Accounting for employees without employment records: what employer should expect from a government project №3623

In Ukraine, government wants to replace employment records with employee employment records in electronic form through the State Register of Compulsory State Social Insurance.

The text of the relevant government draft Law of Ukraine dated 10.06.2020 № 3623 "On Amendments to Certain Legislative Acts of Ukraine Concerning the Accounting of Employee Employment in Electronic Form" appeared on the website of the Verkhovna Rada.

The document prepared by the Ministry of Social Policy proposes to amend the Labor Code of Ukraine, the Fundamentals of the legislation of Ukraine on compulsory state social insurance, the Law "On collection and accounting of a single contribution to compulsory state social insurance" and some other legislative acts.

Officials plan to implement the digitalization of labor relations for at least five years - this is the transition period proposed to be included in the State Register of information from paper employment records of the employee's employment. During this period, both a paper workbook and an electronic form will be used.

After entering information about the employee's employment in the state register, the employer will issue the original paper employment record to him. Moreover, despite the transition to the electronic form of accounting, the employer remains obliged to make records of employment, transfer and dismissal in the paper workbook, if required by the employee. That is, it seems that the electronic form will not be a replacement, but an addition to the traditional paper. At least in the first years.

In addition, the Cabinet of Ministers sees the possibility of automatic (without personal application of a person) appointment of an old-age pension through a personal electronic account on the website of the Pension Fund of Ukraine as a necessary element of simplification of relations between the state and a citizen.