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One of the reasons why employees some loyal to larger companies is because they invest in the future of their employees with workplace pensions etc. In Britain it has now become part of the LAW to offer a workplace pension to qualifying employees: but at great cost to small business.
Knowing how long to keep employee files is important for every employer. For example, if an employee were to file a grievance after resigning or apply for unemployment benefits, and you have disposed of the file, you will not have the proof to back up your version of events.