site.btaBGN 8.7 Mln in Wage Arrears Paid in 2024 After Labour Inspectorate Interventions

More than BGN 8.7 million in wage arrears, including arrears for previous periods, have been paid after the intervention of the supervisory bodies of the General Labour Inspectorate (GLI) for 2024. For the same period, the amount of wage arrears identified was BGN 10.9 million, the GLI said Thursday.

Labour inspectors found a total of 21,531 wage-related violations in 2024. Of these, 5,728 relate to the charging and payment of wages by the employer in the agreed amounts and within the agreed time limits.

Violations related to delayed wages and benefits are grounds for the exclusion of participants from public procurement under the Public Procurement Act (PPA). The legislation allows these violations to be remedied once the amounts due are paid to the employees. A tenderer may obtain a certificate of non-compliance after providing evidence of payment. These must be submitted to the Directorate of Labour Inspection which established the infringements by a final penalty notice.

Among the non-removable offences are those concerning work without employment contract. The Labour Code explicitly states that in the event of unpaid wages or benefits, the inspection bodies of the Labour Inspectorate may take action after the termination of the employment relationship.

In 2024 the Labour Inspectorate filed 12 petitions to initiate insolvency proceedings against employers who delayed the payment of wages for more than two months to at least one third of their employees. This power of the Labour Inspectorate enables employees who are owed wages and benefits by their employers to apply to the Guaranteed Claims Fund of the National Insurance Institute. For 2024, insolvency proceedings have been opened in three cases, four companies have been declared bankrupt and five claims are awaiting a court decision.

The prevention of undeclared work is among the priorities of the GLI. The scope of the control activity includes not only work without an employment contract, but also violations related to wages, working time, holidays, etc. In order to protect the labour rights of employees, they should not agree to work under conditions agreed verbally.