What happens to our employee data if we stop using the HR software?

What happens to your data on exit depends entirely on the vendor’s contract terms, which is why data ownership and export rights should be confirmed before you sign. Reputable providers let you export your full records — employee data, leave balances, and payroll history — in a usable format, then delete it from their systems after a defined period.

Key terms to clarify in advance: that you (not the vendor) own your data; the formats available for export (CSV or Excel at minimum); whether export is self-service or vendor-assisted, and at what cost; how long data is retained after termination and when it is permanently deleted; and any notice period required to retrieve it. Vendor lock-in is a real risk in the HRMS market, so getting these terms in writing protects you if you ever switch.