Reporting to Russian Pension Fund Goes Online

Historically, employers have been required to log employees’ work experience and years of service in a distinct human resources (HR) document called a “labor book.” New legislation requires employers to now start logging this information in an electronic register. In anticipation of the change, employers may want to move their labor books into digital format.

The law provides for a “transition period” until the end of 2020. During this period, employers will need to specify a chosen electronic register, notify employees about the changes, and collect their consent to the new system of recording.

The new rules also update the list of documents required from new hires at recruitment, as well as the procedure for providing employees with applicable documents on their last day of employment.

Along with starting digital recording of employees’ work experiences, the law also prescribes a notification obligation to employers. As a result, employers are now required to take the following actions.

• Companies are required to include information about employees’ work experience in a specific unified form called “SZV-TD.” This form may be completed by hand (where there are fewer than 25 employees) or through HR software.
• During the transition period (i.e., in 2020), the company shall file form SZV-TD regarding each employee (in the event of any HR related changes—hiring, transfer, dismissal, etc.) no later than the 15th day of the following month.
• Starting in 2021, companies will be obligated to file the form containing information on an employee’s hiring or dismissal no later than the next business day.
• As concerns an employee’s transfer, in 2021 companies will be obligated to file such a form no later than the 15th day of the following month.
• Where a company provides information for the first time, it shall also include certain information about the company.
• In all cases, companies are obligated to complete the digital register of employees’ work experience by February 15, 2021, for all employees.

This law is an initial official step in HR workflow digitization in Russia and is likely to be followed by further requirements moving from paper format to online.

Written by Irina Anyukhina, Partner, ALRUD Law Firm, Margarita Egiazarova, Senior Associate, ALRUD Law Firm and Roger James of Ogletree Deakins

© 2020 ALRUD Law Firm and Ogletree, Deakins, Nash, Smoak and Stewart, P.C.