|
|
Labour market and employment regulations in Bulgaria |
1. Labour force
One of the more attractive advantages of Bulgaria is the supply of skilled and well-educated labour force.
The labour market in Bulgaria comprises about 4 million relatively well-educated and skilled men and women.
It has always been a feature of Bulgarian society to educate the children to higher levels. This has included teaching many of the European languages at special language schools. In most of the bigger towns English, German and French language schools teach all of the subjects of the curriculum in the respective foreign language.
Parents feel a great responsibility for the education of their children and spend money on private education in addition to that provided by the schools.
During 1998 and 1999 the economy in Bulgaria improved considerably. Inflation rates were respectively 1% and 6.2% . This improvement in the economy was introduced at a cost of increased unemployment rate, which now stands at about 18% due to the closure of loss making state-owned enterprises. The unemployment is a more serious problem in the countryside.
2. Employment regulations
Relation’s employer-employee in Bulgaria are governed by the Labour Code. All Bulgarian citizens have a right to work. Management cannot make any restriction on workforce made by race, sex or any other discriminating factor. The Constitution and the Labour code prevent such discrimination.
Labour relations within the country at a national level are governed by agreements between the representative trade unions, the government and representative organizations of the employers. At the work level, agreements are made between the trade unions and the employer. There are a number of representative trade unions in Bulgaria: the Confederation of Independent Trade Unions of Bulgaria and Podkrepa and some juridical registered confederations, having rights to participate in collective labour agreements on an enterprise level.
Good managers can have large benefits by working closely with the trade union. It is found that working with the unions to increase the quality of life of the workforce, work hygiene and the safety of working conditions can bring a good working relationship with the unions and hence increased productivity.
3. Employment contracts
The Bulgarian Labour Code through employment contracts regulates employment.
The employment contracts between the employee (not under 16-years of age) and the employer can be prepared in written form and should specify the place and nature of work and the salary to be paid. It may be concluded for a fixed or for an indefinite period. The law provides an opportunity for transformation of the fixed term contract into one for an indefinite period, which is a suitable way for both parties to make the relationship more stable and effective. The parties may also choose a trial period of up to 6 months. Other types of employment contracts include those for part time work.
The content of the contract must comply with the mandatory provisions of the Labour Code, concerning the special protection of the employee: working hours and rest, labour remuneration, holidays, safe and healthy conditions of work, social and cultural services, and conditions and requirements for termination of the contract. In the individual labour contracts there cannot be agreed worse conditions than the one in the collective labour agreement.
The monthly labour remuneration must not be less than the amount of the minimum labour salary in the country, defined by the Council of Ministers for the respective period of 1 month (from January 1, 2000 onwards, it amounts to BGN 75).
Income taxes, due and voluntary social security and health insurance contributions are deducted at source.
Together with employment relationship goes the obligation of the employer to provide social security and make contributions regularly at his expense for the employee.
Termination of a contract is a significant point in labour regulation. The law provides three possibilities: general grounds, special grounds for termination with notice or without a notice. Each of the parties may terminate the relationship without notice only in the cases listed by the law, so that parties can be protected from detrimental behavior. If notice periods are not observed, the regular party is entitled to compensation to the extent of the gross labour remuneration or real damages caused.
There are special provisions about dismissal and protection against it in favour of some categories of workers. In some cases of terminating a contract, the employer is obliged to choose among employees.
The employer exercises disciplinary power and is still the strongest party at the labour -force market.
4. Social security
The employers must register at the local social security administration within 15 days from the day, they have employed anyone subject to compulsory insurance.
Public Social Security is obligatory for all employees employed by Bulgarian or foreign physical or corporate bodies within the country. They are secured for all risks.
The code of the social insurance includes insurance for general illnesses, work accidents, professional diseases, maternity leave, old age and death, as well as additional compulsory pension insurance.
Insurers are the juridical and physical persons, having an obligation, by law, to pay in insurance instalments. The Law of the Government and Social Insurance Budget determines the amount of the insurance instalments.
5. Health security system
The health insurance in Bulgaria is both compulsory and voluntarily. It is a system for a social health protection of the people that guaranties a package of health services and is carried out by the National Health Insurance Fund. The voluntarily health insurance is a supplementary one and is carried out by Joint Stock Companies, registered under the Commercial Law and licensed under the Law on the Health Insurance.
The health insurance contribution is not a subject of taxation. It's exact amount in percentage on the ground of the gross remuneration is set out in the Law for the Annual Budget of the National Health Insurance Fund.
6. Working hours
The normal duration for a five-day working week is up to 40 hours, and 46 hours for a six-day work week. The general principle laid down in the Labour Code is that overtime work is prohibited. The code considers as overtime work, the work done by order or with the knowledge of the employer, beyond the normal working hours. There is a governmental institution- Labour Inspectorate, which supervises the use of overtime. In enterprises where organization of work allows, flexible working hours may be established. The employer shall specify the period, during which the employee must be at work in the enterprise, as well as the manner of accounting it. Outside the time of the presence, the employee may decide on when to begin the working day.
7. Holidays
The employee is entitled to an annual paid leave after 8 months length of service amounting to at least 14 days depending on the length of service. During the maternity leave the employee is entitled to receive her remuneration paid by the National Security Institute budget. Furthermore, the Labour Code allows additional paid leave for raising a child until 2 years of age. During that period the mother is paid an indemnity from the National Security Institute amounting to the minimum salary in the country. There is also a leave for temporary disability during which compensation is paid by the funds of the National Insurance Institute.
8. Disability
Disability is when the employee can not or is hindered from doing his work due to: illness, work accident, professional disease, sanatorium treatment, medical examination, quarantine, taking care of a sick family member, accompanying a family member to a medical institution and also in case of pregnancy and birth for women. Everyone can choose a personal General Practitioner and a personal dentist.
The obligation for ensuring safe and healthy work conditions concerns medical service, special work clothes and measures for preventing and reducing injuries and general illness as a whole. A special law together with the Labour Code elaborates on the obligations of employers to assure healthy and safe work conditions. Employers must undertake at their expense all the necessary statutory measures in order to prevent accidents and avoid their detrimental consequences in case of emergencies.
Employers are obliged to inform the employees about the risks for their health and safety and appoint one/several persons whose tasks is/are to organize activities for prevention and protection from these professional risks. To facilitate exercise of control, every employer must declare to Regional Labour Inspectorate his activities, number of employees, work conditions, risk factors and undertaken preventive measures when beginning his business activity and whenever he changes it or his technology.
9. Employment of foreign nationals
All foreign persons who have permanent residence permit can be employed in the same way as Bulgarian citizens. Temporary work permits are issued by the National Office of Employment of the Ministry of Labour and Social Policy. The work permits are issued for a specified time, job and employer.
The permit is issued after a request by the employer. A work permit is issued for work, requiring specialized knowledge, skills and professional experience.
The time necessary to grant a work permit is between 3 weeks and 1 month. When the employer receives the work permit on the name of the employee who is a foreign citizen, he must pay a contribution to the "Qualification and Unemployment Fund". The amount of the contribution is equal to the amount of six minimal monthly salaries.
Foreign persons are obligatorily insured only for temporary and permanent disability. The insurance conditions should be settled in the employment contract. Disputes under contract with foreigners may be handled either by Bulgarian or other court, as agreed.
The labour legislation is well-organized and quite comprehensive for foreigners so there could be no problems in the legal aspect of employment relations. The latest Law on Foreign Investments repealed the limit for transferring foreign currency abroad. In the explicitly enumerated cases, including received salaries, foreigners may transfer foreign currency freely, after presenting a certificate for paid taxes. |
|
Macromedia Flash Player Required
