Concept for a modern labour record system

Transcription

1 Policy Briefing Series [PB/08/2015] Concept for a modern labour record system Ulrike Bechmann, Jörg Radeke Berlin/Chisinau, October 2015

2 Background Background and Objectives Moldovan labour regulation requires employers and employees to maintain a paper-based labour book (Carnet de muncă / Трудовая книжка) Replacement discussed since 1998 when new books introduced 2007: Ministry of Justice working group to reform labour books Survey of HR-Managers: Majority is in favour of replacing Objectives Part 1: Assessment of the exist labour books Part 2: Steps for shifting to a modern employment record system 2

3 Part One: Assessment of the existing labour books 3

4 Original purpose of labour books Main functions of labour books when they were introduced: Record of payments and social insurance contributions (record of work experience and insured working years) Education and employment record Proof of employment contract Reason for dismissal (employer has to provide reason, measure to protect employee rights) Basic documentation for labour inspections Conclusion: Before advent of electronic systems, labour books important instrument to provide labour records 4

5 Personal data Data collected in the labour books Full name Date of birth Marital status and changes related to marital status Full name of spouse and children Educational record Name of schools attended for primary and secondary education Name of University and University degree Time of enrolment Trainings Employment record Title of enterprise which issued the labour book Date of issuance of the document and the signature of employer Job skills Information about relations between employer and employee (job starting and ending dates, company name, job title, promotions, reason for dismissal) confirmed by the stamp and signature of HR responsible Other data State identification number of the employee (IDNP) State identification number of the company where he works (IDNO) 5

6 Little relevance of labour books today Record of payments and social insurance contributions Little relevance for pension calculation Since 1999 electronic register of social insurance contribution under CNAS Pension entitlements earned before 1999 based on labour books Education and employment record Increasing role of CVs But: Labour book is sometimes still requested as official document Proof of employment contract and reason for dismissal Legal obligation provide labour books to verify legal employment exists Redundant information: Labour contracts and CNAS database as well as dismissal agreement serve this purpose Basic documentation for labour inspections Labour books important document requested during labour inspections However, Labour Inspectorate already has some access to CNAS data 6

7 Requirements of a modern labour record system Ease of administration for all stakeholders Minimise data redundancy Data and information exchange between government bodies Data security and data privacy Protection against fraud Allow timely registration of employment contracts Inform employees about changes to their labour records to be checked against information provided by the employer Conclusion: Labour books do not fulfil requirements of a modern labour record system 7

8 Overall assessment and recommendation Assessment Paper-based labour books outdated, functions largely replaced by other instruments Labour books do not meet the requirements of a modern labour record system Main recommendation Replace the old labour books by a modern electronic labour record system 8

9 Part 2: Steps for shifting to a modern employment record system 9

10 Main tasks required for modernising Moldova s employment record system Design and Create Database Modify Labour Code Optional: Digitalise Labour Books Specify data requirements Conception of database Define Access rights Time frame Obligations of employer and employee Data security regulations Collect labour books Scan and transmit relevant data Return labour books to employee Source: Own display 10

11 Task 1: Design and create a suitable database Specify data requirements and concept of database Consultation with future users of database Define data to be stored (depending on users and purpose) Compare with existing data Define who has access to which data Create data submission channels Create data reports for users Clarify responsible institution for database Note: This task should be supported by an external data base specialist 11

12 Personal data Data items currently stored by CNAS ID number and name of employee Address of employee Work related data ID number and name of company Period of employment (monthly data) Number of working days per week Category of insurance (e.g. civil servant, employee in private company, etc.) Function of employee Monthly salary Sick leave Social insurance contribution of employee (calculated and de facto) Social insurance contribution of employer (calculated and de facto) Source: Own analysis 12

13 Special attention: Data access for employees Ensuring that employees have good access to their data should be a priority Measures Allow online access to stored data Provide a standardised report in regular intervals at least once employment starts and finishes Thus employees can verify that employment and payments are properly reported If successful, new labour record system could become important instrument against informal employment 13

14 Transition period of six months Task 2: Modify labour code Introducing and testing the new labour record system During transition parallel use of labour books and electronic register Employer obligations Define data to be submitted and according deadlines Obligation to issue a copy of employment contract, dismissal agreement and a certificate of employment to the employee Data access and personal data protection Regulate access rights Balance between data protection and facilitation of work Data security regulation Decentralised back-up system Notification of employees about changes made to their data 14

15 Optional task: Digitalising labour books Note: Digitalising of labour books not strictly necessary in order to abolish obligation to maintain labour books Reasons for digitalising the labour books Calculation of pension entitlements can be fully done electronically Employees not responsible to keep safe old labour books Steps to be taken: 1. Collect the labour books, e.g. by local labour inspectorates 2. Scan the labour books 3. Transmit the scans to CNAS to be incorporated in the database 4. Return the labour books to companies and hand them back to employees 15

16 Time requirements Task Month Institution 1 Cabinet approval 1 Ministry of Labour 2 Database design 2-3 Ministry of Labour, CNAS, a) Stakeholder consultation external consultant b) Development of user cases c) Data requirements 3 Set up of new employment register 3-4 External consultant, CNAS 4 Testing of new employment register 5 External consultant 5 Draft of amended labour code and secondary 3-6 Ministry of Labour legislation 6 Training of relevant staff 6-8 CNAS, Ministry of Labour, Labour Inspectorate 7 Information campaign for employers and 6-8 CNAS, Ministry of Labour employees Contingency 2 months Total time requirement 8-10 month Transition period (labour books exist alongside new electronic register) 6 months Replacement of paper-based labour books with electronic register Legal requirement to maintain paper-based labour book abolished 16

17 Benefits of a modern labour record system Brings system in line with best international practice Ease of administrative burden Easy access for all stakeholders to check the data entered Facilitation of work of public administration, e.g. labour inspectorates Simplification of information exchange between relevant authorities Reduction of fraud Improve checks and balances Reduces incentives for informal employment Conclusion: Low cost reform with significant benefits 17

18 Ulrike Bechmann Jörg Radeke Contact c/o BE Berlin Economics GmbH Schillerstr. 59, D Berlin Tel: / Fax: /