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Data Lifecycle

How to Implement Data Retention Policies

Establishing and enforcing retention periods that satisfy legal requirements

16 min read
Updated 7 January 2025

Executive Summary

Data retention is the bridge between collection and deletion. Section 8(8) requires deletion when data is no longer necessary for the purpose of collection. Implementing this requires defined retention periods, enforcement mechanisms, and exception handling. This guide addresses practical retention policy implementation.

Key Takeaways

  • 1
    Define retention periods for each data category based on legal requirements and business necessity
  • 2
    Implement automated enforcement where possible to ensure consistent application
  • 3
    Address the gap between policy and practice in backup and archive systems
  • 4
    Document retention decisions including the reasoning behind chosen periods
  • 5
    Review and update retention schedules as requirements change

1Understanding Retention Obligations

Section 8(8) requires erasure of personal data when it is no longer necessary for the purpose of collection or when the Data Principal withdraws consent. This creates a ceiling on retention: data cannot be kept indefinitely. However, other laws may create retention floors: minimum periods data must be kept for legal or regulatory purposes.

2Developing the Retention Schedule

A retention schedule specifies how long each data category should be retained.

1

Inventory Data Categories

List all categories of personal data processed by the organisation. Use the data inventory as a starting point.

2

Identify Legal Requirements

For each category, research mandatory retention periods under applicable laws. Tax records, employment records, and transaction records often have specific statutory retention requirements.

3

Assess Business Necessity

Where no legal requirement applies, determine how long data is actually needed for the purpose of collection. This should be genuinely necessary, not merely convenient.

4

Set Retention Periods

For each category, define the retention period. Where legal requirements exist, retention must be at least that long. Where DPDPA purpose limitation applies, retention should not exceed necessity.

5

Document Rationale

Record the reasoning behind each retention period. This supports compliance demonstration and facilitates future review.

Practical Tips

  • Create categories at appropriate granularity; too broad makes different requirements hard to manage, too narrow becomes administratively burdensome
  • Consider industry standards and peer practices as guidance for reasonable periods

3Technical Implementation

Policy is meaningless without enforcement. Technical measures ensure retention policies are actually applied.

1

Retention Tagging

Implement mechanisms to tag data with applicable retention periods at collection. Metadata should indicate when data becomes eligible for deletion.

2

Automated Deletion

Configure systems to automatically delete data when retention periods expire. Automation reduces reliance on manual action and ensures consistent application.

3

Deletion Verification

Implement processes to verify deletion occurred. Audit logs should confirm that scheduled deletions completed successfully.

4

Hold Capabilities

Build in the ability to suspend deletion when data must be preserved for litigation or investigation. Holds should be specific and time-limited.

Important Warnings

  • Unstructured data is harder to manage than structured databases; plan specifically for documents, emails, and files
  • Legacy systems may not support automated retention; manual processes may be needed as interim measures

4Backup and Archive Management

Backup systems complicate retention because they are designed to preserve data.

1

Backup Retention Alignment

Align backup retention periods with data retention periods where feasible. Backups should not outlive the data they contain.

2

Granular Deletion Capability

Where possible, implement capability to delete specific data from backups rather than retaining entire backup sets.

3

Lifecycle Management

If granular deletion is not feasible, manage retention through backup lifecycle. Document that data will be deleted when backup sets expire.

4

Archive Review

Periodically review archived data against retention schedules. Archives often contain data that should have been deleted.

5Exception Management

Some data will need to be retained beyond standard periods.

1

Legal Holds

When litigation or regulatory investigation arises, implement holds that preserve relevant data regardless of normal retention periods.

2

Regulatory Requirements

Where regulators require specific data preservation, document the requirement and apply extended retention.

3

Business Justification

Exceptional business needs may justify extended retention. Document the justification and limit extension to what is genuinely necessary.

4

Exception Review

Periodically review active exceptions. Holds and exceptions should not become permanent; release when the basis no longer applies.

6Governance and Review

Retention policies require ongoing governance to remain current and effective.

1

Periodic Review

Schedule regular review of the retention schedule. Legal requirements change, business needs evolve, and policy should keep pace.

2

Compliance Monitoring

Audit whether retention policies are being followed. Sample data to verify deletion is occurring as scheduled.

3

Stakeholder Communication

Ensure relevant stakeholders understand retention policies and their obligations. IT, legal, records management, and business units all have roles.

4

Update Procedures

Establish procedures for updating retention schedules when requirements change. Changes should follow defined approval processes.

Frequently Asked Questions

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