Electronic employment record from A to Z

The storage and processing of employment records is the duty of every employer, which, however, is often associated with a large amount of operational work and costs additional time for HR specialists. Fortunately, all processes related to employment relations in a company can be optimized with the help of digitalization. We invited Todor Vasilev, CEO and Co-founder of eHR*, to tell us more about the possibilities in this direction.

What are the main advantages of implementing a digital electronic file in the HRM process?

Todor: And this is achieved with the optimization that electronic employment records bring in a number of areas:

• Saves valuable time and money - The time to create, share, and sign documents that are part of each employee's employment record can be reduced up to 10 times if a dedicated electronic employment record management system is used. For example, when a new employee needs to be hired remotely, their documents can be prepared and sent electronically for signature within a few hours. However, if a system is not used, the same process takes 2 to 3 working days as the services of a courier must be used, and also involves additional costs for the business.

• Ease access to documentation - If an HR professional needs to locate a specific document from an employee's file, it usually involves searching through archives, flipping through folders, and carefully reviewing their contents. When employee files are digital, however, searching is just a few clicks into the system. Access to documents is much easier and faster, and the security of their storage is higher. In addition, the employees themselves also have access to their personnel files, and tracking actions and changes to them is much more convenient.
• Conserve the environment and save paper - Every HR department handles hundreds of documents per month. If even a fraction of these documents were digitized, it would save an enormous amount of resources on paper creation, which includes harmful production and transportation emissions, water, wood, ink, packaging materials, and more.

What is the role of security and data protection when using digital electronic records and how can we ensure compliance with data protection regulations?

Todor: Compliance with all the requirements of Bulgarian employment law is essential to ensure the valid legal outcome of keeping digital employment records, which also provides security for the employer and its employees. My advice here is to follow the following steps to ensure legality and security in the digitisation process:

1. Select an electronic system that meets the requirements

In Bulgaria, the legal requirements mentioned in the law must be complied with, including the following fundamental regulations:

• Regulation (EU) 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and certification services for electronic transactions in the internal market and repealing Directive 1999/93/EC;
• The Electronic Document and Electronic Certification Services Act;
• The Labour Code;
• The Regulation on the type and requirements for the creation and storage of electronic documents in an employee's employment record.

2. Availability of a Qualified Electronic Time Stamp (QETS)

Another important feature is that the actions in the system must be authenticated by a QTE. This ensures that the data of receipt and signing of documents will not be altered and guarantees the transparency and validity of the occurrence of facts with legal significance for the employment relationship.

3. Signing of documents by the employer with a QES

Actions in the electronic employment records system must be authenticated by signing with a qualified electronic signature (QES), which is an explicit obligation of the employer. With regard to employees, signing may be done by ordinary, universal, or qualified signature, as the law gives a choice with regard to the employee.

4. Availability of a two-factor identification mechanism 2FA

The system must provide a two-factor authentication (2FA) mechanism when accessing it. It shall authenticate identity through two separate channels so as to provide a significant degree of assurance that the person using the system is the actual authorised person.

5. Maintaining high levels of security

The system must meet information security standards. To fulfill this requirement, it is useful to automatically create protected copies of the same at a certain period (so-called backup). There should be an infrastructure in place with controlled access levels, as well as tools to analyse malicious traffic. Two-factor authentication is also mandatory, as is the presence of an end-to-end encrypted connection.

6. Legal regulation of the use of the system in the employer's enterprise

The introduction of electronic employment records in the employer's enterprise, as well as the type of electronic documents that will be created, signed, and stored in these records, should be explicitly regulated in writing both at the organisational level for the entire enterprise in the internal rules of procedure and within the individual employment relationship with each employee. The introduction of the electronic employment records system can be done either together with the establishment of an employment relationship or after the conclusion of the employment contract.

What are the potential challenges in implementing digital electronic HR records and how can we overcome them to better manage this process?

Todor: The challenges in this area can vary depending on the stage your company is at.

In the initial stages of digitization, technical time is needed to create electronic copies of documentation, and in the most common case, this involves scanning all paper documents and adding them in electronic format into the electronic employment records management system. It is also important to plan for training on how to use the system, which can take time.

A common stumbling block is the need for specific functionality that is not available and makes the system difficult to use.

If you have done good research and selected an e-Work Records system that meets all the regulatory requirements and the needs of your business, then you can address the implementation challenges by making sure that the company that developed the product has a team in place to provide you with the necessary assistance.

*eHR is a Bulgarian company that digitizes employment records and provides timely assistance to its clients both in the initial implementation of the system and in the follow-up service. The team is in Bulgaria, communication is easy and the system is intuitive to use. In addition, eHR offers the development of functionalities tailored to the individual needs of its clients.