Legal Hold Policy Template

Legal Hold Policy

Purpose of Legal Hold Policy

The purpose of this Legal Hold Policy is to set out [Company Name] approach to preserving and protecting records and electronically stored information that may be relevant to litigation, regulatory inquiries, audits, or internal investigations. This policy ensures timely notification, consistent preservation actions, and clear responsibilities for employees and managers when a legal hold is required.

Scope

This policy applies to all employees, contractors, consultants, temporary staff, and third parties who create, receive, or maintain information on behalf of [Company Name]. It covers all forms of information and records including paper documents, electronic files, email, instant messages, databases, cloud storage, mobile devices, and backup media.

Definitions

For the purposes of this policy, a legal hold is a directive to preserve all information that may be relevant to an actual or reasonably anticipated legal matter, audit, or investigation. Custodian refers to any person who may possess or control potentially relevant information.

Legal Hold Issuance

A legal hold will be issued by authorized personnel when [Company Name] reasonably anticipates litigation, a regulatory inquiry, or another formal investigation. The notice will identify the scope of preserved information, custodians, and the preservation period where known. Legal hold notices may be issued verbally and followed by written confirmation.

Notification and Acknowledgement

When a legal hold is issued, affected custodians will receive clear notification of the hold requirements. Notices will state the types of information to be preserved, any suspension of normal retention or deletion processes, and instructions for preserving relevant materials. Custodians must acknowledge receipt and understanding of the legal hold as directed by the notice.

Employee Obligations

• Immediately preserve all potentially relevant information and suspend any routine deletion, overwrite, or destruction processes affecting that information.
• Comply with all written and verbal instructions related to the legal hold.
• Identify and report any locations or sources of relevant information under their control.
• Notify their manager or the designated legal hold contact if they discover additional relevant information or if they are unsure about how to preserve specific items.

Preservation Procedures

[Company Name] will implement reasonable measures to preserve relevant information. These measures may include suspending automated deletion policies, securing backup media, collecting custodial data, and working with IT or external vendors to ensure preservation. Preservation actions should be documented and tracked.

Access and Use Restrictions

Information under a legal hold must not be altered, deleted, destroyed, or tampered with. Access to preserved materials should be limited to authorized personnel and only used for legitimate investigatory or legal purposes. Employees must not attempt to circumvent preservation requirements.

Approval Process

Legal holds and any exceptions to preservation requirements are approved by authorized representatives, typically the legal or compliance function in conjunction with HR and senior management. Requests for exceptions must be submitted in writing and include justification. Approval will be documented and retained with legal hold records.

Role of Managers and HR

Managers are responsible for ensuring staff under their supervision receive legal hold notices and understand preservation obligations. Managers must monitor compliance and escalate questions to HR or the legal team.

HR will coordinate with the legal team to issue notices, track acknowledgements, maintain documentation, and support managers and employees in understanding obligations. HR will also help identify custodians and relevant personnel during a legal hold.

Duration and Release of Legal Hold

A legal hold remains in effect until the authorized issuing party provides a written release. Upon release, normal retention and deletion policies may resume unless other holds or retention obligations apply. The end of a hold will be documented and communicated to affected custodians.

Documentation and Recordkeeping

[Company Name] will maintain records of legal hold notices, acknowledgements, preservation actions, exception requests, and releases. Documentation should be sufficient to demonstrate compliance with preservation obligations and to support legal or regulatory reviews.

Non-Compliance

Failure to comply with this Legal Hold Policy may result in corrective action up to and including disciplinary measures in accordance with [Company Name] policies. Non-compliance may also expose [Company Name] and individuals to legal risk. Employees must report any inadvertent deletion or loss of relevant information immediately to their manager and HR.

Note

This policy may be updated periodically to reflect operational changes or best practices. Employees should review the policy and direct any questions to HR or the legal function for clarification. Compliance with legal holds is mandatory and essential to protect [Company Name] interests.