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An employer should retain records of a former employee's passport for three years following the termination of employment, particularly in the context of compliance with immigration laws and regulations. This retention period aligns with the guidelines established by the Department of Homeland Security, which requires employers to maintain certain records related to employee identity and eligibility to work in the United States. Keeping such records for an adequate duration ensures that employers have the necessary documentation should they face audits or inquiries regarding employee eligibility.

The three-year timeframe allows enough leeway for any potential investigations that may arise after the employee has left the organization, while also being manageable for employers concerning record-keeping practices. Additionally, this also balances the need for protection of employee privacy and the practicalities of document retention.

Other timeframes mentioned either exceed what is required or do not fulfill the necessary compliance duration associated with legal requirements for record retention. This is why the three-year retention period is the most effective practice for employers managing employee records, including passports.