Switching over to Electronic HR Document Management

Despite the fact that the current labor laws do not address the issue of electronic document exchange between the employer and employees (except for teleworkers), companies do have certain solutions for this problem:

1. They may take part in the experiment provided for by Federal Law No. 122-FZ dated April 24, 2020 “On Experimental Use of Electronic Employment-Related Documents”;

2. They may wait for the amendments expected to be made in the labor laws upon completion of the experiment;

3. They may implement electronic HR document management (hereinafter — EDM) in their companies using their own resources.

SOME INFORMATION ON THE EXPERIMENT

The objective of the experiment is to figure out and create an environment for exchanging electronic documents in employment relations and amend labor laws as necessary.

Employers, employees, and job applicants may take part in the experiment on a voluntary basis. Teleworkers may not take part in this experiment.

The employer is free to approve the list of employment-related documents at its sole discretion minding the regulation on the experiment procedure. The experiment does not cover the employees’ employment record books and employment history records generated in electronic form in accordance with the labor laws.

The employer is required to have an enhanced encrypted and certified digital signature, and the employees — an enhanced encrypted non-certified digital signature. If participation in the experiment involves the use of an in-house information system, it is sufficient to use a simple digital signature provided that electronic documents are exchanged on the “Work in Russia” portal.

The experiment will last through March 31, 2021 (inclusive).

The other important requirements are set out in the procedure entitling employers to take part in the experiment. The procedure has been approved by Order of the Ministry of Labor and Social Protection of the Russian Federation No. 240n dated May 14, 2020.

Thus, companies may already use the opportunity to launch official exchange of electronic documents governing employment relations subject to compliance with the rules.

ELECTRONIC DOCUMENT EXCHANGE

It is worth mentioning that the current laws contain a provision authorizing the employer and a teleworker to exchange electronic documents using an enhanced encrypted and certified digital signature.

In addition, the employer may issue an employee’s employment records in the form of an electronic document signed with an enhanced encrypted and certified digital signature (if any). Employers have secured this opportunity due to switchover to electronic employment record books. Thus, we can see a certain trend providing for a gradual switchover to electronic HR document management.

Currently, about 40% of our customers’ employees who have already selected the employment history recording method have opted for the electronic method. It is obvious that hard copies enjoy a higher confidence to date, but we are certain that this trend will change over time.

Corporate electronic document exchange may be implemented even prior to the introduction of expected amendments to the legal framework.

Based on our experience, introduction of electronic HR document management will help ensure a major reduction of employees’ labor inputs, save on paper and office equipment costs, accelerate the search of necessary documents and enhance their safety, and prepare for the digital format.

For instance, in the past, we could spend weeks signing a document by stacking the document from one desk to another down the pipeline, identifying the department where the document got stuck, and waiting for the signatory to come back to office. When exchanging documents with teleworkers, we had to earmark time and money for mailing / courier delivery or ask the employee to come to office. Now, by contrast, the document immediately finds its way to the person in charge, and it is possible to track the approval process in the system.

We recommend that you implement an action plan to switch over to electronic HR document management that normally includes the following procedures:

• Audit of in-house HR processes. This will make it possible to elaborate the communication, document approval and management procedures and optimize them as necessary;

• Assessment of risks associated with conversion of HR documentation into electronic form using one or another type of digital signatures. For instance, the documents that do not require employees’ handwritten signatures and retention in hard copies may be converted into electronic form and signed with digital signatures. However, there are certain types of documents that are supposed to be made in hard copies and signed with a handwritten signature of the employee at all times. Conversion thereof into electronic format may have adverse effects in litigations and provoke criticism on the part of inspection authorities;

• Technical solution to implement electronic document management. As far as this matter is concerned, every company is free to choose a convenient tool;

• The most important step — creation of the regulatory framework: it is necessary to enshrine the concept of electronic HR document management and digital signature in the company’s by-laws, spell out the communication and electronic document exchange procedures, and enter into electronic document exchange agreements with each participant.

It is practicable to transfer individual HR processes and related documentation to electronic document management gradually instead of transferring everything at once. Besides, it is important to ensure concerted effort by all parties involved in the process: HR specialists, methodologists, lawyers, and IT experts.