The EU Blue Card scheme, introduced in Bulgaria as the primary work authorization for highly skilled migrants, has gained popularity due to its streamlined process and favorable conditions. Since its inception in 2011, Bulgaria has continuously worked on improving the Blue Card scheme, making it a preferred choice for employers seeking to hire top talent from abroad. However, despite significant improvements, there are still areas of concern that could pose compliance challenges for both employers and employees.
This oversight creates a compliance risk for companies implementing hybrid models. Employers must choose between classifying the Blue Card holder as fully remote or fully office-based, as the current law does not support hybrid arrangements in work contracts used for immigration applications. Additionally, while it's relatively simple to update a work contract from office-based to remote, there is no straightforward procedure for transitioning from remote work back to office work, further complicating compliance efforts.
For example, if an office location closes, there is no established procedure to update the Blue Card permits for employees affected by the change. Similarly, promotions or job title updates can only be reflected during the renewal of the Blue Card, which occurs every five years. This lack of flexibility poses a significant risk for employers and employees alike.
However, until these amendments are adopted and additional regulations are introduced, employers and employees must navigate the current gaps in the legislation carefully to avoid non-compliance.
Recent Enhancements to the Bulgarian Blue Card Scheme
In 2023, Bulgaria introduced several key changes to the EU Blue Card scheme to further streamline the process and make it more accessible for highly skilled workers. Some of the most notable changes include:- Relaxed Education Requirements: Applicants can now provide a certificate of experience instead of the previously mandatory three-year university degree. This makes the application process more flexible and inclusive.
- Reduced Employment Terms: The minimum employment agreement term has been reduced from 12 to six months, allowing greater flexibility for both employers and employees.
- Extended Validity: The maximum validity of the EU Blue Card has been increased from three to five years, offering greater stability and security for Blue Card holders.
- Healthcare Access: EU Blue Card holders are now required to be covered under Bulgaria's national health insurance system, ensuring access to healthcare during their stay.
- Remote Work: The law now officially recognizes remote work as a valid employment setup, providing more options for employers and employees.
Compliance Challenges: Hybrid Work Model
One of the significant updates in 2023 was the inclusion of remote work as a permissible employment arrangement for EU Blue Card holders. However, the legislation does not adequately address hybrid work models, where employees split their time between remote work and office work.This oversight creates a compliance risk for companies implementing hybrid models. Employers must choose between classifying the Blue Card holder as fully remote or fully office-based, as the current law does not support hybrid arrangements in work contracts used for immigration applications. Additionally, while it's relatively simple to update a work contract from office-based to remote, there is no straightforward procedure for transitioning from remote work back to office work, further complicating compliance efforts.
Compliance Challenges: Change of Job Title and Worksite
Employers also face challenges when attempting to change the job title or worksite location of EU Blue Card holders. Current regulations do not provide clear guidance for updating permits in these situations, leading to potential non-compliance if changes occur.For example, if an office location closes, there is no established procedure to update the Blue Card permits for employees affected by the change. Similarly, promotions or job title updates can only be reflected during the renewal of the Blue Card, which occurs every five years. This lack of flexibility poses a significant risk for employers and employees alike.
Compliance Challenges: Change of Employer
While the law theoretically allows EU Blue Card holders to change employers after one year of employment, the practical application of this provision remains problematic. The lack of a clear and efficient mechanism means that a new Blue Card application is often required, leading to potential employment gaps of one to two months or more.Future Outlook
In 2024, a bill was submitted to the Bulgarian Parliament proposing further amendments to the EU Blue Card scheme. If passed, these amendments would simplify the process of changing employers and job positions for Blue Card holders, addressing some of the current compliance challenges.However, until these amendments are adopted and additional regulations are introduced, employers and employees must navigate the current gaps in the legislation carefully to avoid non-compliance.
Pros and Cons Summary
Pros:- Streamlined application process with relaxed education requirements.
- Increased flexibility with reduced employment terms and remote work options.
- Extended Blue Card validity provides long-term stability.
- Access to national healthcare system for Blue Card holders.
- Hybrid work models are not adequately addressed, leading to potential compliance issues.
- No clear procedure for updating job titles or worksite locations, posing risks for employers.
- Changing employers requires a new Blue Card application, resulting in possible employment gaps.
- Ongoing legislative gaps necessitate careful planning and compliance monitoring.
