01.11.2023
CAN I REGISTER A COMPANY IF I WORK ON AN EMPLOYMENT CONTRACT?
Laws governing the registration of companies differ from country to country. It is important to note that the administrative requirements to be followed when registering a company sometimes also depend on the employment status of the person when such a step is taken. In reality, the general regulation of legal norms and documents required to register a company have no relation to whether the applicant is an employed worker or an employee.
What is the legal situation in Bulgaria regarding the commitments of employees when they take the step of registering their own company? Is it possible to combine work under an employment contract with being the owner of a company? Does the employer have to be notified that the worker or employee will start his own company?
In Bulgaria, there is no explicit legal provision that prohibits an employed person from being the owner of a company at the same time. The Labor Code of the country regulates the possibilities for additional work with the same or another employer, but here we are talking about additional remuneration.
We remind you that the worker or the employee can enter into an employment contract with the employer he works for, to perform work that is not within the scope of his work duties, outside of the working hours established for him. Also, the worker and the employee may enter into employment contracts with other employers to perform work outside the working hours established for him under the main employment relationship (external compatibility), unless a prohibition has been agreed in his individual employment contract under his main employment relationship due to trade secret protection and/or conflict of interest prevention.
The only prohibition of additional work (again through an additional employment relationship) is for workers or employees who work under specific conditions and the risks to their life and health cannot be removed or reduced, regardless of the measures taken - to work under the same or other specific conditions. This also applies to those positions and professions that are explicitly defined in a law or in an act of the Council of Ministers.
As the Labor Code nowhere mentions a requirement for employees to seek permission from the employer or to notify him that they intend to or have already registered their company, it can be argued that contract workers do not have this commitment and employers should not require such information.
It should be noted that according to the Commercial Law, a manager of a limited liability company cannot be a person declared bankrupt or a person who has been a manager, member of a management or control body of a company dissolved due to bankruptcy in the last two years , preceding the date of the bankruptcy decision, if there are unsatisfied creditors. A person who has been a manager, a member of a management or control body of a company for which a criminal decree entered into force has been found to have failed to fulfill obligations to create and maintain its specified levels of stocks under the Stocks Act cannot be a manager. from oil and oil products.
Again, the Commercial Law states that, without the consent of the company, the manager has no right to participate in general and limited partnerships and limited liability companies, on his own behalf or on behalf of others, as well as hold a position in the management bodies of other companies.
Reference:
Art. 110, 111, 112 of the Labor Code
Art. 141, 142 of the Commercial Law
25.10.2023
THE NATIONAL COUNCIL FOR PERSONS WITH DISABILITIES HAS APPROVED CHANGES TO THE MEDICAL DEVICES ORDINANCE
The National Council for People with Disabilities supported a project for changes to the Ordinance on the terms and conditions for compiling a list of medical devices and for determining the value up to which they are paid by the state or from the budget of medical institutions. The main purpose of the amendments is to clarify the procedures for updating the list of aids, devices, equipment and medical devices for people with disabilities, which will contribute to them having access to the support they need, as well as to improve the way of determining of the values up to which the corresponding products will be paid.
This was the first meeting of the new composition of the Council, chaired by Deputy Prime Minister Maria Gabriel. Representatives of the state, nationally representative organizations of and for people with disabilities, trade unions, employers and the National Association of Municipalities in the Republic of Bulgaria participate in the advisory body. The meeting was attended by the Minister of Labor and Social Policy Ivanka Shalapatova and the Minister of Health Hristo Hinkov.
"Guaranteeing the social rights of people with disabilities to improve the quality of their lives and prevent social exclusion is among the priorities of the Ministry of Labor and Social Policy," Minister Shalapatova said at the opening of the meeting. She pointed out that the ministry is preparing a comprehensive concept for the development of the policy of people with disabilities. "We are working to change the model of medical expertise. Our focus is also on improving the policy related to the employment of people with disabilities," Minister Shalapatova added.
During the meeting, the Report on the activities of the National Council for People with Disabilities for 2022 and a report on the results of the activities of the nationally representative organizations of and for people with disabilities for the past year with the subsidy provided to them by the state budget were approved.
25.10.2023
WHAT IS THE PENALTY IF I LEAVE EARLY FROM WORK?
According to the Labor Code, violations of labor discipline are:
Disciplinary sanctions are reprimand, warning for dismissal and dismissal. When determining the disciplinary penalty, the employer should take into account the severity of the violation, the circumstances in which it was committed, as well as the behavior of the worker or employee. Before imposing the disciplinary penalty, the employer is obliged to listen to the worker or employee or to accept his written explanations and to collect and evaluate the said evidence.
When the employer has not previously heard the worker or employee or has not accepted his written explanations, the court cancels the disciplinary penalty without considering the dispute on its merits.
Disciplinary punishment is considered imposed from the day the order is delivered to the worker or employee or from the day it is received, when it is sent by registered letter with return receipt.
Reference:
Art. 187 of the Labor Code
Art. 188 of the Labor Code
Art. 193 of the Labor Code
24.10.2023
THE STATE WILL PROVIDE LEGAL AND BUSINESS CONSULTANTS TO COMPANIES AT RISK OF BANKRUPTCY
Early warning tools for the likelihood of bankruptcy will be available to traders. They will be provided to them by the Agency for Small and Medium Enterprises, according to a draft regulation that has been published for public discussion (see here).
The tools provided for in it are:
The online system for self-assessment of enterprises in case of probability of bankruptcy will provide an algorithm for calculating indicators of the financial condition of the enterprise, as well as other relevant information about liabilities, receivables and the way of business management, and will provide a brief report with the results of the assessment and general recommendations for action.
Access to it will be voluntary, free of charge and in accordance with the requirements for confidentiality and protection of the processed information. The data that is necessary to calculate the financial indicators of the enterprise will not be recorded and controlled by the Agency for small and medium-sized enterprises.
As for the general guidance and advice that businesses may receive, it will be provided to them free of charge by agency staff or by external contractors.
For specialized consulting services, the draft regulation stipulates that they are provided by consultants who are external experts - "investment consultants, accountants, lawyers, trustees or other specialists with an acquired educational and qualification degree of bachelor, master or doctorate in the field of business management, accounting , finance and law, possessing at least 8 years of experience in the acquired specialty, and in cases where it is required by law and acquired legal capacity".
They will enter in a special list. Consulting services are not intended to be free, and the regulation states that exactly how a company will be able to receive this type of assistance will be made clear by practical instructions from the director of the Agency for Small and Medium Enterprises.
As is known, there is no warning system in Bulgaria to support debtors, and early warning systems are developed only by banks for the purposes of credit risk management.
According to data from the National Statistical Institute, between 39,000 and 50,000 enterprises cease their activities every year. "The looming trend of an increase in the number of businesses going out of business is a sign of a deepening problem that goes beyond the natural demographics of businesses. The provision of an early warning system in case of the danger of enterprises falling into a difficult situation is one of the factors that can influence the negative trend", state the Ministers of Economy and Industry and Innovation and Growth.
23.10.2023
THE LATEST CHANGES IN THE COMMERCIAL LAW IN RELATION TO INSOLVENCY
The exceptional dynamics of commercial turnover nowadays, as well as the multitude of factors of all kinds, which are related to the activity of commercial companies, often confront traders with various difficulties in fulfilling their obligations, especially financial ones. At such times, terms such as bankruptcy and bankruptcy begin to be used freely. This terminology is characteristic of the legislations of other countries, and in Bulgaria the statutory term is bankruptcy. More specifically, we should talk about commercial bankruptcy, which combines on the one hand the legal institution itself, and is also used to denote the legal proceedings for declaring a merchant bankrupt.
In issue No. 66 of 01.08.2023 of the State Gazette, changes to the Commercial Law were promulgated regarding various stages of the bankruptcy procedure. By their nature, the amendments aim at introducing clear rules regarding the rights of creditors and debtors, as well as improving the efficiency of the proceedings themselves. The changes are related to the implementation of the requirements of Directive (EU) 2019/1023 of the European Parliament and of the Council of June 20, 2019 on the frameworks for preventive restructuring, on the forgiveness of obligations and the ban on carrying out an activity, on measures to increase the effectiveness of restructuring, bankruptcy and debt relief proceedings and amending Directive (EU) 2017/1132.
Among the numerous amendments and innovations, the amendment in the scope of the concept of "over-indebtedness" according to Art. 742 of the Commercial Law. Until now, the current norm allowed to justify over-indebtedness if the property was not sufficient to cover the monetary obligations of a trader. With the change made, the norm will apply to all obligations in the future. This means in practice that the inability to fulfill specific other contractual obligations, for example production, delivery or others, will also be able to presuppose the initiation of insolvency proceedings.
Next, the amendment to Art. 613 of the Commercial Law. Until now, the district court of the merchant's seat at the time of the request to open the proceedings was competent to hear the bankruptcy proceedings. The amendment states that the district court at the seat of the trader, registered no later than 6 months before the filing of the application for the opening of bankruptcy proceedings, is competent. Thus, in practice, changes in the headquarters in shorter terms would not have an impact on the jurisdiction of the claims - including in cases of deliberate changes by companies expecting similar proceedings to be initiated against them. On the other hand, the new norm imposes the need for a careful analysis of the circumstances in relation to the registered office of the traders before filing the application for the opening of bankruptcy proceedings, in order to avoid delays in the event of a jurisdictional dispute.
A significant change is also made in the circle of acts of the district courts, which can be appealed according to Art. 613a of the Commercial Law, expressly stating that the decisions of the appellate court are subject to a cassation appeal.
Next, the innovation that a number of acts relevant to bankruptcy proceedings will also be announced in the Commercial Register deserves attention. This amendment is also relevant in connection with the deadlines for appealing the relevant acts, which begin to run from their announcement.
Part of the legislation is already a completely new regulation in connection with the bankruptcy proceedings of natural persons - entrepreneurs. The scope of the new rules includes natural persons exercising an economic activity, a trade or a free profession, as long as their enterprise does not require the conduct of business in a commercial manner in terms of subject matter and volume. In addition to the norms expressly provided for, the regulations regarding bankruptcy proceedings for the sole trader are also intended to be applied subsidiarily for natural persons - entrepreneurs. Along with the general rules for determining insolvency under Art. 608, para. 1 of the Commercial Law, a special hypothesis is also provided for these persons, namely when the person is unable to fulfill a required monetary obligation arising from or relating to a transaction related to his/her business activity, trade or free profession.
The competent court in bankruptcy proceedings is the district court at the place of registration of the entrepreneur, entered no later than 6 months before the moment of filing the application for opening bankruptcy proceedings. In the event that the entrepreneur does not have a place of registration, the law provides for the jurisdiction of the district court of the entrepreneur's permanent address. The creation of a special information system at the Ministry of Justice is also planned, in which the acts of bankruptcy proceedings of an entrepreneur can be entered or announced.
The amendments to the law also provide for the creation of special forms of claims, lists of creditors, the declaration and consent of the receiver, distribution accounts, monthly reports of the receiver and the receiver's diary.
At the same time, a number of changes are being made regarding the stabilization procedure. The purpose of this procedure is to prevent the opening of bankruptcy proceedings by reaching an agreement between the trader and his creditors to restructure the enterprise, which will lead to the continuation of the trader's activities. It is noteworthy that in Art. 764 of the Commercial Law, in contrast to the previous text, a significantly more detailed listing of traders for whom stabilization proceedings are not applied is made. The changes also introduce explicit requirements regarding the content of the stabilization plan.
The above changes are just some of the new developments in bankruptcy proceedings. The new texts are substantial in volume and cover both different aspects of all stages of insolvency proceedings, with respect to which practice is yet to be established. To a large extent, the new texts will contribute to speeding up the various stages of bankruptcy proceedings and their progress under clearer and more efficient rules.
20.10.2023
15,200 YOUNG PEOPLE WILL BE SUPPORTED TO ENTER THE LABOR MARKET THROUGH THE NEW "YOUTH EMPLOYMENT +" PROJECT
15,200 inactive or unemployed youth will be supported to enter the labor market through the activities of the "Youth Employment +" project of the "Human Resources Development" Program 2021-2027. The project is a continuation of the "New Opportunity for Youth Employment" project implemented by the Employment Agency in the previous program period of the Operational Program "Human Resources Development" 2014-2020.
Its main goal is to increase the competitiveness of young people aged 16 to 29 inclusively by providing an opportunity for an internship, on-the-job training, employment or inclusion in training to acquire "soft" skills with an employer. This will facilitate the transition of young people from education to employment and allow them to gain valuable work experience needed to fill job vacancies claimed by employers.
The new "Youth Employment+" project is implemented by the Employment Agency as a specific beneficiary. From 02.10.2023, the reception of requests from employers for inclusion in the Project began. Requests should be submitted using a template through the Secure Electronic Delivery System.
Under the "Youth Employment+" project, financed under the "Human Resources Development" Program 2021-2027, support can be given to young people involved in the "New Opportunity for Youth Employment" project, financed under the "Human Resources Development" Operational Program 2014- 2020, who have not reached the maximum duration of employment foreseen according to the concluded employment contracts. Funding under the current project for them will only cover the remaining period until the maximum support period is reached, if this period is at least three months or more. For the remaining period, employers must apply for inclusion in the "Youth Employment+" project with an up-to-date application. Employment contracts already concluded with persons employed under the "New Opportunity for Youth Employment" project must not be terminated.
"Youth Employment+" will provide support to inactive or unemployed youth through:
The total financial assistance under the Project is BGN 188 million. It is expected to involve 15,200 inactive or unemployed youth, of which 9,120 will remain employed by the same employer after the completion of the operation. The project will be implemented until 31.12.2027.
You will find additional information about employers and inactive or unemployed persons in the labor offices throughout the country, as well as on the official website of the Employment Agency under the banner "Human Resources Development" Program 2021-2027.
19.10.2023
IT IS EASIER TO FINANCE OWN BUSINESS FOR PEOPLE WITH DISABILITIES
The Ministry of Labor and Social Policy proposes a change in the Methodology for financing projects for self-employed people with disabilities.
The Executive Director of the Agency for People with Disabilities approves programs and projects for the initiation and development of independent business activities for people with disabilities, together with a methodology for financing the planned activities. The methodology regulates the application conditions, required documents and specific application requirements.
This targeted program is implemented annually by providing funds from the state budget and in many cases is practically the only alternative for people with disabilities to participate in the labor market. The goal is to promote opportunities for self-employment, entrepreneurship and starting an independent business by people with disabilities. In this way, prerequisites are created for their reintegration into society, to improve their socio-economic status with a view to leading a fulfilling life and sustainable socialization, the Ministry of Labor and Social Policy explains.
According to the department's analysis, problems have been identified preventing the achievement of the expected results of the implementation of the program, resp. dissuading potential candidates - individuals with disabilities from applying.
In this regard, a Draft Order for amending and supplementing the Methodology for financing projects for the initiation and development of independent business activities of disabled people has been developed, together with a new model of the Application Form - Appendix No. 1, an integral part of the methodology.
The changes envisage increasing the subsidy under the program from BGN 20,000 to BGN 30,000 as a stimulating incentive mechanism for persons from the target group.
The application conditions are eased by dropping some formal requirements, such as canceling the requirement that the funding applicant prove management experience for similar activities, in order to stimulate the application of more persons inactive on the labor market, as well as changes in the subsidy payment tranches on the individual components of the program. Advance payments for project investment costs are expected to increase from 30% to 50%. This will provide applicants with more funds to purchase equipment.
The term of the post-investment activities is reduced from 36 months to 24 months in order for future entrepreneurs to have the opportunity to benefit from other targeted programs as regular employers.
The relevant application forms are also specified in relation to the envisaged amendments.
Individuals with permanent disabilities, with 50 and more than 50% determined reduced working capacity, who do not have an established sole proprietorship, regardless of whether it is active or inactive, and who do not participate as partners in other commercial companies, are entitled to support under the Program.
In the last three years, 59 projects of individuals with permanent disabilities - owners of sole proprietorships - have been financed. They have started their own businesses in activities such as the production and sale of handicraft goods; beauty studios; taxi services; car painting services; investment design of buildings and facilities and implementation of copyright control; food establishments; roadside assistance; engraving and sublimation; development and maintenance of web applications and software; interior design studio and others.
When realizing the independent economic activity, a large part of the beneficiaries of the Program have provided employment to other persons as well.
Funds are granted to cover only investment costs, such as the establishment of a new enterprise, construction and repair works, equipment of the disclosed workplaces, one of which is mandatory for the owner of the enterprise, start-up minimum working capital, short-term training course for the owner of the enterprise.
18.10.2023
HOLIDAY PAY FOR A PART-TIME WORKING DAY
For the duration of the paid annual leave, the employer pays the worker or employee remuneration, which is calculated from the average daily gross labor remuneration charged to the same employer for the last calendar month preceding the use of the leave, during which the worker or employee worked at least 10 working days.
However, what happens when the worker or employee does not work full-time (8 hours), but performs part-time or less? Is there a change in the calculation of the amount of vacation days and the corresponding pay?
First of all, let's note that according to the law, the worker and the employee who works part of the statutory working time (part-time) has the right to paid annual leave in proportion to the time that is recognized as work experience. The length of service, on the other hand, is calculated in days, months and years.
For even greater specificity, the law states that one day of work experience is recognized as the time during which the worker or employee worked at least half of the legally established working hours for the day in one or more employment relationships.
This means that when the person is appointed at eight, seven, six five and four, they are entitled to the full 20 working days of paid annual leave.
For employees who work less with working hours of less than four hours, the amount of leave is determined proportionally as follows for employees:
- at 8 hours - 20 working days off;
- at 7 hours - 20 working days off;
- at 6 hours - 20 working days of leave;
- at 5 hours - 20 working days of leave;
- at 4 hours - 20 working days off;
- at 3 hours - 8 working days of leave (rounded from 7.5);
- at 2 hours - 5 working days off;
- per 1 hour - 3 working days (rounded from 2.5).
The gross remuneration for determining the benefits for paid annual leave is the gross remuneration received by the worker or employee for the month preceding the month in which the basis for the relevant benefit arose, or the last monthly gross remuneration received by the worker or employee, unless otherwise is provided.
The gross remuneration for determining the remuneration for paid annual leave shall include:
Reference:
Art. 177, Art. 222, paragraph 3, art. 228, para. 1, Art. 355, para. 1 and 2 of the Labor Code
Art. 17, para. 1 of the Ordinance on the structure and organization of the salary
18.10.2023
RESEARCH HAS HIGHLIGHTED WHICH ARE THE CRITICAL SECTORS FOR WORKERS
Poor work quality, including high emotional demands, high-speed work, and short deadlines, are widespread among several of the sectors and occupations considered essential, key, or critical during the COVID-19 pandemic.
Particularly in the case of health workers and those working in the care sector. Half of them had busy jobs – meaning their work put their health and well-being at particular risk. The strain these workers face on a daily basis calls into question Europe's ability to respond to future crises, says new Eurofound research, Quality of Essential Workers' Jobs in the context of the COVID-19 Pandemic.
It analyzes working conditions in certain sectors that have kept societies functioning in Europe during the COVID-19 pandemic. These workers maintained access to health care, long-term care, and other essential goods and services, including food, water, electricity, Internet, and waste treatment.
The study identified 11 critical groups of workers based on data from Eurofound's 2021 European Working Conditions Telephone Survey (EWCTS): health and education workers, office workers, cleaners and waste workers, food workers, managers and legislators, manual workers, ICT workers, scientists and engineers, defense workers and transport workers.
According to this definition, 45% of EU workers in 2021 can be considered critical, as are at least one third of the total workforce in each member state. In Denmark and Luxembourg, over half of the workforce can be considered critical workers.
Each group faces specific challenges to the quality of work and professional life during the COVID-19 pandemic. For example, cleaners and garbage collection workers have significantly poor job quality, with many having jobs combining high levels of physical demands and risks with a high degree of uncertainty. The group also stands out as having poor support from colleagues and managers, poor access to training and very limited opportunities for career development.
In addition, half of these employees were struggling to make ends meet, and many had no formal representation in the workplace.
Several critical sectors are currently suffering from labor shortages, notably hospitals and healthcare, education, food and beverage production, industrial cleaning and local and regional government. Improving working conditions and bringing pay in line with the value of these jobs to society is paramount to solving this problem. Policies and practices in these sectors should also aim to develop sustainable work practices, including supporting and developing workers' skills, promoting work-life balance and ensuring public investment in working conditions.
On the occasion of the report's publication, Eurofound's Working Life Research Manager Jorge Cabrita highlighted the importance of improving the quality of work of essential workers.
"A few years ago, people in Europe applauded frontline workers, but if we are serious about recognizing the value of these workers, the focus must be on improving the quality of jobs and developing sustainable practices, including fair pay. This is important not only for the officials in question, but also for Europe's resilience in the coming crises," he said.
17.10.2023
HOW E-PRESCRIPTIONS WILL BE WRITTEN
An explanatory meeting on the introduction of electronic prescriptions was held at the Ministry of Health. During the meeting, the changes that came into effect on October 16 with the amendment and addition of Ordinance No. 4 of 2009 on the terms and conditions for prescribing and dispensing medicinal products were discussed.
In the new texts of the Ordinance, it is stated that medicinal products for the treatment of diabetes (Anatomical therapeutic group A10) and antibacterial medicinal products for systemic use (Anatomical therapeutic group J01) will be prescribed only with an electronic prescription.
"We understand that any innovation is a challenge, but here the objectives of the ministry are clear. Dispensing these two groups of medicines only with an e-prescription will guarantee transparency over the entire process, control over the frequency and improper use without a doctor's prescription, as well as effective tracking of stocks, so that the needs of Bulgarian citizens are ensured in the first place, pointed out the Deputy Minister of Health Prof. Ilko Getov. "If we manage to reduce the use of over-the-counter antibiotics, even by just 5%, that will be a success," added Prof. Getov.
Issuance of an electronic prescription does not cancel a visit to a doctor, as the prescription of medication is carried out after a physical examination. In order to issue an e-prescription, the medical specialist needs to have a computer, a mobile device, an Internet connection and specialized medical software, such are the requirements when working with the National Health Insurance Fund. Crucially, the National Health Information System supports an "offline" mode of operation in which, in the absence of Internet connectivity, events are saved and re-sent when connectivity is restored.
In order to avoid difficulties and facilitate the medical professionals, "Information Service" developed and implemented a free and accessible application - eRx, functioning on mobile phones operating with Andorid and IOS. The developed eRx mobile application is completely free for these devices and is intended to issue electronic prescriptions in situations where the doctor does not have access to a computer with medical software.
A live demonstration of how to work with the application was also made before the representatives of the social organizations, thanks to which an electronic prescription can be issued during home visits or other emergency situations, outside the doctor's office.
The mobile application has functionality for prescribing medicinal products even in offline mode (in the absence of Internet connectivity), and when connectivity is restored, the prescribed prescription is sent to the National Health Information System.
