25.11.2020

How will workers be compensated in sectors closed due to the pandemic?

The Government adopted a Decree determining the terms and conditions for the payment of compensation to workers in economic activities, whose activity was temporarily suspended by an act of a state body during the state of emergency or extraordinary epidemic situation. Employees will be entitled to receive financial support for no more than 60 days in which they have used unpaid leave in connection with the restrictions imposed on the activity for which they are employed. For employees working an 8-hour working day, agreed in their main employment contract, the compensation will be BGN 24 for each day they are on unpaid leave. In the case of part-time work, the amount of compensation will be determined in proportion to the agreed working time in the employment contract.

The financial resources necessary for the payment of the compensations will be provided by the Operational Program “Human Resources Development” through the financial mechanism REACT-EU, as the determined budget amounts to BGN 50 million. The specific economic sectors will be determined by an order of the Minister of labor and social policy.

Employers are obliged to maintain the employment of employees for a period equal to that during which compensation was paid. They must inform workers about the possibilities of receiving funds under the government decree. Those wishing to receive this financial support are required to provide the employer with a written declaration in a form indicating the period for using unpaid leave and their bank account to which to pay compensation. The employer or his authorized representative will submit to the “Labor Office” directorate at the place of work documents for payment of the compensations. The documents will be reviewed within 10 working days after receipt. The Employment Agency will publish on its website information about employers and the number of their employees who have been approved or disapproved for the payment of up to 2 workers after a decision has been made. The compensations will be paid within 5 working days after the approval of the submitted application. Employees who are on unpaid leave and are employed by employers, local individuals or legal entities, as well as by foreign legal entities engaged in business activities in Bulgaria will be able to apply for the payment of compensations in order to maintain employment and income.