13.10.2022
WHICH SECTORS ARE LOOKING FOR WORKERS?
Bulgarian employers will significantly slow down the pace of hiring new employees in the period October 2022 - March 2023. According to the third forecast survey of the Bulgarian Employment Confederation, 14% of the surveyed 1100 companies in five regions of the country plan to reduce the workforce in the next six months compared to 6% in the same period last year.
In addition, 43% forecast headcount increases and the same number of employers across twelve industry sectors will maintain headcount. Thus, the net employment rate — the difference between employers who plan to reduce the workforce and those who forecast to increase it — is +29%, or a drop of 11% compared to the previous study period.
"The results of the study illustrate the alarming situation not only in Bulgaria, but also in the whole world. Rampant inflation and ever-rising prices may push wages up, but they won't catch up to the rapid depreciation of money. Therefore, many employers have already taken measures to seriously limit their expenses, including in the form of layoffs and freezing of new appointments," commented Nadya Vasileva, president of the Bulgarian Employment Confederation.
"Not to be overlooked is the fact that for the first time since the survey began, the percentage of employers who are unsure whether to hire or lay off employees is zero." Economic uncertainty doesn't give them a reason to plan to expand their teams, but now is also the time to consider what talent they will need after the storm passes,” she added.
Employers across the twelve industries surveyed shared positive but modest hiring plans. The most optimistic forecasts for the next six months again have employers from the sectors "Information Technology" (+30%), "Outsourcing" (+13%) and "Manufacturing" (+10%), although all three registered a significant decrease from 19%, 18% and 14%.
In the "Wholesale and retail trade" and "Transport, warehousing and communications" sectors, the employment rate was +10% and +8% — growth of 5% and 3%, respectively, compared to the last six months. An increase of between one and two percentage points was also observed in the sectors "Hotel and restaurant industry" (+5%), "Construction" (+4%), "Electricity, gas and water" (+4%) and "Agriculture, forestry and fishery" (+4%).
"If until recently many employees enjoyed the luxury of choosing between different job opportunities, today everyone feels the scourge of inflation and their worries keep growing. That is why many of them will prefer to stay at their current workplace, while others will look for a living in the big cities of the country," added Nadya Vasileva.
In Sofia, 70% of surveyed employers predict a growth in the workforce - eight percentage points less compared to the previous six months. In Plovdiv, the employment rate remains unchanged, with 8% of employers planning to increase their staff. The forecast of employers from the Varna region registered a growth of four percentage points, reaching an employment rate of +10%.
Job seekers will also be able to find opportunities for realization in Burgas and Ruse, where employers' forecasts increase by two percentage points and reach +7% and +5% respectively for the period October 2022 - March 2023.
12.10.2022
NOTIFICATION TO THE EMPLOYER WHEN CONCLUSION OF A CIVIL CONTRACT
It is not uncommon for us to receive offers for additional work in the form of a civil contract in parallel with the fulfillment of our obligations under an employment contract.
Most people feel anxious when receiving such offers because they believe that the employer will not allow them to work elsewhere.
However, should employers interfere in such situations and should they be notified when entering into a civil contract with their worker or employee?
The worker or employee may conclude 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 the protection of trade secret and/or conflict of interest prevention.
If such a prohibition is not regulated in the individual employment contract, you do not need to notify your main employer, but you must declare this circumstance to your employer under the second employment contract, as well as declare the insurance income on which the insurance is due installments.
The ban on performing additional work at another employer can only be negotiated due to the protection of trade secrets and/or the prevention of conflicts of interest. This in itself guarantees the right to work for workers, including with another employer, while at the same time taking into account the need to protect the employer's commercial interests and/or prevent conflicts of interest, which should be avoided when the worker or the employee works for more than one employer.
The law also provides for cases in which it is prohibited to put in additional work by 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 - for work under the same or other specific conditions. The same applies to those positions and professions that are expressly defined in law or in an act of the Council of Ministers.
Everything listed up to this point applies only and only in cases where the relations between the parties are settled by means of an employment contract, in the sense of the Labor Code.
However, how are things when concluding civil contracts when we are also appointed to an employment contract?
In the case of a civil contract, the contractor himself organizes his work and achieves the result due in the contract, regardless of whether he is bound by other civil or labor contracts. The civil contract is not registered with the National Revenue Agency. The parties can freely determine the content of the contract, as long as it does not contradict the norms of the law and good morals.
Since the Labor Code nowhere mentions a requirement for employees to ask for permission from the employer or to notify him of the conclusion of separate civil contracts, it can be argued that workers under an employment contract do not have this commitment and employers should not require similar information.
Reference:
Art. 111, Art. 112 of the Labor Code
Art. 9 of the Law on Obligations and Contracts
12.10.2022
NEARLY BGN 2 BILLION HAVE BEEN PAID UNDER THE "60 BY 40" MEASURE
Nearly BGN 2 billion have been paid out over 28 months under the "60 by 40" measure to preserve employment in the conditions of the Covid-19 pandemic. The data is from a preliminary analysis by the NSI on the effect of the implementation of the measure, which ended in the middle of this year.
The first payment under "60 to 40" dates from April 15, 2020, the last one was made on August 25 of this year, with money being transferred every 4 days.
13,700 employers received support for 342,000 workers.
To the greatest extent, payments are concentrated in the economic activities of hotels and restaurants, trade, processing industry and transport. 2/3 of the businesses and saved jobs are in 8 regions of the country.
Sofia-city stands out among them, where 1/3 of the supported are registered.
The remaining regions are Plovdiv, Varna, Burgas, Blagoevgrad, Ruse, Stara Zagora, Sofia region.
11.10.2022
BENEFITS FOR TEMPORARY DISABILITY
Bulgaria is among the countries in the European Union, in which the percentage of morbidity of the population is one of the highest. This inevitably affects the relationship between employees and employers, who are, respectively, the two sides of labor relations.
Thanks to the social system, the state has taken care to ensure the cases in which workers should take leave, due to temporary incapacity and in employment. Who is entitled to compensation in these cases?
Insured persons for general sickness and maternity are entitled to cash compensation instead of remuneration for the time of leave due to temporary incapacity and upon employment, if they have at least 6 months of insurance experience as insured for this risk. The requirement for 6 months of social security experience does not apply to persons under the age of 18.
Insured persons for an occupational accident and occupational disease are entitled to monetary compensation for an occupational accident or occupational disease, as well as compensation for employment in these cases, regardless of the duration of the insurance period.
Cash benefits for temporary incapacity for work, employment, pregnancy and childbirth, raising a child up to the age of 2, adopting a child up to the age of 5 and raising a child up to the age of 8 by the father (adoptive parent) and benefits from the state social insurance are calculated and paid by the National Insurance Institute to the insured persons on a personal payment account declared by them, marked with an International Bank Account Number (IBAN), maintained by a payment service provider licensed by the Bulgarian National Bank, or by a branch of a payment service provider , operating on the territory of the country.
If the person is not entitled to compensation or assistance, the official who is entrusted with the management of the payment of compensation and benefits or another official designated by the head of the territorial division of the National Social Security Institute issues an order for refusal. The order is revoked if, within the statutory limitation period, the person or the insurer submits new or additional evidence establishing the right to compensation or assistance.
The official issues an order to suspend the proceedings for granting or paying benefits for temporary incapacity for work, occupational accident or occupational disease, employment, pregnancy and childbirth, raising a child up to the age of 2, adopting a child up to the age of 5 and raising a child up to 8 years of age from the father (adoptive parent), when acts of the medical examination bodies are appealed. Also when it is necessary to carry out an inspection by a control or other competent authority regarding circumstances relevant to the right or the amount of compensation, in which case the suspension is until the end of the inspection, but for no more than 6 months, as well as when they are not provided data on the issued sick leaves and the decisions on their appeal in the register designated for this purpose.
The insurer pays the insured person for the first three working days of temporary incapacity 70 percent of the average daily gross remuneration for the month in which the temporary incapacity occurred, but not less than 70 percent of the average daily agreed remuneration.
Cash benefits for temporary incapacity for work are reimbursed by persons for the period for which they were granted a disability pension for the same illness, except for cases where the sick leave was issued for objective data on exacerbation of the condition, as well as with interventions related to treatment of the chronic disease.
Reference:
Art. 40, Art. 33, para. 5, item 12. of the Social Security Code
10.10.2022
CAN MY EMPLOYER TEST ME ON A POLYGRAPH?
People who participate in the lie detector test do so on a voluntary basis and sign a declaration to that effect. In Bulgaria, there is no legal regulation that allows employers to do such research. You can always refuse to take a polygraph (lie detector).
The polygraph (lie detector) and other similar technologies are seriously intruding into the personal space of employees. Their use raises both practical and ethical questions.
The Constitution of the Republic of Bulgaria proclaims that no one can be subjected to medical, scientific or other experiments without his voluntary written consent. Separately, according to the Labor Code, the employer is obliged to protect the dignity of the worker or employee.
In such a case, the refusal of a worker or employee to pass the test through a polygraph or other similar technical means is not a violation of labor discipline. In labor legislation, the results of such tests are not grounds for disciplinary action or dismissal from the position held.
There are no explicitly defined rules in the law regarding the admissibility of such tests and trials by the employer to the employee. Therefore, they can only be used with the express informed consent of the relevant employees. Since, however, in the context of labor and service relations, it is debatable to what extent the two parties are on an equal footing (there is always hierarchical subordination), it is very difficult to prove that the consent was given voluntarily, without external coercion. Subjecting an employee to a lie detector is a violation of his personal liberties.
Even in the Criminal Procedure Code, this expertise is not among the methods of proof, and its results are not accepted as evidence in the judicial process.
The employer has no right to request more information than that provided for in the labor legislation. He has no right to disclose your personal data to third parties without your consent, except in cases where the law provides otherwise.
In case of deviation of the employer from the labor legislation, the worker or the employee has the full right to signal the "Main Labor Inspectorate", carrying out the overall control of compliance with the labor regulations.
Reference:
Art. 127, paragraph 2 of the Labor Code
07.10.2022
CAN I WORK IF I AM NOT 18 YEARS OLD?
You must be 16 years of age to start working. The law prohibits the employment of persons under the age of 16.
Exceptionally, the admission of persons under 16 years of age is permitted only for certain types of work: - from 15 to 16 years of age to perform work that is light (does not require significant physical effort), is not dangerous or harmful to health and the proper physical, mental and moral development and the fulfillment of which will not prevent you from attending regular school or participating in vocational guidance or training programs.
Girls over 14 and boys over 13 can be accepted for apprentice positions in circuses; in the field of arts, persons under the age of 15 may also be employed - for participation in filming, preparation and presentation of theatrical and other performances they may, but they must be provided with reduced conditions and compliance with the requirements for their proper physical, mental and moral development. If you are 14 but not yet 15, you can sign your employment contract yourself, with the prior written consent of your parent or guardian attached to it. If you are under 14, then the employment contract is concluded by your parent or guardian.
There are jobs for which you must be 18 years old. It is forbidden to hire persons under 18 years of age for heavy, harmful and dangerous work. It is prohibited for minors to work that is:
For persons under the age of 18, a reduced working time of 35 hours a week and 7 hours a day in a five-day work week has been established (for comparison - the normal duration is 40 hours a week and 8 hours a day).
Workers and employees under the age of 18 have the right to extended basic paid annual leave in the amount of no less than 26 working days, including for the calendar year in which they turn 18 (for comparison - in general, the minimum amount of the basic regular paid annual leave is 20 working days).
06.10.2022
TRAVEL MONEY WHEN ON MISSION
Business travelers are paid travel allowances for going to the place of performance of the task and back, as well as transportation costs for public transport within the boundaries of the settlement.
When there is more than one type of vehicle (airplane, express train, fast and ordinary train, bus, ship, etc.) between the place of permanent work and the place of posting, it is determined at the discretion of the posting party, taking into account the conditions of transport, the nature of the work performed, the time required, etc. The type of vehicle is specified in the business trip order.
When the order for a business trip states that the person on business trip is to travel with a personal motor vehicle, travel money is paid equal to the equivalent of the fuel consumed according to cost norms determined by the manufacturer of the motor vehicle, for the most economical driving mode.
In the business trip order, the data on the type and brand of the personal motor vehicle, on the consumption, type and price of the fuel, on the route and the distances in kilometers on the republican road network, along which the travel money is established, must be indicated.
When other seconded persons travel with the seconded person, the seconded person pays travel money only to him.
The persons sent to accompany foreign guests are paid travel allowances at the prices of transport used by the guests.
Secondees are NOT paid travel allowance:
Where secondees are entitled to travel at reduced rates, regardless of whether it is used, their travel allowance shall be paid at those rates.
When it is not possible to spend the night at the place of the business trip, the business traveler is allowed to spend the night in a neighboring village and is paid the corresponding travel expenses.
Those posted for more than 1 month may be allowed to return to their place of permanent work once a month during one of the weekends and holidays, and their travel expenses will be paid. No per diem is paid for these days. Accommodation money is paid only for an overnight stay at the place of the business trip in the amount actually paid (including for taxes and fees) against a presented document issued in accordance with the established procedure, but not more than the approved amount for one night.
06.10.2022
GETTING A FAST LOAN WITH A BAD CCR
Behind the abbreviation CCR stands the so-called Central Credit Register - an information system maintained by the Bulgarian National Bank. It contains up-to-date information on all active loans granted by banks, non-bank institutions, electronic money companies and payment institutions.
The Central Credit Register stores the credit history of all people who have taken out loans from registered institutions, and all companies consult it before granting a loan. In this way, credit institutions understand whether their customers have provided reliable information about what loans they have and whether they have regularly covered them in the past.
The credit register stores data on all current and past credits going back 5 years, and if during that time the client has delayed payments or has not met his obligations at all, he has a bad CCR. The number of late installment payments is also noted. When checking a person, his credits are divided into 4 groups - regular, under supervision (overdue between 30-90 days), non-serviced (90-180 days) and lost (over 180 days).
The statute of limitations of the Central Credit Register means that if you had credit delays more than 5 years ago, this will not be reflected in the reference to the credit institutions. However, if you've had a more recent slowdown, there's nothing you can do to cover it up. On the other hand, you can be consistent in your subsequent payments, which will show that you are responsible for your loans.
Bank loan with bad credit history
The chances of getting approved for a bank loan are lower than those of customers with a good CCR, but it is still not impossible to get a loan. The terms in this case may be slightly different, such as a higher interest rate or some additional fees. Not only non-bank institutions, but also some banks allow many people to take out quick loans, but for each of them the contract may have different conditions.
Anyone can fall behind on monthly payments. There are a variety of reasons for this - job loss, unforeseen expenses, etc. That is why some banking institutions have a policy of giving loans to people with a bad credit score. It takes into account when the delays occurred, the number of installments that were delayed, and what the circumstances were.
Even if you do not have a good credit history, it is very likely that you will be granted a loan from several banking institutions, and each application is strictly individual and depends on many things.
Getting a quick loan with a bad CCR
Scoring a credit history as "bad" is somewhat subjective and can vary between lenders. However, it is clear that if you have a lot of bad debts or have lawsuits filed against you, it is unlikely that any bank will be inclined to lend to you.
Non-bank financial institutions, on the other hand, are more flexible in their judgment and it is possible to be approved for a loan even with more serious shortcomings. These loans are given for a shorter period and have a higher interest rate. This makes them highly liquid and suitable even for customers with a bad credit history.
Emergency loans are used to cover an urgent need for funds. Usually, the amounts can be received within the day, and with some online options – up to a few minutes. Many emergency loans for smaller amounts are granted immediately and only against an ID card. Viewing and digesting is extremely fast.
One way to get a bigger loan despite your bad credit score is to provide some sort of collateral for it. This can be a property, a car or a guarantor whose credit history is acceptable.
Decent fast loan companies do not deliberately aim to worsen the financial situation of customers who are too "stuck". When a creditor considers that granting a loan will harm the person more than it will help, it responds to the application with a refusal.
Fast credit in the absence of an employment contract
Banks usually require the existence of an employment contract in order to guarantee the return of the loan amount. However, this restricts people who do not work on an employment contract, even if they have other income. In this way, quite a few customers end up excluded from the target group and fail to get a loan.
Income from maternity, pension, rent and even a temporary employment contract probably won't help you take advantage of the credits with the requirement of a permanent employment contract. Although these revenues are stable, banks rarely compromise on the document requirement.
A large number of fast loan companies are ready to provide credit without an employment contract for bad credit history, precisely because they accept the above for income. However, credit institutions can set some additional conditions – a higher interest rate, another type of guarantee, etc. Thus, almost everyone with a bad credit score and no employment contract can get financing, but under less favorable conditions.
How to improve your credit history?
Keep in mind that if most lenders deny you a loan based on your history, it's probably a bad idea to take out more loans, even if they do. This way you risk making the situation even worse and getting out of it even more difficult.
If credit is really your only alternative, apply only for the amount you need and don't ask for extra money on top. This is how you signal that you are responsible for your finances and that the bad CCR was the result of circumstances beyond your control. You will also protect yourself from high interest on a larger amount.
Don't even think about lying or hiding any of your data, no matter how bad your CCR is. No financial institution will grant you an emergency loan if they suspect that you are dishonest. It is to your advantage to always choose honesty over silence.
Even if you still have delinquent payments on your report, if it appears that you are now a regular payer, your chances of being re-credited are significantly higher.
In case you can't keep up with paying off your loans, don't take out new ones to pay them off. Instead, consider options for combining obligations or restructuring them, so that you have the opportunity with a smaller installment to gradually enter regularity.
Don't hide from the lenders - they also have an interest in helping you find a solution to the problem. Dialogue is beneficial for both parties, and the solution may be to change the repayment plan, move installments, etc. It is important that you take the initiative to have such a conversation and discuss a plan to deal with the situation.
It takes effort, such as paying twice a month or prioritizing payments and paying them off one at a time (if the lenders at the end of the queue are patient enough). A debt settlement decision should be a detailed plan of when, to whom, and what will be paid. Regular payments (even if incomplete) show creditors that a person is making an effort and usually delays debt collection actions.
If creditors are not ready to make concessions, and payment difficulties are expected to continue over time, then it makes sense to proceed with debt consolidation. This usually means taking out another loan to pay off your current loans. The bonus is that from this point on you will pay only one installment, which will be tailored to your current financial situation.
Steps to improve your credit score
- Pay your bills on time - in addition to all loans and credits, this column also includes rent, utilities, telephone bill, etc.;
- Pay off debt and keep credit card and other revolving credit balances low – lenders generally like to see a low credit utilization ratio (below 30%);
- Apply for and open new credit accounts only when necessary – unnecessary credit can hurt your credit score in many ways;
- Don't close unused credit cards – this is a smart strategy, as closing an account can increase your credit utilization ratio;
- Do not apply for too many new loans, simply because banking institutions consider you as a reliable borrower - even lenders can offer you new profitable loans, if you really do not need them, it is better not to accept them.
05.10.2022
WHAT IS THE DISMISSAL PROTECTION FOR PREGNANT WOMEN?
Pregnant workers are the most protected category of employees under Bulgarian legislation.
The grounds on which an employer cannot fire a pregnant employee are:
In the event that the employer does not comply with the legal protection of a pregnant worker or employee (for example, if he dismisses the pregnant employee on grounds that the law does not allow, or if he dismisses her disciplinaryly, but without the permission of a labor inspection), then the dismissal is illegal only on this ground.
In case of illegal dismissal, the employee can also claim compensation for being unemployed for no more than 6 months, and the compensation will be calculated based on the gross remuneration received for the last full month of work.
Just to add, we would like to point out that a worker who takes leave due to pregnancy and childbirth can only be dismissed on the grounds of termination of the enterprise.
According to the Labor Code, a pregnant worker can be dismissed with notice only on the following grounds:
A pregnant employee can also be dismissed without notice in case of detention for the execution of a sentence and in case of disciplinary dismissal. In the latter case (disciplinary dismissal), the employer is obliged to request permission from the Labor Inspectorate.
Reference:
Art. 333, para. 5 of the Labor Code
05.10.2022
COMPETITIVENESS AND INNOVATION FOR BULGARIAN ENTERPRISES WITH A PROGRAM FOR 1.5 BILLION EUROS
The European Commission has approved the Program for Competitiveness and Innovation in Enterprises (CIEP) worth 1.5 billion euros.
It provides targeted support to Bulgarian companies to overcome the main problem areas that are delaying the transformation of the Bulgarian economy into an innovative, digital, low-carbon and efficient use of resources. More than 85% of the CIEP budget, or €1.3 billion, is dedicated solely to small and medium-sized enterprises (SMEs). The main goals of the program are to achieve smart and sustainable growth of the Bulgarian economy, as well as industrial and digital transformation. Other priorities include:
development and strengthening of capacity for scientific research and innovation and implementation of advanced technologies; promoting sustainable growth, job creation, internationalization and competitiveness of SMEs; ensuring the benefits of the digital transition; transition to a circular and energy-efficient economy.
The types of activities that will be supported are the following:
support for innovation in start-up and fast-growing enterprises in the field of high-tech industries; promoting digitization, including solutions to ensure cyber security, and developing technologies necessary for the transition to Industry 4.0; support for the introduction of low-carbon and energy-efficient technologies, certification of energy management systems and incentives for renewable energy sources; support for SMEs in introducing technologies for the efficient use of natural resources, increasing recycling rates, modernizing waste management technologies and promoting partnerships between enterprises and the sharing of good practices.
Part of the program budget (35%) will be implemented through financial instruments, such as bank loan guarantees and capital investments at all stages of SME development. This will ensure a more efficient and sustainable use of EU resources in support of projects that generate income and savings.
The new "Competitiveness and Innovations" program is a continuation of the well-known OPIC from the previous program period for the European funds 2014-2020. The first procedure, which will be launched by the end of this year, is for projects to develop innovations of micro-, small and medium-sized companies from various sectors of the economy. BGN 127 million have been allocated for this purpose. The next procedure, which is expected to start in early 2023, is to improve the production capacity of SMEs, family businesses, businesses in the creative industries and crafts. It has a budget of BGN 117.5 million.
You can see more about the EU cohesion policy and the partnership agreement with Bulgaria on the following page.
