13.09.2023
10% OF WORKERS WILL BE AFFECTED BY THE GREEN TRANSITION
The development of green technologies inevitably leads to upheavals in the labor market. We still have 7 years to prepare the staff for work at the end of the Green transition, said Nadya Vasileva, director of the Employment Confederation.
"There are countless options for people to be retrained, but a strategy must be created. The state can be assisted by trade unions, employers' organizations, educational experts. Special programs in this regard must be created in a short period of time - a kind of correspondence training in computer skills. It should also be clear to the staff what they would like to work on. Such a program can last a maximum of a year, so that it does not take much time and people do not lose," the expert believes.
Around 40,000 employed people need to meet the needs of new employers after the end of the green transition, the confederation estimated. Coal plants as a type of production will not be competitive in 5 years, Vasileva believes.
"The Green Deal will happen whether we are ready for it or not. From the beginning of industrialization until now, the mechanization of labor has freed millions of people from their hard physical work. At first it caused hardship for them, but subsequently it led to more wealth and abundance,” is her assessment.
The green transition is expected to lead to more work from home, atypical forms of employment and more flexible working hours. "Apart from coal plants, people are actually the great wealth of our country and their retraining is key for them and for the economy. The green transition will allow society to focus on more creative professions. Routine tasks will be automated," predicts Nadya Vasileva.
65% of workers in Bulgaria are employed in services, 30% in production, 5% in agriculture. 10% of manufacturing workers are expected to be affected by the Green Transition. There will be a need for personnel in all sectors, Bulgaria suffers from an imbalance between demand and supply. These are the opinions of employers for years, resorting to importing personnel from third countries, the expert explains.
"Institutions must develop a coherent strategy. 800 million euros are planned for the protection of people from these regions who would lose their jobs in the transition to a green economy. New jobs will be created in the sectors of education, technology, digitalization, agriculture. By 2027, the role of machines in the work process will increase. Every 100 people who leave working age are replaced by 69 people, and this is a serious problem," concluded Nadya Vasileva.
13.09.2023
WHEN IS A MEDICAL WORK CERTIFICATE IS ISSUED?
Do I have to provide a medical certificate in order for them to conclude an employment contract with me?
According to Art. 2, para. 1 of Ordinance No. 3 of 28.02.1987, a mandatory preliminary medical examination is subject to: persons entering work for the first time; the persons who move to another job in the same or in another enterprise, which is associated with harmful factors and with the risk of occupational disabilities; persons who have terminated their employment for more than three months. Therefore, the person starting work must present a card for a preliminary medical examination.
Pursuant to Art. 287, para. 1 of the Labor Code, all workers and employees are subject to mandatory preliminary and periodic medical examinations. The conditions for carrying out the preliminary and periodic examinations according to the nature of the work, the working conditions and the age of the employees are defined in Ordinance No. 3 of 28.02.1987 on the mandatory preliminary and periodic medical examinations of the workers.
The official requirement and provision of files between services is regulated in Art. 17, para. 1 of Ordinance No. 3 of 25.01.2008 on the conditions and procedure for carrying out the activities of occupational medicine services (promulgated SG No. 14 of 12.02.2008). Pursuant to item 1 of the cited provision, the health records of workers are transferred and accepted between the occupational medicine services on paper and electronic media on an official basis when the worker's place of work changes and a request is made by the service serving the relevant enterprise. Given the peculiarities of national legislation and practices in the EU member states, it is possible to have a different order established for occupational health care and health monitoring of workers in the member state in which the worker's previous work experience took place. In all cases, it is the duty of the occupational medicine service to seek, in an official way, information regarding his medical monitoring, to include in the personal health file within the meaning of Art. 11, para. 10 of Ordinance No. 3 of 25.01.2008.
12.09.2023
IS THE LABOR MARKET SITUATION WORSENING?
The first signs that the positive trends in the labor market, observed in the last two years, have begun to weaken, show the data from the Labor Force Survey, in the second quarter of 2023. This is indicated in an analysis by the Ministry of Finance.
Although the second quarter is traditionally characterized by increased seasonal labor demand, the data show a decrease in employment on a quarterly basis (by 0.5%) and remaining at an almost unchanged level compared to a year earlier.
At the same time, in the second quarter of 2023, the unemployment rate in the country was 4.6%, increasing both on a quarterly basis (by 0.2 percentage points) and on an annual basis (by 0.1 percentage points). Data on the registered unemployed showed that this process may continue in the third quarter, although this is traditionally the period with the lowest unemployment within the calendar year.
Wages
In the second quarter of 2023, average wages rose by a nominal 13.1% year-on-year, slowing from the reported growth of 17.3% in the first quarter.
Current developments reflected the lower growth rate of the indicator in both the private and public sectors, at 14.1% and 10.1%, respectively.
The most significant contributors to the observed slowdown in wage growth, not only compared to the previous quarter but also compared to a year ago, were reported in trade (12.9%), government (7.8%), education (7.4%) and financial and insurance activities (6.4%).
With inflation contained, real labor income growth, deflated by the Harmonized Index of Consumer Prices, continued to accelerate to 4% on an annual basis.
11.09.2023
DEDUCTIONS FOR DEBTORS RECEIVING MINIMUM WAGE
To the extent that, for social reasons, it is not possible to allow the entire labor income of a person to be used to repay his obligations, the law defines the so-called non-sequestrable income - a minimum to guarantee the satisfaction of the basic needs of the debtor and his family.
Determining the part of the income that can be sequestered depends on two factors: the amount of salary and the number of children that the debtor supports. The detailed rules are contained in the Civil Procedure Code of the Republic of Bulgaria.
What are the legal provisions regarding the interrelationships between the minimum wage and the determination of the minimum guaranteeing the basic needs of the debtors and their families?
The minimum wage serves as a unit of measure for determining the sequesterable part of a person's income in the sense of the Civil Procedure Code. It provides that if the performance is directed to the labor remuneration or to any other remuneration for labor, as well as to a pension, the amounts of which are above the minimum wage, only:
- if the convicted person receives a monthly remuneration in the amount between the minimum wage and twice the amount of the minimum wage - one third if he has no children and one quarter if he has children he supports;
- if the convicted person receives a monthly remuneration in an amount between twice the amount of the minimum wage and four times the amount of the minimum wage - one second part, if he has no children, and one third part, if he has children he supports;
- if the convicted person receives a monthly remuneration in an amount exceeding four times the amount of the minimum wage - the upper limit above two times the amount of the minimum wage, if he is without children, and the upper limit above two and a half times the amount of the minimum wage, if he has children who it lasts.
In an interpretative decision of the Supreme Court of Cassation, an answer is given to a very debatable question in practice in recent years - whether the words "the amount of which is above the minimum wage" refer only to pensions or also to labor remunerations.
According to the Supreme Court of Cassation, "the non-sequestrable minimum is determined absolutely - in the amount of the minimum wage, and this applies both to any remuneration for work and to the pension.
There is no reason to believe that the legislature treats debtors who receive income from employment differently from those who receive income from a pension. Whatever the source of the income, the absolutely non-sequestable part is the same for all debtors - the minimum wage". Therefore, employees receiving labor remuneration up to this amount do not have a sequesterable part of the salary.
I would like to remind you that for the protection of employees who perform the lowest qualified work, a Minimum monthly gross salary has been set, which at the moment (2023) is BGN 780. This means that, by law, a monthly gross salary cannot be negotiated remuneration (for performing normal work during normal working hours) in smaller amounts.
Reference:
Art. 446 of the Civil Procedure Code
Decision No. 2 of the Supreme Court of Cassation dated 26.06.2015 according to interpretation No. 2/2013
08.09.2023
COMPANIES STEPPED UP THEIR SEARCH FOR WORKERS
In recent months, we have observed a downward trend in online job offers, citing the summer and holiday season as the main reason, during which employers and job seekers are less active. The monthly JobTiger analysis shows that as the end of this period approaches the supply is clearly visible.
Job advertisements at the end of August increased by 4% compared to the previous month, and on an annual basis they were 5% (2,300 offers) less. This annual decline is mainly due to the reduced offer in the IT sector in 2023, and in this sector alone the offers are 2000 less than last year. Excluding this factor, the job offer in August is at the same level as in 2022.
In contrast to the previous months, in August we observed an increase in offers in almost all sectors. Advertisements have increased the most in the sectors "Trade and Sales" (800 offers more, 8% growth), "Manufacturing" (650 offers less, 10% growth) and "Hospitality and Restaurant" (420 offers more, 7 % height). We also report an increase in advertisements in the sectors "Administrative and service activities" (200 offers more, 5% growth), "Logistics and transport" (200 offers more, 4% growth), "Marketing and advertising" (30 offers more, 2% growth) and "Construction" (30 offers more, 1% growth).
We report fewer offers in the sectors "Accounting, Auditing, Finance" (75 offers less, 4% drop) and "Healthcare and Pharmacy" (80 offers less, 4% drop). The "IT" sector has the biggest drop in ads, where in August there were 120 offers less than the previous month (2% drop).
Share distribution
A distinct leader in terms of the share of offers in August continues to be the "Trade and Sales" sector with 24%. The second and third places also remain unchanged and are occupied by the sectors "Manufacturing" (16%) and "Hospitality and catering" (15%).
Followed by the sectors "Logistics and transport" (11%), "Administrative and service activities" (10%), "IT" (8%) "Construction" (6%), "Healthcare and pharmacy" (5%), "Accounting" , Audit, Finance' (4%), 'Marketing and Advertising' (3%) and 'Art' (1%).
Work from home
According to the analysis, offers for working from home and/or telecommuting saw a 3% drop. The number of this type of offers in August was 3,600, which is a 9% share of all listings.
The distribution of this type of offer by sector is: 56% in the "IT" sector, followed by "Administrative and service activities" (17%), the outsourcing (BPO) industry sectors (16%) and "Trade and sales" (6% ).
Offer by city
The total number of advertisements in the leading regional cities increased by 5%. The increase in each of them is as follows: Sofia (5%), Plovdiv (3%), Varna (1%), Burgas (7%), Ruse (8%) and Stara Zagora (16%). As for share distribution in the city of Sofia, the ads are 42%, and in the other cities they are: 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 50 more than in July. The total number of this type of ads is about 2,550 (2% growth), which is a 6% share of all ads.
05.09.2023
PROTECTION FROM DISMISSAL DURING THE PROBATIONARY PERIOD
Does the protection against dismissal apply during the probationary period? If I am laid off during my probationary period, will I be able to get compensation from the Labor Office?
In Art. 70, para. 1 of the Labor Code provides that the final employment acceptance of the worker or employee may be preceded by a contract with a trial period of up to 6 months.
The main purpose of the trial period is for the party in whose favor it is agreed to satisfy itself that the work is suitable for the person concerned, that it is performed according to the conditions and requirements set by the employer. The Labor Code stipulates that until the trial period expires, the party in whose favor it is agreed may terminate the contract without notice - Art. 71, para. 1 of the Labor Code.
Upon termination of the employment relationship on this basis, the protection in the event of dismissal provided for in Art. 333 of the Labor Code does not apply.
According to Art. 54a, para. 1, item 1 and item 2 of the Social Insurance Code, persons for whom insurance contributions have been paid or are due in the "Unemployment" fund for at least 12 months in the last 18 months before the termination of insurance are entitled to unemployment compensation and which:
The amount of cash compensation for unemployment and the period during which it will be received are determined by the territorial division of the National Social Security Institute.
04.09.2023
THE WORKING ENVIRONMENT WILL BE IMPROVED WITH BGN 100 MILLION OF EUROPEAN FUNDING
In September, the "Adapted Working Environment" grant procedure, financed with funds from the EU and Bulgaria, through the Human Resources Development Program 2021-2027, begins. The budget of the procedure is BGN 100 million.
Its aim is to improve a healthy and safe environment in organizations and to adapt workplaces to new employment-related challenges. It will be possible to finance activities aimed at the physical safety of employees and improving their mental health. The need for complex care, which became tangible for companies after the Covid pandemic, has already been realized at the program level and among the measures possible for financing is the prevention of "burnout" and the subsequent states of apathy, critical attitude to work and lack of motivation.
Who can apply
Organizations operating in almost all sectors of the economy, with the exception of fisheries and aquaculture, the primary production of agricultural products, as well as the sector of processing and trading of agricultural products under certain conditions, can receive grant-in-aid.
There are no restrictions regarding the date of registration of applicants and realized net sales revenue. The only condition is that they have the financial capacity to implement the investment, according to the methodology developed by the program.
What are the eligible activities?
The procedure meets the modern challenges of the working environment and the need for physical improvement of working conditions and psychological support. The following types of activities are allowed:
Mandatory for every project is the introduction of "green" models of organization of work processes, which are related to increasing resource efficiency, reducing the impact on the environment or increasing the sustainability of the offered products and services. The models may be related to the implementation of new green production investments, changes in the organization of work to include green activities in specific work processes and workplaces, building an overall green company culture and motivating employees for green thinking.
With the help of the program, organizations can also provide psychological support in connection with the prevention and prevention of workplace stress and professional burnout. It is common in large companies with foreign participation to have programs to manage stress and maintain employee motivation and satisfaction, while in SMEs investments in mental health are more of an exception and grant support is a way to adopt such practices.
The ability to purchase collective, personal protective equipment and special work clothing is extremely important for the manufacturing sector. To be eligible for funding, safeguards must not have been used to date or provide higher protection than current ones.
It is also possible to provide collective protection, incl. modernization, reconstruction, securing of existing sites, technological processes, machines and equipment related to improving working conditions. The construction of railings and structures, devices for access to certain premises for the purpose of safety, ventilation and/or air conditioning system, ensuring ergonomics at work, etc. is permissible.
Electric trucks, forklifts, gas trucks and other lifting equipment desired by all enterprises from the mining and processing industry are not eligible for financing.
Among the permissible social benefits are the repair and equipment of places for recreation, rehabilitation, sports and rest for employees. Outdoor or indoor gyms, rest and entertainment areas, as well as dining areas can be equipped with funds from the program.
Food costs are not eligible, nor are purchases of family holiday vouchers, meal vouchers, entertainment vouchers, gym memberships etc. similar.
What is the amount of the grant?
The grant is up to EUR 200,000 (BGN 391,166), provided that the companies have not received any other aid under the de minimis regime in the last 3 years, including the current one. For small and medium-sized enterprises, the aid can cover the costs of the entire project, and for large ones - 80%.
What is different compared to previous procedures?
For the first time, the development and introduction of resource-efficient models of work process organization and psychological support for employees is supported.
The division of the budget by regions is also new. The south-western region, including the districts of Blagoevgrad, Kyustendil, Pernik, Sofia region and Sofia city, is classified as a region in transition and only BGN 7.92 million out of a total of BGN 100 million will be allocated to it. With an average grant of BGN 250 thousand, approximately 30 projects for the entire region will be financed.
What are the weaknesses
There are practically no requirements for applicants. The only criterion for eligibility is financial capacity according to the Program Methodology. The way to define organizations as financially stable is quite irrelevant to real business, as it is easily achieved by newly created companies without profit and with a symbolic amount of assets, but it can be a challenge for companies with a long financial history and investments of millions of BGN.
100% grant aid for small and medium-sized enterprises and 80% for large ones should also not be allowed in the third program period, as it may lead to insufficient efficiency of the planned investments, as well as to non-achievement of the set indicators under the program. When they do not have their own contribution to the financing, organizations are more likely to plan insufficient cost-effective costs.
A serious weakness is the Project Evaluation Methodology, which is entirely subjective and focused on the description of activities and target groups. There are no objective and verifiable criteria such as the number of persons who will be covered by the measures, the financial capacity and experience of the organizations to implement projects, etc. There are criteria such as "realistic and adequate time resource", "detailed description", "reasonable necessity" and other similar definitions that create doubts that project proposals may not be evaluated fairly and objectively.
What is the application deadline and method?
Until September 1, 2023, the procedure is in the process of public consultation, and all interested parties can send comments on the conditions. The application is scheduled to open on September 15, 2023, but due to the high interest, many proposals will be received, which require more technological time to be processed. The projects will be submitted through the ISUN system, and the expected application period is three months from the date of announcement.
The procedure is long-awaited due to the possibility of grant funding of soft measures at 100% grant, which is extremely rare for the third program period. The last scheme with a similar focus was announced in 2016 and had an unprecedented number of projects submitted - 2,520, of which only 401 were approved for funding. It is expected that the interest in "Adapted working environment" will be significantly higher, which necessarily implies a refinement of the criteria for eligibility and assessment under the procedure.
01.09.2023
BGN 188 MILLION TO SUPPORT YOUTH EMPLOYMENT
Employers who hire young trainees up to the age of 29 on a permanent employment contract will receive the insurance funds for the first six months. This foresees a new project under the "Youth Employment Plus" measure, which will be implemented with BGN 188 million under the "Human Resources Development" program 2021-2027, the Ministry of Labor and Social Policy announced. The condition for using the incentives is that the contract is for a position that matches the intern's qualifications for the same or better compensation.
The main goal of "Youth Employment Plus" is to increase the competitiveness of unemployed and inactive young people aged 16 to 29 by facilitating their transition from education to employment, the Ministry of Social Affairs specified. At least 15,200 people, including long-term unemployed youth, are expected to be covered in internships, on-the-job training or subsidized employment.
For the first month of their inclusion in project activities, they will be provided with funds for public transport to and from the workplace. Within days, a contract on the measure is expected to be signed between the Managing Authority of the Human Resources Development Program and the Employment Agency. This is how the support for unemployed youth will continue, as the current project "New Opportunity for Youth Employment" under the Operational Program "Development of Human Resources" 2014 - 2020 with a budget of over 161 million BGN will end in September.
Unemployed up to 29 years of age had the option of doing an internship for 6 to 9 months, engaging in on-the-job training with a mentor for up to 6 months, or starting a job for up to 9 months. Nearly 39,000 people participated in the activities, with more than half remaining employed by the same employer after subsidized employment ended.
31.08.2023
WHICH VIOLATIONS OF WORKERS' RIGHTS ARE PUNISHED WITH PRISON
On July 28, 2023, the National Assembly approved changes to the Penal Code, which criminalize acts directed against the right of workers and employees to associate in trade unions and unions.
In addition to the new amendment to the law, since 2015, the prosecution of offenders for non-payment of insurance contributions has been in force in Bulgarian legislation. What are the provisions specifying these acts, what are they expressed in and what is the responsibility of the offenders, answers Dr. Todor Kapitanov, an expert in labor law.
The latest changes in the Penal Code regarding the right of association are effective from 08/08/2023. What is actually the crime against the right of workers to associate in trade unions and unions?
The law provides that whoever, by violence, threat or otherwise unlawfully prevents someone from exercising his right to join a trade union, compels him against his convictions or will to join or renounce membership in a trade union organization, or prevents him from to create one, is punishable by imprisonment for up to three years or a fine of up to five thousand BGN.
The norm also states that whoever, through violence, threats or in any other illegal way, prevents someone from realizing the rights arising from the exercise of his right to join a trade union, is punished with imprisonment for up to one year or a fine of up to three thousand BGN. If the listed acts are committed again, the punishment is imprisonment for up to five years or a fine of up to ten thousand BGN.
In another legal provision, which has been in force since 2015, it is stated that whoever evades mandatory insurance contributions for state social insurance or for health insurance in large amounts by declaring an insurance income in a smaller amount than the actual one for the insured person, is not submits a declaration, confirms a falsehood or conceals the truth in a submitted declaration, compiles or uses a document with false content, a false or falsified document when carrying out business activities, when keeping accounts or when presenting information to the revenue authorities, destroys or hides within the statutory terms accounting documents, accounting registers or payrolls is punishable by imprisonment for up to five years and a fine of up to two thousand BGN.
The law states that when the above violations are committed with the participation of a revenue authority or a registered auditor, the punishment is imprisonment from one to six years and a fine of up to five thousand BGN, as well as deprivation of certain rights.
When the obligations for insurance contributions for state social insurance or health insurance are particularly large, the penalty is imprisonment from two to eight years and confiscation of part or all of the property of the guilty party.
In similar cases, if until the conclusion of the judicial investigation in the court of first instance, the mandatory insurance contributions for state social insurance or health insurance are paid into the budget together with interest, the punishment is imprisonment for up to two years and a fine of up to five hundred BGN or imprisonment for up to three years and a fine of up to one thousand BGN.
The law also specifies that the worker or employee subject to compulsory insurance does not bear criminal liability, including for incitement and aiding and abetting.
I remind you that "Compulsory insurance contributions for state social insurance or for health insurance in large amounts" are those that exceed three thousand BGN, and "compulsory insurance contributions for state social insurance or for health insurance in particularly large amounts" are those that exceed twelve thousand BGN.
Reference:
Art. 174b, Art. 255b, Art. 93, item 29 of the Criminal Code
31.08.2023
FREE PAYMENT ACCOUNT FOR CITIZENS FROM 1.09
From September 1, individuals will be able to open a payment account for basic operations, which will be serviced free of charge, when funds from salaries, pensions, benefits and allowances for social insurance and social assistance, scholarships for schoolchildren, students are received and stored on it and PhD students. This was announced by the Ministry of Finance in connection with the possibility for citizens to receive their wages under the so-called "payment account for basic operations".
The department reminds that this possibility is ensured by changes in the Law on Payment Services and Payment Systems, voted with the adoption of the Law on the State Budget for 2023.
A condition for the use of a payment account for basic operations is that citizens do not have another payment account opened in a bank through which they can use these services. Each citizen will be entitled to only one payment account for basic operations. It can be used to perform services such as depositing funds into the account, withdrawing cash from a counter or ATM, as well as other payment operations on the territory of the country in BGN. Citizens will be able to withdraw the specified funds from the account for basic operations free of charge only at ATMs of the servicing bank, the Ministry of Finance explains.
From there, they recall that with the adoption by the parliament of the state budget for 2023, amendments were made to the Labor Code and the Law on Limitation of Cash Payments. They introduced the obligation for all 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 worker or employee. Excluded from this requirement are people who work under an employment contract for short-term seasonal agricultural work.
The Ministry of Finance also announced that changes to the Law on Payment Services and Payment Systems have been prepared, which are currently open for public discussion. They will specify the application of this new part of the law, "given the achievement of the set goals". According to the European directive on payment accounts, the payment account for basic operations aims to provide easier and more barrier-free access to banking services for more vulnerable consumers, the announcement notes.
These legal amendments aim to contribute to brightening the economy, and this creates prerequisites for better economic growth, better quality of work and a better standard of living, argues the Ministry of Finance.
