4 consequences of not having complete employment records in your company

Proper management of employment records is not only a legal obligation, but also an essential practice to ensure the proper functioning of a company. However, many companies underestimate the importance of keeping their records complete and up to date, which can lead to serious problems.
Below, we present four consequences that companies can face if they do not have adequate control of their employment records.

1. Legal sanctions and fines
Failure to comply with labor regulations regarding employee documentation can lead to the imposition of fines and sanctions by labor authorities. In Mexico, the Federal Labor Law establishes that employee records must be complete and up to date. The lack of important documents such as contracts, training certificates or payroll receipts can lead to fines that negatively impact the company’s finances.

2. Loss of trust and reputation
A company that cannot properly manage its employee records runs the risk of losing the trust of its employees and business partners. Employees may perceive that the company does not comply with its legal obligations, which negatively affects organizational culture and talent retention. In addition, a poor reputation for handling labor documentation can harm the company’s image in the eyes of potential investors and strategic partners.

3. Difficulties in audits and reviews
During a labor audit or internal review, having incomplete files can lead to problems that make it difficult to verify legal compliance. Audits can become slow and complicated if documents are scattered or important files are missing, which increases the risk of detecting irregularities that could have been avoided with a more efficient document management system.

4. Problems resolving legal conflicts
In the event of labor disputes, the absence of key documents such as signed contracts, agreements or proof of payment can put the company at a disadvantage in legal disputes. An incomplete file can be grounds for the courts to rule against the company, since there will not be enough evidence to defend its position. Lack of documentation can significantly increase legal costs and put the stability of the company at risk.

Sora, the solution to keep your files complete

To avoid these consequences, it is crucial that companies adopt digital tools that facilitate the management of employment files.

Sora is a platform designed to guarantee legal compliance in a 100% electronic way, offering solutions that cannot be implemented in the physical world. With Sora, companies can automate processes, manage all documentation electronically and have total control over their employees’ files, ensuring that they are complete and up to date at all times and accessing them from anywhere and at any time they want.

By choosing Sora, companies not only save time and costs, but also reduce legal risks and improve their reputation. Don’t let the lack of document control affect your company!

Remember the importance of keeping your files complete and don’t hesitate to use new tools that support you in achieving this.