25.03.2020

LABOR RELATIONSHIPS IN EMERGENCY CONDITIONS

Advice of the Consultancy Center - Berkovitsa

Many sectors of the economy have been affected by the introduction of the state of emergency by a National Assembly Decision of 13.03.2020, some of which were forced to close and others closed due to declining revenues. It is natural for workers and employees, as well as for employers, to be concerned about how employment arrangements will be settled in a state of emergency. 

In addition to the usual hypotheses in the Labor Code, the Law on Measures and Actions during the State of Emergency, announced by a decision of the National Assembly of 13.03.2020, introduced other possibilities for the period.

What are the job opportunities for employees?:

  - In the most favorable case, they retain the employment relationship under the terms and conditions of their employment contract.

  - In case of termination of the activity of the enterprise which is included in the prohibition list / restaurants, fitness clubs, entertainment establishments, etc. /, reduction of the volume of work or other reasons, the employer may resort to termination of the employment contract with notice.

What you need to know: In the provisions of Art. 328 of the Labor Code there are no changes regarding the state of emergency. What are the hypotheses:

1. Closure of the enterprise - Art. 328, para. 1, item 1 of the Labor Code - this means a complete cessation of the entire production and service activity of the enterprise. The employment relationships are terminated, regardless of the reasons why the enterprise is closed;
2. Closure of part of the enterprise - Art. 328, para. 1, item 2 of the LC (proposal first) - this represents the termination of the activity of a separate unit of the enterprise. State redundancy - Art. 328, para. 1, item 2 of the LC (proposal second) - means the reduction, removal in the future, of individual units from the approved total number of employees. The reasons don't matter. The termination order must explicitly state which of the two grounds terminates the employment relationship.
3. Reducing the volume of work - Art. 328, para. 1, item 3 of the LC - this means reducing the production program, the amount of production produced. It is characteristic of this reason that the establishment plan is not altered.
4. Suspension of work for more than 15 days - Art. 328, para. 1, item 4 of the LC - termination of work means suspension of the enterprise for more than 15 days. In this situation, the employee does not fulfill his work obligations for reasons beyond his control.

It is compulsory for the worker to be given a written notice of termination of the employment contract. If he refuses to receive it, the receipt may be verified by the signatures of two witnesses of the refusal. This notice may be from 30 days to three months / in the employment contract or collective agreement may be agreed for a longer period of 30 days, if not agreed then the term is 30 days.

It is also possible for the employer to terminate the employment contract immediately by notifying the employee, upon notification, that he or she will be paid compensation for the non-compliance with the notice period. Then an Order for termination of employment is also served.

With the termination of the contract, the benefits for unused paid annual leave are paid, and in case of failure to notify - the remuneration for the period of the notice. In these cases, in case of breach of employment contract, the employee may appeal the order in court (despite the state of emergency, workers are not deprived of the opportunity to challenge the illegality of orders terminating their employment contracts). 

The employer may request termination of the employment contract by mutual agreement. This is one of the most disadvantageous options for the worker, as he/she will not receive compensation for the non-compliance with the notice and the compensation from the Employment Agency is for a period of 4 months. Similarly, such termination cannot be appealed by the employee.

Another option is to terminate the employment relationship in order to receive compensation. The employer may propose to the worker to terminate the employment relationship for compensation not less than four times the amount of the last monthly gross wage received, unless the parties have agreed to a larger amount of the benefit. The employee agrees in writing within seven days. If there is no explicit acceptance of the proposal within this period, the proposal shall be deemed to have been rejected.

Explicit hypotheses for employment relationship during a state of emergency:

- It is envisaged that the employer will be able to assign home and teleworking in a state of emergency without the consent of the employee, changing only the place of work, without changing the other conditions of the employment contract. That is, you can work remotely or at home, but you cannot be assigned other duties outside of your job description, or change the amount of his or her salary or holidays or other contractual elements of the employment contract.

- Operation may be terminated during an emergency. By order of the employer, the work of the enterprise, part of it or individual workers may be terminated for the whole or part of the period, and this shall only apply until the state of emergency is lifted. Then the workers are not allowed to their jobs.

- In the event of termination of work under the preceding paragraph, the employer shall have the right to grant paid annual leave to the worker without his or her consent, including when eight months of service are not obtained. At the same time, the employer is obliged to allow the use of paid annual leave or unpaid leave for pregnant workers, workers in advanced stage of in-vitro treatment, mother or adoptive parent of a child under the age of 12 or a disabled child, regardless of age, as well as the lone father of such children, of under-18s workers, workers with permanent disability of 50 and over 50 percent, workers with the right to protection upon dismissal under Art. 333, para. 1, items 2 and 3 – these are employed persons and workers suffering from diseases, defined in Ordinance No. 5 - ischemic heart disease; active form of tuberculosis; cancer; occupational disease; mental illness; diabetes.

- Part-time work may be established for full-time workers. 

Upon termination of employment, it is advisable for workers to register with the Employment Agency within seven days in order to receive unemployment benefits if they are eligible. Anyway, register for a job search.

Since there are uncertainties about the application of the law in a state of emergency, you can always contact the helplines of the Counsultancy Center for Disadvantaged People in Berkovitsa 0953 89137 and 0890943741.