site.btaBulgaria Risks EUR 2 Mln Fine if Labour Code Changes Are Not Passed by End of 2025, Minister Warns

If Bulgaria does not adopt the proposed amendments to the Labour Code by the end of the year, it will face an infringement procedure, said Labour Minister Borislav Gutsanov at the meeting of the National Council for Tripartite Cooperation (NCTC) on Monday.

Bulgaria is expected to strengthen collective bargaining and social dialogue, aligning more closely with European Union objectives. Gutsanov noted that the possible sanction for the country could amount to a one-off fine of EUR 2 million, plus around EUR 15,000 per day.

Gutsanov added that discussions on the minimum wage will continue. In front of the social partners, the Minister also explained the content of the proposed changes.

“The main objective of the draft law is to improve the legal framework in the field of collective bargaining. Secondly, the proposed amendments are a response to an in-depth analysis of the reasons behind the trend observed over the past 15 years of a decrease in the number of active collective labour agreements and the limited scope of persons benefiting from collective bargaining rights. Thirdly, given the large number of micro and small enterprises, where company-level bargaining is very limited, the main focus of the draft law is on collective bargaining at sectoral and branch level,” said Gutsanov.

"The amendments regulate the main obligations that the State, together with the social partners, should undertake to promote collective bargaining," he added. According to Gutsanov, the bill is in line with established international standards, according to which the State cannot and should not be directly involved in the collective bargaining process, but should create conditions for its implementation.