Bulgaria is becoming atractive human resources destination, because of well educated people, qualifyed staff in IT sector and outsourcing capabilities and centers.
Employer of Record, also popular as Staff Leasing, is a licensed business activity in Bulgaria. Only a professional Employment Organization licensed to offer temporary employment services can officially perform as an Employer of Record.
Horizons Bulgaria PEO service outsources the administration of the employees together with the regular payroll activities. We prepare the full set of documents as Employement Contract, Job Desription, we collect the documents required by law for the employee’s file and register the employment in the National Insuarance Institute and Revenue Agency.
The employees are hired under the conditions of temporary employment. The Temporary employment contract is equal to permanent, according to the National Labor Code of Bulgaria. The employees are entitled to receive all rlated to the permanent employment benefits and compensation. Still the temporary employment is designed to serve the employer and can be terminated withourt a notice and without a compensation. Such flexible solution is giving the freedom to employers to expand quickly or hire people for particular projects.
Using Employer of Record service, the employers are saving administration, payroll and accounting cost. Also all strict GDPR documentation flow is not a concern for the employer, which could generate a cignificant legal cost.
Employer of Record is a service which does not include the recruitment of employees. The two services are with different conditions and are executed from different professionals in our team. To use the staff leasing we need to recruit the people first, which could be a difficult and time consuming process. When leaving job people need to file a notice. The usual resignation notice period in Bulgaria is 1 month, in IT and financial sector 2 months. When we have the right professionals for your team we can start the hiring procedure.
It is more effective to have recruitment and employer of record performed by one supplier, a licensed Professional Employment Organoization. In Bulgaria both professional services are licensed, but they required different licenses. If we recruit employees who will be hired by Horizons Bulgaria, on a later stage, as a PEO, it will be easyer to explain to the recruited professionals, the conditions under which they will be employed. The temporary employment is equal as rights to the permanent, but still needs to be communicated with the future employees on time.
To start recruiting and employing people with Horizons Bulgaria companies need to:
1. Sign an MS EOR agreement with us
2. Sign an Annex for each employee individual employment conditions
3. Review and accept payment conditions
4. Payments are executed always in advance
5. EOR commission is based on Total Monthly Employer Cost