Electronic employment books: what an employer needs to know

LEGAL DIGEST, NEWS \ 20.01.2020

The President of the Russian Federation has signed a Federal Law providing for the gradual transition of employment books to electronic form starting from January 1, 2020.

During the transition year 2020, at the employee’s choice, his or her employment book may be kept in electronic form. For those who already have a paper employment book, switching to electronic form will be a right, and for those who start work for the first time after December 31, 2020 it will be an obligation (since, starting from January 1, 2021, paper employment books will not be issued).

An electronic employment book (EEB) is a database that contains information about an employee’s labour activity, namely:

• the employee’s full name;
• place of work;
• employment periods;
• position (profession or speciality);
• qualifications (grade, class, category and skill level);
• dates of employment, dismissal and transfer to another job;
• reasons for dismissal.

The employer must transmit this data to the information system of the Pension Fund of the Russian Federation in the form of a CZV-TD report, not on a monthly basis but only if there is any redeployment (i.e. recruitment, transfer, dismissal, etc.) of staff in the reporting month. The completion date for submitting the report is not later than the 15th day of the month following the month in which the personnel changes took place. In a CZV-TD form submitted for the first time, information about the employee’s labour activity as of January 1, 2020 is indicated

When switching to EEB, the employer must take the following actions:

1. To inform employees about the possibility of transferring information from a paper employment book to an electronic one.

To do this, it is recommended to issue a relevant document (for example, an information statement) and make all employees read it, understand and accept it in writing. The deadline for notifying employees is June 30, 2020.

• To receive an application from an employee to keep a paper employment book or to maintain an electronic one.

Applications are drawn up in no particular form and are accepted by employers until December‍‍ 31, ‍ 2020. Exceptions are those persons who did not have the opportunity to submit an application before the specified period, namely:

• individuals who do not perform their work duties as at December 31, 2020, but who are assigned an actual place of employment (women on maternity leave, employees during sick leave or vacation);
• persons who have employment history under an employment agreement (service contract), but as at December 31, 2020 were not in employment (service) relationships.

This category of citizens may submit an application at any time after the specified date. 

When an employee keeps a paper employment book:

• the employer continues to enter information about labour activity in the paper employment book along with the electronic one;
• the right to maintain a paper employment book is retained for subsequent employment by other employers;
• the right to submit a written application for maintaining an employment book in electronic form to the employer in the subsequent is retained.

If a paper employment book is rejected, the employer hands it over to the employee with a record of the employee’s right to switch to the EEB. The employer is not liable for keeping and maintaining the paper employment book after that.

• To make changes to the company’s internal documents.

It is recommended to pay special attention to the following documents:

• The book of record of the flow of employment books, their forms and inserts (if paper employment books are rejected, the need for maintaining records of such an employment book does no longer exists for the employer).
• Regulations on the maintenance and keeping of employment books (it is recommended to make changes regarding the possibility of maintaining the employment book not only in paper but also in electronic form).
• Employment and collective agreements (it is recommended to check whether the terms and conditions of the procedure for maintaining employment books do not contradict the new rules, and to make changes if necessary).
• Other internal regulations and documents containing rules for the registration of employment books. The terms and conditions contained in such documents must be brought into line with the new registration rules.

The employer should provide employees with information about labour activity from the EEB using the method indicated in the employee’s application (in paper or electronic form):

– during the working period, not later than three working days from the date of submission of the application in question;

– upon dismissal, on the date of termination of the employment agreement.

Also, the employee may receive information from the EEB independently:

– from the local body of the Pension Fund of Russia;

– at a multifunctional centre (MFC) where state services are offered to the public ; or

– in his or her personal account on the website of the Pension Fund of Russia.

For a failure to submit or for the submission of incomplete (or inaccurate) information about the labour activity of employees, an employer faces administrative liability under article 5.27 of the Administrative Code of the Russian Federation in the form of a fine:

• for officers and individual entrepreneurs – in the amount of 1,000 – 5,000 rubles;
• for legal entities – from 30,000 – 50,000 rubles.

If the violation is repeated, the penalties are increased:

• for officers – a fine in the amount of 10,000 – 20,000 rubles or disqualification for a period of between 1 and 3 years;
• for individual entrepreneurs – a fine in the amount of between 10,000 and 20,000 rubles;
• for legal entities – from 50,000 – 70,000 rubles.

On the issue of switching to EEB and drawing of human resources documents, please contact Acsour’s specialists.