Data Retention Policy

Data Retention Policy

Overview & Purpose

The purpose of this policy is to define how [Company Name] retains and disposes of business and customer data. Proper data retention ensures compliance with legal, regulatory, and contractual obligations, while also minimizing security risk and storage costs.

Scope

This policy applies to all employees, contractors, and third-party service providers who handle company or customer data. It covers all formats of data including digital records, paper documents, emails, and backups.

Policy

1. Retention Principles

Data will be retained only as long as it is necessary for operational, legal, or contractual purposes.
Once data is no longer required, it must be securely deleted or destroyed.
Retention periods must be defined for each data type and documented in internal systems.

2. Data Categories and Retention Periods

Data Type	Retention Period	Notes
Customer contracts and billing records	7 years	For legal and financial audits
Employee records	7 years after termination	For employment and tax purposes
Security logs	1 year	Unless otherwise required for investigation or audit
Email correspondence	2 years	Business relevance determines longer storage, if needed
Source code and internal documentation	Retained indefinitely	Version-controlled and backed up
Support tickets and chat transcripts	2 years	For service improvement and dispute resolution
Marketing contact lists	1 year after opt-out	Must comply with unsubscribe and privacy laws
Backup archives	90 days	Automatically rotated and securely deleted after expiration

3. Responsibilities

Data Owners are responsible for defining retention rules for the data they manage.
IT and Security Teams must enforce retention policies through access control, automated expiration, and secure deletion mechanisms.
Employees must follow retention guidance and avoid storing sensitive or outdated data in unauthorized systems.

4. Secure Disposal

When data reaches the end of its retention period, it must be securely destroyed:

Digital Data: Use secure wiping or deletion tools that prevent recovery.
Paper Records: Must be shredded or disposed of through a secure disposal service.
Cloud Storage: Follow vendor-specific deletion protocols to ensure permanent removal.

5. Legal Holds

If data is subject to litigation or regulatory investigation, it must be preserved—even if its retention period has expired. A legal hold notice will override normal deletion rules until lifted.

6. Third-Party Vendors

Vendors that store, process, or retain data on behalf of [Company Name] must comply with this policy or have an equivalent retention standard. Contracts must specify retention responsibilities and deletion expectations.

7. Training

Employees will receive periodic training to understand retention expectations and how to handle data lifecycle management.

Compliance

Failure to comply with this policy may result in disciplinary action, including termination. [Company Name] reserves the right to audit systems and vendor agreements to confirm adherence. This policy may be updated to reflect changes in business needs or regulatory requirements.

Review History

Version	Date	Description	Approved By