A document retention policy defines how long documents must be kept, when they should be archived, and when they can be safely deleted—helping organisations reduce risk, stay compliant, and control information sprawl.
How to Build a Document Retention Policy
Every organisation creates documents—but not every document should be kept forever. Without a clear document retention policy, businesses face rising storage costs, compliance risks, and audit challenges.
This guide explains what a document retention policy is, why it matters, and how to build one that supports compliance, governance, and operational efficiency.
What Is a Document Retention Policy?
A document retention policy is a formal set of rules that defines how long different types of documents are retained, where they are stored, and when they are archived or destroyed.
It applies to both digital and physical records and is typically aligned with legal, regulatory, operational, and business requirements.
Why a Document Retention Policy Is Important
- Reduces legal and regulatory risk
- Ensures compliance with retention laws and standards
- Prevents over-retention and unnecessary storage costs
- Improves audit readiness and information governance
Common Problems Without a Retention Policy
- Documents kept indefinitely “just in case”
- Inconsistent retention across departments
- Difficulty locating required records during audits
- Increased exposure during litigation or investigations
Key Elements of a Document Retention Policy
- Document categories: Policies, contracts, financial, HR, quality, and operational records
- Retention periods: Defined timeframes for each document type
- Storage rules: Where and how documents are stored
- Access controls: Who can view, edit, or delete records
- Disposition rules: Archival or secure destruction processes
Step-by-Step: How to Build a Document Retention Policy
- Identify document types across the organisation
- Review legal, regulatory, and industry requirements
- Define retention periods for each document category
- Assign ownership and accountability
- Document approval and review processes
- Train teams on policy usage and enforcement
Aligning Retention Policies with Compliance
Retention requirements vary by industry and jurisdiction. Regulated sectors such as manufacturing, healthcare, BFSI, and pharmaceuticals often face stricter rules for document retention, traceability, and disposal.
A well-defined policy ensures records are retained long enough to meet compliance needs—but not longer than necessary.
Manual Retention Policies vs Automated Enforcement
- Manual enforcement: Error-prone, inconsistent, hard to audit
- Automated enforcement: Consistent, traceable, and scalable
Summary: A document retention policy brings structure and clarity to how information is managed. By defining retention periods, access rules, and disposition processes, organisations reduce risk and improve governance.
From Policy to Practice
Once a document retention policy is defined, organisations must ensure it is applied consistently—across departments, systems, and locations.
Modern document management systems help enforce retention rules automatically, ensuring documents are archived or disposed of according to policy.
Explore Related Resources
Follow document governance insights on LinkedIn.
Frequently Asked Questions
What is a document retention policy?
It is a set of rules that define how long documents are kept, how they are stored, and when they are archived or deleted.
Why is document retention important?
It helps organisations stay compliant, reduce legal risk, and control document sprawl.
How long should documents be retained?
Retention periods depend on legal, regulatory, and business requirements and vary by document type.
Can retention policies be automated?
Yes. Document management systems can automatically enforce retention, archival, and disposal rules.
