Introduction of electronic work book

Ex. No. 543-00-543

MR IVAILLO CALFIN

DEPUTY MINISTER PRESIDENT

ON DEMOGRAPHIC AND SOCIAL POLICY

MINISTER OF LABOR AND SOCIAL POLICY

AND CHAIRMAN OF

THE NATIONAL COUNCIL FOR TRILATERAL COOPERATION

ABOUT: introduction of an electronic work book

DEAR MR CALFIN,

The Confederation of Employers and Industrialists in Bulgaria supports the idea of ​​introducing an electronic work book. We believe that the benefits for employees, employers and institutions are indisputable. In our opinion, the idea should be developed with the aim of creating a single electronic system with labor insurance data for every worker, i.e. with richer information than what is contained in the work book. The existence of such a Database is a prerequisite for reducing the administrative burden for both employees and employers and the administration.

Within the working group, KRIB defended the idea of ​​creating a fast and reliable system for storage and exchange of labor insurance data, through which to optimize processes and communication between businesses, state authorities and citizens in the field of human resources administration. We believe that it is necessary to develop an information platform, through which it becomes possible to create and maintain a national "Human Resources" database, allowing instant access to information and monitoring in the field of labor and insurance relations.

The basis of this system is the issuance of an "electronic work book" to every worker in Bulgaria. It should contain the entire labor insurance history and educational and qualification information for the worker/employee (employment contracts, work experience, professional qualification, etc.), and all these data must be entered in the national database. This, in turn, will require the development and implementation of a standard for an "electronic labor book" (regarding size, way of filling in, formatting and arrangement of records, storage and access to information about the working person, qualities of the file considering repeated and long-term use, classification by groups of documents, etc.).

The "electronic work book" would help to deal with the following problems:

• Limiting the shadow economy;

• More effective control over compliance with labor and insurance legislation;

• Reduction of formalities, bureaucracy and excessive use of paper in the management of labor relations;

• Monitoring of the labor market and adequate planning of personnel policy at the macroeconomic level;

The practical implementation of this project should be done by issuing an electronic work card (plastic) with a pin code to each worker/employee, which will replace the existing work books. Through this code, the worker/employee and the relevant employer or institution (NOI, NRA, AZ, GIT, NSI, etc.) will have delegated access to the electronic employment file containing the entire employment history of the person.

In order to be able to read the information on the card, in all companies operating on the territory of the country, in the divisions of NOI, AZ, GIT, it is necessary to install and register readers for electronic labor cards.

When starting a job with any new employer, the person will be identified through his electronic card, and the employer will update the data related to the new employment relationship in his personal employment file (type of employment contract, date of signing, duration, education, profession, specialty, job title, working hours, remuneration, possible bonuses under KTD, bank account and other relevant data). Subsequently, the employer can also reflect in the electronic file the additional qualification training that the person has undergone while working for him.

In the event of an inspection by the Labor Inspection, the inspector, based on the worker's/employee's personal identification number, gets access to his electronic file in the part relating to his last place of employment; accordingly, he can track the information regarding the type of contract, whether the person is registered with the National Institute of Social Security, working hours, holidays, photo, etc.

The platform should also provide the possibility to issue and print reports and reports based on the information it contains about the specific worker or employee, without the need for additional data entry.

The software supporting the database at the national level must allow the accumulation and storage of the data on the individual's length of service, remuneration, health and pension insurance during his entire working career. In this way, before the person retires, the data will be able to be used to calculate and determine the amount of the pension, and the obligation to prepare the necessary documents in paper form will no longer be required.

In the appendix, we present a scheme illustrating the view of KRIB regarding the functioning of the electronic system described in this way, and the scheme was also presented within the framework of the Working Group.

The introduction and maintenance of an "electronic work book" would help to achieve openness, accessibility and better coordination and communication between state institutions and businesses. The use of an integrated information system will create prerequisites for more effective control over a number of processes in the business environment, as well as for greater transparency, which in turn will limit the gray economy. On the other hand, through the introduced educational profile of the worker/employee, the Employment Agency will have the opportunity at any time to receive up-to-date information about the educational status and professions in the country. On this basis, there will be an opportunity to analyze the education system and state investments in this area.

In connection with the necessary subsequent steps to specify the operational details regarding the process of introducing an "electronic work book", KRIB is ready to participate through its experts in this activity.

APPENDIX: schematic representation of the process of operation of

the "electronic work book"

With respect,

Eugene Ivanov

Ex. director