Electronic labor book. Commentary on the changes in the Labor Code.

On 10.10.2023, issue 85 of the State Gazette was published Law on Amendments and Supplements to the Labour Code (entry into force on 1 June 2025), which foresees the long-awaited change to modernize the already outdated system of chronological recording of people's work activity, namely: the abolition of the paper work book and its replacement with an electronic one. The changes are an expression of the effective use of technological progress in the interests of society. They are expressed in the digitalization of labor relations through:

• creation of a register of employment to The National Revenue Agency(“NRA”), which will contain information regarding the electronic employment records of all workers or employees. Employers will make entries on the circumstances concerning the conclusion, amendment and termination of employment contracts in the Employment Register.
• issuing an Ordinance of the Council of Ministers, on the proposal of the Minister of Labor and Social Policy, which will contain the procedure for entering the circumstances in the Employment Register. The ordinance will also specify the format and procedure for storing data in the register, the order and deadlines for entering, deleting and certifying circumstances, conditions for access to data, etc.
• the use of an electronic employment record to record, reflect and store data relating to the employment relationship, instead of doing so through a paper body.

What are the electronic work book and the unified electronic work record?

The electronic work bookis an innovative solution of the legislator, replacing the paper form of labor records with a digital system for storing and managing the labor information of workers and employees. The Unified Electronic Labor Recordconstitutes an official source of data and circumstances related to the work activity of the worker or employee and will be used for their verification. It provides for the complete abandonment of work books, and not the possibility of choosing between an electronic employment record and a paper version. The traditional format will be completely replaced by the electronic labor record.

The planned changes must be implemented within the following deadlines:

In due time until June 1, 2024 The Council of Ministersshould adopt an Ordinance on the procedure for entering circumstances in the Employment Register.

In due time until June 1, 2025. the NRA Employment Register should be established and the initial data should be filled in on the basis of the register of employment contracts and, if necessary, other sources.

In due time to June 1, 2026. employersshould return the duly formed work books to their workers or employees, from which point the newly introduced electronic employment record will also be used. Pending the entry into force of the changes, the paper work book will still be considered an official certifying document for the circumstances entered into it. After this period, the electronic labor record will have the same function. When the work book is lost or destroyed, the relevant Directorate of Labor Inspectorate issues a new one and records data on the length of service acquired before June 1, 2025, on the basis of a written application-declaration of the employee.

Concerning civil servants: Within 31 December 2026 or in the event of termination of the employment relationship in the period from 1 June 2026 to 31 December 2026.the appointing authorities shall draw up the service book of civil servants, and the length of service completed by the civil servant as of 1 June 2026 shall be recorded in the service book in numbers and words. After the formation and service book, it is immediately returned to the civil servant. The data on the current employment relationship should be entered in the Employment Register by the relevant appointing authority within a period of June 1, 2026

What are the benefits for employees and employers of these changes?

The aim of the proposed amendments is to reduce the administrative burden for employers, to raise data protectionof workers and employees and to reduce difficulties in determining seniority, especially in cases of loss of employment record. The use of the paper workbook leads to a number of other problems such as:

• difficulties associated with reading illegible handwriting, the affixing of stamps on the text, fading of the pen and wasting of the paper;
• the lack of a single standard in filling out work books - either due to different practices in individual enterprises, or due to ignorance;
• lack of sufficient space for corrections in the work book in case of technical errors made;
• carrying the work book by the employee in various places for its presentation, formation and use, which leads to the loss and tearing of the paper, and not infrequently to the loss of the document;
• the ability to manipulate information in paper work books.

Electronic keeping of data on the length of service fully solves the above problems, which are mainly related to the storage of work books. Data and circumstances related to labor activity, will be certified by the Unified Electronic Labor Record, which will become the official source of such information. The completion of the records and corrections in the electronic work file will be done electronically, without the need for the physical distribution of the work book. The electronic work record will provide access to the information entered in it in real time, and the changes will be reflected immediately.

In conclusion, we should take into account the upcoming changes as a manifestation of the positive implementation of digital technologies in public life in order to improve it and alleviate it from the burdensome procedure for registering any changes in the labor relations.This will mainly be reflected in accelerated administration of documentation by state authorities, will give clarity, accessibility and security to employees/workers and employers.

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