HR agency registration | KGK Law Firm

Did you know that in order to lawfully operate in the field of human resources as an intermediary, it is mandatory to register as such and obtain an official certificate from the Employment Agency? It is important to note that the work of HR agencies is subject to numerous specific legal obligations that must be strictly observed. Ignorance of the law does not exempt one from liability, and the supervisory authorities impose serious sanctions for operating without a license or for breaches committed in the course of carrying out mediation activities.

What steps should be taken if we wish to carry out activities as an employment intermediary?

Registration of a Commercial Company

In order for a company to lawfully operate as a so-called HR agency, it must first be duly registered in the Commercial Register. Since the choice of legal form directly affects capital management and the extent of the partners’ liability, it is strongly recommended that you consult a lawyer before taking action. Professional legal advice will help you choose the most appropriate structure, tailored to the specifics, scale, and long-term goals of your future company.

Registration as a “Private Employment Agency”

The status of a “private employment agency” is mandatory for any person wishing to connect candidates with employers. The procedure involves submitting an application and a set of documents to the Employment Agency, and every HR agency must also be entered in the Unified Electronic Centralized Register.

In order to be admitted for registration, the company must meet a number of requirements, including the following:

It must have no outstanding obligations to the state or a municipality;
It must not be subject to insolvency or liquidation proceedings;
It must not have been sanctioned for carrying out mediation activities without registration or for charging job applicants fees within the last 3 years;
The persons who will carry out the activity must have at least secondary education, and in the case of mediation for seafarers - at least three years of work experience in the field of maritime transport.

Types of Registration and Administrative Time Limits

The registration certificate is issued by the Minister of Labour and Social Policy or an authorized official designated by the Minister, and it is valid for an indefinite period. Registration may cover one or more of the following activities:

Mediation services for employment in the Republic of Bulgaria;
Mediation services for employment in other countries;
Mediation services for the employment of seafarers.

The time limit for reviewing the documents is 14 days from the date of submission. Where deficiencies or inaccuracies in the documents are identified, the applicant is granted a 14-day period to remedy them. A refusal to register is subject to appeal under the procedure established by the Administrative Procedure Code.

Transparency and Advertising Standards

After registration, the intermediary is obliged to comply with certain transparency rules. When publishing job advertisements or any advertising materials, it must state its registration number issued by the Employment Agency. Job advertisements may be published only where there is a mediation agreement concluded with the respective employer.

Distinguishing Between Business Models

It is important to draw a clear distinction between traditional recruitment and the so-called “temporary staffing”, as they are regulated by different legal provisions:

Recruitment mediation agency: The intermediary merely connects the parties, while the employment contract is concluded directly between the employee and the employer. In this case, the remuneration is paid by the employer.
Temporary work agency: The agency is the formal employer, concludes a specific employment contract under the Labour Code with the employee, and assigns the employee to work for a user undertaking.

! NB All mediation services for job seekers are entirely free of charge. Charging candidates any fees constitutes a serious violation, leading to the immediate revocation of the license and substantial monetary sanctions.

The team of the KGK team Law Firm has significant experience in providing comprehensive legal services to companies in the human resources sector.