30.08.2022

CHANGE OF EMPLOYMENT CONTRACT AFTER EXPIRATION OF PROBATIONARY PERIOD

The Labor Code establishes a principled ban on unilateral changes to the employment relationship. The essence of this principle consists in the inadmissibility of any of the parties to the legal relationship to change at will - unilaterally, without the consent of the other party - any of the elements of the content of the legal relationship.

What are the possibilities for changing the employment relationship by mutual agreement after the changes to the labor legislation in Bulgaria after August 1, 2022?

With the changes to the Labor Code from August 1, 2022, the employment relationship can be changed by written agreement between the parties for a fixed or indefinite time. When the employment contract is for a fixed term and/or for part-time work, the worker or employee has the right to propose to the employer in writing its amendment to an employment contract for an indefinite period of time and/or for full-time work. When a trial period has been agreed upon, the worker or employee may propose a change to the employment relationship after the trial period has expired.

It is important to specify that when the employer refuses to amend this employment relationship, he is obliged to provide the worker or employee with a reasoned written answer within a period of up to one month, unless the proposal is made more than twice in a period of one year.

The law specifies the exceptions where a unilateral amendment is permissible and they are established in the law. The employer may, under certain conditions, unilaterally change the place and nature of the work. In case of production necessity, as well as in the event of downtime, he may assign the worker or employee, without his consent, to temporarily perform other work in the same or in another enterprise, but in the same populated place or locality for a period of up to 45 calendar days in a calendar year, and in cases of stay - while it lasts. The other work assigned by the employer must correspond to the qualification and health status of the worker or employee.

When the change is required due to force majeure, the employer may assign the worker or employee, without his consent, work of a different nature, even if it does not correspond to his qualifications.

An exception in which the change made by the employer is not considered a change in the employment relationship, due to the insignificance of the change, is when the worker or employee is transferred to another workplace in the same enterprise. The employer changes the workplace (the workplace, the building, etc.), but the place of work, position and amount of the basic salary of the worker or employee specified in the employment contract do not change.

The employer can unilaterally increase the labor remuneration of the worker or employee.

Reference:

Art. 119 and Art. 120 of the Labor Code

29.08.2022

HEALTH INSURANCE OF A SOLE TRADER (ST)

Bulgaria is a country with mandatory health insurance, which means that health contributions of a certain amount are due every month. It is extremely important to monitor the status of your insurances, above all so that you do not compromise with your health and do not risk ending up in an unfavorable situation with the health system if you need it, but also to avoid unnecessary administrative and financial sanctions.

According to the law, the sole trader must pay his/her health insurance contributions, determined on the basis of the income he/she receives. Self-insured persons, such as sole traders, are insured in advance on a monthly income, which cannot be less than the minimum monthly amount of insurance income for self-insured persons and for registered farmers and tobacco producers, determined by the Law on the Budget of the state social insurance, and finally on the income from the activity and the income during the calendar year, according to the reference to their tax return. Registered farmers and tobacco producers producing unprocessed plant and/or animal products do not determine a final amount of insurance income for this activity. Contributions are made for the account of self-insured persons by the 25th of the month following the month to which they relate, and the final insurance contribution - no later than the deadline for submitting the tax return under the Personal Income Tax Act.

When the sole trader temporarily suspends his/her activity, the specified norm becomes inapplicable to him/her, but he/she must continue to pay health insurance contributions. If he/she does not work in another place and no health insurance contributions are due for him/her, he/she should pay insurance contributions on an insurance income, not less than half of the minimum amount of insurance income for self-insured persons, determined by the Law on the Budget of the State Public insurance - by the 25th of the month following the month to which they apply, and carry out an annual equalization of the insurance income according to the data from the tax return, with the final insurance contributions being paid in the deadline for its submission. He/she should also submit a declaration by the 25th of the month following the month in which this circumstance occurred, according to the procedure determined by an ordinance of the Minister of Finance.

Before paying the health insurance contributions under this order, the sole trader must submit to the territorial directorate of the National Revenue Agency a declaration form for the occurrence of the obligation to pay health insurance contributions on this basis. This declaration automatically terminates when insurance begins on another basis. That is, when the trader resumes his/her activity, he/she does not need to declare circumstances related to health insurance.

The health insurance rights of persons who are obliged to pay insurance contributions at their own expense are interrupted if the persons have not paid more than three due monthly insurance contributions for a period of 36 months until the beginning of the month preceding the month of the medical assistance provided. Persons with interrupted health insurance rights pay for the medical care provided to them.

Reference:

Art. 40 of the Health Insurance Act

Art. 109, para. 1 of the Health Insurance Act

Art. 4, para. 3, items 1, 2 and 4 of the Social Security Code

Art. 6, para. 9 of the Social Security Code

Art. 50 of the Personal Income Tax Act.

26.08.2022

HOW MUCH WE GET WHEN WE ARE UNEMPLOYED?

The average amount of unemployment compensation for the country as a whole in 2021 is BGN 559.62 and is 9.2% (or BGN 51.36) higher compared to the previous year, according to the data of the NSI.

Men receive an average of BGN 622.35 and women BGN 512.29, the difference between them being BGN 110.06.

According to the distribution by region, the largest amount of average monthly compensation was received by unemployed persons in Sofia-city - BGN 713.94, and the lowest in Vidin region - BGN 453.39.

Traditionally, the highest benefits for both sexes is the city of Sofia, where the average amount of unemployment benefits for men is BGN 784.20, and for women BGN 659.41. The lowest benefits are men in the Vidin region - BGN 479.67, and women in the Silistra region – BGN 390.01.

The distribution of cash benefits by groups of daily amounts shows that, on average, during the year, the largest number of registered unemployed are with the amount of cash benefits from BGN 15 to BGN 25 per day.

They are 28,663 people or 41% of all those registered with the right to compensation in 2021. Of them, the share of women is 62.7 percent, and men - 37.2 percent.

The other two larger groups of unemployed persons have a daily benefit amount up to and including BGN 12 (16,462 people or 23.5%) and from BGN 25 to 35 (8,038 people or 11.5%).

There are significantly fewer unemployed people in the groups with high daily amounts of monetary compensation in the range of BGN 55.01 to BGN 65.00 - 1,775 and BGN 65.01 to BGN 74.29 - 6,742 people.

What unemployment benefits will you receive if you quit your job?

The daily cash compensation for unemployment is in the amount of 60 percent of the average daily remuneration or the average daily insurance income, on which contributions to the "Unemployment" fund have been paid or are due for the last 24 calendar months preceding the month of termination of insurance.

It cannot be less than the minimum and greater than the maximum daily amount of compensation, determined by the Law on the budget of the State Public Insurance for each calendar year. The minimum and maximum amount of compensation set for 2022 are BGN 12.00 and BGN 74.29, respectively.

The monthly amount of cash compensation for unemployment is determined by multiplying the received daily amount by the number of working days in the month to which it refers.

There are exceptions when determining the amount of benefits. If you left voluntarily or by mutual agreement, then you are entitled to a minimum amount of compensation for a period of four months. You receive the minimum amount, and if you have already received unemployment benefit in the last three years.

Persons employed part-time during the cash benefit payment period and receiving remuneration less than the minimum wage established for the country shall receive unemployment benefit in the amount of 50 percent of the cash benefit due to them for the remaining period of payout.

The length of time you receive unemployment benefits depends on how many years of service you have.

Peculiarities in determining the amount of cash compensation for unemployment:

When the period from which the average daily remuneration or the average daily insurance income is determined includes time that is considered as insurance experience without insurance contributions being due, or during which the person is not insured for unemployment, when determining the insurance income, they are taken accordingly:

         for the time of paid and unpaid leave for raising a child, unpaid leave for temporary incapacity for work and for pregnancy and childbirth, and unpaid leave up to 30 working days in a calendar year - the average daily minimum wage for the country for the relevant period;

         for the time of paid leave for temporary incapacity for work and for pregnancy and childbirth, as well as leave for adoption of a child up to 5 years of age - the income from which the monetary compensation is determined according to the legal relationships under which the person is insured for unemployment;

for the time counted as insurance experience under the legislation of another country on the basis of an international treaty to which the Republic of Bulgaria is a party - the average daily minimum wage established for the country for the relevant period;

for the time during which the person is not insured for unemployment - the average daily minimum wage for the country for the relevant period.

26.08.2022

WHO IS ENTITLED TO ADDITIONAL PAID LEAVE?

According to Art. 155, para. 4 of the Labor Code (LC), the amount of basic paid annual leave is not less than 20 working days. The provision of Art. 155, para. 5 of the Labor Code provides that certain categories of workers and employees, depending on the special nature of the work, have the right to extended paid annual leave, which includes the leave under para. 4.

The amount of paid leave under Art. 155 of the Labor Code (both of the basic and of the extended) is annual, and with regard to determining the specific amount due to a given worker or employee, the law introduces the principle of proportionality in relation to the time that is recognized as work experience. In Art. 156 of the LC provides that the worker or employee has the right to two types of additional paid annual leave:

- for work under specific conditions and risks to life and health that cannot be removed, limited or reduced, regardless of the measures taken - not less than 5 working days;

 - for work with an irregular working day - not less than 5 working days.

The right to additional paid annual leave under Art. 156, para. 1, item 1 of the LC is used in compliance with the requirements of the Ordinance on determining the types of work for which additional paid annual leave is established, issued on the basis of Art. 156, para. 2 of LC.

The types of work performed under specific conditions and risks to life and health that cannot be removed, limited or reduced, regardless of the measures taken, for which additional paid annual leave is established as an additional measure to prevent health risks for workers , are comprehensively specified in Art. 2 of the cited regulation. According to Art. 139a, para. 1 of the Labor Code, for some positions due to the special nature of the work, the employer, after consultation with the representatives of the trade union organizations and with the representatives of the workers and employees under Art. 7, para. 2 of the LC, may establish an irregular working day.

Workers and employees with an irregular working day are obliged, if necessary, to perform their work duties even after the expiration of the regular working hours. Work overtime on weekdays is compensated with additional paid annual leave, and work on weekends and holidays - with increased overtime pay. If a worker/employee meets the above requirements, he/she is entitled to both extended paid annual leave and additional paid annual leave, which leaves are granted on different legal grounds.

25.08.2022

HOW TO NEGOTIATE YOUR SALARY DURING A CRISIS

Are salary negotiations still important at a time when jobs aren't as plentiful as they used to be?

Salary negotiations during a crisis are on the agenda, but you may need to rethink exactly what you're negotiating for. "Trust me, we expect you to negotiate, even in a recession," says Cara Brennan Alamano, chief human resources officer at Lattice. "But instead of just negotiating a salary, you can negotiate an opportunity — and the latter can have a much bigger payoff in the long run."

Negotiate for opportunity

In light of the huge changes in the market over the last few years and the potential challenges ahead, we need to rethink salary negotiations. It's about so much more than money these days.

Alamano says you should start by knowing what you want from the role you're negotiating for. “Ask yourself: How does this role fit into your career goals? What specifically do you want to achieve with your next step?”

This line of thinking, Alamano says, will help you expand your negotiation tactics and make you look beyond the hard numbers. "Negotiate for opportunity, not just money," she says.

This means starting a conversation about what project work, growth opportunities or other learning experiences the company is willing to engage in as part of your role. "Ask what kind of exposure you'll have to other parts of the business, or whether you'll have access to mentorship from senior executives on your team or elsewhere in the organization," urges Alamano. "All of these factors have been proven to accelerate career progression, lead to faster promotions and ultimately increase your base salary."

If you're still having trouble seeing beyond the numbers, try answering these questions:

• What do you want your future resume to look like?
• What is your dream job in 5 years?
• What opportunities and places do you want your career journey to take you?

"Creating and ultimately choosing the next role that will bring you closer to them is the first step in achieving the results you want for yourself," says Alamano.

5 Negotiation Strategies

Of course, your salary number still matters. Here's what to do when that offer comes along and you want to push things a little further.

• Create a personal priority list: Alamano advises job seekers to make a list of priorities for themselves in advance. "Would you be willing to take a pay cut if stock options, profit sharing, or other long-term incentives are appropriate?" Would you consider taking a pay cut if it meant a better work-life balance or the chance to work in any city of your choice?'
• Remember the total package: It's important to consider the full scope of compensation, or what industry professionals call “total rewards”—your total package of benefits, paid time off, flexibility and other additional incentives. "Make sure that when you're bringing a number forward, you're referring to these other parts of the overall package," Alamano says.
• Consider asking for cash bonuses: Even in a tougher economy, cash offers can be on the table for strong applicants, Alamano says. “Many companies have expanded these offerings in new ways as the pandemic has highlighted how employee expectations have evolved around things like mental health and family leave.” A healthy work-life balance is a critical part of your long-term success.
• Never view a negotiation as a one-way street: Instead, Alamano says, always think about the value you can provide to the company, and then view the negotiation as a two-way partnership. “What can you give the company in return to get the most valuable for your career development? The most important thing is to make sure you communicate your value and feel comfortable with what this company can offer you beyond the bottom line.”
• Don't get discouraged: If an offer falls short of what you hoped for, don't let it get you down. Instead, look at the big picture before making a decision. "The best job in this environment may be about growth and skill acquisition — because that's what's going to prepare you for the next economic boom," Alamano says.

Play the long game

While getting a new job is the fastest way to get a significant pay raise, there is a long game that goes beyond just the salary. And it might be worth playing.

Some employees experience resignation regret after jumping too quickly into new roles, even returning to their previous employers. Before you leave your current job, Alamano believes a little thought is in order. "I would suggest using this moment of uncertainty, however difficult it may be, to think more consciously about your next move and really look before you leap," she says.

"And while it can be tempting to take the best deal, there are other factors—from culture to learning opportunities—that can mean just as much, if not more, to your future success and continued growth."

This is one of the reasons why salary negotiations need to expand to mean just negotiations—because salary isn't everything, and negotiations shouldn't just happen during the hiring process. Current employees must also be able to initiate negotiations with the employer.

Perhaps your current employer can offer training grants, extra vacation days, or some other non-monetary benefit that might be exciting for you and aligned with your career. "Be open to hearing value propositions that speak to you, even if they look different from things you've valued in the past," Alamano says. "You might be surprised at what your employer is willing to do to keep you happy and engaged."

Whatever your next career move, keep the long game in mind. When it comes to negotiation, it's not just about the money—it's the long-term growth, personal satisfaction, and work-life balance that make your career one you truly enjoy.

25.08.2022

DEPRESSION, BURNOUT AND STRESS - BULGARIANS ARE BECOMING INCREASINGLY ANXIOUS AT WORK

In Bulgaria, between 30 - 35 percent of people associate their psychological discomfort with problems at work. But not only. Along with the Covid-19 pandemic, the lockdowns, the economic crisis, and now the war in Ukraine, the mental health of Bulgarians is significantly deteriorating. "We are definitely observing an increase in neurotic conditions, such as panic disorders, obsessive compulsive disorders and all kinds of anxiety disorders," Dr. Tsveteslava Galabova, psychiatrist and director of the St. Ivan Rilski State Psychiatric Hospital, told BNR, adding: "This environment of uncertainty , of instability, of ever-increasing demands on the person to cope with difficulties, leads to exhaustion of mental energy, becoming a favorable precondition for the emergence of anxiety disorders. We have very serious problems with the working environment. There are data on how many people work without an employment contract or under conditions that do not correspond to their employment contract. There are also many people who work without insurance, with very long working hours or in an environment that does not meet the requirements for the type of work in question. On the other hand people have become very neurotic, anxious, insecure and this is seriously affecting workplace relationships. And things turn in a vicious circle, which contributes to the increased number of neurotic disorders in our country."

The statistics are startling - 14.5% of Bulgarians suffer from mental disorders at some stage of their lives. Of course, not all deviations are the result of workplace stress. Anxiety, depression, phobias and addiction to alcohol and drugs belong to the group of so-called frequent mental disorders in our country, according to data from the National Center for Public Health and Analysis. The media also contribute to the unhealthy mental environment in society.

"Because the media is constantly spewing bad news - says Dr. Galabova. - It is clear that most people are informed by television, and the television broadcasters themselves admit that bad news "sells", that is why it is in the first place. You can see what they start with our news - murders, serious accidents on the road, problems, thefts ... All this has an extremely bad effect on our mental health."

However, according to Dr. Galabova, the human psyche "does not break from yesterday to today". Disorders appear gradually over time, they are the result of an accumulation of problems. For a long time, a person manages to suppress them, but at some point something breaks and the first symptoms appear, such as sweating, rapid breathing, increased blood pressure, etc. Then it is good for each of us to seek help from a specialist.

Unfortunately, mental health is still a taboo topic in Bulgaria. Usually the Bulgarian refuses to admit that he needs help in such situations. The problem is also financial. Because the health fund does not cover the costs of a psychotherapist. Ultimately, anxiety states remain untreated and can lead to serious consequences.

24.08.2022

THE BUSINESS CAN INCLUDE ANOTHER 860 UNEMPLOYED AND EMPLOYED PEOPLE IN TRAININGS

There is still an opportunity for employers to receive financial support from the Employment Agency in order to secure personnel with the necessary professional training. In the labor offices, there are free funds from the state budget for funding trainings, including professional, dual or for key competencies of nearly 860 unemployed and employed persons, who will be provided with training requested by employers.

Thus, the Employment Agency continues to provide incentives to employers who assist unemployed persons to acquire professional qualifications necessary for employment with them. Opportunities for financial support are also available for businesses organizing training for their employed staff to acquire new key competencies.

One possibility is according to Art. 63 of the Employment Promotion Act. Through it, employers can request specific vocational training that job applicants must undergo before being appointed for at least a 6-month period to the respective jobs. The training of the unemployed is financed 100% from the state budget, and for the duration of the training, the students receive a daily stipend, and those living outside of the place where the training takes place - funds for intercity transport.

The other option is aimed at micro, small and medium-sized enterprises that wish to train their employed staff in new skills and competences. For them, the state provides half of the funds necessary for training.

In both forms, the employer chooses the training organization himself.

Together with her, they jointly form the training schedule, conduct selection of the unemployed persons to be trained and subsequently assigned to work, as well as determine the most suitable training program for the acquisition of new competences by those working in micro, small and medium-sized enterprises.

In the past few months alone, 354 employed persons have already acquired new competencies, and 52 unemployed persons have joined vocational training with the aim of starting work in the acquired specialty.

The second form of promoting the qualification of unemployed persons is the already popular "dual training".

Through it, the Employment Agency implements another type of support for the acquisition of professional knowledge and practical skills by the unemployed. The dual system of training is professional training that takes place in parallel - in a real working environment under the guidance of a mentor and in a training institution from the system of professional education and training. Thus, the Employment Agency incentivizes employers to provide on-the-job training by paying a monthly basic wage allowance to each employed unemployed person and their mentor. Financial support is provided for the duration of the studies, but for no more than 18 months.

In addition, for each person, the costs of the training institution that conducts the training in the acquired profession are covered. Currently, 125 unemployed persons are included in this form of parallel acquisition of professional knowledge and practice, combining work and training.

24.08.2022

HOW TO RECEIVE THE CHILD TAX CREDIT THIS YEAR

The budget amendments in July introduced new, higher tax breaks for children. Parents will be able to reduce the tax base of their annual income by BGN 6,000 for one child (instead of BGN 4,500).

For two children, the preference jumps from BGN 9,000 to BGN 12,000, and for three or more - from BGN 13,500 to BGN 18,000. This means that families will be reimbursed taxes in the amount of BGN 600 for one child, BGN 1,200 for two and BGN 1,800 for three or more children.

These tax reductions will be available already in the second half of the year, because the possibility to make discounts in advance every three months was voted.

Thus, for the period July-September, one parent will receive BGN 150, and for October-December - another BGN 150. For this purpose, however, he must submit a declaration to his employer. If the income of one of the parents does not allow such a large tax relief, it can be shared between the two. For the months of October-December 2022, the tax reliefs are used when calculating the annual tax base.

The employee chooses once whether to receive the advance tax relief by submitting a declaration to the employer. In it, he must indicate that the other parent will not use the advance reduction for the relevant tax year.

The tax reliefs for 2022 can also be used by reducing the monthly tax base for income from employment relationships, as follows:

1.the monthly tax base for the month of July is reduced by the sum of the amounts for the months of January-June for:

a) one minor child - in the amount of BGN 500 per month;

b) two minor children - in the amount of BGN 1,000 per month;

c) three or more minor children - in the amount of BGN 1,500 per month;

d) a child with 50 and over 50 per cent type and degree of disability - in the amount of BGN 1,000 per month.

2.the monthly tax base for the month of October is reduced by the sum of the amounts for the months of July-September for:

a) one minor child - in the amount of BGN 500 per month;

b) two minor children - in the amount of BGN 1,000 per month;

c) three or more minor children - in the amount of BGN 1,500 per month;

d) a child with 50 and over 50 per cent type and degree of disability - in the amount of BGN 1,000 per month.

23.08.2022

HOW TO APPLY FOR ONE-TIME STUDENT AID

Until October 15, families of children enrolled in the first and eighth grades can apply for the one-time targeted aid of BGN 300. Funds are granted without income criteria.

Application forms are available on the website of the Agency for Social Assistance and in all territorial directorates of the Agency.

For the first time in the last academic year, the state decided to pay the benefits to eighth-graders enrolled in school, in addition to first-graders, and the income criterion was also removed, so that parents could buy learning aids and the necessities for the children.

It is important that parents obtain a note that the child is enrolled in eighth or first grade to provide so that payment can be made faster.

For the first school term, half of the amount or BGN 150 is transferred, and the second part - up to one month after the start of the second school term, but only if the child continues to attend school.

Otherwise, the parents return the amount received. Funds are also returned to the state if the student in first or eighth grade accumulates more than five unexcused absences.

Applications for the granting of benefits are submitted to the social assistance directorates at the current address. This can also be done electronically.

23.08.2022

USE OF LEAVE IN CASE OF AN EPIDEMIC SITUATION DECLARED

In the last few years, along with the situation with the spread of COVID-19, a number of changes were made in the legislation in Bulgaria, including the Labor Code. The changes were dictated by a number of messy circumstances that the pandemic faced both our country and the whole world. One of the challenges before the legislators was the regulation of the use of leave in the event of a declared state of emergency or a declared emergency epidemic situation.

The latest changes from August 1, 2022 in the Code in the legal framework of the use of leave in the event of a declared state of emergency or a declared emergency epidemic situation are in the interest of employees. What are these changes?

The previous provision provided that when, due to a declared state of emergency or a declared emergency epidemic situation by order of the employer or by order of a state body, the work of the enterprise, part of the enterprise or individual workers and employees is suspended, the employer has the right to grant paid annual leave to the worker or employee and without his consent, including to a worker or employee who has not acquired 8 months of work experience.

After the changes to the Labor Code from August 1, 2022, the employer will now have the right to grant paid annual leave to the worker or employee without his consent, including to a worker or employee who has not acquired 4 months of work experience. The old version of the text required that the worker or employee had not acquired 8 months of work experience - the eight months have been reduced to four.

The employer is obliged to allow the use of paid annual leave or unpaid leave in the case of a declared state of emergency or a declared emergency epidemic situation at the request of:

1. a pregnant worker or employee, as well as a worker or employee in an advanced stage of in-vitro treatment;
2. mother or adoptive mother of a child up to 12 years of age or of a child with a disability regardless of his age;
3. a worker or an employee who is a single father or adopter of a child up to the age of 12 or of a child with a disability regardless of his age;
4. a worker or an employee who has not reached the age of 18;
5. a worker or employee with a permanently reduced working capacity of 50 and over 50 percent;
6. worker or employee entitled to protection upon dismissal under Art. 333, para. 1, items 2 and 3 of the Labor Code.

The time spent on leave is recognized as seniority.

We remind you that even in a state of emergency or in an extraordinary epidemic situation, the employer cannot grant unpaid leave to his workers and employees without their request. He has the right to grant unilaterally only their paid leave, if the activity of the enterprise, part of it or individual workers and employees is stopped by order of a state authority or by its order.

Reference:

Art. 173a of the Labor Code