Why not switch to a paperless payslip?
What is a dematerialized payslip?
Although dematerialized pay slips are far from being the norm in France, they are gradually gaining ground in companies. And with good reason, as it offers numerous advantages for both employee and employer.
But to deploy this new process, it's not enough simply to transmit the document electronically in PDF format! There are a number of legal obligations to be met.
What are they? What are the practical benefits? How can employees refuse to accept electronic pay slips?
These are just some of the questions we'll be answering in this article, in order to help organizations take the plunge!
What is a dematerialized payslip?
A dematerialized payslip (also known as a bulletin de salaire électronique or BSE) is similar to the paper version, except that it is transmitted in electronic format.
Employees can then consult their dematerialized payslip via their CPA(personal activity account) and in a digital safe made available to them.
If issued correctly, the electronic payslip has the same legal value as the paper version.
Employers can choose not to opt for this distribution method, as it is not a legal requirement. On the other hand, if they do, there are regulatory obligations to be met.
What are the legal requirements for dematerialized pay slips?
Mandatory information
In terms of content, nothing changes with respect to the paper version. The same compulsory information is required:
- identity of employee and employer,
- the period and number of hours worked,
- remuneration (gross, net and net taxable),
- the amount of income tax deducted at source,
- the nature and amount of other payments or deductions,
- social security contributions,
- vacation dates and vacation pay, if taken during the period in question,
- payment date.
Specific features of electronic pay slips
Various laws have been passed to regulate the dematerialization of pay slips.
- The law of May 12, 2009 (no. 2009-526), on the simplification and clarification of the law and the streamlining of procedures, stipulates that the introduction of dematerialized pay slips :
- requires the prior written consent of employees,
- must guarantee the integrity of the data contained in the document.
- The law of August 8, 2016 (no. 2016-1088), which came into force on January 1, 2017, withdraws this prior agreement. On the other hand, the employee can object to the procedure if he or she so wishes.
So what are the company's concrete obligations towards its employees?
Informing employees
The company is obliged to inform its employees of the introduction of this new system, at least one month before issuing the first dematerialized pay slip (or at the time of hiring in the case of recruitment).
But what happens if an employee refuses to receive a paperless payslip?
If an employee objects, the employer is obliged to keep the paper version for him or her. In fact, the employee can demand this at any time, provided the request is notified by a means that confers a date certain. The company then has a maximum of three months to act accordingly.
This is why some organizations have to juggle paper pay slips with their dematerialized version.
Ensuring the integrity, availability, confidentiality and accessibility of pay slips
The law specifies the following obligations:
"Unless the employee objects, the employer may deliver the pay slip in electronic form, under conditions that guarantee the integrity, availability, confidentiality and accessibility of the pay slip. for a period set by decree, and the confidentiality and accessibility of the data as part of the service associated with the account mentioned in 2° of II of article L.5151-6. ".
More concretely, this text means that employees must be able to access their dematerialized pay slips, via a digital safe :
- for at least 50 years,
- or until they turn 75.
This will make it easier for them to manage their pension entitlements.
And if the company ceases trading? Then the company is obliged to notify employees at least 3 months in advance, so that they can make arrangements to obtain their documents.
In addition, the system must enable employees to retrieve their electronic pay slips at any time, without any complex handling.
In terms of integrity and confidentiality, compliance with the law requires that the system chosen by the employer :
- guarantees that data cannot be modified,
- has an authentication system to protect access, and thus ensure confidentiality.
Finally, if the organization opts to dematerialize pay slips, they must be deposited on the employee's personal activity account, or CPA.
Note: employers are required to keep a copy of the payslip (in paper or electronic format ) for at least 5 years.
Why dematerialize payslips? The advantages
The dematerialization of payslips is becoming increasingly popular, because it offers numerous advantages for both employees and the company.
For employees: access to pay slips
No matter where employees are located, they can access their pay slips at any time, in just a few clicks. And this from a computer, cell phone or tablet. In other words, this process eliminates the need for tedious file searches or lost documents.
What's more, dematerialization makes it possible to centralize all information in the employee's personal activity account, making it easier to prepare for retirement.
For the company: easier management and time savings
On the employer's side, transmission of the payslip is made easier.
The paper document requires numerous operations:
- printing pay slips,
- postage when sent by post,
- sorting,
- archiving in files.
All these activities are time-consuming for HR teams, even though they represent low value-added tasks for the company. Just imagine what this means for organizations with several hundred employees!
For the company: savings
For 1,000 employees, labor costs are estimated to drop from nearly 20,000 euros to 0! [...]
In total, the pay slip costs €0.40 per electronic slip, compared with €2.53 for a paper slip.
Source : Pixid
With the dematerialized payslip, the company saves:
- on mailing and paper: postage, ink, paper, etc. The price of a dematerialized payslip is less than 50 cents;
- on archiving: all those paper documents that need to be kept take up space... and therefore space on the premises, where some organizations end up feeling cramped;
- thanks to the ROI generated: as mentioned above, the time of dedicated teams is no longer used for all these time-consuming tasks, but for creating value for the company.
And the drawbacks?
In France, only 20% of pay slips are electronic (compared with 95% in Germany, source: digipaye).
The main drawback of this system lies in the obstacles to be overcome, in particular resistance to change on the part of employers and employees alike.
There are also fears about IT security and data confidentiality. This is why companies wishing to introduce paperless pay slips need to take the time to find the most suitable tool.
Finally, some employers do not immediately see the ROI of such a system, even though the cost of setting up an electronic safe can be high.
How do you set up a paperless payslip?
The employer's first step is to inform the employee or future employee about the dematerialized payslip. Indeed, we have seen that this is a legal obligation.
💡 This communication work is also an opportunity to explain the benefits of the electronic payslip to the most recalcitrant employees, to encourage them to approve this system.
Next, the company must choose the tool that will ensure its compliance with the law. In addition to guaranteeing the confidentiality and integrity of the electronic payslip via a safe, the company must also comply with certain archiving conditions. In other words, no more PDF documents sent by e-mail.
There are many solutions on the market capable of meeting these conditions. Sage Business Cloud Paie, for example, is tailored to the needs of VSEs and SMEs. In addition to simplifying the production of pay slips, the software enables them to be easily distributed in a digital safe, accessible to the employee for life. All data is perfectly secure, and HR documents are filed, time-stamped and archived to ensure traceability.
Have you taken the plunge and adopted dematerialized pay slips? Feel free to share your experience and advice in the comments.
Article translated from French