09.11.2023
WHERE ARE THE MOST WANTED WORKERS?
Over 190,000. That's how many vacancies are expected to be this year. Although a large part of them are not due to new positions, but to replacement demand, finding qualified labor is becoming increasingly difficult for employers, according to the Employment Agency, an analysis of "Numbers of the Week" shows.
"No people!". We are already hearing this phrase from the mouths of more and more employers, and the difficulties they face in finding qualified labor are confirmed by a recent study by the Employment Agency. Forecasts, unfortunately, are that this will continue for at least the next few years. But why? According to employers, on the one hand, due to the lack of professional skills, but on the other hand, due to the lack of personal qualities. A good education and qualification, knowledge of a foreign language and digital competences are of course important, but no less important for them are motivation, discipline and teamwork skills, for example.
And here's what's expected to happen in four years. Due to the shortage of employees with secondary education, who are the most sought after - over 1.6 million people, people with primary education will also be hired in positions intended for them. Although the share of persons with a higher degree of education will grow, the need for them will also grow.
In 2027, the jobs occupied by employees with primary education will be 13,000 fewer, and those occupied by people with secondary and higher education - between 30 and 50,000 more.
Both now and in 4 years' time, nearly half of all employed persons, which is about one and a half million people between the ages of 15 and 64, are expected to be employed in manufacturing, trade and auto repair and in the field of construction. These are also the activities in which the most employees with relatively lower qualifications are sought. In the last two places in the ranking, are the mining industry and real estate operations. At least labor will be needed there. However, in 2027, there will be more vacancies in all the listed activities than they are now.
The most common after 4 years, as they are today, will be salespeople in stores - nearly 180,000. Followed by administrative specialists - 118,000 and teachers, whose number will chase 100,000. Of the 20 most common professions, the most few people will work as professional car drivers and machine operators in the garment industry - about 45,000 each.
Difficulties in finding personnel will increasingly prompt employers to make decisions such as opening training centers to the enterprises themselves or financing training and retraining of already employed employees. However, not a few individuals are unmotivated to learn or upgrade their skills, the study further states. Many of them are aware that there is a serious shortage of machine mechanics, for example, but say that they do not want occupations with a low reputation in society, sometimes even despite the good pay.
Regarding the distribution of employment by region, significant inequalities are observed, which do not seem to be overcome soon. The first three places are expectedly occupied by the districts in which the three largest cities in the country are located. Almost a quarter of the employed persons are expected to work in Sofia-city. The second most important area for the labor market is Plovdiv - it covers nearly 10% of the employed, and the third - Varna, with just over 7%. The last two places are for Silistra and Vidin, with a forecast of 35 and 26,000 workers respectively after 4 years.
The greatest need for employees with basic and even lower education is expected to be in the Kardzhali region - there it will be needed for 12% of the jobs. The districts of Targovishte and Sliven are next. The need for employees with a secondary education is expected to be the highest in the Pernik district - nearly 73% and a half, and the most employees with a higher education will be sought after in Sofia - nearly half of the jobs in the district will require a university diploma. According to the research, the discrepancy between the required and offered skills is one of the most serious problems in the labor market in our country, the solution of which could be precisely additional training.
It is indicated that there is currently a surplus of persons with primary or lower education in the labor market. They are approximately 120,000. At the same time, however, there is a deficit of persons with higher education - about 53,000, but even more of persons with secondary education - 67,000.
08.11.2023
40% DROP IN JOB OFFERS IN THE IT SECTOR
Job offers on career site JobTiger in October 2023 were 2,900 fewer, or minus 6 percent from the previous month, according to the HR and career site company's monthly analysis.
The difference is mainly due to a more noticeable drop in advertisements in the "Hospitality and Restaurant", "Trade and Sales" and "Manufacturing" sectors. On a year-over-year basis, a steady decline of 7 percent or 3,300 fewer job offers continues, driven primarily by lower information technology job postings.
According to the analysis of the HR company and career site "JobTiger", on an annual basis, there is also a decline in most sectors. It continues to be most drastic in the IT sector, where offers are 40 percent less compared to the same period in 2022.
Job offer by city has decreased in all of the leading regional cities. In Sofia, the decline is by 4 percent, in Plovdiv by 13 percent, in Varna by 7 percent, in Burgas - by 11 percent, in Ruse - by 10 percent, in Stara Zagora - by 13 percent.
As a share distribution, the ads in Sofia are 45 percent, and in the other cities Plovdiv - 10 percent, Varna - 8 percent, Burgas - 4 percent, Ruse - 3 percent and Stara Zagora - 3 percent.
In almost all sectors, a drop in job postings was observed in October. The exceptions are "Marketing and Advertising", where there are 60 more offers and a growth of 4 percent, and "Healthcare and Pharmacy" - with 130 more offers and a growth of 6 percent.
The reason for most of the offers in "Healthcare and Pharmacy" is the posting of job positions in it for overseas, which is a standard practice for recruitment in this sector. In contrast to previous years, in which this type of offer was promoted on the Bulgarian market mainly during the summer months, in 2023 the announcements will appear on the job sites in the last quarter of the year as well, reports the company.
With the biggest drop in job offers is the "Hospitality and Restaurant" sector - 1,080 offers less, which equates to minus 16 percent, followed by the "Trade and Sales" sectors with 770 offers less and a 7 percent drop. In third place is the "Manufacturing" sector with 570 fewer offers and a drop of 8 percent.
The fourth position is occupied by the "Logistics and transport" sector, with 270 fewer offers and a drop of 6. In fifth place is the IT sector with 200 fewer offers and a 6 percent drop. "Administrative and service activities" took sixth place with 170 fewer offers and a 4 percent drop. Seventh position is for the "Construction" sector with 130 fewer proposals and a 5 percent drop. In last place is "Accounting, auditing, finance" with 60 fewer offers and a 3 percent drop.
By share distribution of job offers in the country, the "Trade and Sales" sector continues to occupy a quarter of the market and is in first place with a share of 25 percent, followed by "Manufacturing" with 17 percent and "Hospitality and Restaurant" with 13 percent .
The share distribution of the other sectors is unchanged compared to the previous month: "Logistics and transport" holds 10.8 percent, "Administrative and service activities" - occupies 10.7 percent of the market, IT - 8 percent, "Construction" - 6 percent, " Healthcare and Pharmacy" - 5.4 percent, "Accounting, Auditing, Finance" - 4.8 percent, "Marketing and Advertising" - 4 percent and "Art" - 1 percent.
Since the beginning of the year, the number of offers for work from home or telecommuting has decreased by 31 percent, or 3,050 fewer postings, which is directly related to the lower number of postings in the information technology sector, in which this type of offer predominates.
As of September this year a decrease of 4 percent of these ads is reported, as a share of the total they are 9 percent.
The distribution of this type of offer by sector is 54 percent in the IT sector, followed by "Administrative and service activities" with a decrease of 18 percent, the sectors of the outsourcing industry - a decrease of 15 percent and "Trade and sales" - a decrease of 7 percent.
08.11.2023
WHEN CAN WE HAVE REDUCED WORKING HOURS?
According to Art. 137, para. 1 of the Labor Code, reduced working hours are established for: 1. workers and employees who perform work under specific conditions and the risks to their life and health cannot be removed or reduced, regardless of the measures taken, but the reduction of the duration of working hours limit the risks to their health; 2. workers or employees under 18 years of age.
The types of work for which reduced working hours are established are determined by an ordinance of the Council of Ministers - Ordinance on determining the types of work for which reduced working hours are established.
In Art. 2 and Art. 3 of the Ordinance, the works for which workers/employees are entitled to a reduced working day are explicitly stated. In Art. 4 of the Ordinance on determining the types of work for which reduced working hours are established, it is stated that workers and employees are entitled to reduced working hours for the days on which they perform the tasks specified in Art. 2 and 3 works for no less than half of the normal duration of working hours established by the Labor Code.
Employees with total vision loss have the right to a 7-hour working day, regardless of the type of work performed.
Only employees performing the work provided for in the regulation have the right to reduced working hours.
The overall control for compliance with labor legislation in all industries and activities, including the payment of unpaid wages and benefits after termination of the employment relationship, is carried out by the Executive Agency "Main Labor Inspection" under the Minister of Labor and Social Policy - Art. 399 of the Labor Code.
In Art. 138a, para. 1 and para. 2 of the Labor Code stipulates that in the event of a reduction in the volume of work, the employer may establish for a period of up to three months in one calendar year part-time working hours for employees in the enterprise or in its unit who work full-time, after prior agreement with the representatives of the trade union organizations and the representatives of the workers and employees under Art. 7, para. 2.
The duration of working hours under para. 1 cannot be less than half of the legally established for the period of calculation of working time. The procedure to be followed by the employer is regulated in detail in Art. 9 of the Ordinance on working hours, breaks and vacations. The establishment of part-time work is carried out by a written order of the employer, issued no later than 10 working days before the date of transition to part-time work. In the provision of Art. 9 the details of the order are also indicated.
07.11.2023
BULGARIA HAS THE HIGHEST SOCIAL RISK IN THE EU
Bulgaria has the highest social risk in the European Union, according to the Social Resilience Index, which monitors 12 economic, social and political parameters in 185 countries around the world. This was announced by the company "Allianz Trade" (Allianz Trade), which prepares the ranking.
The results of the study cover the period from early 2022 to September 2023.
The Social Sustainability Index ranks countries from first to 185th, with those with the lowest risk at the top. This year, Bulgaria retains the 59th position, albeit with slightly worse indicators, while Romania is already in 56th place compared to 2021, according to Allianz Trade. Experts note that the two countries remain the poorest in the EU and have the lowest levels of public trust in government, adding that this is evidenced by frequent civil protests, early elections and unstable governments.
This year, the company's experts warn of a worsening of social stability at the global level, and among the main reasons for this are the devaluation of currencies, the growth of food and fuel prices, and reduced labor force participation. Thus, the differences in the level of social risk between developed and developing economies around the world are deepening because of the different resilience to rising living costs and the energy crisis, they note.
The country with the best social sustainability in the world remains Denmark, and the top three also include Finland and Switzerland, which climb by three and one position compared to 2021. Latin America is the only region in the world where in the last two years there has been reducing social risk. The most serious deterioration occurs in countries that rely exclusively on food and fuel imports. At the same time, some exporters such as the UAE and Qatar are reporting favorable trends, the analysis states.
Allianz Trade experts identify the upcoming elections in a large number of countries in 2024 as a potential factor for increasing social tension and risk on a global scale. Another factor in the coming years is expected to be the development of artificial intelligence, which could lead to job losses and the spread of misinformation.
"Some governments are beginning to put in place responsive regulatory mechanisms to protect jobs and avoid other risks to social stability with the advent of artificial intelligence. But for economies heavily dependent on service industries, it will be a serious challenge to adapt quickly and catch up with technological advances," the report states.
"The social risk index can serve as another tool for companies to navigate the stability of the business environment in the respective countries. This is an additional signal of what we can expect in the future when conducting commercial transactions with partners in the respective markets," commented Кamelia Popova, manager of "Euler Hermes" for Bulgaria, already operating under the trademark "Allianz Trade", quoted in the announcement.
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.
