12.09.2022
HOW MUCH IS PAYABLE FOR THE FULFILLMENT OF PUBLIC AND OTHER OBLIGATIONS?
The Labor Code expressly provides for several cases in which the worker or employee performs civil or public duties that are outside of his duties under the employment relationship. Their implementation usually coincides with his working hours, which is why he has to be absent from work. For these days, according to the Labor Code, the worker or employee has the right to leave from the employer and the employer is obliged to release him from the performance of his work duties.
Civil or public obligations within the meaning of the Labor Code are:
Leave for these activities is used regardless of paid annual leave and unpaid annual leave. Their use does not require a specific prior work experience.
The payment of these leaves varies depending on the legal basis and the type of leave granted for it.
When the worker or employee is subpoenaed by a judicial authority or by another state body, it is paid according to the procedural capacity in which the worker or employee is subpoenaed. If summoned as a party, no fee is due. If he is called as an expert - he is owed a fee by the party to the dispute that requested the expertise, or at the expense of the budget of the judiciary. If he is called as a witness - he is owed a fee that is determined by the court - at the expense of the party to the dispute that requested his summoning, and when the witness is called by the court - his fee is determined by the court and is at the expense of the budget of the judiciary.
For participation in a meeting as a member of a representative state body, the remuneration is determined in the Law on Local Self-Government and Local Administration.
The remuneration of jurors is regulated in Ordinance No. 1 of 02.03.2011 for jurors.
The remuneration of employees for participation in the meetings of the special negotiating body, as a member of the European Works Council or of a representative body in a European commercial or cooperative company is paid by the employer in accordance with the procedure for determining the remuneration for the use of paid annual leave.
Reference:
Art. 157 of the Labor Code
09.09.2022
THEY ARE LOOKING FOR PEOPLE IN PRODUCTION AND TRADE
After two months in a row of seeing a decline in the number of job postings, there was a smooth recovery in August with growth of 1.1%. This is what the monthly analysis of a job search and supply platform shows. The total number of offers is 47,000, and on an annual basis it remains at the same level (47,100 in August 2021).
Active dynamics are observed in the various sectors, with the largest number of offers increased in the sectors "Manufacturing" (550 offers more or 8% growth) and "Trade and sales" (530 offers more, 5% growth).
Growth is also observed in the sectors "Healthcare and Pharmacy" with 10% (170 offers more), "Hospitality and Restaurant" (2% or 130 offers more) and "Construction" (1.7%, 40 offers more).
Contrary to the previous trend, in August we observed the biggest drop in offers in the "IT" sector. Advertisements in this sector are nearly 600 fewer than in July, or a drop of 11%. As in previous months, this decline is mainly due to the weak working season.
We also report a decrease in advertisements in August in the following sectors: "Accounting, audit, finance" (-9%), "Administrative and service activities" (-4%), "Marketing and advertising" (-3%) and "Logistics and transport " (-2.6%).
Share distribution
The distribution of ads by sector remains the same as in the previous month of July.
With the largest share of offers is the "Trade and Sales" sector with 23%, followed by the "Manufacturing" (16%) and "Hospitality and Restaurant" sectors (15%). They are followed by the sectors "IT" (12%), "Logistics and transport" (10%), "Administrative and service activities" (10%), "Construction" (5%), "Accounting, audit, finance" ( 4.4%), "Healthcare and Pharmacy" (3.9%), "Marketing and Advertising" (3%) and "Art" (1%).
Work from home
Offers to work from home and/or telecommute are down 8% (400 offers less). This is mainly due to the lower number of vacancies in the IT sector, as it offers half of this type of job opportunities. Advertisements for work from home and/or remote work are about 4,800 for the country or 12% of the total number of advertisements.
As a breakdown by sector, 53% of offers are in the IT sector, followed by Administrative and Service Activities (15%), Outsourcing Industry (15%) and Trade and Sales (5%).
Offer by city
The total number of advertisements in the leading regional cities increased by 2%. The dynamics in each of them is as follows: Sofia (3%), Plovdiv (2%), Varna (-7%), Burgas (-3%), Ruse (4%) and Stara Zagora (4%). As a share, the number of proposals in them is 73% of all advertisements, and the distribution in each of the cities is: Sofia (45%), Plovdiv (10%), Varna (9%), Burgas (4%), Ruse (3%) and Stara Zagora (3%).
Ads suitable for refugees
The number of refugee-friendly job postings in August was around 2,200 (6% share of all postings), down 8% from the previous month.
09.09.2022
ARE WE ENTITLED TO A "CLASS" WHEN WORKING ON A SECOND EMPLOYMENT CONTRACT?
According to the Labor Code in Bulgaria, the basic and additional wages of a permanent nature are agreed upon between the parties to the employment relationship. Upon the creation of the employment relationship, the employer is obliged to determine, in addition to the basic remuneration, additional remuneration of a permanent nature.
For acquired work experience and professional experience, employees are paid an additional monthly remuneration as a percentage of the basic salary determined by the individual employment contract.
The additional labor remuneration for work experience and professional experience is paid for actual time worked only under the main employment relationship, and in the case of part-time work - under each separate employment contract, until they are supplemented to the corresponding monthly length of working time. This payment is permanent – it is paid monthly as long as there is a reason to receive it.
When determining the amount of additional labor remuneration for acquired work experience and professional experience, the employer takes into account the work experience of the worker or employee in the same, similar or of the same nature job, position or profession. The conditions under which the similar nature of the work, position or profession is respected are determined by a collective labor agreement at the branch level or by the internal rules for the wage in the enterprise.
By Decree of the Council of Ministers No. 147 of 29.06.2007 on determining the minimum amount of additional labor remuneration for acquired work experience and professional experience, the minimum amount of additional labor remuneration for acquired work experience and professional experience is set at 0.6 percent for each year of work experience and professional experience.
The worker or employee is not required to return amounts of wages and benefits received in good faith.
Reference:
Art. 66, para. 1, item 7 of the Labor Code
Art. 271, para. 1 of the Labor Code
para. 1, item 2 of the Additional provisions of the Labor Code
Art. 12, para. 1 Ordinance on the structure and organization of the salary
Art. 22, para. 1 of the Ordinance on the structure and organization of the salary
08.09.2022
BULGARIA WITH UNPRECEDENTED GROWTH IN ECONOMIC FREEDOM
Bulgaria marks an unprecedented growth in the global ranking of economic freedom. The country ranks 23rd out of 165 countries and territories included in the Economic Freedom Around the World 2022 study, published today by the Market Economy Institute in association with Canada's Fraser Institute.
This year's edition is based on 2020 data (the latest internationally comparable data for all countries). For another year, Hong Kong and Singapore topped the ranking, followed by Switzerland, New Zealand, Denmark, Australia, USA, Estonia, Mauritius and Ireland. At the bottom are Venezuela, Sudan and Zimbabwe.
Where is Bulgaria and why is it so far ahead?
The study ranked Bulgaria in 23rd place - among the freest countries, but the assessment of economic freedom in the country is actually decreasing. The result of Bulgaria is 7.69 points (out of the maximum 10 points), which is a decrease of 0.10 points compared to last year.
The reason for Bulgaria's rise in the ranking by as many as 8 positions is actually the deterioration of freedom in a number of countries. The average result of the countries of the world marked a record collapse - in 2020 it was 0.16 points lower than in 2019. This erases a decade of growth and increased economic freedom around the world, and the decline is more than three times greater than that reported in the immediate aftermath of the 2008-2009 financial crisis. Thus, the Covid-19 pandemic is becoming the biggest catastrophe for economic freedom on a global scale.
However, this is precisely what allows Bulgaria to overtake many countries. While in 2020 most of the other member countries significantly increase transfers and subsidies, take on new debts and print money, in Bulgaria these negatives are delayed and on a relatively limited scale – compensations are relatively few, measures are relatively loose.
A comparison of the most crisis-affected components of the index shows the large decrease in results in European countries. Austria loses half a point due to increased redistribution and subsidies in the country. Spain loses a quarter of a point for stable money on falling stocks and money printing. Portugal loses almost a full point because of the increase in its public debt.
Where Bulgaria really performs well
Apart from the improvement in the ranking due to the deterioration of other countries, Bulgaria has some anchors that have consistently provided stability over the years and actually show high marks and a good place in the ranking of the index. These are low income taxation (flat tax), stable money (currency board), low tariffs (EU membership), free credit (a large number of banks) - long-term policies for growth and prosperity that the Institute for Market Economy has defended since its inception.
What are the problems
In the weakest category for Bulgaria - "Legal system and property rights" - there is no improvement. The result is 5.96 points, or 0.02 points more than last year's edition, despite the low base. The country's performance is particularly poor in the impartiality of the courts, trust in the police and protection of property rights (all with less than 5 points). Thus, while in the other member countries the scores are around 8 points, Bulgaria's result is close to that of countries such as Uruguay, Bhutan, Mongolia, India.
A weak legal system and protection of property rights hinders investment, entrepreneurship and long-term economic development, and this cannot be compensated for and overcome by better achievements in other measures of freedom.
Other such factors, which are not visible from the result of Bulgaria in the index (and not only in this one), are the formal implementation of legislation and the large regional differences. In a number of components, the index takes into account the provisions in the normative acts, rather than actually whether and how they are implemented (especially in the category reporting regulations). This is particularly pernicious when corruption is widespread, illegal regimes are in place, there is dominance of one employer, institutions do not work, and courts do not act as a corrective to other authorities to ensure justice.
Why freedom is important
Again this year, the index examines the relationship between freedom and various aspects of economic and social life and illustrates the differences in development between the freest ¼ of countries (42 countries) and the least free ¼ (40 countries):
- The gross domestic product per capita is 7 times higher;
- The income of the poorest 10% of the population is more than 8 times higher;
- Life expectancy is 15 years higher;
- Child mortality is 10 times lower;
- The poverty level from much lower;
- The share of children enrolled in school is much higher;
- People in free countries consider themselves happier.
05.09.2022
FACTORY CREATES 1,000 NEW JOBS
1,000 new jobs are expected to be created at the "Arsenal" AD weapons plant in Kazanlak. This was announced by the director of the Stara Zagora Bureau of Labor Directorate Lyuben Georgiev.
He added that a meeting was held between representatives of the Agency and the management of the plant. During it, a request for a study on the appointment of new workers was submitted.
According to Georgiev, they are mainly looking for women of working age for the factories in Kazanlak and Maglizh. The average monthly salary is about BGN 1,800, and additional bonuses have been introduced every three and six months.
The director of the labor bureau summarized that the plant currently employs about 6,500 people, and plans to increase the number to 8,000 workers.
05.09.2022
WHICH BULGARIANS WORK MOST OFTEN FOR CASH, WITHOUT INSURANCE
Workers with lower education most often agree to pocket money, and employers who pay their employees wages "under the table" are micro, small and, less often, medium and large enterprises. This became clear during a round table on the topic "Salary in an envelope", organized by the National Revenue Agency.
The forum was attended by the Ministry of Finance, Ministry of Labor and Social Policy, NSI, General Labor Inspectorate, researchers in behavioral economics - Dr. Jan Schmitz from Radboud University, Netherlands and Dr. Philip Dörenberg, Center for European economic research, Germany, the Association of Industrial Capital, representatives of employer and trade union organizations, accountants and experts.
All present at the roundtable agreed that the most effective approach to dealing with the risk of income evasion is to inform the public about the losses and negatives of undeclared work for all stakeholders, as well as the benefits of complying with the law.
The executive director of the Association of Industrial Capital, Dobrin Ivanov, listed more than 50 measures to limit and prevent undeclared employment. Among them are legislative changes, regular interdepartmental meetings to exchange good practices, training of inspectors from the National Revenue Agency and the General Labor Inspectorate, etc.
The Deputy Minister of Finance Alexander Svrakov expressed his expectation that if each of the representatives of the business, the administration, the trade unions share their opinion and make proposals, this will lead to a successful solution to the problem.
Inspectors from the National Revenue Agency and the General Labor Inspectorate have checked a total of 516 companies for the existence of employee employment contracts and compliance with tax and insurance legislation, it became clear during the round table. The employers visited by the inspectors were identified as risky after reports were filed against them and inspections by the control authorities due to suspicions that they employed workers without a contract. Often, in such enterprises, employees have signed a 4-hour work contract, but work 8 hours or are insured on minimum wage, but in reality they receive twice as much.
According to Ekaterina Asenova, executive director of the Main Labor Inspectorate, the salary in an envelope closes the future not only of the individual, but also of many important spheres and social systems and, accordingly, of our entire society.
"An employee who receives BGN 1,500, but his employer provides him with the minimum wage, in a long-term perspective will lose nearly BGN 109,000," said Antonia Ivanova, director of the Communications Directorate at the National Revenue Agency, demonstrating to the participants in the round table the possibilities of the loss calculator on the website: www.zaplatavplik.bg.
"Although the greatest loss of wages in an envelope is suffered by employees, this phenomenon also causes serious damage to employers. They can receive serious fines, penal interest, deprivation of the right to participate in public procurement, even if they bear criminal liability, while at the same time risking their image among partners, customers, suppliers", commented Kalin Atanasov, state expert in the Directorate "Risk Management".
01.09.2022
SLIGHT INCREASE IN UNEMPLOYMENT IN BULGARIA
Eurozone unemployment fell in July to a record low of 6.6% from 6.7% in June and is well below the 7.7% unemployment rate a year earlier (in July 2021). This is the lowest unemployment rate in the eurozone since 1998 - just before the euro was launched in January 1999, according to data from the European official statistics agency Eurostat.
Within the EU, unemployment fell in July to 6% from 6.1% in June and from 6.9% in July 2021.
For Bulgaria, Eurostat data show that unemployment in July rose slightly to 4.6% from 4.5% in June, but remains far below the level of 5.1% exactly a year ago (in July 2021).
According to European statistics, a total of 12.959 million Europeans, of which 10.983 million from the euro area, were out of work in July, with a decrease of 113,000 in the EU unemployment rate compared to June and a total of 1.854 million compared to July 2021.
According to Eurostat data, in July 2022 there were 150,000 unemployed in Bulgaria - an increase from 147,000 in June, but a decrease of 15,000 from 165,000 unemployed in July 2021.
The number of unemployed youth under the age of 25 in our country is 13.1 percent, which corresponds to about 17,000 people - the maximum since February. In June, their level was 12 percent, while in July last year - 16.1 percent.
Looking at native unemployment by gender, it is noted that unemployed men were 4.9 percent of the labor force in July, while unemployed women were 4.3 percent.
Spain (12.6 percent), Greece (11.4 percent) and Cyprus (8 percent) had the highest level of unemployment in July among EU member states. At the other end of the scale, among the countries with the lowest unemployment are the Czech Republic (2.3 percent), Poland (2.6 percent), and third place is shared by Malta and Germany (2.9 percent each).
01.09.2022
NEW RULES IF BOSS WANTS US ON CALL OR AVAILABLE
What are the obligations of the employer and the worker on duty and for the time available, provide for changes in the Ordinance on working hours, breaks and vacations, uploaded for public discussion.
It states that for the time we are available to the company, the employer owes us additional remuneration.
When the worker or the employee during the available time is called and actually performs work, this should be counted and paid as overtime in the month in which the work is done. Payment of overtime in the specified month should be made regardless of the established method of accounting for working hours.
The maximum duration of available time cannot exceed 100 hours in one calendar month, 12 hours in one day on working days and 48 hours on weekends, the regulation says.
An employee cannot be available on two consecutive working days or on two consecutive working shifts, as well as on more than two days off in one calendar month.
When working in shifts, available time is determined at least 12 hours after the end of the work shift. It is expressly determined that during the time of availability the worker is outside the territory of the enterprise and should be ready when the employer calls him to report to work and start performing his work duties. Due to the fact that during the time available, the worker or employee is not required to be at his workplace, this time is not counted as working time.
The obligation to place the worker and the employee can be negotiated both in the individual employment contract and in the collective employment contract. The contract must specify the place where the worker is located during the time available, as well as the time required to report for work.
The employer is obliged to approve nominal schedules for the time of availability, which must be kept for at least 3 years. He must also familiarize the employees with the schedules in a timely manner, so that it is possible for the employed person to organize his free time.
The order for duty is also regulated, whereby the employee is obliged to be at his workplace and perform or be ready to perform his work duties. Duty is included in the employee's working hours specified in the employment contract. In view of the fact that the duty is part of the working time, the worker or the employee is paid the agreed labor remuneration.
The employer with an order to determine the positions for which he establishes an obligation to be on duty, when the special nature of the work requires this. The order must be issued after consultation with trade union representatives and workers' representatives. After the issuance of the order, the employer is obliged to approve nominal duty schedules, which must be kept for at least 3 years.
In the case of daily calculation of working time, the employer approves a named monthly schedule for the time on duty.
The explicit obligation to draw up the nominal duty schedule in compliance with the continuous minimum inter-day and weekly rest established in the Labor Code is regulated.
01.09.2022
THE INCORPORATION OF ANY COMMERCIAL COMPANY MAY BE CONTESTED
The Commercial Law defines general conditions and rules to which all commercial companies are subject, regardless of whether they are limited liability companies (LLC), joint-stock, limited partnerships, general partnerships. Among them are, for example, that a commercial company is an association of two or more persons for carrying out commercial transactions with common funds, that in some cases they may be made by only one person - for example, a sole proprietorship EOOD or a sole proprietorship EAD. The general rule is that commercial companies are legal entities.
Among the other general provisions are those that the company is considered to have arisen from the day of its entry in the commercial register, as well as that the application for entry is made by the elected governing body.
The Commercial Law also provides for responsibility for the actions of the company until registration. It is expressly stated that the actions of the founders, performed on behalf of the incorporated company until the day of registration, give rise to rights and obligations for the persons who performed them. When carrying out the transactions, it is mandatory to indicate that the company is in the process of being established, and the persons who concluded the transactions are jointly and severally liable for the assumed obligations. When the transaction is carried out by the founders or by a person authorized by them, the rights and obligations pass by law to the resulting company.
And here comes the invalidity of the established commercial company. The Commercial Law determines that the incorporation of the company is invalid only when one of the violations expressly listed in the law has been committed. This may be the case if there is no founding agreement or it is not drawn up in the form prescribed by law, if certain requirements are not met when establishing a joint-stock or limited partnership. It is also a violation if "the subject of the company's activity is against the law or good morals", as well as if the founding agreement or the statute does not contain the company, the subject of the company's activity or the amount of contributions, as well as the capital, when the law requires it. Such are also the case if the part of the capital prescribed by law has not been contributed and if less than the number of legally capable persons participated in the establishment of the company.
If any of these violations are present, any interested party, as well as the prosecutor, can request the district court at the seat of the company to declare the company invalid. However, this can only be done within one year after the establishment of the company. Then the possibility of this claim disappears.
If the request is due to good morals, due to an unpaid part of the capital, as well as in the case of problems with the articles of association or the founding act, the court declares the company invalid only if the violation has not already been remedied or will not be remedied within an appropriate period, which the court gives by ruling .
If, however, the decision of the court to declare the company invalid is reached, it produces an action from its entry into force. From that moment, the company is considered dissolved and the court sends the decision for entry in the commercial register, after which liquidation is carried out by a liquidator appointed by the registration official at the Registration Agency.
If after that actions were performed on behalf of the declared invalid company, the founders are jointly and severally liable for the assumed obligations.
31.08.2022
HOW TO REFINANCE A FAST LOAN?
Refinancing a loan is a replacement of the current loan with a new one, with the aim of achieving more favorable conditions for the borrower. Through refinancing, the size, term and interest rate of the loan can be changed. You can take out the refinancing loan from the creditor company or turn to another institution for help.
Benefits of refinancing
Quick loans can also be refinanced. If you have several quick loans and are having difficulty covering them, refinancing can help you deal with your obligations as "painlessly" as possible. Thus, you will service only one monthly bill and improve your credit file, which will provide you with access to bank lending.
By receiving an additional amount of money, you will increase your available monthly budget and reduce the total amount with which you have paid off the loan installments so far. Other advantages are an extension of the repayment period, only one installment payment date and moving your loan to another credit institution more convenient for you.
If you have several small, high-interest payday loans and/or payday loans from different financial institutions, consider consolidating all of your debts into one. This way you will get rid of the weekly installments, keeping track of different due dates, the constant phone calls and home visits. It is possible to reduce the current installment, as well as the total amount due on all obligations.
Bad credit refinancing
If you have current arrears and late payments in previous years, you most likely have bad credit. Usually, banking institutions are extremely strict in evaluating customers, and it is often very difficult for people who do not repay their loans on time to regain their trust.
In case of arrears exceeding 30 days and for overdue amounts exceeding BGN 200-300, difficulties arise. Only if there is an objective reason for such a delay, the new bank would agree to grant a loan, but under a number of conditions. You must first prove that the delay is accidental or the result of a specific objective reason.
An alternative to banks are financial institutions that fight for more customers by offering more and more favorable terms for quick loans. If you are going to use the services of microfinance organizations, find out exactly where you will get the most profitable loan. These companies are usually loyal to their customers and even a person with bad credit can get financial help.
To consolidate obligations or for larger loans, you will most likely have to turn to loans with additional collateral, a pledge or additional guarantees. The loan is granted only on the basis of the collateral provided, without considering the Central Credit Register. Interest rates are higher, but financing with bad credit history is allowed.
Expert advice on profitable refinancing
Refinancing a loan is not much different from applying for a quick loan. You can go to the office of a company of your choice or apply for loan refinancing entirely online. An application form is filled out with the amount you need and your ID card details. You should choose the number of installments so that you can be sure that you will manage to repay your monthly installments.
Refinancing a loan is an important decision and you should not rush when you decide to take this step. Worry and haste can play a bad trick on you. Before you sign the fast credit refinancing agreement, you should read its clauses very carefully. If there is something you do not understand, better ask a consultant from the company before signing the refinancing contract.
You should carefully calculate the amount of the new loan you will need, choose the type of interest - fixed or variable, familiarize yourself with the fees, as they add to the cost of the loan. It is especially important that there is no early repayment fee, as well as other additional costs and commissions.
Refinancing a loan under unfavorable conditions is one of the most common mistakes in this financial transaction. Don't agree to a repayment term that you know in advance or think you won't be able to meet. Do your best not to delay paying installments when refinancing. Even though you are at a disadvantage, don't hesitate to negotiate the terms.
