Why not switch to a paperless payslip?

What is a paperless payslip?

Although paperless pay slips are still far from the norm in France, they are gradually gaining ground in companies. And with good reason: it offers a number of advantages, both for the employee and the employer.

But to deploy this new process, it's not enough simply to send the document electronically in PDF format! There are a number of legal obligations that need to be met.

What are they? What are the practical benefits of this system? How can employees refuse to accept electronic pay slips?

These are just some of the questions we'll be answering in this article, to help organisations who want to take the plunge!

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What is a dematerialised payslip?

A dematerialised payslip (also known as an electronic payslip or BSE) is similar to the paper version, except that it is sent in electronic format.

Employees can consult their dematerialised 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 method of distribution, as it is not a legal requirement. However, if they do, there are regulatory obligations to be met.

What are the legal requirements for electronic pay slips?

Mandatory information

In terms of content, nothing changes compared with the paper version. The same compulsory information is required:

• the identity of the employee and the employer,
• the period and number of hours worked,
• pay (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,
• the date of holiday and holiday pay if taken during the period in question,
• the payment date.

The specific features of electronic pay slips

Various laws have been passed to regulate the dematerialisation of payslips.

• The law of 12 May 2009 (no. 2009-526) on simplifying and clarifying the law and streamlining procedures stipulates that the introduction of electronic pay slips :
  • requires the prior written agreement of employees
  • must guarantee the integrity of the data contained in the document.
    
    
• The law of 8 August 2016 (no. 2016-1088), which came into force on 1 January 2017, removes this prior agreement. However, employees may object to the procedure if they wish.

So what are the company's specific obligations towards its employees?

Informing employees

The company is obliged to inform its employees about the introduction of this new system, at least one month before issuing the first dematerialised pay slip (or at the time 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 them. What's more, the employee can demand this at any time, as long as 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 organisations have to juggle between paper pay slips and their dematerialised version.

Ensuring the integrity, availability, confidentiality and accessibility of payslips

The law specifies the following obligations:

"Unless the employee objects, the employer may provide 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 of the data as well as their accessibility within the framework of the service associated with the account mentioned in 2° of II of article L.5151-6. ".

More specifically, this means that employees must be able to access their electronic pay slips via a digital safe:

• for at least 50 years
• or until they are 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 give employees at least 3 months' notice so that they can make arrangements to obtain their documents.

In addition, the system put in place must enable employees to retrieve their electronic payslips 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 the data cannot be modified
• has an authentication system to protect access, and thus ensure confidentiality.

Finally, if the organisation opts for electronic pay slips, they must be deposited on the employees' 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 dematerialise payslips? The advantages

The dematerialisation of payslips is becoming increasingly popular because it offers a number of advantages for both employees and companies.

For employees: access to pay slips

No matter where employees are, they can access their payslips at any time, in just a few clicks. From a computer, mobile phone or tablet. In other words, this process avoids tedious searches through files or the loss of documents.

What's more, dematerialisation means that all the information can be centralised in the employee's personal activity account, making it easier to prepare for retirement.

For the company: easier management and time savings

As far as the employer is concerned, sending the payslip is made easier.

Remember that paper documents require a lot of work:

• printing pay slips
• postage when sent by post,
• sorting
• archiving in files.

All these activities waste a lot of time for HR teams, even though they are tasks with little added value for the company. Imagine what this means for organisations with several hundred employees!

For the company: savings

For 1,000 employees, labour costs are estimated to fall from nearly €20,000 to €0! [...]

In total, the pay slip costs €0.40 per electronic pay slip, compared with €2.53 for a paper pay slip.

Source : Pixid

Thanks to the dematerialised payslip, companies can save:

• on postage and paper: postage costs, ink, paper, etc. The price of a dematerialised payslip is less than 50 cents;
• on archiving: all the paper documents that need to be kept take up space... and therefore space on the premises, where some organisations 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 business.

And the drawbacks?

In France, only 20% of payslips are electronic (compared with 95% in Germany, source: digipaye).

The main disadvantage of this system therefore 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. That's 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.

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How do you set up a paperless payslip?

The employer's first step is to inform the employee or future employee about the introduction of the electronic 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, in order to encourage them to approve the system.

Next, the company must choose the tool that will ensure its compliance with the law. It should be remembered that it is obliged to guarantee the confidentiality and integrity of the electronic payslip via a safe, but also to 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. As well as simplifying the production of pay slips, the software makes it easy to distribute them 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 paperless payslips? Don't hesitate to share your experience and advice in the comments.