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:

• beyond their physical or mental capabilities;
• related to exposure to harmful physical, biological or chemical effects, especially to toxic agents, carcinogens, agents causing hereditary genetic or intrauterine damage; -related to harmful effects that in any other way have a permanent adverse effect on health;
• in conditions of radiation;
• at extremely low or high temperatures, noise or vibrations;
• related to the risk of occupational accidents which it is assumed cannot be realized or avoided by the minor due to his physical or mental immaturity.

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:

1. when they use free transportation;
2. for going to the place of secondment when they are there for another reason;
3. for returning to the place of permanent work, when they are guilty of not returning in time after completing the official task.

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:

• when part of the enterprise is closed or the workforce is reduced;
• when reducing the volume of work;
• when stopping work for more than 15 working days;
• in the absence of qualities for effective performance of the work;
• when he does not have the necessary education or professional qualification for the work performed;
• upon acquiring the right to a pension for insurance length of service and age, except in the cases of art. 69c of SSC; upon reaching the age of 65 - for professors, associate professors and doctors of science, except in the cases of § 11 of the transitional and final provisions of the Law on Higher Education;
• when she is granted a pension for insurance service and age in a reduced amount according to Art. 68a of the SSC (art. 328, paragraph 1, item 10a of the LC);
• when the employment relationship has arisen after she has acquired and exercised her right to a pension for length of service and age;
• when the employment relationship has arisen with a worker or an employee, after he has been granted a pension for insurance service and age in a reduced amount according to Art. 68a of SSC;
• upon changing the requirements for the performance of the position, if he does not meet them.

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:

• upon closure of the enterprise;
• if he refuses to follow the enterprise or its division in which he works when it moves to another settlement or locality;
• when the position held by the employee must be vacated to reinstate an illegally dismissed worker or an employee who previously held the same position;
• in case of objective impossibility of fulfilling the employment contract;

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.

05.10.2022

IN WHICH AREAS THERE IS NO ONE TO REPLACE THE PENSIONERS

Fewer and fewer young people are entering the labor market and succeeding in replacing the elderly who are retiring. This is shown by the latest NSI data from the 2021 census.

The total age dependency ratio, according to data from the 2021 Census, is 60.2, or for every 100 persons in the age group 15 - 64, there are 60 persons under 15 and 65 and over.

By comparison, in 2011 this ratio was 46.5, or the increase in the burden of persons of active age continues to grow. This ratio is best in the districts of Sofia (capital) (52.0), Blagoevgrad (55.7) and Varna (56.8), and the worst is in the district of Vidin (75.4).

The reproduction of the working age population is best characterized by the demographic replacement rate, which shows the ratio between the number of people entering the working age (15 - 19 years) and the number leaving the working age (60 - 64 years). According to data from the 2021 Census, this ratio is 61. For comparison, in 2011, every 100 persons exiting the working age were replaced by 70 young people, and in 2001 by 124.

This attitude is most favorable in the regions of Sliven (79), Varna (71) and Sofia (capital) (70). In two areas, the demographic replacement ratio is below 50 - Smolyan (41) and Kardzhali (46), the NSI indicates.

The trend of aging of the population also leads to changes in its basic age structure - below, in and above working age. Both the aging of the population and legislative changes in determining the age limits for retirement have an impact on the aggregates of the population at and above working age. For 2021, these limits are from 16 to the age of 61 years and 8 months for women and 64 years and 4 months for men.

The population of working age as of September 7, 2021 is 3,815 thousand people, or 58.5% of the country's population. Compared to 2011, the working population decreased by 762 thousand, or by 16.7%. Men are 1,997 thousand, and women - 1,818 thousand.

The population above working age is 1,726 thousand people, or 26.5%, and below working age - 979 thousand people, or 15% of the country's population.

04.10.2022

BNB ANNOUNCED A RECORD INTEREST RATE FOR OCTOBER

The Bulgarian National Bank (BNB) has announced that it will raise the basic interest rate (simple annual interest rate) by 0.49 percent from October 1, 2022. For the first time, the basic interest rate has been different from 0.00 since January 1, 2016, when it was 0.01%.

In the months before the basic interest rate became 0.00 it hovered between 0.02 and 0.04. The basic interest rate had a similar level to the one announced for October in 2009, when it was 0.55%.

The value of the basic interest rate matters, but only in some limited cases. Mainly the basic interest rate is used to calculate the penalty or statutory interest on late payment. The calculation is done by adding 10% to the base interest rate.

The basic interest rate is an instrument by which the value of a monetary unit in a country's economy is regulated and measured. Its amount is determined by the Central Bank. When the basic interest rate rises, it usually happens in a strong economy in order to balance it out.

The entral bank reduces its size when the economy is in difficulty and there is a need to support it. This is done in order to stimulate the withdrawal of loans and provide new jobs. Inflation is also regulated in this way.

According to Bulgarian legislation, the basic interest rate is not included in the calculations of interest by the Bulgarian National Bank when granting short-term or quick loans to commercial banks. There is an exception only in the granting of loans to commercial banks for a period of up to 3 months, subject to compliance with certain strict conditions.

04.10.2022

PAY DURING PAID LEAVE

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.

When there is no month in which the worker or employee has worked at least 10 working days for the same employer, the remuneration under para. 1 is determined by the basic and additional wages of a permanent nature agreed in the employment contract.

Prohibition of monetary compensation:

It is prohibited to compensate the paid annual leave with cash benefits, except upon termination of the employment relationship.

04.10.2022

UNEMPLOYMENT IN OUR COUNTRY REMAINS AT THE SAME LEVEL IN AUGUST

The seasonally adjusted unemployment rate in the European Union in August was 6 percent. The indicator has maintained its values ​​compared to July, and compared to August 2021 it has fallen by 0.8 percentage points. The unemployment rate in the euro area reached 6.6 percent in August, also unchanged from a month earlier, but on an annual basis, it fell by 0.9 percentage points. This is shown by the latest seasonally adjusted data of the European statistical agency Eurostat, published on its website.

The unemployment rate in Bulgaria in August remained unchanged from July - 4.6 percent, which, however, compared to August 2021, is a decrease of 0.4 percentage points, according to the seasonally adjusted data of Eurostat. This represents 151 thousand Bulgarians who did not have a job in August, but were actively looking for one and were ready to start one. In August 2021, they were 161 thousand.

Native youth unemployment (persons under the age of 25) in August rose to 13.8 percent (equivalent to about 18,000 people) from 13 percent in July. However, on an annual basis, the decrease in the indicator is significant, as in August 2021 it was 16.1 percent.

12.921 million people in the EU, of which 10.966 million were in the euro area, were unemployed in August 2022. Compared to July, the number of unemployed decreased by 52,000 in the EU and by 30,000 in the euro area. Compared to August 2021, the unemployed were 1.682 million fewer in the EU, and 1.358 million fewer within the euro area.

In August 2022, the unemployment rate for women in the EU was 6.4 percent, while the unemployment rate for men was 5.7 percent.

Youth unemployment

In August, 2.614 million people under the age of 25 were unemployed in the EU, of which 2.136 million were residents of the euro area. In August 2022, the youth unemployment rate was 13.8 percent in the EU, unchanged from the previous month. Youth unemployment in euro area countries was 13.9 percent, down from 14 percent in July.

Compared to August 2021, in this year's August, youth unemployment decreased by 293 thousand people in the EU and by 234 thousand people in the Euro area.