GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

Undeclared employment and its control in Bulgaria

Nenko Salchev chief inspector

International labour migration Directorate

General labour inspectorate Executive agency

GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY


Labour Inspection – Main Periods

• 1907 - 1944: Labour Inspectorate’s establishment and gaining recognition

• 1945 - 1989: Labour Inspection with Trade Union participation

• 1990 - 2006: The Labour Inspectorate under the conditions of democratic changes (integrated inspection since 2000)

• Since 2007: Activity in line with Bulgaria’s membership in the EU – harmonized legislation, active international activity

Status of the General Labour Inspectorate in Bulgaria

Executive Agency subordinate to the Minister of Labour and Social Policy

A secondary dispenser of budgets



Functions of the GLI EA

The GLI EA carries out its activities through:

• Control on the compliance with the labour law;• Specialized control on the compliance with the Healthy and Safe Working Conditions Act, the Employment Promotion Act and other legislation related with safety and rights of emoloyees;• Awareness-raising and technical consultation to employers and employed persons; • Signals to the Prosecutor’s Office in case of identified violations and evidences for an alleged criminal offence


Powers of Controlling Bodies

• To visit at all times any places of work, without permissions or another documents from other institutions;• To demand form employer explanations, information and any documents relevant to working rights;• To obtain information directly from employees and also to request them to declare in writing facts related to work;• To take specimens, samples, and other similar materials for lab tests and analysis;• To establish the reasons and circumstances of occupational injuries.

Number of inspections


2011 2012 2013

Total 53 195 56 431 55 952

Follow up 11 723 14 521 14 132

Planned 25 308 34 549 36 337

Number of violations


2011 2012 2013

Total 235 839 258 546 246 787

OSH 101 713 111 117 101 945

Labour relations

133 442 146 683 143 988

Undeclared work

6 319 6 298 4 737

Planning of inspections

• Planned inspections and campaigns

• Selection of places for control:

- Declarations from art. 15 HSWA- Economic sectors typical for the region- At the discretion of the inspector based on

previous experience- Follow up inspections


Campaigns for prevention of undeclared work

• National planning and regional planning of campaigns

• Large infrastructure projects:- Construction of highways and roads- Construction of large shopping centers, tourist

resorts and enterprises• Tourist resorts:- On Black sea coast – Sunny beach, Golden sands,

etc.- Ski resorts - Borovets, Bansko, Pamporovo, etc.


Planning of campaigns

• Budget of the campaign• Establishment of team depends of: - Size of the object;- Specificity of activities in a object;- Number of activities in object;- Number of employers in object;- Time of inspection • Reaching to the object


Inspections in enterprises with foreign workers

GLI EA perform specialized control for employment of foreigners

•Inspections for work of illegal foreigners •Inspection for legally resident foreigners:-Existence of employment contract-Permission from Employment agency (Governmental body)-Registration in Employment agency (Governmental body)

The sanctions for that kind of violations are special and higher


Registration of employment contract

• Employment contract must be written • The database of registered employment contracts

is maintained by National Revenue Agency• Registration must be done three days after

signature of employment contract• It is prohibited to perform work without registered

employment contract• Labour inspectors have access to database of

registered employment contracts through internet with electronic signature


Written report for registered employment contract

Number of documentDate, hour, minute and second

Data of the employerName, Personal number and address

What kind of document is registered in database:

new labour contract, annex, correction, termination, etc.

Data of the employeeName, Personal number and signature


Database of registered employment contracts

Name of the inspector, date and time of entering in a system

Name of the employee and

personal identification number

Identification number

of the employer Name of the employer

Type of document:Labour contract, annex,

secondary labour contract,

termination of contract, etc. Data of signing the contract Salary

Term of the contract

Position

Economic activity

of the employer

Date of termination

Date and hour of

registering in the database


Joint inspections

• National Revenue Agency• National insurance institute• Police• Fire department• Migration Directorate in Ministry of internal affairs• State agency for national security• State automotive agency• Health inspectorate• State food safety agency• State agency for meteorological and technical

surveillance


Procedure for inspection• Procedure based on ISO 9001:2008• Preparation- Collecting of information for enterprises from:

* internal labour inspectorate system for working conditions; * database of registered employment contracts;* previous protocols;

- preparation of the necessary forms- establishment of the team for inspection• Implementation- collecting the evidence from employees- collecting the evidence from employer- preparation of another evidences (taking of pictures, collecting of

examples, etc.) • Reporting- protocol;- written statement for ascertaining an administrative violation;- decree for promulgation of labour relationship; - written statement for suspend operations on the work site - entering of data from inspection in database


Evidence from the employer

• Writing explanation, information and declaration• Documents required by the employer- Employment contracts- References for registration of employment contracts in

database of National Revenue Agency - Healthy and safe instruction registers- Work schedules / reporting forms- Payrolls- Cash receipt - Any other documents that can be related to employment

relations


Evidence from the employee

Personal data of employee

Data for working place and employer

Data for elements of labour relation

Personal signature

Date and exact hour of inspection


Actions in case of any undeclared work

• Preparing of a protocol with findings from controlling activity

• Preparing of a written statement for ascertaining an administrative violation for any single employee without employment contract

• The existence of labour relationship shall be promulgated by controlling body with special decree under article 405a of Labour code


Penalty decree

• Sanction can be imposed only with penalty decree

• Penalty decrees shall be issued by the Executive director of GLI EA or a Director of territorial labour inspection

• Issued based on composition statement for ascertaining an administrative violation

• Before issuing penal decree the director shall explore all evidences and any other information that is given by intruder in three days term from composition of written statement from labour inspector

• The following types of administrative sanctions shall be imposed for violations of labour legislation:

- fine: on the natural persons;- pecuniary penalty: on the legal persons and

on the sole traders.


Sanctions• Any employer which or who have employee without labour contract

shall be liable to a pecuniary penalty or a fine from 1 500 to 15 000 BGN (~ from 750 to 7 500 EUR)

• Any employer which or who have foreign employee without permission or registration at Employment agency shall be sanctioned with administrative penalty from 2 000 to 20 000 BGN (~ from 1 000 to 10 000 EUR)

• Any employer which or who have employee illegal immigrant shall be sanctioned with administrative penalty from 2 000 to 20 000 BGN (~ from 1 000 to 10 000 EUR)

• That kind of violations are not minor • Upon a repeated violation of finding employee without labour contract,

controlling body can suspend operations on the work site or the operation of the enterprise

• The penalty shall enter into force after final court decision. If intruder not appeal, penalty decree shall enter into force seven days after receiving it


Appealing of penalty decree • The penal decree shall be subject to appeal before

the regional court in the area of which the violation was committed or completed, and with regard to violations committed abroad - to the Sofia city court.

• The regional court consisting of a judge alone shall hear the case on its merits and pronounce a judgment

• The decision of regional court can be appeal before the respective administrative court. The administrative court sit in panels of three judges and their decision is final

• The court can endorse, amend or rescind a penal decree


Decree for promulgation of labour relationship under art. 405а from

Labour code• Decree shall be signed by employee

and employer• With this decree controlling body

prescribe to the employer to offer employee the conclusion of an employment contract

• If the employment contract is not concluded between the parties, the decree shall replace it and shall be registered in National revenue agency

• Decree shall furthermore be issued upon the death of a worker in case of fatal occupational accident


Appealing of decree for promulgation of labour relationship

• A decree for promulgation of labour relationship shall be subject to appeal before District Administrative court

• Appealing does not stop implementation• The district administrative court, consisting of a

judge alone, shall hear the case and collect all kind of evidence (witnesses, documents, photos, etc.)

• The court decision can be appeal before Supreme administrative court

• The court can endorse or rescind a decree


Number of penalty decrees


2011 2012 2013

Total 18 114 18 269 13 434

Undeclared work

5 535 3 732 2 761

Appealed 3 715 4 392 4 200

Confirmed 1 699 3 898 4 666

Revoked 623 834 1 259

Main problems with relations of undeclared work

• Self-employed• Subcontractors• Work on weekends and national holidays• Work at nights • New forms of labour relations• Posting of worker in other EU member state• Foreigners and illegal immigrants



Thank you for your attention!www.gli.government.bg

[email protected]

http://www.gli.government.bg/

mailto:[email protected]

GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

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