The Path to the Digital Personnel File

Digital personnel files are increasingly becoming the norm in the modern workplace. In this age of digitalization, companies are under pressure to optimize their processes and make them more efficient. Switching to a digital personnel file system offers numerous advantages: HR workflows can be streamlined, leading to significant savings in time and costs. At the same time, however, companies must ensure that they comply with all relevant labor law regulations when introducing and using digital personnel files. These include, among other things, the involvement of the works council and compliance with data protection requirements. In addition, there is the practical question of how to handle existing paper files. This article highlights the most important aspects and challenges, with a particular focus on the transition process.

Involvement of the Works Council

In companies with a works council, certain participation rights must be observed. The works council has a right to information and must be informed in advance about the introduction of the digital personnel file. In certain cases where the software is designed to track employee behavior or performance, the works council has an enforceable right of co-determination. In such cases, it is advisable to conclude a works agreement with the works council at an early stage.

Data protection requirements

The digital personnel file must comply with the data protection requirements of the General Data Protection Regulation (GDPR) and the Federal Data Protection Act (BDSG). Only data necessary for the establishment, execution, or termination of the employment relationship may be included in the digital file. Alternatively, consent could be obtained from each employee, though this is impractical. A works agreement can also provide a legal basis.

Transition process

When transitioning from paper to digital files, the question arises as to what should be done with the original paper documents. Several aspects must be taken into account:

Legal requirements and evidentiary value

From a labor law perspective, there are certain documents that must be retained in their original form even after digitization. These include, among others, (fixed-term) employment contracts, notices of termination, and termination agreements. The reason for this is the special evidentiary value that original documents hold in legal disputes. If an employer cannot produce these originals in the event of a legal dispute, they may face difficulties in proving their case. In the worst-case scenario, failure to comply with the legal requirement for written form could lead to an unfavorable judgment.

Practical Implementation

Practice shows that many companies nevertheless tend to manage all documents exclusively in digital form to save space and reduce administrative effort. In such cases, it is advisable to take special security precautions. These may include, for example:

• Creating digital copies with high security standards: It is essential to ensure that the digital copies are tamper-proof and accessible at all times.
• Regular backups: Backing up digital data multiple times at different locations protects against data loss due to technical defects or other unforeseen events.
• Use of digital signatures: Digital signatures can guarantee the authenticity and integrity of the documents and thus support their evidential value.

Documentation and Traceability

Another important point is the detailed documentation of the digitization process. Every conversion from paper to digital documents should be logged so that it can be proven later that the digital versions correspond to the originals. These logs should precisely record:

• Who digitized the documents
• When and how the digitization was performed
• What security measures were taken

Through careful planning and implementation of the conversion process, companies can ensure that they not only meet legal requirements but also make the most of the benefits of digital personnel files.

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