1. 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

2. Labour Inspection – Main Periods
: Labour Inspectorate’s establishment and gaining recognition
: Labour Inspection with Trade Union participation
: 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

3. Status of the General Labour Inspectorate in Bulgaria
Executive Agency subordinate to the Minister of Labour and Social Policy
A secondary dispenser of budgets
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

4. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

5. 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.
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

6. GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY
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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

7. GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY
Number of violations
2011
2012
2013
Total
OSH
Labour relations
Undeclared work
6 319
6 298
4 737
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

8. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

9. 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.
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

10. GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY
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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

11. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

12. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

13. Written report for registered employment contract
Number of document
Date, hour, minute and second
Data of the employer
Name, Personal number and address
What kind of document is
registered in database:
new labour contract, annex,
correction, termination, etc.
Data of the employee
Name, Personal number and signature
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

14. Database of registered employment contracts
Identification number
of the employer
Name of the employer
Type of document:
Labour contract, annex,
secondary labour contract,
termination of contract, etc.
Economic activity
of the employer
Date and hour of
registering in the database
Term of the contract
Data of signing the contract
Salary
Position
Date of termination
Name of the employee and
personal identification number
Name of the inspector, date and time of entering in a system
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

15. GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY
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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

16. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

17. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

18. Evidence from the employee
Personal data of
employee
Data for working place
and employer
Data for elements of
labour relation
Date and exact
hour of inspection
Personal signature
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

19. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

20. GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY
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.
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

21. GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY
Sanctions
Any employer which or who have employee without labour contract shall be liable to a pecuniary penalty or a fine from to BGN (~ from 750 to EUR)
Any employer which or who have foreign employee without permission or registration at Employment agency shall be sanctioned with administrative penalty from to BGN (~ from to EUR)
Any employer which or who have employee illegal immigrant shall be sanctioned with administrative penalty from to BGN (~ from to 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

22. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

23. GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY
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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

24. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

25. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

26. 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
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY

27. Thank you for your attention!
GENERAL LABOUR INSPECTORATE EXECUTIVE AGENCY