a comprehensive document retention policy
• Distributing the policy to relevant stakeholders
• Implementing the Document Retention Policy
• Training staff on the policy
• Ensuring documents are correctly classified and stored
• Monitoring and Updating the Document Retention Policy
• Establishing a process for regular reviews of the policy
• Making changes to the policy when necessary
• Creating an Audit Trail
• Establishing a system for tracking document changes
• Maintaining an audit trail of document changes
• Ensuring Compliance
• Establishing a system for monitoring compliance
• Developing a system for enforcing policy compliance

Get started

Establishing the Purpose and Scope of the Document Retention Policy

• Create a written policy that outlines the purpose of the document retention program
• Establish the scope of the document retention policy - i.e. define the types of documents to be retained and the time period they should be retained for
• Make sure the document retention policy is in line with any applicable laws or regulations such as GDPR
• Consider the types of documents that your organization handles and make sure they are all covered in the document retention policy
• Discuss the document retention policy with key stakeholders and obtain approval
• When completed, review the policy with all staff to ensure understanding

Once all of these steps have been completed, you can check this off your list and move on to the next step.

Identifying the objectives of the policy

• Determine why a document retention policy is necessary
• Consider the needs of the organization when developing the policy
• Identify specific goals for the document retention policy
• Determine how long documents should be retained
• Decide how documents should be stored and archived
• Establish the type of information that must be kept

When you can check this off your list and move on to the next step:

• When you have determined the objectives of the policy and have written them down in a document.

Establishing the scope of documents to be retained

• Determine the types of documents to be retained, such as financial, personnel, legal, or customer service records.
• Identify any documents that are not subject to the policy and should be excluded.
• Decide how long documents should be retained, based on the purpose and potential usage of the documents.
• Develop procedures to ensure documents are organized, stored and archived securely.
• When all the types of documents and their associated retention periods have been identified, document and retain the policy.

Once you have determined the types of documents to be retained, identified any documents that are not subject to the policy, and decided on the length of time documents should be retained, you can check this step off your list and move on to the next step.

Identifying and Evaluating Key Documents

• Identify the documents that should be included in the document retention policy
• Evaluate the documents to determine the length of time they should be retained
• Consider regulations, legal requirements, and industry best practices when assessing the documents
• Make sure that the documents are well organized and easily searchable
• When documents have been identified and their retention periods evaluated, you should be ready to move on to creating a list of key documents.

Creating a list of key documents

• Create a list of documents that need to be retained based on the documents identified in the previous step.
• Consider each document’s purpose, the legal and regulatory requirements for retention, and the potential benefits of retaining the document.
• Make sure to include any documents that must be retained for legal or compliance purposes.
• Ensure that the list of documents accurately reflects the organization’s needs and operations.
• Document the list in a spreadsheet for easy reference and review.

You can check this step off your list when the list of documents that need to be retained has been created and documented in a spreadsheet.

Assessing the legal and regulatory requirements for each document

• Research and review your local, state, federal, and industry-specific regulations to determine what document retention requirements you need to comply with.
• Make sure to review the requirements associated with each document that you identified in the previous step.
• Develop a document that outlines the legal and regulatory requirements associated with each document, including the legal basis for retention, the length of time the document must be retained, and any necessary security measures.
• Once you have completed this step, you will have a comprehensive list of the legal and regulatory requirements that your document retention policy must follow.

Evaluating the risks associated with each document

• Identify the risks associated with each document, such as legal liabilities or regulatory penalties, or even the potential for reputational damage.
• Consider the consequences of not properly storing or disposing of documents, as well as the risks of unauthorized access or use.
• Assess the level of risk associated with each document and document type, and note this in your policy.
• When you have identified and evaluated the risks associated with each document, it’s time to move on to determining retention periods for each document.

Determining Retention Periods

• Make a list of the document types that need to be included in the policy
• Determine the appropriate retention period for each document type. This should include the minimum amount of time necessary to comply with any applicable laws, regulations, or other requirements, as well as any other amount of time that is necessary to meet organizational needs
• Establish a system for regularly reviewing and updating the retention periods for each document type
• Document the retention periods for each type of document in the policy
• Make sure that the document retention policy is in compliance with any applicable laws or regulations

Once these steps have been completed, the policy is ready to be implemented.

Researching applicable laws and regulations

• Research document retention laws and regulations applicable to your business and geographic area;
• Consult with a lawyer or other legal professional to ensure compliance with all applicable laws and regulations;
• Consider any industry standards or best practices for document retention;
• Make notes about any and all relevant laws, regulations, standards, and best practices.

Once you have a comprehensive understanding of all applicable laws, regulations, standards, and best practices, you can check this step off your list and move on to the next step.

Setting document retention periods for each document

• Identify the types of documents relevant to your organization
• Determine the retention period for each type of document based on legal and regulatory requirements, business needs, and risk management
• Set up a centralized document retention program to track document retention periods
• Implement a document retention policy and communicate it to all employees
• Monitor program implementation and compliance

Once you have identified the types of documents relevant to your organization, determined the retention period for each type of document, set up a centralized document retention program, implemented a document retention policy, and communicated it to all employees, you can check this step off your list and move on to the next step.

Defining Access and Use of Documents

• Create a list of documents that need to be accessed and used
• Assign roles and responsibilities to each type of document
• Determine who needs access to the documents and what level of access they need
• Decide if access is restricted to certain individuals or departments
• Create an access control policy for the documents
• Establish a procedure for granting and revoking access to the documents
• Document the access control process and store it securely
• Monitor access to the documents and review authentication records

Once the access and use of documents has been defined, you can move on to the next step of determining who has access to the documents.

Determining who has access to documents

• Identify the people or teams who need access to documents and the type of documents they should have access to.
• Consider the sensitivity of the data, the roles of the individuals who need access, and the different departments or teams who need access to documents.
• Create a list of individuals and/or teams and the documents they should have access to.
• When the list has been created, review and approve it with key stakeholders.
• When the list has been approved, you can move on to the next step.

Establishing rules for sharing documents

• Decide who should have access to certain documents and what their access should be (view, edit, delete, etc.).
• Define rules for sharing documents with outside parties, such as clients and partners.
• Create policies to prevent unauthorized access, including measures such as password protection and encryption.
• Establish protocols for handling documents once they are no longer needed.
• Document the sharing rules and protocols in a written policy.

How you’ll know when you can check this off your list and move on to the next step: Once you have established rules for sharing documents and documented them in a written policy, you can move on to the next step of establishing a system for document storage and retrieval.

Establishing a System for Document Storage and Retrieval

• Determine what type of documents should be stored electronically and which should be stored in hard copy
• Consider the security needs of different types of documents
• Determine which users will need access to documents
• Assess the organization’s current document storage and retrieval system, including user experience, system performance and security
• Identify gaps in the current system
• Identify and evaluate potential solutions, including cloud-based systems, internal systems and external vendors
• Determine the cost and complexity of each solution
• Make a final decision and select the document storage and retrieval system
• Develop a document storage and retrieval system implementation plan
• Implement the document storage and retrieval system
• Test the system to ensure it meets the organization’s needs

You will know you can move on to the next step when you have implemented the document storage and retrieval system and tested it to ensure it meets the organization’s needs.

Selecting an appropriate document storage system

• Research document storage solutions that meet your organization’s needs, such as cloud storage, external hard drives, and/or physical filing systems
• Discuss options with stakeholders and/or IT personnel to determine best fit for document storage
• Consider any associated costs for a particular solution
• Once you have selected a document storage solution, you can check this off your list and move on to the next step.

Setting up a system for easy retrieval of documents

• Identify which documents need to be stored
• Select an appropriate document storage system
• Implement the document storage system
• Create a document classification system
• Train staff on the proper use and retrieval of documents
• Develop an easy retrieval system
• Test the system to ensure accuracy

Once you have identified the documents that need to be stored, selected an appropriate document storage system and implemented it, created a document classification system, trained staff on the proper use and retrieval of documents, developed an easy retrieval system, and tested the system to ensure accuracy, you can check this off your list and move on to the next step.

Documenting the Document Retention Policy

• Brainstorm options for a document retention policy
• Create a chart or table outlining which documents should be retained, for how long, and the appropriate disposal method
• Review the policy with your legal team to ensure compliance with applicable laws
• Get sign-off from stakeholders
• Once the document retention policy has been approved, document it in writing
• Make sure the policy is available to all employees in an easily accessible place
• Check off this step when the policy has been documented, approved, and made available to all employees.

Writing a comprehensive document retention policy

• Brainstorm document types to be included in the policy
• Assess the relevance of each document type and determine an appropriate retention period
• Consider different regulatory requirements that may affect the retention periods for certain documents
• Draft a policy document to include the document retention periods for each document type
• Review the document with stakeholders and make necessary revisions
• Finalize the document retention policy and approve it
• When the document is finalized and approved, you can move on to the next step of distributing the policy to relevant stakeholders.

Distributing the policy to relevant stakeholders

• Identify the relevant stakeholders including staff members, legal counsel, business partners, etc.
• Send a copy of the policy to each stakeholder to review
• Schedule a meeting to answer any questions and discuss the policy with the stakeholders
• Have each stakeholder sign an acknowledgement form confirming they have read and understood the policy
• Once all stakeholders have signed the acknowledgement form, the policy can be considered distributed and this step can be checked off the list.

Implementing the Document Retention Policy

• Create a schedule for regular review of the policy and its implementation
• Define roles and responsibilities of staff members regarding document retention
• Establish a process for document destruction
• Ensure document retention policy is incorporated into employee contracts and other relevant documents
• Set up document retention tools such as electronic archiving systems
• Establish a system for tracking documents and for regularly verifying staff compliance
• Review existing documents to ensure that they meet the requirements of the document retention policy

Once all of the above tasks have been completed, you can check off this step as complete and move on to the next step in creating a Document Retention Policy.

Training staff on the policy

• Create a presentation or training material to explain the policy to staff
• Provide a comprehensive explanation of the policy, including examples and scenarios
• Host a training session for staff to review the policy and ask any questions
• Test staff’s understanding of the policy by providing scenarios for them to apply the policy to
• Ensure all staff have a clear understanding of the policy, and provide additional training if needed
• Document the training session, such as taking notes or recording the session
• When all staff have been trained and have a clear understanding of the policy, this step can be marked as complete.

Ensuring documents are correctly classified and stored

• Create a filing system that meets the needs of the company and document retention policy.
• Develop a document classification system to assign documents to specific groups and categories.
• Instruct employees on how to place documents in the correct folder.
• Ensure documents are stored in a safe and secure environment.
• Monitor and review the document filing system regularly.

Once you have created the filing system, developed the document classification system, instructed employees on how to place documents in the correct folder, ensured documents are stored in a safe and secure environment, and monitored and reviewed the document filing system regularly, you can move on to the next step.

Monitoring and Updating the Document Retention Policy

• Establish a system for regularly reviewing the document retention policy on an annual or bi-annual basis.
• Assign a team or individual who is responsible for monitoring the policy and ensuring compliance.
• Create a checklist of elements to review during the policy review.
• Check for accuracy and completeness in all areas of the policy.
• Determine if any changes are needed to reflect current business practices.
• Confirm that the policy reflects all applicable laws and regulations.
• Update the policy as needed.
• Publish the updated policy.

You will know when you can move on to the next step when the policy has been reviewed for accuracy, completeness, and compliance, and any needed changes have been made and published.

Establishing a process for regular reviews of the policy

• Determine how often you should review and update the document retention policy.
• Schedule a meeting to review the policy and determine if any changes need to be made.
• Invite any and all staff members who may be affected by the policy.
• Have a discussion about the policy and make changes if necessary.
• Document all changes made to the policy and ensure that all stakeholders are aware of them.

You will know when you can check this off your list and move on to the next step once all changes to the policy have been documented and all stakeholders are aware of them.

Making changes to the policy when necessary

• Establish a process for making changes to the policy. This should include who is responsible for making changes (e.g. the document retention policy manager), how changes are to be proposed (e.g. through a structured process such as a Change Request Form), how the changes will be communicated (e.g. via email, company intranet, or internal meetings) and how the changes will be implemented (e.g. via a formal approval process).
• Monitor changes to the policy regularly and ensure they are compliant with applicable laws and regulations.
• Create a record of all changes to the policy.
• When changes to the policy are made, ensure that the document is updated and re-distributed to all relevant stakeholders.
• Once you have established a process for making changes to the policy, you can check this off your list and move on to the next step.

Creating an Audit Trail

• Create a system for tracking who has access to each document and the changes made to it
• Document what changes were made, when, and by whom
• Make sure the system is secure and can’t be compromised
• Ensure the tracking system is regularly maintained and updated
• When complete, document the audit trail in the document retention policy

Once the audit trail has been created and documented in the retention policy, you can move on to the next step.

Establishing a system for tracking document changes

• Set up a system for tracking and logging any changes to documents, such as a version control system.
• Decide who will have access to the version control system and assign appropriate roles and permissions.
• Create a log of changes to documents, including the date, time, and user who made the change.
• Ensure that the system is regularly backed up and stored securely.
• Test the system to make sure it is working as intended.
• When the system is set up and tested, you can move on to the next step and begin maintaining an audit trail of document changes.

Maintaining an audit trail of document changes

• Create an audit trail for all document changes that includes who made the change, when it was made, and what was changed
• Establish a system for logging document changes in a secure, consistent format
• Ensure that any changes to documents are tracked and that the audit trail is regularly reviewed
• You can check off this step when you have implemented a system for tracking changes to documents and conducting regular reviews of changes.

Ensuring Compliance

• Create a checklist of documents that need to be retained and reviewed
• Set up an automated system to remind employees when documents need to be reviewed and updated
• Create a document retention policy that outlines how long documents should be retained and when they should be deleted
• Establish a system for monitoring compliance with the document retention policy
• Train employees on the document retention policy and its importance

When you can check this off your list:

• When you have created a checklist of documents that need to be retained and reviewed
• When you have set up an automated system to remind employees when documents need to be reviewed and updated
• When you have created a document retention policy that outlines how long documents should be retained and when they should be deleted
• When you have established a system for monitoring compliance with the document retention policy
• When you have trained employees on the document retention policy and its importance

Establishing a system for monitoring compliance

• Establish a system for tracking and monitoring compliance with the document retention policy.
• Ensure that the system is able to detect any non-compliance.
• Create a system for regularly auditing changes, access, and compliance with document retention policy.
• Ensure that the system is automated and able to trigger notifications when changes are made to documents or when documents are not compliant with the policy.
• Once the system has been established and tested, check this step off your list and move on to the next step.

Developing a system for enforcing policy compliance

• Determine the methods that will be used to ensure employees are following the document retention policy.
• Establish an action plan for responding to non-compliance.
• Create a process for logging and tracking policy compliance.
• Proactively remind employees of the policy.
• Develop an internal communication plan to ensure employees are informed of any changes to the policy.
• Set up a system to review and update policy compliance as needed.

How you’ll know when you can check this off your list and move on to the next step:

• When you have a clear plan in place with methods for enforcing the document retention policy, a process for logging and tracking compliance, and an internal communication plan for any changes to the policy, you can be sure you have completed this step.

FAQ:

Q: What is the difference between a document retention policy and a records management policy?

Asked by Davis on 3rd April 2022.
A: A document retention policy is a set of guidelines that govern how long documents must be retained in order to comply with legal, regulatory and business requirements. A records management policy on the other hand, is a more comprehensive policy which covers the entire lifecycle of an organization’s documents, from creation to destruction. It includes document retention policies, but also covers how documents are created, shared, stored, archived and destroyed.

Q: Is there a difference between UK and US document retention policies?

Asked by Gavin on 18th June 2022.
A: Yes, there are differences between UK and US document retention policies. The US has more complex laws related to document retention than the UK, particularly when it comes to healthcare and financial organizations. Additionally, the US also has specific regulations in place related to digital documents that must be adhered to when creating document retention policies.

Q: What should be included in a document retention policy?

Asked by David on 24th August 2022.
A: A well-written document retention policy should include detailed instructions on how documents should be created, stored and destroyed. It should also include information about how often documents should be reviewed for accuracy, who is responsible for managing the policy and how long documents should be retained for legal and regulatory compliance.

Q: Are there any industry-specific document retention requirements I should be aware of?

Asked by John on 29th October 2022.
A: Yes, certain industries have specific requirements when it comes to document retention policies. For example, healthcare organizations must comply with HIPAA regulations which require that medical records be retained for a minimum of six years after they are created or updated. Financial institutions must comply with Sarbanes-Oxley regulations which require that all financial records be retained for at least seven years after they are created or updated.

###Q: What measures can I take to ensure my document retention policy is secure?
Asked by Michael on 1st December 2022.
A: When it comes to protecting your document retention policy from unauthorized access or misuse, there are several measures you can take. Firstly, you should make sure all documents are encrypted whenever possible and ensure that access is restricted to authorized personnel only. Additionally, you should regularly review your security settings and implement multi-factor authentication wherever possible.

Q: How often should I review my document retention policy?

Asked by Kyle on 15th February 2022.
A: You should review your document retention policy regularly in order to ensure it remains up-to-date with any changes in legal or regulatory requirements as well as any new technologies or processes that may have arisen within your organization since the last review. Additionally, you should also review your policy whenever you make changes to your organizational structure or data systems in order to ensure compliance with all applicable laws and regulations.

Q: Do I need a special kind of software to manage my document retention policy?

Asked by Tyler on 6th April 2022.
A: Not necessarily - while there are various software solutions available that can help you manage your document retention policy more effectively, they are not essential for creating and maintaining one. However, using software may be beneficial if you have large amounts of data that needs to be managed effectively or if you need advanced features such as automated reminders or reporting capabilities.

Q: Are there any best practices for creating a successful document retention policy?

Asked by Jacob on 8th June 2022.
A: Yes - when creating a successful document retention policy, it’s important to keep the following best practices in mind: ensure the policy is comprehensive yet concise; make sure all stakeholders understand the purpose of the policy; incorporate data privacy considerations; regularly review the policy for accuracy; include effective enforcement mechanisms; consider incorporating automated reminder systems; and ensure compliance with any applicable laws and regulations.

Example dispute

Possible Lawsuits Referencing Document Retention Policy

• A plaintiff might raise a lawsuit referencing a document retention policy if the defendant failed to adhere to the policy, leading to the loss or destruction of important documents needed for the lawsuit.
• The plaintiff might reference the document retention policy to demonstrate that the defendant had a duty to retain the documents in question, and failed to do so.
• The plaintiff can seek compensation for the damages caused by the defendant’s failure to adhere to the document retention policy, such as the cost of having to recreate the documents or lost profits due to their destruction.
• The plaintiff can also seek an injunction requiring the defendant to adhere to the document retention policy in the future.
• If the plaintiff is successful, the court may award damages, issue an injunction, or both.

Templates available (free to use)

Document Retention Policy

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