Monetary penalties imposed on employees working without labour contracts to be utilised for social security contributions

The monetary penalty imposed on employees working without labour contract should be legally linked to the minimum insurable income for the respective branch, while the proceeds collected from the fine should be infused into the healthcare and pension insurance system, proposed yesterday the management of the Confederation of Labour (CL) 'Podkrepa'. Their idea complements the intention of Minister of Labour and Social Policy, Totyu Mladenov for the introduction of penalties for employees hired without labour contracts. Last week, he launched the idea for penalising each employee working without a regular labour contract, since, according to him, these people are accomplices of their employers. Mladenov added that this was the right thing to do and that the fine of the employee will be lower. Currently, there is an effective penalty only for the employers hiring staff without signing regular labour contracts. The fine amounts to BGN 1,500 - BGN,15 000 for each individual case.

CL 'Podkrepa' accepted the concept of the Social Minister, Totyu Mladenov for employees to be also penalised for working without a labour contract. Besides, the syndicate proposed that the proceeds collected from the imposed fine should be utilised for the social security contributions of the penalised employee," explained the leader of the syndicate, Doctor Konstantin Trenchev. "People lose a lot when they do not pay their insurance contributions but they become aware of this fact too late. Some two million people do not pay their healthcare insurance instalments but resort to the medical assistance services," added Trenchev.

According to the trade unionist, another issue to be discussed refers to the utilisation of the collected fines imposed on employers who committed this breach. "It is possible for a part of the proceeds from the penalties to be also directed to the social insurance system in favour of the social security rights of the employees," explained the Vice-Chairman, Dimitar Manolov.

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