14.10.2021

DRAWING UP OUR EMPLOYMENT RECORD BOOK UPON TERMINATION OF EMPLOYMENT

Upon termination of the employment relationship, the employer is obliged to enter in the employment record book the data related to the termination and to hand it over immediately to the employee against a signature.

What are the obligations of employers and the rights of employees with regard to the procedure and deadlines for drawing up and submitting the employment record book?

Upon termination of employment, the employer is obliged to enter in the employment record book the grounds for termination, the benefits paid to the employee upon termination of employment, as well as the length of service acquired in years, months and days.

The transfer of the employment record book should take place on the day of termination of the employment relationship, immediately after entering the specified data in it. It must be done by handing it to the person in person. The transfer means the actual placing of the employment record book in the possession of the employee.

When the employee is not in the enterprise on the day of termination of employment and registration of the employment record book, its transfer can be done in three ways:

1. By written registered invitation with a return receipt to the employee to appear at the employer to receive his employment record book. In this case, the employer will have fulfilled its obligation to hand over the employment record book on the day of receipt of the invitation by the employee, certified on the return receipt.
2. By sending the employment record book by mail. It should be borne in mind that this type of transfer of the employment record book requires the prior written consent of the employee. In this case, the time of transmission will be the day it is sent by mail.
3. By handing over the employment record book to a person authorized in writing by the employee. In this case, the employer will have fulfilled its obligation to hand over the employment record book on the day of its delivery to the authorized person, which must be against a signature.

Upon closure of the enterprise, without specifying a legal successor, all payrolls kept by it, employment contracts (appointment orders), reassignment orders, orders for used unpaid leave over 30 working days, orders for termination of employment, employment record books and other documents establishing the length of service and income of the persons who have worked in the enterprise shall be submitted to the territorial divisions of the National Social Security Institute and shall be kept in special archives. Certificates of work experience are issued by the territorial divisions of the National Social Security Institute free of charge within 30 days on the basis of the payrolls and other documents kept by them to terminated insurers without a legal successor.

Reference:

Ordinance on the employment record book and length of service

14.10.2021

WELLS FARGO: THESE ASSETS WILL PROTECT YOU BEST IN TIMES OF INFLATION

Worried about inflation? There is a reason - especially if you own the wrong assets and bet against the shares of the S&P 500.

And what are the right and wrong assets to own during inflation? The financial institution Wells Fargo provides the answer to this question by examining 15 main asset classes and calculating which are the best and worst in the inflationary periods since 2000.

The findings are instructive.

In summary: Inflation is rising for oil and emerging market stocks. And stocks are generally doing well in times of rising inflation. But investors need to prepare for losses on most types of bonds as inflation accelerates.

This is a good reminder not to automatically press the S&P 500 share button if there is a blast of inflation.

The stock "as a group has generated impressive returns in times of rising inflation, with levels that far outweigh the impact of inflation," said Chao Ma of Wells Fargo's global portfolio and investment strategy group.

The best assets during inflation

If you want to know what to own during inflation, start with one word: Oil.

But Wells Fargo found that the price of oil had jumped more than 40 percent during inflationary periods since 2000. It certainly exceeds 10% profit from the inflationary period of major US stocks such as the S&P 500.

The increase in oil during inflation is more than any other major asset class the bank is considering. Oil profits during inflationary periods were also approximately three times higher than the average increase of 12% in all 15 assets surveyed by Wells Fargo.

Remarkably, investors have already sniffed this out. The US Petroleum Fund (USO), a major ETF that tracks oil prices, has risen 69.2% in 2021 so far. This is also a bigger jump than all other ETFs tracking asset classes analyzed by Wells Fargo.

What, then, is the second highest asset class during inflation? This is not gold - it is in third place (with an increase in the inflation period of 16%). These are stocks in emerging markets that recorded 18% earnings in periods of inflation after 2000, Wells Fargo found.

And if so again, this asset could provide good opportunities for investors in the future. The Vanguard FTSE Emerging Markets ETF (VWO) ETF has risen just 1.8% this year.

In equities, small companies outpace large ones, and growth-oriented stocks perform better than in times of accelerated inflation.

This is a bit counterintuitive, as stocks in the energy sector are usually included in value indices and ETFs. Still, shares of the S&P 500 rose only 8% during inflationary periods. That's almost half of the 12 percent increase in growth-oriented stocks. And stock returns are half the 16% growth of cyclical stocks, which tend to rise and fall along with the strength of the economy.

And if growth is good, small stocks are even better. Small-cap U.S. stocks rose 15 percent during inflationary periods in 2000. Smaller companies are thought to serve niches with harder-to-replace commodities. This gives them some price power. In addition, smaller companies tend to grow faster than larger ones.

The IShares Core S&P Small-Cap ETF (IJR) is flying this year: a 20.4% increase so far.

The bottom line: Be inflation-smart. Don't let the risk of inflation drive you out of the S&P 500. Or the stock as a whole. The headlines are scary, but data from 2000 show that stocks can still make impressive gains amid inflation, write Wells Fargo experts.

And if you are ready to do your homework, you can find opportunities for market superiority, even if prices rise higher.

"We support stocks in the current environment of economic expansion and rising inflation," said Ma of Wells Fargo. "They offer the potential for both long-term price increases and a desired level of income."

13.10.2021

TECHNIQUES FOR SUCCESS: FIVE FINANCIAL TIPS FOR A CALMER FUTURE

The Bulgarian continues to be the poorest in the European Union, according to data from the European Statistical Office.

On the one hand, we receive the lowest salaries in the EU, both minimum and average. On the other hand, despite the many investment opportunities, most of our compatriots continue to save on deposit, and those who invest directly in stocks or funds (mutual, exchange-traded or savings plans, etc.) are still "a handful of people."

And what better way to accumulate wealth than investing in markets that, historically, grow by more than 8% per year (note: this refers to the average annual return on the S & P500)?

Today we decided to focus on a few tips that would help each of us to significantly improve our financial situation.

Savings

Personal finance experts recommend that we pay ourselves first after we receive a salary. This means that we should set aside a certain part of our income, which is good to be at least 10 percent of what we earn.

Given that your income is higher, you can afford 15 and even 20 percent of them to be saved and even better invested. Here, perhaps, is the place to recall the 50-30-20 rule, ie half of our income should go to housing and food, 30 percent to entertainment and vacations, and 20% to savings.

Investments

The earlier we start investing, the better. In this way, we will make the most of the "eighth wonder of the world - compound interest". Let's say we have saved BGN 1,000, which brings us a 5% annual return. This means that in 12 months we will have BGN 1,050, and in the coming months and years these BGN 50 will also work for us and will earn us money.

Did you know that the same BGN 1,000, invested at 5% annual yield, will represent BGN 2,653 in 20 years? However, the amount can increase to over BGN 42,000 or even BGN 82,000 if we add another BGN 100 or 200 every month. However, if we have 30 years to retire and follow the above examples, then the final amounts will be BGN 83,000 and 163,000.

The rule of 10

Personal finance experts recommend that we be very careful with our purchases. Some of them advise us to sleep before spending more serious amounts, thus protecting ourselves from impulsive purchases. Others are of the opinion that we cannot afford a product if we do not have its value of 10 in savings.

The snowball effect

When you are stuck in various loans, your mission to repay them seems difficult, but not impossible. However, do not focus on repaying the largest debt, but use the method of "snowball". Start with the youngest and in this way each of your victories will inspire you for new successes.

That is, we should first repay our quick loan or credit card debt and then the consumer and mortgage loan. Billionaire Mark Cuban says that the fastest return can be achieved after repaying our credit card debt, as they have between 17 and 22% interest on an annual basis.

In the case of Bulgaria, this rather applies to quick loans, as they have even higher interest rates, often reaching 49%.

Much more important than numbers is the change in your behavior. Once you have repaid some or all of your debts, then you can think about both savings and investments.

Invest in yourself

Today you can find a lot of free and paid courses to enrich your financial culture. If you read personal finance literature, it is quite possible that you will become richer in the future. Courses and books are an easy way to increase our self-worth - through salary, business or investment.

13.10.2021

BDB LEASING WITH A NEW PROGRAM FOR FINANCING OF THE COMPANIES

BDB Leasing, a subsidiary of the Bulgarian Development Bank, presents a new program to support micro, small and medium enterprises in partnership with the Pan-European Guarantee Fund.

It aims to overcome the negative effects of the Covid-19 pandemic and will allow companies to take advantage of easier financing conditions, longer payback periods and reduced deductible requirements.

The leasing financing under the program is up to BGN 2.2 million. It is intended for the purchase of new and used production machinery and equipment, trucks and vehicles, construction and agricultural machinery.

The requirements for deductible are 0% for leasing vehicles and 5% for other types of assets.

The repayment terms are also preferential - depending on the type of asset purchased, they vary between one and eight years. Companies can apply for funding until the end of 2021.

More information about the product can be found HERE

The funding provided is provided under the EGF guarantee instrument, implemented by the European Investment Fund (EIF) with the financial support of the Member States of the European Union, which contribute to the Pan-European Guarantee Fund (EGF).

13.10.2021

THE MOST SUCCESSFUL EXPORT PROGRAM EXPO2 OF EXPORT HUB BULGARIA IS RECRUITING APPLICATIONS FOR ITS SECOND EDITION

The second edition of the training program of Export Hub Bulgaria EXPO2 has started, and from 13.10.2020 Bulgarian companies from all sectors can submit their applications for inclusion in the completely free initiative, which aims to support the development of the export potential of Bulgarian companies that have the necessary capacity to enter international markets.

The application window is open until November 2, 2021, and companies will have the opportunity to participate in a series of lectures with theoretical and practical part, as well as to participate in open meetings with experts from various fields of business development. Each company will have its own mentor to monitor its development and progress during the program and will assist in the training process.

In the pilot edition of the training program EXPO1 in 2021 took part 15 Bulgarian small and medium enterprises - Cardinal Bytes, Biostyle, Entegra, TechnoLogica, Inoxis, Automation of Discrete Production - Smolyan, Single Seld, Europack Bulgaria M, Convoy-World, Daisy Tech, Eldjoy, Piros, Ayali Group, Inova BM, Eikhorn and Co.

After the program, the companies shared their first results, including building an effective concept and strategy, increasing productivity, exports, finding new business partners and distributors.

As part of the initiative, additional meetings were organized with sales representatives abroad of the Ministry of Economy, which presented the opportunities for entering selected markets by companies.

To apply in this edition, again a mandatory condition for the participants is to be owners/managers/commercial directors or in another managerial position, with decision-making competencies. The program will start in early 2022, and the format of the program will be hybrid.

If interested, documents for application should be submitted through the platform www.b2bconnect.bg within the specified period. The approved candidates will be invited to an online interview in which they will talk to an expert jury. Participation in the program is free.

Export Hub Bulgaria is a public-private initiative that works to increase the export potential of Bulgarian business.

Under the auspices of the Export Hub Bulgaria events are organized in the country with an international character, and full information can be found on the official website www.exporthub.bg.

Behind EHB stand:

Executive Agency for Promotion of Small and Medium Enterprises - initiator

Sofia Tech Park

Bulgarian Export Insurance Agency

Association of Industrial Capital in Bulgaria

Bulgarian Chamber of Commerce

Bulgarian Chamber of Commerce and Industry

Confederation of Employers and Industrialists in Bulgaria

Higher School of Insurance and Finance

Cleantech Bulgaria Institute for Economic Policy

M3 Communications Group

Bulgarian consulting organization

Cleantech Bulgaria

The Bulgarian Startup Association

Professional Association of Robotics and Automation BRAIT (old name Association of Business Clusters)

Software University

13.10.2021

HOW TO MAKE THE "GREEN" TRANSITION SUCCESSFUL FOR BULGARIA

How to make the "green" transition successful and fair for Bulgaria? What funds will be invested in the Bulgarian economy and will we be able to modernize our industry and production? What will be the social price we will pay and how will the affected people and regions be compensated? What is the readiness of business and local government for transformation and do we know enough about the measures and funding opportunities provided by the EC?

These and many other questions will be answered by the upcoming conference "Green Transition - Solutions and Challenges for Bulgaria" on October 15, which you can follow online HERE.

The forum will be opened by Prime Minister Stefan Yanev and EC Executive Vice President Frans Timmermans. Key participants in the event are Innovation Commissioner Maria Gabriel, Deputy Prime Minister for European Funds Atanas Pekanov, Sofia Mayor Yordanka Fandakova, British Ambassador Rob Dixon, Finance Minister Valeri Belchev, Economy Minister Daniela Vezieva, Minister of Energy Andrey Zhivkov, Minister of Transport Hristo Alexiev, Deputy Minister of Environment and Water Reneta Koleva and Deputy Minister of Agriculture Yavor Gechev.

Over 50 participants in two main panels and 4 parallel working sessions will comment on the topics "Financing the Green Transition", "Intelligent Industry, Energy and Economy", "Smart Cities and Circular Economy", "Intelligent Transport Systems and Mobility", "Innovation in agriculture and biotechnology”.

In the week in which the Bulgarian government is expected to send to the EC the Recovery and Sustainability Plan and to indicate dates for decommissioning of key energy facilities for the country, the topic of the Green Transition is particularly relevant.

At the end of July, the EC presented the largest package of reforms related to climate change, envisaging a reduction in carbon emissions in the EU by 55% by 2030 and reaching net zero emissions by 2050 compared to 1990 levels. If adopted, this plan will radically change the economies of the member states and the lives of the people of Europe.

Huge investments in the economies of the member states for modernization, innovation, green energy, education, transport, construction, but also increasing the costs for households - these are some of the opportunities and challenges that the Green Deal poses to Europe and its citizens.

Despite the serious changes that are ahead of the Bulgarian economy, the information on the topic of the Green Deal in our country is limited and fragmented. It is time to start a frank conversation to make the Green Transition successful, understandable and fair.

That is why the forum has the ambition to bring together European and Bulgarian leaders, leading experts, trade unions, business representatives, NGOs and the media to start a fair debate on the topic in the context of climate change, the need to modernize our economy, but and with a focus on the social aspects of this transformation.

12.10.2021

THE BULGARIAN DEVELOPMENT BANK OFFERS LOANS TO ENTREPRENEURS FROM VULNERABLE GROUPS

The Bulgarian Development Bank will support the representatives of vulnerable groups who want to start their own business. BDB Microfinance will lend to companies and the self-employed, including the unemployed, young people and people with disabilities. The product is also aimed at supporting social enterprises - the so-called mission businesses, the bank said.

The program will enable small and medium-sized enterprises to use an investment or working capital loan of up to EUR 50,000 (BGN 97,791) on favorable terms and with 25% lower interest rates compared to the standard conditions of BDB. The repayment period is longer than similar products on the financial market.

The guarantee resource under the BDB Microfinance program is BGN 1 million, and the volume of loans to final recipients is expected to reach BGN 5 million.

The support aims to improve access to finance for start-ups and social enterprises, as well as to support social entrepreneurship in the acquisition of tangible and intangible assets for the development or expansion of activities.

The subsidiary of BDB has entered into a guarantee agreement for the use of a portfolio guarantee with a ceiling on losses for microfinance with the Fund Manager of Financial Instruments in Bulgaria EAD (the Fund of Funds). The resource is under the Operational Program "Human Resources Development 2014-2020" (OPHRD), co-financed by the European Social Fund.

Among the most important goods created by these companies is social capital - solving social problems, job creation, and at the same time income for the entrepreneur. Social enterprises develop and implement innovations that stimulate social and economic development, offer new goods and public services and change stereotypes in the market and non-market environment. The new product of BDB Microfinance is designed for this specific segment of the country's economy, which usually remains out of sight of commercial banks and general measures and programs.

12.10.2021

APPLICATIONS UNDER THE EXTENDED MEASURE 60/40 ARE ALREADY BEING ACCEPTED

As of today, the Employment Agency accepts applications from employers for the extended until the end of the year measure for maintaining employment, known as "60 to 40".

The conditions for receiving support in the period August - December this year are similar to those that applied for the previous months of June and July.

Compensation of 60 percent of the income and social security contributions of each employee is paid to enterprises with a decrease in sales revenue during the month for which the support is provided compared to the same month in 2019.

Support in the amount of 50 percent is provided for employees in enterprises with a decline in sales of not less than 30 percent during the compared periods.

For the months of August and September, the submission of documents will be admissible until the end of this month.

For the month of October will apply in November, and for the month of November - until December 10.

11.10.2021

DISMISSAL DUE TO LACK OF PERSONAL PROTECTIVE EQUIPMENT OR FLU-LIKE SYMPTOMS

Comment

According to Art. 275, para. 1 of the Labor Code (LC), the employer is obliged to ensure healthy and safe working conditions so that the dangers to the life and health of the employee are eliminated, limited or reduced.

The Health and Safety at Work Act (HSWA) regulates the rights and obligations of all participants in the labor process regarding the provision of safety and health at work, and employees also have obligations in relation to safety and health at work.

In Art. 126 of the Labor Code regulates the obligations of the employee, and it is explicitly determined that he should appear at work in a condition that allows him to perform the assigned tasks, to comply with the rules of health and safety at work, to comply with internal rules, accepted in the enterprise, and others. Also in Art. 33 of the Health and Safety at Work Act establishes the explicit obligation for each employee to take care of his health and safety, as well as the health and safety of other persons directly affected by his activity, in accordance with his qualification and the instructions given by the employer.

The employer has an obligation to acquaint the employees with the established rules for safety and health at work. This is done by conducting safety and health at work instruction, which is prepared in accordance with the risk assessment in the enterprise. The employer should indicate to the employees that they are obliged to appear at work in a condition that allows them to perform it, including not to appear at work in case of flu-like symptoms, as well as with their obligations to use the provided Personal protective equipment.

The right of the employer to remove the employee from work is regulated in Art. 199, para. 1 LC. This provision stipulates that the employer or the immediate supervisor may temporarily dismiss an employee who is in a condition which prevents him from performing his duties. The temporary suspension from work under Art. 199, para. 1 of the Labor Code is performed by the employer in order to prevent the occurrence of severe consequences for the employee himself, as well as to protect the other employees in the enterprise.

Therefore, the fault of the employee for the occurrence of the objective obstacle to the performance of the work, which is the reason for its removal, is irrelevant.

An important point before starting the procedure for dismissal of the employee is to determine whether there are grounds for this.

Depending on the management structure of the enterprise, the employer or the immediate supervisor establishes the existence of grounds for dismissal.

In cases where the grounds for removal are established by the immediate supervisor, he should immediately notify the employer. The final assessment of the existence of grounds for dismissal is made by the employer.

The legislation does not explicitly provide for the type and form of the act through which the employer exercises his right to dismissal. It is justified to do this by issuing a special document in writing, for example by order. The written order may facilitate the proof of the grounds for removal in the event of a labor dispute related to the rights and obligations of the parties in connection with the work performed.

The provision of Art. 284, para. 2 of the Labor Code obliges the employees to use the special work clothes and the personal protective equipment for their intended purpose. Therefore, the non-fulfillment of the obligations for use of personal protective equipment is a violation of labor discipline, which can be a ground both for initiating disciplinary proceedings and for dismissal of the respective employee. In Art. 199, para. 2 of the Labor Code stipulates that the removal shall continue until the employee regains his fitness to perform the work assigned to him. Therefore, when a case is found in which an employee does not use personal protective equipment, it is possible to quickly remedy the violation by placing them, therefore his rights regarding the accrual and payment of remuneration should not be affected. However, this does not limit the employer's ability to initiate disciplinary proceedings against the employee for non-compliance with his specific obligations.

In view of the ongoing COVID-19 pandemic, it is important that employers do not allow workers or employees or outsiders who show symptoms of acute infectious diseases. Therefore, the removal of workers with such symptoms can be considered as a justified measure to limit the spread of the infection and to preserve the life and health of other employees in the company.

When a worker or employee who shows symptoms of a contagious disease, including fever and/or severe cough, appears at work, it is necessary to remove the person and take measures to establish his health condition, including expertise of working capacity. The examination of the temporary incapacity for work is performed by the health authorities in accordance with the procedure specified in the Ordinance on Medical Expertise (OME).

In the case described, the employee should be referred by the competent health authorities to determine his ability to work. The provision of Art. 16, para. 1 OME stipulates that all laboratory tests and treatment procedures (physiotherapy, X-ray therapy, etc.) of able-bodied insured persons may be performed during working hours with the permission of the employer, without issuing a sick note. In this case, the doctor who performs the examination or consultation issues an official note of insurance, which reflects the time of appearance and the time of completion of the examination (Article 16, paragraph 2 of the OME).

When the health authorities establish temporary incapacity for work, they issue a sick leave, which is a ground for using leave under Art. 162 LC and is for the period until recovery. During the use of this leave, compensation from the state social insurance is paid. The insured (employee) is obliged to present the sick leave or to notify the employer/insurer within two working days from its issuance. In cases where the attending physician or medical advisory commission has established a state of incapacity for work, but the insured refuses to be issued a sick leave, the latter must be issued and officially sent to the employer/insurer where the insured works (Art. 9, para. 3 OME). It is important to keep in mind that the insured person cannot, at his/her discretion, return to work before the expiration of the authorized leave without the permission of the attending physician or medical advisory commission, who issued the sick leave. Insurers (employers) also do not have the right to admit to work the insured (employees) who are on leave due to temporary incapacity for work (Art. 18, para. 1 OME).

When the doctor finds that there are no grounds for using leave for temporary incapacity for work and the employee can perform his/her official duties, the employer is obliged to admit him/her to work. In this case, the appearance before the health authorities can be established with an issued official note, and the right of the employee to receive his/her remuneration must not be restricted. Moreover, in the event of a labor dispute, it can be assumed that the dismissal is illegal and the employer owes compensation in the amount of the gross remuneration of the employee for the time of the illegal dismissal pursuant to Art. 214, para. 1 LC.

It should be borne in mind that according to Art. 8, para. 1 of the Labor Code, labor rights and obligations are exercised in good faith in accordance with the requirements of the laws.

Good faith in the exercise of labor rights and obligations is presumed until the contrary is established (Article 8, paragraph 2 of the Labor Code). In order not to accrue and pay the full amount of the employee's remuneration, the employer should have evidence and have established the bad faith in the performance of the rights and obligations of the person. Therefore, only when the employee has symptoms of a contagious disease and is instructed to appear before a health authority for assessment of working capacity, but the person has not complied with the orders of the employer, there is reason to apply the provision of Art. 199, para. 3 of the Labor Code, according to which during the period of removal, the employee does not receive remuneration.

Nenko SALCHEV, Head of the Labor Law and Working Conditions Department in the Labor Law, Social Security and Working Conditions Directorate at the MLSP

08.10.2021

WHAT SHOULD WE DO IF WE LOSE OUR EMPLOYMENT RECORD BOOK?

What are our rights if we lose our employment record book? Is there an institution that can help us to recover the information in it and what is the procedure for that?

According to the Ordinance on the employment record book and length of service, when the employment record book is lost or destroyed, the Labor Inspectorate issues a new one based on a written application of the employee stating that the employment record book has been lost, who lost it and data on the employers with whom he/she worked.

When the employment record book is lost or destroyed by the employee, in the new employment record book the Labor Inspectorate shall enter data on the length of service on the basis of the certificates submitted by him according to the legal requirements or other original documents containing the necessary data.

When the employment record book is lost or destroyed due to the fault of the employer, the Labor Inspectorate shall oblige him within a period not exceeding one month to present the necessary certificate for the issuance of a new employment record according to the law.

When the employee has also worked for other employers, the employer requires from them certificates in accordance with the law. The collected certificates are submitted to the Labor Inspectorate according to the inventory. Employers are obliged to issue the required certificates within 7 days of their request.

According to the Bulgarian legislation, the employment record book is the main certifying document for facts and circumstances related to the employment of the employee and is important for a number of his employment rights. The employment record book always has a public certification value. Its issuance according to a model approved by the state and the recognition of its certifying significance gives the official character of this document.

The entries in the employment record book are made by officials, within the scope of their service, in the form and in accordance with the procedure established by law. The employment record book is kept by the employee, who is obliged to present it to the employer upon request, as well as to enter new circumstances in it.

As a certifying document, the employment record book testifies to the facts reflected in it. These facts are related to the work of the employee.

Reference:

Art. 7 of the Ordinance on the employment record book and length of service