What is the regulation on the employment record and length of service and what does it serve for
Ecovis | 5 February 2025
If you are a business owner who employs staff, you should be familiar with the regulation on employment records and length of service. This way, you will be properly completing the necessary paperwork for hiring and firing employees.
On the other hand, if you are an employee it is good to be familiar with the ordinance and your rights outlined in it. With this knowledge, you will be able to protect yourself from undue treatment by the employer.
In this Ecovis Bulgaria article, we will introduce you to the Employment and Seniority Ordinance and its coverage. We will look at the obligations of an employer and employee in relation to the completion and retention of an employment record.
We will also give more information on how length of service is calculated and how it should be documented by an accountant. Let's get started!
What is the regulation on the employment record and length of service
Every one of us remembers our first day at a new job. Often the excitement is so great that we can't sleep the night before. We wake up before sunrise to get ready for the big day and get to work on time.
We want to make a good impression, so we have prepared all the documents in advance. Most of the time it's a criminal record, a medical certificate to go to work and an employment record.
The employment record is the most important of these three documents. This is because all your details of current and previous jobs will be recorded there. Think of it as a detailed chronology of your career.
It traces your journey from your first job, often seasonal or at university, to when you will retire. Your length of service is also calculated from the information in it. It plays a major role in calculating your pension amount.
This fact makes it extremely valuable for every person. And the ways to fill it in and store it are described in the regulation on the employment record and length of service.
Abolition of the paper employment record in 2026
Over the last five years, public institutions have started digitising some of their administrative processes. This is in order to facilitate the modernisation of labour relations in Bulgaria and to improve the exchange of information between employers, the NRA, the National Social Insurance Institution and other state institutions.
The first discussions on replacing paper documents start in 2021. It is planned to replace labour books with electronic labour records.
And in 2023, a new version will be introduced. Concrete steps are being taken towards the establishment of a central electronic employment register managed by the NRA.
This register will contain all data on workers' length of service, eliminating the need for an employment record as a physical document.
The final transition stage is the introduction of the single electronic employment record, which comes into effect on 1 June 2026, when the employment record book is finally abolished.
Everyone will have access to their own record for reference. Employers will see information about employment contracts without access to previous pay rates.
Employees who keep their own employment records will have to hand them over to their employer between 1 June 2025 and 1 June 2026. This way they will be formalised and the information digitised.
Methods of completion according to the regulation on the employment record and length of service
Your employment record book is always issued from your first place of work. The place of issue is not relevant for future completion. There are many successful business people whose first books were issued by a fast food restaurant or seasonal job.
When the employment record book is issued, the employer enters all the employee's details. It is then stamped with the seal of the enterprise and signed by an authorized person.
If you accidentally make a mistake, don't worry. Check with your accountant or authorized person and have them correct it. Only a stamp and signature are needed.
In addition to the employee's personal details, according to the regulation on the employment record and length of service, the occupation code number, the qualification level, as well as the salary are also filled in the document.
The data collected in the employment record is used to calculate length of service, so it is important to fill it in correctly.
Filling in the employment record on leaving
When you make your dream of starting a business in Bulgaria come true, you will have the opportunity to hire for different positions within the company. A strong team is important to the success of any venture and you often become close with your subordinates at work.
But at some point, one of your employees will want to leave the company. In that case, you need to be prepared to properly fill out his or her employment paperwork. When you terminate your employment relationship with an employee, you must enter the length of his or her employment in the employment record book. In other words, describe in words and numbers how long he worked for you and in what position.
According to a statutory regulation on employment records and length of service, you hand over an employee's employment record on his last day of work. If he or she is unable to be present, you can give it to an authorised person or send it by post.
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Preservation of documents according to the regulation on the employment record and length of service
According to the Labour Code, the employment record must be kept with the employee. But in practice, this is often not the case. Often workers prefer to keep the book with the employer. This happens only after written permission signed by both parties.
In this way, changes are more easily applied, and the chance of it being lost from the company's books is minimal. But still, what are the steps to take when a card is lost or destroyed?
Issue of a new employment record if lost
The employment record is an official document that can only be reissued by the Labour Inspectorate. It is issued once and any subsequent one is only a continuation.
But in certain situations, it comes to the destruction or loss of a labour book. Whether it is the fault of the employer or the worker, a pre-established procedure is followed to issue a continuation:
- Loss of employment record due to employer's fault. If the employer has lost the employment record, the employee shall file a declaration with the labour inspectorate. The employer, in turn, is obliged to provide full details of the employee's employment record within one month. The labour inspectorate, on the basis of these data. If the employer refuses to co-operate it may be subject to penalties.
- Loss of employment record through fault of the employee. If an employee loses an employment record, he must collect certificates from all previous employers and present them to the labour inspectorate. The Inspectorate verifies the details and issues a new employment pass.
If an employer refuses to provide the required documents he will be sanctioned by the labour legislation.
Regulation on length of service
Every one of us has wondered how much work experience we have. We know when we first started work and can calculate how long we have worked in total up to that point.
If you work on a standard contract and your employer writes everything in your employment record book, you can easily calculate your length of service.
On the other hand, if you work hourly or freelance, the length of service is calculated by reference to the total number of days worked and entered.
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