07.04.2023

WHAT IS THE PENALTY FOR THE EMPLOYER IF AN EMPLOYEE DOES NOT HAVE A CONTRACT

Executive agency "General Labor Inspectorate" reminds that with the movement of the labor market and the increased demand for labor for seasonal employment, the risk of abuse of labor rights increases. The conclusion of a written employment contract registered with the National Revenue Agency guarantees to the fullest extent the rights of both employees and employers.

Workers must know that the employment contract is concluded before starting work. The employer is obliged to provide the worker or employee with a copy of the concluded employment contract, signed by both parties, a copy of the notification with which he was registered with the National Revenue Agency, as well as a job description. The employer has no right to admit a worker to the workplace before he has registered his employment contract with the National Revenue Agency.

For those hired for short-term employment to cultivate and harvest fruit, vegetables, rose, lavender and tobacco, farmers can also use so-called one-day contracts. These contracts are drawn up again in two copies, one of which must be given to the worker before starting work. Samples of this type of contract can be obtained online at any time of the day through special software upgraded under the project "Optimization and Innovation in the Executive Agency "General Labor Inspectorate", financed under the Operational Program "Development of Human Resources", co-financed by the European Social Fund. Those hired on one-day contracts do not lose social and insurance rights, and employers do not have to register them with the National Revenue Agency, draw up employment records and termination orders.

In case the employer wishes to test the skills of the employees, he can conclude a contract with them with a clause for a trial period. The trial period is agreed in the employment contract, and cannot be more than 6 months in the general case. However, when the employment contract is fixed-term and is for a period of less than 1 year, the trial period can be a maximum of 1 month according to the changes to the labor legislation from 1 August 2022.

In order to protect the labor rights of workers and employees, they should not agree to work under verbally agreed conditions. They must also report while they are still at their jobs and it can be established beyond doubt that they are working without an employment contract.

The Labor Inspectorate often receives reports from workers who worked without an employment contract and were not paid after they were released. In these cases, the Agency's control bodies are prevented from using their powers to declare the existence of the employment relationship. Another practice is to not pay a part of the remuneration that was agreed orally upon termination of the employment relationship. In these cases, due to lack of written evidence that the amount is due, the employer cannot be obliged to pay it.

An employer who uses undeclared labor is subject to a fine of at least BGN 1,500, and this violation is grounds for removal from participation in public procurement procedures.

Workers and employees can check the probability that their work or part of it is undeclared, as well as receive guidance on how to react in such cases through the special software developed by the Labor Inspectorate. It is a questionnaire that assesses the risk of undeclared work in its various directions – work without an employment contract or under fictitious conditions, unregulated payments, are the lives and health of workers at risk, etc.

The software was created under the cross-border project "Cooperation for decent work", financed by the Fund for bilateral relations under the Financial Mechanism of the European Economic Area and the Norwegian Financial Mechanism 2014 - 2021. The self-assessment tool is freely available on the website of the Executive Agency "Main Labor Inspectorate", which is a partner in the project, at https://www.gli.government.bg/udw/ A shortcut to it is also provided through the banner "Check if you are working undeclared".

Access to it, as well as to other informational materials aimed at the benefits of labor declaration, is provided through the "Activity" section, "Projects" heading - Project DFPO-1.002-0002-C01 "Cooperation for decent working conditions".

On the website of the Executive Agency "General Labor Inspectorate" in the "Administrative service" section, detailed information on how to submit reports is published. Citizens can also contact the Agency's national telephone number 0700 17 670 for consultations.