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Legal reforms in the field of labor law at the end of the year

20.12.2018

I. Dual education

In November 2018, the “Law on Vocational Education and Training” was amended with the aim of further developing the legal framework of dual training in Bulgaria. According to the new Article 17a of the law, the dual training must be carried out by the employer by a competent trainer. This person must have the professional qualifications for the specific vocational training, have at least 3 years of professional experience in the same profession and have completed training to become a trainer themselves. The training should take place according to a program separately approved by the Minister of Education. It can be carried out in vocational schools, universities or vocational training centers. The training can be financed either by the trainer himself, by the employer or by the training institution within the framework of a partnership, or through resources from national programs and projects, European funds or other sources.

The changes also regulate the requirements for employers who want to provide training places under the dual training system.

The employer who wishes to participate in a partnership for the realization of the so-called “training through work” must be registered as a sole trader or a legal entity under the Commercial Code, the Cooperatives Act or the Act on Legal Entities with Non-Commercial Purposes (Non-Profit Organizations). be a legal entity registered under the legislation of an EU member state or the European Economic Area. Furthermore, the company being trained must not be insolvent or in liquidation proceedings. It must also not have debts to the state budget. The employer or the person who represents him, such as members of the administrative and supervisory bodies, must not have been convicted of criminal offenses. The employer must also provide an actual location for conducting the training after the dual training in accordance with the state educational standards for acquiring the professional qualification. He must also already have a number of employees who can be used as trainers. No labor law judgment may have come into force against the employer on issues relating to an employment contract, the calculation or payment of remuneration, the employment of minors or the employment of foreigners who are not legally resident in the country. Furthermore, no violation of occupational health and safety regulations must have been detected during a previous three-year period.

Also new under the law is the creation of a public information platform for those employers who take part in dual training and the procedure for their inclusion in this database. The database is maintained by the Ministry of Economic Affairs and should be publicly accessible: www.mi.government.bg. This database contains information about the company and legal organizational form of the employer, BULSTAT number, the facility in which the practical training is carried out in a real working atmosphere and the professions for which the dual training is to be carried out. Inclusion in this database is carried out on the basis of a form, which must still be confirmed by the Minister of Economic Affairs with an express regulation on the procedure and conditions for the creation and maintenance of the database.

Important changes have also been adopted in the Training Act regarding the activities of the National Agency for Technical Vocational Education and Training. Provisions in the Labor Code and the Health Insurance Act have also been adjusted. In Article 230 Paragraph 6 of the Labor Code, the scope of remuneration for trainees in the dual training system is newly regulated. The remuneration for class XI. should not be less than twice the maximum amount of the monthly stipend, determined by the procedure of Article 171, paragraph 3 of the Law on Preschool and School Education (Article 230, paragraph 6, Labor Code) and for the class XII. not less than three times the maximum amount of the monthly scholarship. The law on health insurance introduces the right to health insurance for trainees in the dual form of training who have concluded an employment contract with the employer. Their health insurance is covered by the state until the training is completed (Article 20, Paragraph 3 of the Health Insurance Act).

II. Adjustments to social security contributions from January 1, 2019

The adoption of the law on the state social insurance budget at the beginning of November determined the new basic parameters of social insurance for 2019. The legal minimum wage will increase from 510.00 Leva to 560.00 Leva in 2019. Furthermore, the threshold for the maximum amount for social security contributions will be increased from 2,600.00 Leva to 3,000.00 Leva. The maximum pension amount will be increased to 1,200.00 leva from July 1, 2019.

III. Implementation of the EU Data Protection Directive into national law

The reconciliation of the content of the Bulgarian “Law on Personal Data” in connection with the entry into force of the EU Data Protection Directive has not yet been passed by Parliament this year. According to the proposals currently only available as a draft law, the amending law is intended to introduce special rules in connection with the processing of employees’ personal data. For example, the employer should be required to introduce internal rules and procedures for using an injury reporting system, restricting the use of internal resources or introducing control systems for access to working hours and labor discipline. Furthermore, a period is set for the retention of personal data in connection with employee recruitment procedures, which should not be longer than six months, unless the applicant has given his consent for a longer retention period. After this six-month period has expired, the employer must delete all of the applicants’ data. The draft law currently only regulates this data retention period in relation to personnel selection, but not other retention periods such as these for the personnel’s labor law documents.

 

This article is published in the December issue of the Bulgarian Business Journal