29.09.2023
WHICH EMPLOYERS SHOULD PAY WAGES BY TRANSFER OR PAYMENT ACCOUNT ONLY?
The Law on the State Budget of the Republic of Bulgaria for 2023 was published in Issue 66 of the State Gazette of 01.08.2023, which also provides for some changes in the Law on the Limitation of Cash Payments and the Labor Code. With these changes, a new obligation was introduced for employers with 100 or more employees to pay their wages only by transfer or deposit to a payment account in a bank in the country specified by the employee. The changes are in effect from 01.09.2023 and are aimed at increasing transparency in the payment of remuneration and preventing the evasion and non-payment of due taxes and social security contributions through cash payments.
What do the changes in the Law on the Limitation of Cash Payments provide?
Until now, the law did not apply to labor remuneration. After the changes, an exception to this principle was introduced, provided for in Art. 3, para. 1, item 3 of the Law on Limiting Cash Payments, binding only employers who have 100 or more employees. It follows that small enterprises and micro-enterprises are excluded from the scope of the law.
The new obligation will not apply to labor remuneration received under contracts for short-term seasonal agricultural work in accordance with Art. 114a of the Labor Code. It is justified and logical, since the duration of the contract under Art. 114a of the Labor Code, is at least one day and no more than 90 days in a calendar year.
Payments within the scope of the analyzed provision refer only to labor remuneration within the meaning of the Labor Code (chapter twelve of the Labor Code), but not to other types of payments that the employer pays in connection with and on the occasion of labor relations. An example of such payments would be travel allowances, compensation amounts for housing rent, relocation benefits for the worker or employee, etc. similar.
Next, the obligation applies to payments that are made only on the territory of the country. This is because the territorial scope of the Law on the Limitation of Cash Payments is limited to the territory of the country.
Regarding the requirement that payments be made by transfer or deposit to a payment account, the instructions of the Ministry of Finance (Ex. No. UK-3 of 04.04.2011) should be taken into account, which state that these payments can be not only through banks, but also through other providers of payment services on a payment account (electronic money companies and payment institutions within the meaning of the Act on Payment Services and Payment Systems, the European Central Bank and national central banks).
What are the changes in other regulations?
In connection with the amendment of the Law on Limitation of Cash Payments and for the purpose of synchronizing the legislation, a change was introduced in the Labor Code. The new paragraph 4 of Art. 270 of the Labor Code, stipulates that employers with 100 or more employees must pay the labor remuneration only by transfer or deposit to a payment account in a bank specified by the worker or employee in the country. The previous order stipulated that the remuneration should be paid by bank transfer only with the consent of the worker or employee.
In addition to this and with the aim of providing easier access to banking services for users of payment services - with the new Art. 120a of the Law on Payment Services and Payment Systems, natural persons are given the opportunity to open a payment account for basic operations, which will be serviced free of charge when funds from labor remuneration are received and stored on it.
What are the penalties for failure to comply with the new legal obligation?
In case of violations of the restrictive regime introduced by law for cash payments, the authorities of the National Revenue Agency are authorized to draw up acts for establishing administrative violations of a person who committed or allowed the commission of a violation (the payer of the amount or another person who allowed the payment to be made Cash). A person who has allowed the offense to be committed would be any person who, by action or omission, has allowed the payment of an amount in cash to be made. The penalty is a fine in the amount of 25 percent of the total amount of the payment made - if it is a natural person, or with a property sanction in the amount of 50 percent of the total amount of the payment made - if it is a legal entity (Article 5 of the Law on Limitation of Cash Payments). Increased penalties are provided for repeated violations.
With the changes made, the legislator has set goals related to increasing the collection of revenues in the state budget and transparency in relations between employers and employees. Whether these objectives will be achieved is subject to subsequent analysis and practice after the implementation of the new regulations. Consultancy Center - Berkovitsa recommends that employers from the region, who are obliged to comply with the mentioned legislative changes, comply with the new requirements and introduce changes in their internal policies and rules for the payment of labor remunerations.
29.09.2023
REPORT: INFLATION EATS SAVINGS
Gross financial assets of Bulgarian households increased by a modest 2.6% in 2022, far below the record pandemic-induced increase in the previous year (29%).
This is according to Allianz's Global Wealth Report, which tracks the state of household assets and liabilities in nearly 60 countries.
The main driver in our country was bank deposits, which grew by 10%. The insurance/retirement savings asset class, on the other hand, lost -3.0% in value, while equities were unchanged (-0.1%). Changing saving behavior plays an important role in this. While in 2021 new savings grew and most of them were invested in the capital markets, in 2022 the old patterns returned: savers reduced their purchases of securities to zero (after buying €20 billion worth of securities in the previous year) and used all fresh savings, which fell by 86%, on bank deposits, reaching 28%. Compared to pre-pandemic 2019, financial assets are 40.3% higher, but only in nominal terms. Adjusted for inflation, growth has halved – by 19.2% over three years. Liabilities growth remained high at 11.1% (10.1% for 2021).
However, thanks to high nominal growth, the debt-to-GDP ratio fell by 2 percentage points to 27.4%; it is now 7 percentage points below its peak in 2009. In the end, net financial assets increased by just 0.8%. With net financial assets per capita of 14,510 euros, Bulgaria remains in 35th position in the ranking of the richest countries.
A difficult year
2022 was a weak year for savers. Following the worst-case scenario, asset prices across the board fell. The result was a 2.7% decline in global financial assets of private households, the largest since the Global Financial Crisis in 2008. However, the growth rates of the three main asset classes differed significantly. While securities (-7.3%) and insurance/retirement savings posted strong declines, bank deposits recorded steady growth of 6.0%. Overall, €6.6 trillion worth of financial assets were lost, and total financial assets stood at €233 trillion at the end of 2022. The decline was most pronounced in North America (-6.2%), followed by Western Europe (- 4.8%). Asia, on the other hand, excluding Japan, continues to post strong growth rates. China's financial assets grew significantly, registering a growth of 6.9%. Compared to the previous year (+13.3%) and the long-term average for the last 20 years (+15.9%), this is a rather disappointing development – the lockdowns have had their say.
No nominal profits
Despite bitter losses in nominal terms, at the end of last year global household financial assets were nearly 19% above pre-Covid-19 levels. Adjusted for inflation, almost two-thirds of nominal growth fell victim to price increases, reducing real growth to a paltry 6.6% over three years. While most regions can at least maintain some real wealth growth, the situation in Western Europe is different: all nominal gains were wiped out and real wealth fell by 2.6% in 2019.
"For many years, savers have been complaining about zero interest rates," commented Ludovic Subran, chief economist at Allianz. "But the real enemy of savers is inflation, and not just its surge during Covid-19. Globally, three-quarters of the nominal growth in financial assets over the past 20 years has been eaten up by inflation. This emphasizes the need for prudent saving and high financial literacy. Inflation is a beast that is hard to beat. Without incentives and subsidies for long-term saving, most savers may struggle.”
No good prospects
After the downturn in 2022, global financial assets should return to growth in 2023. For now, this is primarily supported by positive stock market developments. Overall, Allianz expects global financial assets to increase by around 6%, taking into account the further "normalization" of saving behaviour. Given a global inflation rate of around 6% in 2023, savers should be spared another year of real losses on their financial assets.
"The medium-term outlook is quite mixed," said Patricia Pelayo Romero, co-author of the report. "There is no good monetary and economic outlook. Over the next three years, average growth in financial assets is likely to be between 4% and 5%, assuming average stock market returns. But like weather becoming more extreme amid climate change, more market volatility is to be expected in the new geopolitical and economic landscape. The 'normal' years may soon become the exception."
Tightening seat belts
The reversal of interest rates was also felt in the liabilities of private households. After global private debt rose by 7.8% in 2021, growth weakened significantly to 5.7% last year. The sharpest decline was recorded in China: last year's growth of 5.4% was the lowest ever. Overall, global household debt stood at €55.8 trillion by the end of 2022. With the gap between debt and economic growth widening to 3.9 percentage points, the global debt-to-GDP ratio (liabilities as a percentage of GDP) declined significantly – by more than 2 percentage points – up to 66.1% in 2022.
This means that the global private household debt ratio is back to roughly the same level as it was at the turn of the millennium – a remarkable level of stability that hardly fits into the widespread narrative of a world drowning in debt. However, there have been major changes in the state of global debt. First of all, stability characterizes development in advanced economies. On the other hand, most emerging markets have seen a sharp rise in debt ratios over the past two decades. China tops the list with a ratio that has more than tripled to 61%.
28.09.2023
"PLACE OF WORK" AND "WORKPLACE " AND OTHER ISSUES WHEN WORKING REMOTELY
Comment from the specialist
To date, changes have been proposed to amend and supplement the Labor Code, which aim at greater flexibility and security in remote work, including in relation to the organization of health and safety working conditions, reporting of work and control of working hours.
The proposed changes became the subject of increased public interest and media discussion. The main emphasis in this polemic was placed on the texts that supplement the regulations regarding the definition of "place of work" and "workplace" in remote work or so-called remote work. Dr. Todor Kapitanov, an expert in labor law, explains the difference between the two concepts.
By agreeing in the employment contract the specific place of work from which the remote work will be carried out, certainty is created in the relations between the parties. Thus, neither party will have the right to unilaterally change the agreed place of remote work. This provides an opportunity for the employer to guarantee safe and healthy working conditions and to control the performance of the work.
What does this mean in practice and do we understand that 'place of work' and 'workplace' are two different concepts in employment law?
According to the current legislation, "place of work" is "the headquarters of the enterprise with which the employment contract was concluded, unless otherwise agreed or does not follow from the nature of the work".
Specifying the "place of work" is a mandatory requirement and part of the minimum content of any employment contract. This fundamental position is not changed by the proposed amendment to the norms, according to which the place of remote work is determined with the individual employment contract, when it is different from the employer's headquarters.
Determining the place of work, at least in terms of whether it is in the territory of the Republic of Bulgaria or outside it, has an important practical meaning, especially if the work is carried out from abroad and for long periods of time.
It is the proposal to agree on the place of work, if it is different from the employer's headquarters, which means in practice the freedom to agree on a different place from which to carry out the remote work. On the other hand, if the remote work takes place on the territory of the Republic of Bulgaria, with the headquarters of the company being in the city of Sofia, and the remote work will predominantly be carried out, for example, from an apartment or villa in the city of Varna, this must be recorded in the individual employment contract.
This change does not limit either the employee or the employer. On the contrary, it gives greater freedom for both parties and at the same time guarantees stability for the employer where he can look for his worker and how to demand from him the correct operation of the equipment and the performance of the work duties from this place.
Another is the content of the concept of "workplace" and it should not be confused with the concept of "place of work" in teleworking. The workplace according to the current legislation is "a room, workshop, room, location of a machine, facility or other similar territorially determined place in the enterprise, where the worker or employee, on the instructions of the employer, performs his work in fulfillment of the obligations under the employment relationship, as well as a place, determined by a user enterprise. In the case of home work and remote work, the workplace is the worker's or employee's home or any other premises of his choice outside the enterprise."
With the new proposal in the Labor Code, a change is also made to the term "workplace when working remotely" - it will be understood not as the entire home of the worker, but a certain "place in a room in the home of the worker or employee or in another room according to him choice outside the establishment where the work is carried out'.
In other words, if the worker has chosen to work from his living room at home, this will be the workplace that must be technically secured and secured, so that the employer or the Labor Inspectorate can carry out inspections in this room if necessary.
In this way, the ambiguity will also disappear if an accident happens at home while we are working remotely, whether it will be work-related or domestic.
New requirements for information systems when working remotely
Through the planned change to the regulation regarding remote work in the Labor Code in Bulgaria, the requirements for the use of information systems by the employer for assigning and reporting the work will also be regulated, including and regarding the implemented systems for algorithmic management of work processes.
The implementation of information systems for algorithmic management (and so-called artificial intelligence) raises concerns about excessive control by employers and limiting human intervention in essential decisions that affect the labor rights of workers and employees.
What are the planned changes in the law and in what way would they guarantee the observance of the rights and interests of workers, specifically those of them who will work remotely under the new conditions?
In order to ensure the rights of workers and employees when using automated management systems, an obligation is provided for the employer to provide employees with information about the data collected and processed in connection with the work.
In this way, workers and employees will be familiar with the established control mechanisms and the volume of information that their employer collects and processes, as well as the way of making automated decisions related to the assignment, reporting and control of work. The necessary information should be provided to employees in writing.
The right of the worker or employee to request a review of the automated decisions made by the algorithmic management system that affect his rights is also regulated. When a request for reconsideration is filed, the employer or an official designated by the employer will have an obligation to review the decision of the algorithmic management system and notify the worker or employee of the final decision. In this way, the obligation of human control over all important automated decisions affecting the rights of workers is regulated.
Information and communication technologies used for official purposes are characterized by greater flexibility in terms of time, place and way of performing work. Carrying out work using modern technology allows employers to make contact with workers at any time. This may lead to a violation of statutory rest periods for workers.
Modern means of communication, on the other hand, should be used in a way that guarantees the combination of professional and personal life and provides an opportunity for workers to spend their free time to the fullest with their families. The development of market relations and the membership of Bulgaria in the European Union are related to the closer integration of national enterprises in the common internal market, including the participation in the chains of suppliers and contractors.
The freedom to provide services includes the right of enterprises to provide services in another Member State, for which purpose they temporarily post their workers. The legislation of the European Union regulates the main requirements regarding the terms and conditions for the posting of workers for temporary work for the purpose of providing services in another Member State other than the one in which they normally work.
27.09.2023
OCCUPATIONAL MEDICAL SERVICE FOR WORKERS AND EMPLOYEES
The Health and Safety at Work Act requires the employer to provide service from a registered occupational health service to all workers and employees. The activity of the occupational medicine services and their main functions are defined in Ordinance No. 3 of 25.01.2008 on the terms and conditions for carrying out the activities of the occupational medicine services of the Minister of Health and the Minister of Labor and Social Policy (SG, issue 14 of 2008).
The Occupational Medicine Service performs preventive functions. It advises and assists employers, committees and groups on working conditions in planning, organizing and fulfilling their obligations to ensure healthy and safe working conditions and to take measures to strengthen the health and working capacity of workers in relation to their work.
The main functions of occupational medicine services are:
- participation in the evaluation of the risk for the health and safety of workers;
- development of proposals for measures to prevent, eliminate or reduce the identified risk;
- development of recommendations for the employer on the restructuring of the workplace, the organization of work and the workload of workers who need special protection;
- development and participation in the implementation of training programs for management personnel, workers and their representatives on the rules for ensuring health and safety at work and compliance with the requirements for safe work practice;
- organizing and conducting the training of workers on the rules of first aid, self-help and mutual aid in relation to the specific dangers in the workplace;
- provision of information to workers about the health risks related to the work and about the results of the conducted medical examinations and tests, incl. and giving individual advice to workers in relation to health and safety at work;
- participation in the implementation of programs for the promotion of the health of workers at the workplace, removal of lifestyle risk factors, protection and strengthening of working capacity and overcoming stress at work;
- assisting employers in the development of rules, norms and instructions in enterprises to ensure health and safety at work and providing advice to workers on their correct application;
- consulting and assisting the committees and groups on working conditions in carrying out their activities.
Occupational medicine services carry out monitoring, analysis and assessment of the health status in relation to the working conditions of all workers served, including those with increased sensitivity and reduced resistance, such as:
Every employer is obliged to provide for the workers and employees employed by him service from an occupational medicine service.
Occupational medicine services are registered by the Ministry of Health. You can get up-to-date information on the registered occupational medicine services on the website of the Ministry of Health in the "Registries" section.
21.09.2023
SUCCESS TECHNIQUES: THE REAL PROBLEM IS NOT A LACK OF TIME, BUT OF ENERGY
If you ask any entrepreneur how they're doing, there's a good chance you'll hear one answer (or at least some version of it): "I'm crushed." This response will usually be supported by some complaint about lack of time.
"When researchers surveyed Americans before 2011, about half said they almost never had free time, and two-thirds said they sometimes or always felt rushed (though a more recent survey suggests things may be improving),” reports the Greater Good Science Center.
None of the above is surprising. However, extensive studies of how Americans actually use their time show that most people have a lot more free time than we think.
"From 1965 to 2003, the average American workweek actually decreased by three hours, while leisure time increased," reported the same Greater Good article. According to current data from the Bureau of Labor Statistics, the average American has about five hours of free time per day.
Of course, many entrepreneurs are far from the average employee. Also, there are many people working in multiple places to make ends meet who would take this statistic as some type of black comedy. But the overall picture is clear. Time use surveys reveal that most of us have hours of free time that we use for activities such as watching television and posting on social media. Why then do people constantly complain that they don't have enough time?
"Energy makes time"
It's a complicated question, of course, and one that speaks to deep issues around how you envision your days. But a recent blog post by executive coach Mandy Brown cuts through some of that complexity to offer one of the clearest explanations of the phenomenon.
Your problem, Brown insists, isn't really a lack of time. The problem is the lack of energy.
This is not to say that time management is useless. Some tricks for setting aside time on the calendar can be helpful. Ultimately, however, they have a limited effect. The main problem is not how you organize your classes, but how you recharge your batteries.
“We all know that time can be stretched or compressed – we've experienced hours that stretched endlessly and hours that passed in a few breaths. We've had days where we've gotten so much done that we've surprised ourselves, and days where it seems like nothing has been accomplished. What distinguishes these experiences is not the number of hours in the day, but the energy we get from the work. Energy makes time," Brown writes.
Take the example of a person who likes to draw or sing. After a long day at work and juggling various household duties, this person rarely feels like he has time for his artistic hobby. When he has free time, he devotes it to sleeping or watching movies to recover from the endless workload.
One day, however, this man decides to go to the park and just paint, abandoning all his extracurricular duties. “He paints for hours until the sun goes down and the street lights come on. And, lo and behold, the next day he goes about his daily tasks again. The man realizes that half of them were unnecessary, although earlier they all seemed critical to him. Then he finds time to tackle a project he's been putting off for weeks," Brown wrote.
Your interests give you energy
Doing what you love - whether it's some form of art, gardening, cycling, etc. - gives you an energy that makes your time feel like it's expanding. Fatigue eats up energy and causes time to shrink, so one is too exhausted to do anything with the time one has.
The Greater Good article provides a bunch of research supporting this idea.
“The question we need to ask ourselves is not, 'How do I find time for this?' The better question is how does doing what I need to do create time for everything else?” Brown says.
Instead of searching for scraps of time to gather all the things you need and want to do despite your exhaustion, do more of the things you enjoy. You'll find that you somehow magically have the energy, and therefore the time, to get through almost everything else that life throws at you.
20.09.2023
FORMATION OF OUR EMPLOYMENT RECORD BOOK ON TERMINATION OF THE EMPLOYMENT CONTRACT
Upon termination of the employment relationship, the employer is obliged to enter in the employment record book the data related to the termination and hand it over immediately to the worker or employee against a signature.
What are the obligations of employers and the rights of employees regarding the procedure and deadlines for the creation and delivery of the employment record book?
Upon termination of the employment relationship, the employer is obliged to enter in the employment record book the grounds for termination of the benefits paid to the worker or the employee upon termination of the employment relationship, as well as the length of service acquired under the employment relationship in years, months and days.
Handing over of the employment record book should take place on the day of termination of the employment relationship, immediately after entering the specified data in it. It must be done by personally delivering it to the person. Handing over means actually placing the employment record book in the possession of the worker or employee.
When the worker or the employee is not at the enterprise on the day of termination of the employment relationship and drawing up of the employment record book, it can be handed over in three ways:
In case of closure of the enterprise, without a designated legal successor, all payrolls, employment contracts (appointment orders), reassignment orders, orders for unpaid leave of more than 30 working days, orders for termination of employment relationships, employment records and other documents, establishing the insurance experience and income of the persons who worked in the enterprise, are handed over to the territorial divisions of the National Social Security Institute and are kept in special archives. Certificates of work experience are issued by the territorial divisions of the National Social Security Institute free of charge within 30 days on the basis of the pay slips and other documents kept by them of terminated insurers without legal successor.
Reference:
Ordinance on the employment book and work experience
19.09.2023
SUCCESS TECHNIQUES: CAN TO-DO LISTS HARM PRODUCTIVITY?
Although their format may differ, many people use a variety of lists to keep track of their daily tasks. According to a survey by online course platform Acuity Training, 33% use a to-do list, 24% organize their day based on their email inbox, and 12% track their tasks on a calendar. The rest just deal with the things that seem most important at the moment.
While written to-do lists can provide a plan for the day, they can also hurt productivity if you don't use them the right way, says Eduardo Briceño, author of The Performance Paradox: Turning the Power of Mindset Into Action.
"To-do lists are a great self-management tool," he says. "However, they can cause us problems if we get lost in them, if we stop seeing everything on the periphery," adds Briceño.
Lisa McCarthy, co-author of Fast Forward: 5 Power Principles to Create the Life You Want in Just One Year, adds that people are very often short-sighted in their approach.
"Most human beings are focused on what they have to accomplish by Friday instead of focusing on the future and really getting clarity about what's important and investing their time and energy into it right now," she says. .
To make better use of your time and create a more efficient to-do list, avoid these five mistakes:
Excessive focus on performance
Crossing something off your to-do list is definitely fun, but not all tasks move your career or goals forward. Briceño says focusing only on getting results, rather than learning and improving, can be a mistake.
Feeling short on time
Most people have too many things on their to-do list and not enough time to complete them. This can lead to feeling overwhelmed, says McCarthy.
"Most people treat time like there aren't enough hours in the day. Your language creates your reality, and you will constantly be gathering evidence to support that claim,” she explains.
After all, you have a choice about what you say to yourself. Instead of constantly telling yourself that you don't have enough time, McCarthy suggests telling yourself, “I have enough time. I have enough energy to invest in what is important to me, both professionally and personally."
When building your to-do list with this mindset, identify the most important things you want to accomplish professionally and for your personal well-being. Start with the final and then plan your week.
Collection of various tasks
When writing a to-do list, it's normal to group together different tasks—easy and time-consuming, urgent and open-ended. This approach makes it difficult to focus on the important things.
"You can forget why you're chasing these things," Briceño says. "Instead, you need to know what your strategic priorities and high-level goals are," he adds.
The importance level of tasks can change over time. Reassess your priorities regularly. Briceño suggests asking yourself, “What are my most important goals? Are the things on my to-do list right now the right way to approach them?”.
Sticking to a routine
Another risk is sticking to what Briceño calls "bulldozing": doing one thing all the time, such as sticking to one type of task.
“You miss the value of alternating mental and emotional states. Nobel Prize winners are about 20 times more likely than the general population to have a hobby, such as one related to the performing arts. Great violinists sleep more than other people. Our brain needs recharging and rest. He needs to explore new things. When we discover new things, we make connections and that leads to innovation,” he explains.
Making a habit of doing different things throughout the day, rather than just one thing, leads to learning and higher productivity.
You neglect your energy levels
How effective you are at completing tasks can depend on your energy level. McCarthy says this should be considered when creating a to-do list. For example, if you're an early riser, focus on your high-energy tasks early in the day. If your energy levels peak in the afternoon, save important tasks for later.
“You have to know yourself. Consider what you need to do to keep your physical and mental energy at peak levels,” she says.
Whether it's on a weekly, monthly, or semi-annual basis, Briceño recommends reviewing the habits and tools you use and determining if they need improvement.
“Clarify what is most important to you. What are your performance goals and learning goals? How are you doing in pursuing these goals? A to-do list is a great place to note the tasks we want to get done. Make sure you use it the right way,” he advises.
18.09.2023
36 FREE DIGITAL SKILLS COURSES ARE STARTING
The Bulgarian Industrial Association (BIA), in cooperation with Contipso Learning, has created an electronic training platform in the field of digital skills. The activity was implemented within the framework of the "Ready for Digital Transformation" project, implemented by BIA, in partnership with the Ministry of Labor and Social Policy and the Confederation of Independent Trade Unions in Bulgaria.
In the electronic platform, 36 courses are available, divided into two categories - Specific digital skills and Sectoral basic skills in 16 economic sectors.
The courses in the electronic platform are completely free and freely accessible, after registration at https://bia.contipso.com.
Each course on the platform takes between 40 and 180 minutes. From the very beginning, users have the opportunity to familiarize themselves with all the content and the requirements for it. Each course ends with a final test, the successful passing of which brings a certificate of completed training in the relevant digital field.
Users can choose from 20 courses to improve their specific digital skills. Topics include:
Courses from the "Sectoral Basic Courses" category are related to characteristics of the transition to a digital economy in the sectors:
The electronic courses are developed at a high professional level, with attractive and easy-to-navigate online learning content, reflecting modern trends in information and communication technologies. The educational content meets the standards of the European framework for citizens' digital competence DigComp and the current requirements of the Bulgarian labor market for the digital competence of the workforce.
We remind you that within the framework of the BIA project, analyzes of the needs for digital skills in 16 economic sectors were prepared, which showed that only 19% of the workforce covers the required level of digital competence for the position they hold, and over 90% of the working places require specific types of digital skills.
15.09.2023
THE STATE GIVES A MINIMUM WAGE TO THE UNEMPLOYED
Jobs for nearly 10,000 unemployed people will be provided through programs and measures from the National Employment Action Plan for 2023, which was approved by the government. The priority goals of the document are to promote economic activity and employment of the population, including among the youth who do not work and do not study, and to reduce unemployment.
Among the main tasks of the plan is the increase in the quality of the workforce by acquiring digital skills according to the needs of the economy. About 9,500 employed and unemployed people are expected to be included in training to become more competitive in the labor market.
The budget of the Employment Plan for 2023 is BGN 73 million. As a result of the implementation of the activities set out in it, the average annual unemployment rate in Bulgaria is expected to decrease to 4.1% of the economically active population.
The full-time unemployed included in employment programs will receive labor remuneration of BGN 780, which will be subsidized by the state. A subsidy of the same amount will also be received by employers who have hired the unemployed under the measures of the Employment Promotion Act. The remuneration of young people included in the "Start a Career" program will increase from BGN 860 to BGN 920.
The salaries of those employed under the national program "Activation of inactive persons" are also increasing. The remuneration of youth mediators to the municipalities will increase to BGN 950, psychologists and case managers - to BGN 1,070, and Roma mediators - to BGN 950. The salaries of graduates employed under the programs will also increase to BGN 820. Retirement Assistance" and "Melpomena", as well as under the National Program for Training and Employment of People with Permanent Disabilities.
According to the two-year plan of the state enterprise "Bulgarian-German Vocational Training Center", 1,566 unemployed people from various groups in a disadvantaged position on the labor market will be trained. About 530 people will work on the "Beautiful Bulgaria" project. According to the projects of the social partners, 6,246 unemployed people will participate in training for the acquisition of key competences and professional qualification in occupations in demand on the labor market.
15.09.2023
HOW A CONTRACT IS BROKEN AND WHEN REMEDIES ARE SEEKED
When the debtor under a bilateral contract fails to fulfill his obligation due to a reason for which he is responsible, the creditor may cancel the contract by giving the debtor an appropriate period for performance with a warning that after the expiration of the period he will consider the contract canceled. The warning must be given in writing when the contract is concluded in writing. This is provided by the Law on Obligations and Contracts.
Contracts that transfer, establish, recognize or terminate real property rights over real estate are annulled by court order. If the defendant offers performance during the trial, the court may grant a deadline for doing so, depending on the circumstances. Cancellation of the contract, however, is not allowed when the unfulfilled part of the obligation is insignificant in view of the interest of the creditor.
The annulment of contracts that are subject to registration does not affect the rights acquired by third parties before registration of the claim.
It is also expressly stated that the right to cancel the contract expires with a five-year statute of limitations. Cancellation has a retroactive effect, except for contracts for continuous or periodic performance. The creditor has the right to compensation for the damages caused by the non-performance of the contract.
It is important to point out that a debtor under a bilateral contract who has a demandable claim against his creditor from the same legal relationship from which his obligation arises can refuse to fulfill his obligation until the creditor fulfills his. In such a case, the defendant is sentenced to perform simultaneously with the plaintiff.
In the current Law on Obligations and Contracts, there are also special rules that apply in case of non-performance by a debtor under a contract. For example, if a debtor does not exactly fulfill his obligation, the creditor has the right to demand either the performance together with compensation for the delay, or to demand compensation for non-performance.
It is important to note that when compensation is sought in lieu of performance, the debtor may still offer the original amount owed along with compensation for delay. However, this can be done if the creditor still has an interest in the performance.
There is the possibility that the debtor's obligation is for an action that can be performed by another person. The creditor then has the right to request permission to perform this action at the debtor's expense. When the obligation is not to do something, the creditor may ask to be allowed to remove at the debtor's expense what was done in violation of the obligation.
However, the Law on Obligations and Contracts states that "the debtor is not liable if the impossibility of performance is due to a reason that cannot be attributed to him". It may be force majeure, materials necessary for the work may not have been delivered. Immediately afterwards, however, the law decreed that "the fact that the debtor does not have the funds to fulfill the obligation does not exempt him from responsibility".
The compensation covers the loss suffered and the lost benefit, insofar as they are a direct and immediate consequence of the non-performance and could have been foreseen when the obligation arose. But if the debtor was in bad faith, then he is responsible for all direct and immediate damages.
However, if the default is also due to circumstances for which the creditor is responsible, the court may reduce the compensation or release the debtor from liability. The debtor does not owe compensation for damages that the creditor could have avoided by exercising good stewardship.
Another rule is that when the day for performance of the obligation is fixed, the debtor falls into default after its expiration. But if this day has expired after the death of the debtor, then his heirs fall into default after the expiration of 7 days from the invitation. When there is no fixed day for performance, the debtor falls into default after being invited by the creditor. However, if it is a question of an obligation resulting from a tort, the debtor is considered in default and without invitation.
When the debtor is in arrears, he owes compensation even if performance becomes impossible due to a reason for which he was not previously responsible. The only possibility to get rid of him is if he proves that the creditor would have suffered the damages even with timely execution.
There are also rules if there is non-fulfillment of a monetary obligation. Then the debtor owes compensation in the amount of the legal interest from the day of the delay. For damages actually suffered in a higher amount, the creditor may request compensation in accordance with the general rules.
There is another rule when the debtor under a bilateral contract fails to fulfill his obligation due to a reason for which he is responsible. The creditor can then rescind the contract by giving the debtor an appropriate period of time for performance. This is done with a warning that after the expiration of the term, he will consider the contract void. The warning must be given in writing when the contract is concluded in writing.
The creditor can cancel the contract without giving the debtor a deadline. This can happen, for example, if performance has become impossible in whole or in part. Or if due to the debtor's delay it has become useless, as well as if the obligation had to be fulfilled without fail in the agreed time.
