Workers hired without a contract to be fined

“By the end of the year, we will introduce and impose fines on workers hired without a contract,” Minister of Labour and Social Policy Totyu Mladenov said today on Nova TV, specifying that about 10% of the employees in Bulgaria had no labour contracts.

“Our aim is not to penalise workers but make them observe the labour legislation and protect their insurance rights,” he explained, adding that by the end of 2011 such fines would be stipulated in amendments to the Labour Code. The size of the penalties has not been specified yet.

“We want to discipline both the employers and the employees because the law applies to everyone. We will continue with these measures until people get accustomed to obey the law,” stated Mladenov.

“The number of people working officially on a 4-hour workday increases. At the same time, these people work much longer,” said the Social Minister. The Chief Labour Inspectorate has proposed legislative amendments in this respect.

Minister Mladenov specified that when it is proved that an employee works more than four hours, his/her contract will automatically be considered a 8-hours workday contract.

The Social Minister also predicted that on the basis of the higher minimum wage of BGN 270 as of September 1, 2011, employers and syndicates would agree higher minimum insurance thresholds as well. According to him, businesses and branch trade unions are already negotiating an increase of these thresholds for next year and should present their proposals to the Ministry by mid-September.

“From now on, we have one main goal - to increase the employment rate. We must seek such economic and financial levers that will lead to greater employment rate. We are changing, albeit slowly, the attitudes in Bulgaria and people will work more and get higher remuneration,” said Mladenov. “Social Ministry data shows that the unemployment rate is 9.45% at present or 314,000 people are jobless,” he reminded.

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