"Which steps should be taken by employers in the scope of new stage of labor relations development and which liabilities arise for companies," Oksana Oleksyuk, Head of SBER Solutions Expertise and Methodology Center said.
- Transition to electronic employment record books implies the appearance of at once several legislative innovations. These are changes in the Labor Code, the Code of Administrative Offences and the Federal Law No.27-FZ "On Personified Accounting in the System of Obligatory Pension Insurance". Who is affected by these changes?
- Shall be subject to the updated laws all legal entities, working on the territory of the Russian Federation, regardless of the form of their ownership, as well as all citizens who have labor relations (employment agreement) with these legal entities. It shall be noted that the legislative initiative doesn't apply to relations under a civil agreement, which shall be regulated by the Civil Code and don't require any record in an employment record book. Therefore, data on the persons, providing services in the scope of a civil agreement, shall not be included into SZV-TD report.
- What exactly in this connection is changing for employers since 2020? Which new obligations arise for companies in the scope of transition to electronic employment record books?
- First of all, an employer has the obligation to maintain an employment record book of new electronic format along with a paper book, as well as accept data from an employee on labor activity on the form STD-R (data on labor activity, provided to an employee by an employer).
It means that all employers shall include to local regulatory acts, containing references to employment record books, information on the acceptance of STD-R form within an employee's hiring.
- The second change refers to issuing by the employer of data on labor activity on an employee's request in case if the latter has chosen electronic format of the document.
In this case the employee shall require not a copy of an employment record book but a "statement" STD-R. At that, the employer shall provide this form to the employee within three working days, as before.
The amendments to the federal law No.27-FZ set forth an obligation for the employer to notify the Pension Fund of Russia on change of the employee's status. Therefore, in case of entering a record to an employment record book we shall obligatory inform the Pension Fund thereon. If an employee has chosen electronic format for maintaining data on his labor activity, the employer shall not enter any record to the employment record book but simply informs the PFR.
If the employee has chosen a paper format, the employer shall make a record in the paper employment record book in addition to submission of corresponding data to the PFR.
It shall be also noted that the employer has an obligation to monthly notify the Pension Fund on the occurred HR changes per each employee on the form SZV-TD. Simultaneously while forming the first report there shall be submitted data on labor activity of the employee as of January 1, 2020. The same procedure shall apply with respect to part-timers. If there were no any HR changes during the month, no report shall be submitted.
The first report for 2020 shall be submitted to the PFR before February 17, 2020 (15 February 2020 is a non-working day*), if there were some HR changes in the organisation in January 2020 or an employee has chosen the form of his/her employment record book maintenance. If there weren't any HR changes in the reporting month, there's no need to send the report.
Example: Ivan Ivanov was hired to the position of a manager to LLC "Romashka" on May 15, 2015, then he was transferred to another position in 2018 and in January 2020 he submitted an application on the choice of a paper employment record book. In such a case the first report will contain data on the employee's labor activity for this employer as of January 1, 2020 along with information that this employee has chosen a paper format of his employment record book maintenance.
- Which actions shall be performed by the employer in the scope of transition to electronic employment record books. Which are the first steps?
- First of all an employer shall introduce changes to the local regulatory acts;
- Secondly, as far as before June 30, 2020 the employer shall obligatory inform each employee on the possibility to choose the format of an employment record book maintenance, it's necessary to compile corresponding notifications. Such notification in a written form shall be sent to employees;
- Thirdly, the employer shall provide to an employee two forms of applications: on choice of a traditional employment record book and on choice of electronic format for maintaining data on labor activity.
Moreover, the issue on transition to electronic employment record books shall be reviewed with HR team, whereas it's necessary to determine a strict procedure of actions in the scope of this process. It's necessary to appoint a person, responsible for the preparation and submission of data on labor activity to the Pension Fund, as well as include this into his job description.
Since not all information systems have a functional on accounting of employees' applications regarding their choice of the form of data on labor activity maintenance, it was recommended to employers to execute a register of the notification status along with the fact of employees' choice.
Maintenance of such a register significantly simplifies HR specialist's life.
As a part of preparatory work it's recommended to reveal the existence of an agreement on electronic documents flow with the Pension Fund, as well as check through the systems, used for the reports submission, if there's a technical capability to submit reports via these communication channels. In the absence of such it is necessary to expand the certificate.
Companies with staff quantity of 25 employees and less may submit SZV-TD report in hard copy, and organisations with larger number of employees shall submit it in electronic form.
- Will it be necessary for the employer to enter corrections to the local regulatory acts, governing the organisation activity?
- Yes. Therefore changes shall be entered to the Internal Labor Regulations and other local documents, governing interaction with employees and including references to employment record books.
In addition to the abovementioned it's necessary to specify in local regulatory acts the procedure of interaction with employees by email (Labor Code specifies such a possibility) for the purposes of complying with requirements on submission of information on labor activity on an employee's request. Please be kindly informed that the employer shall fulfil the request within three days.
The employer shall create a special mailbox for employees' emails, as well as appoint a person, responsible for the mail checking.
- What are the deadlines for the submission of data on labor activity of an employee to the Pension Fund? Will these deadlines change during transition to electronic employment record books?
- Since January 1, 2020 SZV-TD form shall be submitted no later than the 15th day of month, following the month when HR changes occurred, or an employee's application on the choice of form of data on labor activity maintenance was submitted. At the same time, starting from January 1, 2021 there shall be submitted to the Pension Fund data on employees' hiring and dismissal on the next day after a corresponding order issuing.
- Which liability was set forth for employers by the lawmaker?
At the present moment draft laws on introduction of amendments to the Labor Code and to the federal law No.27-FZ have been already adopted, while the draft of amendments to the Code of Administrative Offences, which sets forth a liability for the employer, hasn't passed through the State Duma yet (draft law No.748758-7 passed the 1st reading).
This means that so far there's no liability for non-compliance with deadlines on this type of reports submission along with submission of unreliable data.
In my opinion the lawmakers intentionally waived from significant measures in the reforming sphere. A substantial scale of changes in labor relations implies smoothness of steps on their implementation.
Liability will be anyway introduced and we'll know about its extent in the nearest time.
There's a measure in kind of a warning in the draft law, however we assume that a fine for employers can be set forth similarly to measures of responsibility, specified for breaches on reports SZV-M and SZV-STAZH submission.
Currently, the liability is set forth only for the delay in issuing an employment record book (from 1000 to 5000 RUB for the officials, and from 30 000 to 50 000 RUB for legal entities, plus reimbursement to the employee of non-received earning due to delay in the issuing of data on labor activity, art.165 RF LC).
Example: an employee has submitted an application on choice of electronic format for maintaining data on labor activity and then submitted a dismissal application. On the day of dismissal the employer shall provide to the employee STD-R in kind of an electronic document with encrypted digital signature, or in kind of a paper document, verified by signature and seal. Otherwise a responsibility arises for the employer, as far as thereby it impedes to the employee's further employment.
- Which possibilities and services for the decrease of administrative burden of HR dept of the client can SBER Solutions offer?
- SBER Solutions offer a regular service on preparation and submission of SZV-TD reports. This means that SBER Solutions will form a report, check it for filling of all obligatory fields and requirements, specified in the Regulation of the Government of the Pension Fund of 25.12.2019 730P, and then submit the report to the PFR. The process ends with receipt of a positive protocol.
Furthermore, a team of SBER Solutions experts has prepared templates of notifications, applications for employees and wordings of amendments to the local regulatory acts.
At the same time SBER Solutions ensure information support of clients, as well as organize webinars in the scope of which clients receive complete information on the new procedure of interaction.
You can find more detailed information on these amendments on SBER Solutions seminar, organized for the company customers. SBER Solutions experts will share their experience in the submission of reports to the PFR according to the new form and tell you about possible difficulties and ways to avoid them.