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What are the amendments from the end of January 2021 regarding the posting of employees in the framework of provision of services?

The amendments were introduced in the Ordinance regarding the terms and conditions for sending and posting employees in the framework of provision of services (“the Ordinance”), namely:

Posting on the part of a Bulgarian employer on the territory of a Member State of the European Union (EU) under a contract of services between the employer and the user of the services or as intra-group posting

  1. The scope of the application of the additional agreement is extended

The agreement shall be applied also in cases of posting by a temporary employment undertaking or a placement agency for performance of the work duties of the posted employee outside his place of permanent employment.

  1. Amendments are made in the contents of the above additional agreement and employment agreement upon posting by a Bulgarian undertaking of an employee to a user undertaking on the territory of the EU.

The agreement/employment agreement shall include:

  1. A rule is introduced regarding the paid travel, board and lodging allowances in cases when the employee performs part of its work outside the town/village where he was initially posted or sent to.

The employer or undertaking which provides for the temporary work pay the allowances in amounts specified by the legislation of the host Member State.

  1. The amount of the remuneration which can be agreed and should be really paid by the employer/temporary employment undertaking is specified.

That remuneration should not be at a lower amount than the one set for the basic and additional employment remunerations (and not as it was set before – the minimum remuneration and rates) for the same or similar work in the host country.

Posting or sending on the territory of Bulgaria of employees on the part of an employer in EU under a contract of services between the employer and the user of the services or as intra-group posting within undertakings from the same group or a temporary employment undertaking in EU

  1. The minimum work conditions in cases of posting/sending of employees in Bulgaria for the period till and over 12 months are amended.

1.1 The requirements for the same minimum work conditions as the ones provided for the Bulgarian citizens should be applied in cases of posting/sending to Bulgaria for a term till 12 months.

The following amendments in the minimum work conditions are provided:

The minimum work conditionals shall also include;

The basic and additional employment remunerations shall include all the elements under the Labour Code and Ordinance on the structure and organization of the employment remuneration, where:

The rule-exception that the requirement for the same minimum work condition regarding the basic and additional remunerations, conditions for overtime and night work and the amount of payment for them and the minimum amount of paid annual leave will not apply in the cases of installation and/or putting into operation of delivered facilities, when:

Appendix No 1 to the Ordinance is specified. It contains the activities with the types of works in the field of construction, for which the above rule-exception will not apply. These activities relate to the construction, repair, restoration, maintenance, alteration or demolition of buildings.

1.2 When the duration of the posting or sending is more than 12 months, after the twelfth month the employee is entitled to the minimum working conditions provided in the Bulgarian legislation for the same or similar work regarding:

The above rules for the additional minimum work conditions under the Bulgarian legislation shall also apply when the posted or sent employee is replaced with another employee by the employer or the temporary employment undertaking, if:

The nature of the work, the type of the service provided, the user of the service and the address or addresses of the place of work are taken into account.

For the employees posted and sent on the territory of Bulgaria the following provisions shall not apply, namely the provisions:

When there is a need that the period of the posting or sending to Bulgaria lasts more than 12 months, the employer or the temporary employment undertaking may apply the minimum working conditions under Bulgarian law:

1.3 When the posting or sending to Bulgaria has started before the entry into force of the above amendment, the period of 12 months shall be calculated from the starting date of the posting or sending.

  1. Amendments are made regarding the unified national website maintained by the Executive Agency “General Labour Inspectorate” in Bulgarian and English:
  1. Amendments are made regarding to the overall assessment carried out by the the Executive Agency “General Labour Inspectorate”:

It is clarified that the Ordinance implements the requirements of Directive (EU) 2018/957 of the European Parliament and of the Council dated 28th June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services.

The present news should not be construed as (binding) legal advice and is intended for information only. For a thorough understanding of the subjects covered and prior acting on any issue discussed we kindly recommend Readers consult Ilieva, Voutcheva & Co. Law Firm attorneys at law.