“EMPLOYMENT x 3” PACKAGE

14.07.2020

In connection with inquiries about the employment opportunities offered by the state budget and the HRD OP, the Consultancy Center - Berkovitsa published brief information and useful links.

“EMPLOYMENT x 3” PACKAGE

THREE WAYS TO KEEP EMPLOYMENT

  1. New design of the measure 60/40, adopted by Decree № 151 of 3 July 2020 for determining the terms and conditions for payment of funds for maintaining the employment of employees after the period of state of emergency, declared by a decision of the National meeting of 13 March 2020, and the extraordinary epidemic situation declared by Decision № 325 and extended by Decision № 378 of the Council of Ministers of 2020.

The main change is that employers applying for compensation are no longer required to cease operations.

The extension of the extended scheme 60/40 of 03.07.2020 aims to support the recovery of the business after the period of activity restrictions and already represents subsidized employment, covering part of the salary costs of staff who are no longer employed. on leave, but works and produces products or provides certain services. The aim is again to maintain employment, as in the context of a slow recovery and reduced revenues or a postponement of the start of some economic activities, the risk of redundancies has not been overcome.

Eligible are employers who:

  1. are local natural and legal persons or their divisions, other organizationally and economically separate entities, as well as foreign legal entities, which carry out economic activity in the Republic of Bulgaria;
  2. have declared a decrease in the sales revenues by not less than 20 per cent in the month preceding the month of submission of the application for payment of funds, compared to the same month of the previous calendar year;
  3. have no obligations for taxes and obligatory social security contributions to the state or the municipality before January 1, 2020, established by an act of a competent body that has entered into force, and for which the employer has not taken actions for rescheduling, deferral or security;
  4. have not been declared bankrupt or are not in bankruptcy or liquidation proceedings;
  5. keep the employment of the workers and employees for whom they have received funds for an additional period equal to the period for which these funds have been paid. This requirement does not apply to employees, the hotel and restaurant sector is provided;
  6. do not terminate employment contracts of their workers and employees on the grounds of art. 328, para. 1, items 2, 3 and 4 of the Labor Code during the period for which they are paid funds for maintaining employment;
  7. have not committed a violation of Art. 61, para. 1, art. 62, para. 1 or 3, Art. 63, para. 1 or 2, Art. 118, Art. 128, Art. 228, para. 3, Art. 245 and Art. 301 - 305 of the Labor Code or Art. 13, para. 1 of the Labor Migration and Labor Mobility Act during a period of 6 months before the date of submission of the application for payment of the funds for preservation of employment, for which a penal decree or court decision has entered into force.

Which employees can apply for:

Employers who have used the current measure 60/40 will be able to continue using it in the next 3 months and after resuming their activities.

Employers may apply for compensation for their employees insured in all economic sectors, except for those explicitly specified in Art. 1, para. 4 of the Decree - Agriculture, forestry and fisheries, Financial and insurance activities, Public administration and Education (excluding activities in pre-school education, driver training, etc.), Human health and social work activities (excl. of dentists, day care for young children in the private sector), Activities of extraterritorial organizations and services.

Compensation can be received for employees who in the period 13.03.2020 - 30.06.2020:

  1. have been with suspended work (by the order of art. 120c of the Labor Code);
  2. have worked part-time (by the order of art. 138a, para 2 of the Labor Code);
  3. have used paid annual leave at the initiative of the employer (by the order of art. 173a of the Labor Code),
  4. on whom the employment has been preserved after a notification for mass dismissals has been submitted by the order of art. 130a of the Labor Code and Art. 24 of the Employment Promotion Act during the period from March 13 to June 30, 2020.

The insurance income, which is considered as a basis for calculating the compensations, is for the month of May 2020.

In the hotel and restaurant sector, the measure is also applicable to workers employed after March 13, 2020. For this sector, the amount of compensation can reach up to 80 percent of the insurance income. For the employees after 01.06.2020, the employer should pay remuneration in the amount not less than the amount of the minimum insurance income for the position and pay the due insurance contributions.

What period can be applied for: For the whole period or for a part of the period from 1 July to 30 September 2020.

Samples of the documents and information about the application procedure can be found on the website of the Employment Agency under the heading "Financial incentives for maintaining employment".

For the new version of the measure, employers can submit applications electronically through the System for secure electronic delivery or through a licensed postal operator, as well as on site at the relevant Directorate "Labor Office". If the employer has more than one site in different settlements, he may submit a joint application to a labor office on the territory of which at least one of them is located.

With the new version of the measure, about 300 thousand people are expected to keep their incomes.

In the previous three months, more than 160,000 workers remained in their jobs, according to the press center of the social department.

The funds paid under 60/40 so far are over BGN 153 million to 20,225 companies.

  1. "SHORT-TERM SUPPORT FOR EMPLOYMENT IN RESPONSE OF THE COVID-19 PANDEMIC" (the Employment Agency project funded by OPHRD)

Total budget BGN 40 million

It expects at least 22,000 employees to be included.

The duration is until 31.12.2021.

The project provides support to enterprises and self-insured persons in the hotel and restaurant sector, transport and tourism, by providing compensation for part of the salary and due tax and social security contributions at the expense of the insurer and the insured person in the amount of BGN 290.

The employment of supported employees, as well as the activities of self-employed persons, should be maintained for the entire period of payment of the compensation, as well as for an additional period equal to half of the period for which the compensation was paid.

Employers who have declared a decrease in sales revenue by not less than 20 percent in the month preceding the month of submission of the application for payment of compensations, compared to the same month of the previous calendar year, may apply.

  1. "EMPLOYMENT FOR YOU" (project of the Employment Agency, financed under OPHRD)

Total budget BGN 160 million, of which BGN 50 million are set aside for priority support to employers in the “Hotels and Restaurants” sector and “Travel agency and operator activities; other travel and reservation activities"

It expects at least 70,000 unemployed people to be included.

The duration is until 31.12.2021.

The aid is in “de minimis” mode.

The project aims to support employers in hiring unemployed people by providing a subsidy for full-time or part-time employment (at least 4 hours) for a period of up to 3 months.

The employer is obliged to keep the employment of 75% of the supported persons for the period equal to the period of the subsidized employment.

Employers registered under the Commercial Act, the Cooperatives Act, the Non-Profit Legal Entities Act and the National Chitalishte Act from all sectors, except fisheries and aquaculture, are eligible.