Unified Employment Record – Convenience or Additional Commitment?

In the current global economic situation, HR teams in Bulgaria are not spared from trends such as workforce optimization, budget cuts, and resource-saving measures. Additionally, something extraordinary is on the horizon that will affect all employers in Bulgaria. It is called the digital employment record book, also known as the Unified Electronic Employment Record for workers and employees.

Overall, the digitalization of HR documentation and employment records, along with process automation, is a modern and beneficial development. It is expected to free up resources for HR specialists, allowing them to focus on strategic tasks. Despite these advantages—such as reducing administrative burdens for employers, minimizing the risk of employees losing important information due to misplaced employment record books, and facilitating access to information—the transition from paper to digital records also brings significant challenges. HR managers and HR teams find themselves at the center of this transformation, playing a crucial role in the successful implementation of the new system.

What Does the Implementation of the Electronic Employment Record Book (ERB) or Unified Employment Record Involve?

In short, every employer is required to submit to the National Revenue Agency (NRA) the complete employment history of their employees, as recorded in their paper employment record books, including information from their previous employers. Additionally, employers must scan these documents (or multiple documents) for each employee and upload them to a future NRA platform.

What Are the Challenges for HR Teams in the Transition to an Electronic Employment Record and Possible Solutions?

• Understanding and Implementing Changes in Labor Legislation

Challenge: Changes in labor legislation often create ambiguities and uncertainties regarding compliance deadlines and the proper execution of requirements. HR specialists must be well-versed in the new regulations and their practical application.

Solution: HR teams should regularly follow publications from the Ministry of Labor, the NRA, and the Labor Inspectorate, while also providing timely training to other team members and management. An external labor law consultant or HR management expert, well-informed and prepared on the topic, can also be of great help.

• Overcoming Resistance

Challenge: Like any transformation, the shift to an electronic employment record may face resistance from employees and, in some cases, company management. Concerns may arise about personal data security and the allocation of resources for the transition.

Solution: One way to address this challenge is by organizing informational meetings, emphasizing the benefits, and preparing educational materials. External experts can assist in communication efforts and provide additional personnel and expertise, easing the burden on businesses.

• Technical Implementation – Digitizing Documents and Creating an Electronic Employment Record

One of the main challenges is that the government, through the NRA, is once again transferring a significant responsibility onto businesses and employers.

Let's try to outline the process, tasks, and workload that HR professionals will face:

1. 1. Communicating with employees to bring in their employment record books (as employers are not allowed to store them) for updating. Many of these documents may be lost.
   2. The responsible HR staff must then update any missing information and record past and current changes related to position, salary, working hours, etc.
   3. During this process, it may become apparent that certain documents, orders, or legal grounds are missing from the employee's employment record.
   4. Analyzing and summarizing the state of employment records and employee documentation.
   5. Scanning the completed and updated employment record books and storing this information in the NRA platform.
   6. Documenting the return of employment record books to employees.

Solution: The solution is investment—investment in human resources, financial resources for the necessary technology, and, of course, time. Another option is delegating these functions to an external consultant who can take on the full burden of the transition, providing the required specialists for each stage of the process.

• Data Management and Accuracy of Entered Information

Challenge: When implementing electronic employment records, there is a risk of errors or missing data, which could lead to legal issues in employment relationships.

Solution: A possible solution is to conduct an audit of employment record books and inventory employee documentation. If a business lacks the necessary internal specialists, an external consultant can be hired to provide expertise.

• Meeting Deadlines and Managing the Workflow

Challenge: Legislation sets specific deadlines for the implementation of the electronic record, requiring effective planning and resource allocation.

Solution: Developing a detailed action plan with a phased implementation and clearly defining responsibilities within the HR team.

All these challenges will be even harder to handle for small businesses. In many cases, this work will fall on accountants, office managers, business owners, external accounting firms, freelance accountants, payroll specialists, and independent HR consultants. Many of these professionals already face resource limitations. Additionally, after June 1, 2025, they will all be required to handle this transition for multiple clients, making it highly likely that they won’t be able to meet the demand.

Conclusion

The transition to an electronic employment record is inevitable and offers significant benefits for both employers and employees. Despite the challenges, a well-thought-out and systematic approach can ease the process. Careful resource planning, thorough preparation, and compliance with requirements are the key factors for success. Everyone responsible for this transition plays a leading role in this transformation. With the right strategy and external support when needed, the move to digital employment record management can be both successful and efficient.

At New Career, we have developed a tailored solution to support businesses during this period of transformation and adaptation. By providing a trained HR specialist as a Service and appropriate equipment (if needed), we help companies with additional resources, ensuring a smooth transition through the process.

Find out more – HERE or send us an inquiry for an HR specialist on demand.