Two-phase introduction of Digital Employee Card in Manufacturing

As previously announced, from January 1st, 2024, the Digital Employee Card will be introduced in manufacturing. This process will take place in two phases, starting with large enterprises and then moving on to medium and smaller businesses, with a three-month transition period.

Developments are underway and the Digital Employee Card is ready to be implemented in the manufacturing industry starting on January 1st, 2024. Based on available information, government authorities are feverishly preparing as – when fully implemented – this measure will affect more than 500,000 employees in at least 65,000 businesses. The Minister of Labor has already stated that 2024 will be the year that the Digital Employee Card is fully implemented.

According to public officials, during the first phase, the card will be applied to large manufacturing enterprises, i.e., organizations that employ more than 250 people (similarly to banks and supermarkets). The second phase will involve implementation in manufacturing companies with less than 250 employees. This gradual process builds on what has been achieved so far, always considering the needs of each individual sector. In the case of manufacturing, for example, which is an important part of entrepreneurship, the matter presents significant challenges. In particular, the organization of working time takes different forms, as many businesses operating on a 24-hour basis can have up to 3 different shifts, combined with breaks etc.

In the case of retail, the sector is still fragmented, as it is dominated by medium and small businesses. In some cases, the employer is also the employee, and there are also businesses without an organized accounting department. In addition, the unique characteristics of remote work and work outside the office must also be taken into consideration. The good news is that officials are aware of these issues and are planning on meeting with all stakeholders to address as many concerns as possible, as early in the process as possible. In this context, the government will provide businesses with an adequate amount of time for them to get up to speed and make the necessary adjustments and acquire the required equipment, if necessary, to proceed with the implementation. The relevant ministerial orders are expected to be equally diversified.

It should be noted that, with the Digital Employee Card and the help of the right software, the upgraded ERGANI II system is updated in real time with the working hours of employees and then automatically classifies this time as regular working time, extra hours, overtime, etc. The same applies to breaks, days off, holidays, and so on.