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When does an employment contract signed on different dates become effective?
When does an employment contract signed on different dates become effective?
Following the recent amendments to the Labour Code, it has become necessary to digitize employment contracts and related processes. But how are the legal effective dates of these documents and employee start dates regulated? Economist expert Anar Bayramov clarifies the issue with examples.
Let’s suppose that the employer prepares an employment contract in electronic format on August 26, 2024, and the employee signs it on August 27, 2024. The employer then confirms the contract signed by the employee on August 28, 2024. From which date does the employment contract become legally effective?
According to Article 49.1 of the Labour Code, when an employment contract or an amendment to it is signed with enhanced electronic signatures by both parties, the contract is considered concluded and legally effective from the date of the final signature. The term “date of final signature” is used in the article. Therefore, since the employer (the final party) signed the contract on August 28, 2024, it will be deemed legally effective from that date.
It is also worth noting that due to recent updates to the EMAS (Electronic Labour Contract Notification System) subsystem, a notification is generated indicating that the electronic employment contract was signed on the same day. It is still possible for the employee’s start date in the electronic contract to differ.
Example 1: The employer, in the electronic contract prepared on August 26, 2024, indicates that the employee’s start date is the same day. However, the new hire, due to technical or personal reasons (e.g., forgetfulness), signs the electronic contract on August 27, 2024. As a result, the employer also confirms it on that date. Should the employee’s salary be calculated from August 26, 2024?
Article 49 of the Labour Code states that for a contract to become legally effective, it must be signed with enhanced electronic signatures by both parties. Therefore, the contract is considered legally effective from August 27, 2024. If the employee begins work on August 26, 2024, then the government may apply an administrative penalty under Article 192.1 of the Code of Administrative Offenses for employing a person before the contract has become legally effective.
New requirements regarding the employee's start date have also been introduced. The model form included in Annex 1 of the Labour Code has been updated. Clause 2.4 of the contract provides two options regarding the employee's start date: from the date stated in the contract; or, if not signed before that date, from the date of signing.
Example 2: On September 2, 2024, the employer sends the electronic contract in the EMAS system to the employee for confirmation. The employee’s start date is stated as September 2, 2024. However, both parties sign the contract on September 3, 2024. In this case, the signing date is later than the stated start date. According to the Labour Code, the actual start date of the employee is considered to be September 3, 2024, not September 2.
It is also common in practice to set the employee’s start date to a past date in electronically signed employment contracts.
Example 3: The employer prepares a contract on August 26, 2024, stating the employee’s start date as September 2, 2024. The prospective employee signs it on August 27, and the employer signs it on August 28. Since the employee starts work on September 2, the different signature dates do not cause any issues.
If there is a risk of delays in signing the contract between the employer and candidate, it is advisable to set the employee's start date in the contract to a later date.
Following the recent amendments to the Labour Code, it has become necessary to digitize employment contracts and related processes. But how are the legal effective dates of these documents and employee start dates regulated? Economist expert Anar Bayramov clarifies the issue with examples.
Let’s suppose that the employer prepares an employment contract in electronic format on August 26, 2024, and the employee signs it on August 27, 2024. The employer then confirms the contract signed by the employee on August 28, 2024. From which date does the employment contract become legally effective?
According to Article 49.1 of the Labour Code, when an employment contract or an amendment to it is signed with enhanced electronic signatures by both parties, the contract is considered concluded and legally effective from the date of the final signature. The term “date of final signature” is used in the article. Therefore, since the employer (the final party) signed the contract on August 28, 2024, it will be deemed legally effective from that date.
It is also worth noting that due to recent updates to the EMAS (Electronic Labour Contract Notification System) subsystem, a notification is generated indicating that the electronic employment contract was signed on the same day. It is still possible for the employee’s start date in the electronic contract to differ.
Example 1: The employer, in the electronic contract prepared on August 26, 2024, indicates that the employee’s start date is the same day. However, the new hire, due to technical or personal reasons (e.g., forgetfulness), signs the electronic contract on August 27, 2024. As a result, the employer also confirms it on that date. Should the employee’s salary be calculated from August 26, 2024?
Article 49 of the Labour Code states that for a contract to become legally effective, it must be signed with enhanced electronic signatures by both parties. Therefore, the contract is considered legally effective from August 27, 2024. If the employee begins work on August 26, 2024, then the government may apply an administrative penalty under Article 192.1 of the Code of Administrative Offenses for employing a person before the contract has become legally effective.
New requirements regarding the employee's start date have also been introduced. The model form included in Annex 1 of the Labour Code has been updated. Clause 2.4 of the contract provides two options regarding the employee's start date: from the date stated in the contract; or, if not signed before that date, from the date of signing.
Example 2: On September 2, 2024, the employer sends the electronic contract in the EMAS system to the employee for confirmation. The employee’s start date is stated as September 2, 2024. However, both parties sign the contract on September 3, 2024. In this case, the signing date is later than the stated start date. According to the Labour Code, the actual start date of the employee is considered to be September 3, 2024, not September 2.
It is also common in practice to set the employee’s start date to a past date in electronically signed employment contracts.
Example 3: The employer prepares a contract on August 26, 2024, stating the employee’s start date as September 2, 2024. The prospective employee signs it on August 27, and the employer signs it on August 28. Since the employee starts work on September 2, the different signature dates do not cause any issues.
If there is a risk of delays in signing the contract between the employer and candidate, it is advisable to set the employee's start date in the contract to a later date.