Work records
Current as of January 2, 2019
The name of the company carries a lot of meaning. It is a reflection of the main activities of the organization, its internal structure and essence. You can easily identify a company by its name. This is a name that remains with the company throughout its entire existence and is closely associated with it. This is why it is so difficult to rename a company. In addition, it is not always clear how to make an entry in the work book about renaming an organization. And if the recording is incorrectly formatted, will it have legal force? We will answer the most important questions and provide a correct sample entry for 2021.
In what cases does the name of a legal entity change?
According to paragraph 3 of Art. 1473 of the Civil Code of the Russian Federation, each organization must have a name, which is indicated in the charter documents. But sometimes in the course of a company’s activities situations arise when it has to change its name. The reasons for this can be very different:
- reorganization with the separation of a new legal entity or, conversely, the merger of two enterprises;
- the owner’s desire to change the old company name to a more sonorous one;
- change in the organizational and legal form of ownership.
Regardless of the reason for changing the name, first of all it is necessary to make changes to the Unified State Register of Legal Entities and statutory documents - only after this the company will be considered renamed.
Changing the name entails the need to make appropriate changes in the organization’s documents, including personnel documents.
Think before you name
There are a number of legal requirements for the name of an organization, and along with them, unwritten rules, compliance with which will not only avoid mistakes when registering a name, but also increase its effectiveness.
Any organization has a full and abbreviated name, distinguished by the decoding of its legal form: LLC, CJSC, State Unitary Enterprise, Municipal Unitary Enterprise, OJSC, JSCB, etc. (Article 54 of the Civil Code of the Russian Federation).
Some organizations are required to indicate in their name the nature of their main activities:
- credit organizations - the name must use the word “bank”, “banking”, etc., and if it is contained in the abbreviation of the full name, for example AKB, it is no longer necessary to insert it into its name;
- insurance companies - you need to use word forms of the words “insurance”, “reinsurance”, “insurance broker”, etc.;
- pawnshops, exchanges – it is necessary to use these words and/or their forms in the name;
- Non-profit organizations (religious, public, consumer, etc.) by their name must indicate what they do.
ATTENTION! The word “clearing” in the name may be used exclusively by clearing organizations and no others. Similar requirements apply to the words “exchange” and “microfinance organization”.
The following cannot be included in the title:
- words denoting government bodies at any level (except for organizations established with the participation of the state);
- previously registered names of international and intergovernmental associations;
- words and combinations that do not meet the requirements of morality, humanism, and the interests of society.
Some words require special permission to be used in the title.
The organization must be named exclusively in the state (Russian) language. This requirement does not exclude the possibility of using foreign words, but only in Russian transcription.
IMPORTANT! The name of the organization is considered registered and “occupied” from a legal point of view from the moment it is entered into the Unified State Register of Legal Entities. Only from this moment can it begin to be used for its intended purpose: indicated in advertising, on product packaging, in documentation, etc.
Grounds for making changes to the work book
According to the Instructions for filling out work books, approved by Resolution of the Ministry of Labor of Russia dated October 10, 2003 No. 69, the work book of each employee must contain the full name of the organization and an abbreviated version (if available). In this case, you cannot enter only an abbreviated name without indicating the full name.
This means that after the company where the employee works has changed its name, this must be reflected in the work book.
Find out more about the procedure for filling out work books here.
The basis for making changes to the work book will be the internal administrative document on the change of name. This could be an order, resolution, decision of a meeting of founders, etc.
Only after the publication of this document can new entries be made in the work book.
Basic requirements for making entries in the work book
When making changes to an employee’s work book, you must follow the Instructions for filling out work books:
- Entries in the work book are made only in blue, purple or black ink; the use of other colors is unacceptable.
- The entry must be made in legible handwriting, without factual or spelling errors.
- All numerical entries are entered in Arabic numerals only.
- All entries must be entered in full; abbreviations are not allowed.
- You cannot make corrections in records by crossing out or shading an error, and you cannot use a proofreader.
All these rules will equally apply to changes in the name of the organization.
The procedure for making an entry about changing the name of the employer in the work book
The information is entered in the empty line that follows the last entry, regardless of what kind of entry it is (for example, about admission and dismissal from external part-time work).
Columns 1 and 2 of the work book are not filled out.
In the 3rd column of the work book, where information about the work is indicated, an entry about the renaming is made. It should contain the following information:
- old name in full;
- new name in full;
- date of renaming;
- reason for renaming;
An example of an entry in a work book about renaming an organization at the request of the owner:
Limited liability company "Romashka" was renamed into limited liability company "Nezabudka" from 06/01/2017 due to amendments to the charter documents.
An example of making an entry in a work book during reorganization with the creation of a new legal entity:
The limited liability company "Romashka" was reorganized with the separation of a legal entity into the limited liability company "Nezabudka" from 06/01/2017.
An example of making an entry in a work book when changing the legal form of an enterprise:
Open joint-stock company "Romashka" was renamed into public joint-stock company "Romashka" from 06/01/2017 due to amendments to the charter documents of the organization.
In the 4th column the basis for the renaming is indicated, its name, date and number, for example: order No. 58 dated 06/01/2017.
The procedure for recording information about making changes to the work book when changing the name of the organization is regulated by clause 3.2 of the Instructions for filling out work books and does not depend on the form of ownership of the organization.
We formalize relations with employees during reorganization
The article from the magazine “MAIN BOOK” is current as of February 10, 2012 E.A. Shapoval, lawyer, Ph.D. n. In this article, we told you how to correctly formalize relations with the employees of the reorganized company during a reorganization.
Requirements for the execution of documents drawn up in such a situation have not been established. We present their possible samples. Please note that we are considering a case where, as a result of reorganization, only the name of the employer changes, but the terms of the employment contract remain the same.
The notification is prepared in any form. Moscow November 29, 2011 To accountant O.I. Kiseleva Dear Olga Ivanovna! We notify you that in connection with the decision of the general meeting of participants dated November 15, 2011, Nostalgia LLC will be reorganized from February 1, 2012 in the form of merger with Harmony LLC.
Based on Art. 75 of the Labor Code of the Russian Federation, reorganization is not a basis for terminating employment contracts with employees.
We recommend reading: Privatization of an apartment without the consent of those registered
Nuances of making an entry in the work book about renaming an organization
Depending on the reason for the change of employer's name, in some cases not all employees will need to change records.
Example
A reorganization took place, and the Romashka enterprise merged with the Nezabudka enterprise. Accordingly, the new legal entity will now bear the name “Romashka”. Only Nezabudka employees will need to make changes to the work book; Romashka employees will not need to make new entries, since the name of their employer has not changed.
This example should not be confused with a situation where one organization is liquidated and its employees are transferred to another. In this case, there will be no record of the change. The employee will need to be fired from one enterprise and hired into another, indicating the grounds.
Why change the name of the organization
The name of a company is not only its “face” and a recognizable brand, it is also a legislative act.
By assigning a name to an organization, the owners or founders record it in various legislative documents, thus distinguishing themselves from other legal entities. In addition, the name also carries a psychological message. For what reasons may it be necessary to “re-baptize” an organization:
- Desire of managers. If suddenly a new interesting and bright idea has appeared that best suits the activities of the organization, with which all the founders agree, then why not change the outdated name?
- Market trends dictate . Economic conditions are very dynamic, and their changes may require a change of course, which may also be expressed in the name.
- Reorganization. The company merged with another, split up, changed the direction of its activities - in any case, the old name no longer reflects its essence and needs to be replaced.
- The court's decision. Sometimes a name change may be forced, for example, if errors were made in assigning it or it is similar or identical to the existing name of another organization.
Whatever the reason for renaming, it should be done using the same algorithm.
Translation or renaming?
If all changes (renames) have been officially made to the staff, then a similar entry must be made in the work book approximately in the following form: “Radiological Department of the Security Service” has been renamed to “Radiation Safety Department”.
Some personnel officers believe that records of a change in the name of a department should be prepared in the same way as records of the transfer of an employee to another department.
There are some reasons for this opinion, since the transfer of an employee to another department is considered a change in one of the essential terms of the employment contract, which is the name of the department.
Deciphering this complex wording, we can say that the name of the department (division, service, directorate) and the position occupied by the employee are indicated in the contract, therefore they are its essential conditions. And any change in the essential terms of the contract (it does not matter what kind of work the person performs) is traditionally considered a transfer among old personnel officers and is formalized in this way in the work book due to the fact that the Instructions have not developed a clear definition on this matter.
Indeed, in the Instructions there are no indications of such entries as “department ... renamed.” Therefore, a change in the name of a department, department, directorate or division is often formalized as a transfer. However, it is more reasonable to write in the employment document not “Transferred to the Radiation Safety Department,” but as indicated above.
Although the Instructions do not clearly state the entry in the work book due to a change in the name of the department, it is necessary to distinguish between a change in the department itself and a change in the name of the department in which the employee works.
A change in the department itself (its composition, functions, etc.) will entail a transfer record. A change in the name of the department will be considered a transformation of the essential terms of the employment contract, which are not related to the transfer and do not require the mandatory consent of the employee.
Changing the name of the department (if the condition of working in a specific department was included in the contract signed with the employee) can be classified as a modification of its conditions (paragraph 3 of part 2, paragraph 2 of part 4 of article 57 of the Labor Code of the Russian Federation).
These changes can be made:
- by agreement between the employee and the administration}
- by order of the employer in connection with the transformation of organizational working conditions (Article 74 of the Labor Code of the Russian Federation).
If the job responsibilities and functions of employees have not changed after changing the names of positions or departments, and in reality the employees do not move to other departments (that is, there was no merger or reorganization of departments), then in this situation there is no need to register the transfer.
Renaming and reorganization
In some cases, the enterprise undergoes a reorganization, but employees still do not move to new divisions, but remain at their jobs and continue to perform their previously defined functions and responsibilities.
For example, the company had two plants, but now only one remains, because the second plant was sold (closed, liquidated, etc.). Please note that the employees of the remaining plant continue to work in their old places and the functions they perform have not changed.
But the company underwent a reorganization, and many divisions were renamed. For example, the “Refining Shop of Plant No. 1” became simply called the “Refining Shop”, the “Mechanical Workshops of Plant No. 1” became simply “Mechanical Workshops”, and so on.
And in the opposite case, if one plant is divided into two, or one department has turned into four services, a transfer must be formalized, since the employees actually move to another department.
Common mistakes when making an entry about changing the company name
When making an entry, the following errors may be made:
- Inserting the serial number of the entry in column 1. According to the Instructions, only records containing information about work: admission, transfer, assignment of a new specialty and dismissal are numbered.
- Putting in column 2 the date of making the entry or the date of changing the name of the organization - in this case, the date of renaming will be indicated in column 3.
- Certification of the entry made with a seal - the organization’s seal is affixed only upon dismissal of an employee.
These errors are not serious, and therefore, if they are made, corrections are not made.
Major errors that need to be corrected include the following:
- factual error in the name of the old or new name of the organization;
- an error in the date of renaming the organization;
- an error in the entry on the basis for making changes.
These errors must be corrected as soon as they are discovered.
Algorithm for correcting mistakes
The procedure for correcting errors in a record of renaming an organization:
- An incorrect entry is not crossed out; the correct data is entered below.
- The next blank line indicates: “There was an error in the name (record).”
- Then the correct entry is made - completely, even if an error was made in the order details.
The correction is not certified by either a seal or a signature.
Corrections can be made at any stage of the work, even if other entries have already been made after the entry where the error was made.
You can read more about this in the article “How to make a correction in a work book - sample 2017.”
What does this mean for employees?
According to clause 66 of the Labor Code of the Russian Federation, a work book is one of the main documents of any worker. The work book is important because it, like a counter, records the entire length of service. If, after the organization changed its name, records related to this event were incorrectly made or they were missed altogether, this will lead to confusion and a reduction in length of service. This problem will have to be solved with the help of certificates and archival documents confirming the “imaginary” experience.
Any error in the work record must be corrected immediately at the current or new place of work. If a mistake was made during the existence of the organization before the reorganization, then it is necessary to demand its correction from the legal successors of the company. If a legal entity has been subject to liquidation, then the correction of errors must be carried out by authorized persons at the new place of work.
Results
When renaming an organization, entries in employee work books must be made without fail.
Changes are made only after the new name is recorded in the statutory documents. The basis for making an entry in the work book is an internal order on renaming and the need to make changes to internal documents. Changes are made in the manner established by the Instructions for filling out work books. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.