Introduction
When considering the posting of workers to Bulgaria, it is imperative for companies to understand the applicable rules and regulations within the framework of transnational provision of services. This article provides an overview of the obligations and legal framework for posting workers to Bulgaria.
Prior Obligations for Companies Posting Workers to Bulgaria
Companies established in EU or EEA Member States that intend to post employees to Bulgaria must adhere to specific obligations.
Learn more about the obligations provided by European law for posting workers in the Union in our complete guide on EU Posted Workers Directives.
Notification Procedure
A notification regarding the transnational posting of workers should be submitted to the local Labour Inspectorate at least one working day before commencing work. The notification can be submitted through the Bulgarian single national website on posting of workers. Any changes to the original posting declaration must be promptly communicated to the competent Labour Inspectorate.
The posting declaration should include essential details such as:
- the identity of the posting company;
- designated representative;
- posted employee(s);
- duration of posting, and
- workplace address(es).
The current regulatory framework does not foresee exemptions to the duty to notify the assignment. All the activities that represent a transnational provision of services should be the object of a declaration of posting.
Social Security and A1 Certificate
Employers posting workers to Bulgaria must apply for an A1 Certificate, confirming that the posted workers remain subject to the social security laws of their home state. This ensures compliance with social security regulations during the posting period.
Appointment of Legal Representative
Companies posting workers to Bulgaria must designate a legal representative in the country. This appointed person will act as a liaison with the authorities in case of inspections or formal requests of information by Bulgarian authorities.
If no legal representative is available, one of the posted workers can be appointed as a contact person with the Bulgarian authorities. The appointed representative is responsible for ensuring compliance with working conditions and making relevant documents available to labour inspectors upon request. For this reason, appointing a posted workers could cause some relevant issues with regard to privacy regulations.
Working Conditions Applicable to Workers Posted in Bulgaria
During their posting in Bulgaria, workers are subject to the working conditions provided by Bulgarian law.
This includes regulations concerning:
- maximum working hours;
- minimum rest periods;
- paid annual leave;
- salary;
- health and safety at work.
In addition, companies must also observe the minimum wage and standard working hours prescribed by Bulgarian legislation.
Minimum standards for working hours are established on a EU level. For more information, read our guide on the EU Working Time Directive.
Document Compliance for Posting Workers to Bulgaria
The home company is obliged to maintain and provide copies of essential documents, such as employment contracts, wage records, and attendance registers, during the posting period and for three years thereafter.
These documents must be made available to labour inspectors upon request, along with their translation into Bulgarian.
Immigration Requirements for Non-EU Workers
Non-EU workers posted to Bulgaria must adhere to immigration, labour, and social security requirements. This includes obtaining work authorization, long-stay visas, and residence permits, unless exempted under specific categories such as the Van der Elst arrangement.
Penalties for Non-Compliance
Failure to comply with posting regulations in Bulgaria may result in penalties imposed by the authorities. These penalties can range from fines for incomplete or inaccurate declarations to sanctions for not providing required documents or translations.
Employers in Bulgaria who breach labour legislation, excluding regulations ensuring healthy and safe working conditions, may face penalties. These penalties typically consist of a property sanction or fine ranging from BGN 1,500 to 15,000. Additionally, responsible officials may incur fines ranging from BGN 1,000 to 10,000, provided they are not subject to more severe penalties.
In cases of repeated violations, the sanctions are more severe. For instance, repeated violations under this provision may result in a property sanction or fine ranging from BGN 20,000 to 30,000, or fines ranging from BGN 5,000 to 20,000, respectively.
Conclusion
Posting workers to Bulgaria requires careful adherence to legal requirements and regulations, to ensure compliance with Bulgarian labour laws and safeguard the rights of posted workers. By understanding and fulfilling these obligations, companies can facilitate smooth and lawful transnational provision of services in Bulgaria.