The Importance of Data Collection for Regulatory Compliance in Organizations

Categories: Data

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Organisations need to collect data in order to comply with regulations such as minimum wage, working time directive, health and safety and even health and safety. Keeping training and performance records on employees enables management to assess individual productivity and performance and allows them to help the employee reach there full potential and in turn increase productivity.

Two Types Of Data Collected and How Each Supports HR Practices

Statutory Records - Such as tax, national insurance contributions, sickness and SSP, hours worked and accident book.

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These types of records ensure that the HR department complies with all regulatory requirements
Organisational Records – Such as Recruitment and Selection records, absence, staff turnover records, learning and development records.

These types of records are essential for the HR department and allows them to monitor staffing levels and recruit when necessary, monitor staff sickness to ensure productivity is not being affected and also to if there is anything the organization can do to cut down on sickness levels and records to ensure that staff are maintaining a high level of efficiency through learning and development activities.

Two Methods of storing records and benefits of each

Manual System

Filing Cabinet – Files are easily accessible and doesn’t require a computer to be turned on. Manual system cannot be affected by loss of power or hackers cannot access a manual filing system from another computer

Computerised System

The benefits of a computerised filing system are numerous, and include reduced costs to the company, benefits to the environment, increased ease of sorting, finding, and moving documents.

Another benefit is that it allows the office to operate in a smaller environment, because a great deal of space is not required for storing documents in a paper filing system. Two Essential Items of UK Legislation relating to Recording and Storing HR Data Data Protection Act 1998

The Data Protection Act 1998 applies to most personnel records, whether held in paper or computerised format. Under the Data Protection Act, data must not be kept any longer than is necessary for a particular purpose. Computerised systems are covered by the law, as are certain manual systems: to be covered, manual systems must be organised into a 'relevant filing system'. Subject to certain exceptions as detailed in Schedule 7 of the Data Protection Act, employees have the right to access their records and the employer is under an obligation to ensure that the data is accurate.

Before releasing such data to a third party, the employer must seek the permission of the individual concerned.

The Information Commissioner has issued an Employment Practices Data Protection Code in four parts:

Part 1: Recruitment and selection
Part 2: Employment records
Part 3: Monitoring at work
Part 4: Information about workers health.

In the event that employment contracts/accident record books and other personnel records are needed for the purpose of a legal action, the riginals must be made available if possible or the employer must explain what happened to the original documents backed up by what is known as a 'statement of truth'.

When employers really no longer need to keep certain data, destruction must take place securely and effectively, for example by shredding. Freedom of Information Act (2000) NI The Freedom Of Information Act gives people the right to ask any public body for information they have on any subject you choose. Also, unless there's a good reason, the organisation must provide the information within 20 working days.

You can also ask for all the personal information it holds on you. The act applies to all 'public authorities' including:

government departments and the Northern Ireland Assembly
local authorities
health trusts, hospitals and doctors surgeries
schools, colleges and universities
publicly funded museums
the police
many other non-departmental public bodies, committees and advisory bodies

Any person can make a request for information under the Act - there is no restrictions on your age, nationality, or where you live.

You can ask for any information at all - but some information might be withheld to protect various interests which are allowed for by the Act. If this is the case, the public authority must tell you why they have withheld information. If you ask for information about yourself, then your request will be handled under the Data Protection Act; if you ask for information about other people (third parties), the Freedom of Information Act will apply. However, disclosure of personal information which would breach anyone else's rights under the Data Protection Act is not permitted.