Amendments to the Labour Code

The National Assembly adopted a Law on amendments and supplements to the Labour Code (the "Labour Code Amendment Law") published in the State Gazette, Issue No. 85 dated 10.10.2023, which introduces an electronic employment record (electronic employment book) and an Employment Register. The amendments will enter into force as from 1 June 2025, except for certain provisions set out below. In this respect there is no need for employers to take any urgent actions. 

The changes introduce a digitalization of the employment book which aims to remove administrative burden for employers and employees while using paper employment books; to provide permanent access to the electronic employment records for both the employee and employers; to limit the cases of loss of paper employment books; to facilitate the calculation of length of service, etc. Below is a summary of the more important changes.

The employer will no longer be required to submit a notification for the conclusion, amendment, or termination of the employment contract, but will be obliged to enter the relevant data in the employment register established and maintained by the National Revenue Agency ("NRA"). The time limits for the registration of the said information shall remain unchanged, namely: within three days as from the conclusion or amendment of the employment contract and within seven days as from its termination. 

The minimum data to be submitted by employers to the employment register shall include the information under Art. 349, Para. 1 of the LC, and the employer is obliged to accurately and timely record the changes that have occurred therein. 

Among the new details to be entered into the register is the information regarding the amount of the agreed paid annual leave and the days of paid annual leave, already used in the year of termination of the employment contract.

The procedure and the data required for registration in the employment register shall be determined by a Regulation of the Council of Ministers to be adopted by 1 June 2024 (the "Regulation"). 

By 1 June 2025 the NRA should establish the employment register which will contain the unified electronic employment records of employees. The initial data will be filled in ex officio on the basis of the register of employment contracts and other sources.

The format and the procedure for storing the data in the employment register, the procedure and the terms for entry of data, deletion and certification of circumstances, the conditions for access to the data, shall be determined by the Regulation, the adoption of which is pending. 

The electronic document replacing the paper employment book, or service book for civil servants, as from 1 June 2025, shall be called "unified electronic employment record". 

According to the changes, the unified electronic employment record is an electronic document that contains data and circumstances related to employee's employment and is an official certifying document. It will be a part of the new employment register. 

Every employee will have full access to their unified electronic employment record. The employee will also have information about the parties who have accessed his/her electronic employment record and the history of accesses will be visible to him/her, except in cases of access in accordance with the provisions of the Criminal Procedure Code. 

Another key change is that employers will have the right to access data regarding their employees entered by previous employers, except for information on the amount of the employment remuneration and most of the compensations received by the employee. 

The provisions regulating the obligation to present the employment book upon entry into employment relationship and upon termination of employment; the employer’s obligation to issue an employment book to an employee who enters into employment for the first time; the provisions concerning the reissuing of a lost employment book, are all revoked.

The liability of the employer and the responsible officials for the unlawful retention of the employment book is now transformed into liability for the damage suffered by the employee due to employer's failure to enter the relevant data regarding the termination of the employment contract into the employment register once the employment relationship has been terminated. Accordingly, the employee shall be entitled to compensation which shall be in the amount of his/her gross remuneration from the date of termination of employment until the termination is entered into the employment register.

Pursuant to the Labour Code Amendment Law the employers are obliged to complete the employment books of their employees by 1 June 2026 (or upon termination of the employment relationship in the period from 1 June 2025 to 1 June 2026), where the employer should fill in employee’s length of service, accumulated as at 1 June 2025 (in figures and words), sign and stamp the employment book (provided that the employer has a company seal).

After its completion, the employment book shall be returned immediately to the employee who is obliged to store it because the paper employment books issued before the entry into force of the present changes, will retain their character as an official document certifying the circumstances recorded therein. 

Although the changes will enter into force as from 1 June 2025, we recommend that employers inform the employees about the new regime and promptly update and reflect in the paper employment books the facts and circumstances regarding the employment relationship that are subject to entry.

The KPMG team remains at your disposal should you have any questions or need assistance regarding the interpretation and application of the amendments to the Labour Code. 

Emil Evtimov
Director
Legal Advisory
Tel.: +359 2 9697 600