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Procedure for concluding and amending an employment contract
Procedure for concluding and amending an employment contract
Until the recent amendments to the Labour Code, when changes were made to an employment contract, the employee was required to sign an additional document. Although since May 12, 2023, under the EMAS subsystem, changes to an employment contract were implemented by drafting a new employment contract, employers in practice only had employees sign the electronic contract in certain cases. As a result of the latest amendment, Part 6 of Article 46 of the Labour Code was supplemented with the following provision: “When amendments are made to employment contracts concluded in the form of an electronic document, the initial employment contract shall be redrafted and confirmed.” The topic is commented on by expert Anar Bayramov.
As the amendment indicates, when changes are made to the employment contract between the employer and employee, instead of an addendum, a new employment contract must be drafted based on the initial one.
Example 1: An employer changes the work schedule of an employee who signed an employment contract on January 10, 2024. Under the contract, effective September 1, 2024, the employee is transferred from a five-day work schedule to a six-day schedule. In this case, instead of an addendum, a new employment contract in electronic form is concluded on the basis of the January 10, 2024 contract. According to the agreement between the parties, the employee’s salary will be increased starting October 1, 2024. Since a new electronic employment contract is prepared, both the conditions dated January 10 and those dated September 1, 2024 will be reflected in the new electronic document, which will enter into legal force. Whenever an employer makes changes to an employment contract in the EMAS subsystem, a new electronic employment contract must be concluded.
Example 2: The employer made changes to an employee’s salary in an employment contract dated July 10, 2024. Since no changes were made to the contract after the most recent amendments to the Labour Code took effect on August 12, 2024, information on the employee in the EMAS subsystem is displayed not in the “Online Contract” section but in the “Employment Contract Notification” section. When the employer makes amendments to the employment contract, a new contract must be drafted electronically. In this case, the employee’s employment contract information will be moved from the “Employment Contract Notification” section to the “Online Contract” section.
Why was the collective employment contract abolished?
Before the latest amendments, Parts 2 and 3 of Article 46 of the Labour Code set out the basis for concluding employment contracts collectively. Specifically, prior to the amendment, the performance of certain work and services (construction-repair, loading-unloading, household, trade, agricultural, and livestock work) could be carried out collectively by two or more groups of employees. In such cases, the employment contract was concluded with the written consent of each member of the collective (team or group). The employees then authorized one representative to conclude the collective employment contract with the employer.
According to the new amendment, since employment contracts are signed electronically, the conditions for concluding a collective employment contract no longer apply. This is because, in the EMAS subsystem, each employee must confirm the employment contract using his or her enhanced electronic signature. In the case of collective employment contracts, the contract was concluded not with each employee individually but with a representative authorized to sign on behalf of the group. The latest amendments to the Labour Code regarding electronic employment contracts make collective employment contracts impossible. Therefore, Parts 2 and 3 of Article 46 of the Labour Code relating to collective employment contracts were repealed.
In conclusion, it should be noted that an employment contract concluded collectively and a collective agreement are different concepts. Therefore, our colleagues should not confuse the repealed collective employment contract with a collective agreement.
Until the recent amendments to the Labour Code, when changes were made to an employment contract, the employee was required to sign an additional document. Although since May 12, 2023, under the EMAS subsystem, changes to an employment contract were implemented by drafting a new employment contract, employers in practice only had employees sign the electronic contract in certain cases. As a result of the latest amendment, Part 6 of Article 46 of the Labour Code was supplemented with the following provision: “When amendments are made to employment contracts concluded in the form of an electronic document, the initial employment contract shall be redrafted and confirmed.” The topic is commented on by expert Anar Bayramov.
As the amendment indicates, when changes are made to the employment contract between the employer and employee, instead of an addendum, a new employment contract must be drafted based on the initial one.
Example 1: An employer changes the work schedule of an employee who signed an employment contract on January 10, 2024. Under the contract, effective September 1, 2024, the employee is transferred from a five-day work schedule to a six-day schedule. In this case, instead of an addendum, a new employment contract in electronic form is concluded on the basis of the January 10, 2024 contract. According to the agreement between the parties, the employee’s salary will be increased starting October 1, 2024. Since a new electronic employment contract is prepared, both the conditions dated January 10 and those dated September 1, 2024 will be reflected in the new electronic document, which will enter into legal force. Whenever an employer makes changes to an employment contract in the EMAS subsystem, a new electronic employment contract must be concluded.
Example 2: The employer made changes to an employee’s salary in an employment contract dated July 10, 2024. Since no changes were made to the contract after the most recent amendments to the Labour Code took effect on August 12, 2024, information on the employee in the EMAS subsystem is displayed not in the “Online Contract” section but in the “Employment Contract Notification” section. When the employer makes amendments to the employment contract, a new contract must be drafted electronically. In this case, the employee’s employment contract information will be moved from the “Employment Contract Notification” section to the “Online Contract” section.
Why was the collective employment contract abolished?
Before the latest amendments, Parts 2 and 3 of Article 46 of the Labour Code set out the basis for concluding employment contracts collectively. Specifically, prior to the amendment, the performance of certain work and services (construction-repair, loading-unloading, household, trade, agricultural, and livestock work) could be carried out collectively by two or more groups of employees. In such cases, the employment contract was concluded with the written consent of each member of the collective (team or group). The employees then authorized one representative to conclude the collective employment contract with the employer.
According to the new amendment, since employment contracts are signed electronically, the conditions for concluding a collective employment contract no longer apply. This is because, in the EMAS subsystem, each employee must confirm the employment contract using his or her enhanced electronic signature. In the case of collective employment contracts, the contract was concluded not with each employee individually but with a representative authorized to sign on behalf of the group. The latest amendments to the Labour Code regarding electronic employment contracts make collective employment contracts impossible. Therefore, Parts 2 and 3 of Article 46 of the Labour Code relating to collective employment contracts were repealed.
In conclusion, it should be noted that an employment contract concluded collectively and a collective agreement are different concepts. Therefore, our colleagues should not confuse the repealed collective employment contract with a collective agreement.