This is an affront to civil liberties in demaning the passport and only the passport if a UK citizen has one, and only accepting other forms of ID if they do not own a passport.
The absence of this documentation in a personnel dpartment may only arise following an audit, which means years can pass before it is even noticed. This means the fear of failing an government inspection audit is the real reason for having these documents.
I am not aware of any company that publishes to its employees its policy for the secure destruction of these documents. UK citizens have been advised by central government and the Police Force to shred documents such as letters that just bear the person's name and address before recycling the paper, and yet here the law mandates that companies use nothing more than a filing cabinet to store for years documents that would be of immense benefit in identity theft and organized crime. Identity theft can leave long lasting and traumatic damage in its wake affecting everything including and individual's mortgage applications and credit ratings, yet this law makes HR/Personnel departments nothing more than a giant personal security hole.