June 24, 2021 · 6 min read
Law on Electronic Employment Record Books dated March 10, 2021
The introduction of electronic employment record books is another step towards the implementation of digital technologies in Ukraine. On March 10, 2021, the Verkhovna Rada of Ukraine adopted Law "On Amendments to Certain Legislative Acts of Ukraine Regarding the Accounting of Employee's Employment Activity in Electronic Form" No. 1217-IX (hereinafter – Law No. 1217), which came into force 3 months after its publication, meaning that as of June 10, 2021, all employers must submit information from paper employment record books regarding their employees' employment activity to the Register of Insured Persons of the State Register of Mandatory State Social Insurance (hereinafter – Register of Insured Persons).
Employers are given 5 years – until June 10, 2026 – to submit information about employees' employment activity to the Register of Insured Persons.
The accounting of employees' employment activity in electronic form will be conducted in accordance with the Procedure for Accounting of Employment Activity of an Employee, an Individual Entrepreneur, an Individual Who Provides Themselves with Work Independently, in Electronic Form, which was approved by Resolution of the Cabinet of Ministers of Ukraine No. 1084 dated November 27, 2019 (hereinafter – Resolution No. 1084).
What is an electronic employment record book
The definition of "electronic employment record book" is not directly enshrined in Law No. 1217. However, based on an analysis of legal norms, we can state that an electronic employment record book is a digital analogue of paper employment record books, therefore, all information about work experience available in the paper book will be reflected in the electronic employment record book.
Moreover, an electronic employment record book will not exist as a specific electronic document. Employment activity records will be maintained as part of a personal electronic accounting card in the Register of Insured Persons.
Features of the transition to electronic employment record books
Law No. 1217 provides for a transitional 5-year period during which the Pension Fund of Ukraine must include missing information about employees' employment activity in the Register of Insured Persons based on information submitted by the employer (insurer) or the insured person in the manner and within the timeframes established by the Pension Fund of Ukraine in agreement with the central executive body that ensures the formation of state policy in the field of social protection of the population, and the central executive body that ensures the formation of state policy in the field of labor relations.
After the "digitization" of the employment record book, the employer is obliged to hand over the original paper employment record book to the employee against signature.
If an employee wishes to continue its maintenance, the employer, at the employee's request, will be obliged to simultaneously with the electronic accounting of employment activity also enter records into the paper employment record book regarding hiring, transfers, and dismissals, as well as incentives and awards for success in work. We recommend that such an employee's "request" be formalized in writing in the form of an application from the employee.
During the transitional period, both the paper employment record book and the electronic form of already existing or entered information about employment activity can be used.
What are the advantages of an electronic employment record book
We can highlight the following advantages of electronic employment record books over paper ones:
- Convenience. The electronic digital book is convenient to access for both the individual and the employer for entering information about the employee's employment activity, as well as for authorized bodies, in particular for the Pension Fund of Ukraine.
- 24/7 Access. Every person can check information about their acquired work and insurance experience at any time, including through the "Pension Fund" application, which will be discussed further.
- Automatic Pension Calculation. The electronic employment record book will enable authorized bodies to automatically assign a pension to an individual (without application) and collect documents for all their employment activity.
- Reduced Risk of Loss. Reduction of negative risks of losing a paper employment record book and then restoring it.
Where to find and view your electronic employment record book. Pension Fund personal account.
Each insured person can view available information about themselves, including their work or insurance experience, in their personal account on the electronic services portal of the Pension Fund of Ukraine.
The Pension Fund of Ukraine has also developed a mobile application "Pension Fund of Ukraine", which can be downloaded on Google Play or App Store depending on the operating system of your mobile device.
It provides access from mobile devices to the electronic services of the Pension Fund of Ukraine and allows insured persons to view information from the Register of Insured Persons (personal data, information on wages provided by the employer (insurer), insurance contributions paid on behalf of the person, acquired insurance experience). This mobile application makes communication with the Pension Fund as convenient and efficient as possible.
How to switch to electronic employment record books and what is required for this
The transition to electronic employment record books can be carried out by both the insured person and the employer through the web portal of electronic services of the Pension Fund of Ukraine in the form of scanned or digitized copies of documents provided by law (employment record book, certificates, etc.) with the mandatory imposition of a qualified electronic signature by the insurer or the insured person.
To enter information about employment activity, it is necessary to include (para. 5 of Resolution No. 1084):
- information that allows identification of the person
- information about periods of employment activity
- data on special working conditions that grant the right to benefits under mandatory state social insurance
- information about criminal convictions and deprivation of the right to hold certain positions or engage in certain activities
- information confirming the work experience acquired by the person outside Ukraine for the application of accumulation of work experience periods in accordance with international treaties, the consent to the binding nature of which has been given by the Verkhovna Rada of Ukraine.
It is also mandatory to send a scanned copy of the employee's consent to the processing of their personal data.
If information about employment activity is submitted personally by the employee, consent to the processing of personal data is given by marking the provision of such permission in the electronic account of the insured person on the web portal of electronic services of the Pension Fund of Ukraine.
If you encounter difficulties with the transition to electronic employment record books for your employees, or you do not want to spend extra time scanning, digitizing documents, filling in the necessary information, and confirming certain data required by law, please contact our lawyers at Olga Petrukhina Law Office, and they will promptly and without unnecessary hassle help you successfully implement this innovation.
Alternatively, consider outsourcing all processes to our company for accounting and HR outsourcing.
