Legislative changes in HRM

In Russia changes of the personnel legislation happen rather often. For example, only for 2011 twelve federal laws which made changes to the Labor code were issued (all from the moment of acceptance in 2001 the Labor Code of the Russian Federation changed 47 times). Changes and additions were three times made to Federal law No. 255-FZ "About compulsory social insurance on a case of temporary disability and in connection with motherhood" in the same 2011. Naturally similar frequency of changes of regulatory legal acts creates certain difficulties on updating of the systems of the class HRM. Often changes also concern an order of charge of insurance premiums and payment from different public foundations, such as calculation of compensation of sick leave notes.

In timely automation of changes there are two main problems:

• An insufficient time frame between acceptance and entry into force of the adopted legal act. A bright example is the federal law No. 143350-6 which is still not signed by the president "About making changes in separate legal acts of the Russian Federation concerning mandatory pension insurance". On forty nine pages of this document changes for eleven existing federal laws are stated. One month is not enough on their implementation.

• Ambiguity of application of new legal acts for different situations in the enterprise. Business experts which set a task of automation are sometimes forced to write letters to tax and other authorities for explanation of disputed issues. These amendments lead to considerable reduction of time for design and implementation of the accepted legislative changes.

For users of the systems of change in the legislation also create certain difficulties. So, after customization of the HRM systems of some producers with receiving timely updates there can be problems. Sometimes the companies should refuse all the tunings performed earlier to have an opportunity to update the program and to consider legislative changes. In some systems customers are given an opportunity of independent making changes for the solution of this problem.

Vendors of HRM also prepare the updates provided to all users under the terms of licenses. Taking into account changes of the legislation in a year 6-7 updates are necessary on average. To developers of systems it is necessary not only to monitor attentively such changes, but also to provide operational completion of the author's software, informing users, to make updating of the programs installed at them.

Focus only on the Russian legislation, more "deep immersion in its specifics", methodological support from the Russian users and incomparably bigger, than at foreign colleagues, experience in the Russian market allow our producers often more quickly and to qualitatively solve such problems. The western vendor, as a rule, transfers making changes to the contractor knowing subtleties of the Russian legislation: it is longer process.

In practice the situation is more difficult, and at the western systems is as well the strengths. If at implementation of the western HRM systems automation of providing the reporting in regulatory authorities (the Ministry of Taxes and Tax Collection, RPF, the Federal Law, the Social Insurance Fund) can become a problem area, then the Russian systems can demand completion for compliance to corporate requirements of the parent company. System integrators also aim to reduce a gap in preparation of necessary changes by the western vendors.

Until recently the companies implementing solutions on domestic HRM platforms practiced release of updates of a system to the official declaration of changes in the legislation while the foreign companies preferred not to begin works before the official publication in the Russian newspaper, thereby reducing risks on work in a basket.

However, the publication of draft documents on the Internet, on the official sites of the relevant public services is performed recently, and the western companies considered possible to begin work on changes on the basis of such projects, thereby even more reducing terms of release of service packs after the introduction of changes in force.