When your business is subject to inspection by the Labour Inspectorate in Bulgaria, numerous questions and concerns often arise. Perhaps you are wondering what documents you need to prepare, what to do when receiving a protocol of the inspection or how to react to a prescription from the Labor Inspectorate. Many are also interested in how they can file an online complaint with the Labor Inspectorate, whether they can file an anonymous alert, and what is the process for appealing an act issued by inspectors. These issues are faced not only by businesses in large cities such as Sofia and Burgas, but also in smaller settlements such as Pomorie, Karnobat, Sunny Beach, Aytos, Nessebar, Sozopol and Primorsko.
Questions such as “What to do when checking by the Labor Inspectorate?”, “What are the documents required by the inspectors?”, “What does the survey card of the Labor Inspectorate include?” and “How is a notification letter filed for fulfilled prescriptions?” are among the most common topics on which our clients seek advice. They want to know what their rights and obligations are in case of issued acts, how to avoid potential fines, and how to ensure full protection of their business in such situations.
The Elan Consulting team is here to provide answers to these and other important questions, such as what is the statute of limitations of acts issued by the Labor Inspectorate and what is required for their appeal. We also clarify the process for submitting online complaints and inquiries to the Inspectorate, as well as specific requirements such as the filling of identification cards and notification letters. Whether it is an employer in Sofia or a small business in Primorsko, we are at your disposal to guide you through the complex procedures and help you defend your interests before the state authorities.
Following our advice and recommendations, you will be able not only to cope with inspections by the Labor Inspectorate, but also to minimize the risk of sanctions and ensure that your business operates in accordance with all the requirements of the labor legislation in Bulgaria.
The powers of the Labour Inspectorate in Bulgaria are clearly regulated in several key normative acts, such as the Law on Labour Inspection, the Labour Code and the Law on Health and Safety at Work. These laws define the scope of activities and powers that labor inspectors have in the performance of their duties.
The labor inspectorate has the obligation and the right to monitor compliance with the labor and social security legislation in the country. According to Art. 4, para. 1 of the Law on Labor Inspection, it carries out control over compliance with labor legislation, which also includes specialized control under the Law on Promotion of Employment and the Law on Health and Safety at Work. This means that inspectors can carry out inspections at any time at workplaces, controlling working conditions, as well as compliance with the rights of workers and employees.
The labor inspectorate also has the power to impose sanctions and prescriptions when detecting violations. For example, according to Art. 7 of the Law on Labor Inspection, inspectors may issue prescriptions for the elimination of identified violations, as well as impose administrative penalties on employers who do not comply with labor legislation. Those prescriptions may include deadlines for implementation and may be followed by follow-up checks to verify their implementation.
In addition, pursuant to Art. 6, item 1 of the same Law, the Minister of Labor and Social Policy directs and coordinates the overall control for compliance with the labor legislation, which also includes integrated control on ensuring health and safety conditions at work. This means that the Labor Inspectorate acts in close interaction with other state bodies, including those that exercise control over facilities of increased danger, fire control, construction control and other specific types of control.
Labor inspectors have the right to demand from employers all documents related to labor relations, such as employment contracts, records of time worked, documents on payment of wages, etc. They can also interrogate workers and employees to find out if there are violations of labor legislation, as well as require employers to submit documents that prove that working conditions are in accordance with legal requirements.
One of the important powers of the Labor Inspectorate is the right to impose administrative penalties for violations of labor legislation. According to Art. 405a of the Labor Code, inspectors have the power to draw up acts on administrative violations, as well as issue criminal decrees, with which they impose fines and other sanctions on employers who do not comply with legal requirements.
Last but not least, the Labor Inspectorate has the authority to cooperate with other government bodies, such as the NRA, the Nuclear Regulatory Agency and others, to carry out joint inspections. This coordination is carried out through the exchange of information and joint actions, which is regulated in Art. 7 of the Law on Labor Inspection. When carrying out joint inspections, inspectors may act jointly with representatives of other control bodies by drawing up common protocols and drawing up joint reports on the results of inspections.
The labor inspectorate has the power to issue mandatory prescriptions when, upon inspection, it finds that the employer or other person subject to control violates labor legislation or does not provide safe and healthy working conditions. According to the Law on Labor Inspection, mandatory prescriptions are issued in order to eliminate the identified violations and improve working conditions. They can be issued both for specific violations found, and for the prevention of future risks for workers and employees.
Labor inspectors may issue prescriptions when they find that the requirements for health and safety at work set out in the Occupational Health and Safety Act have been violated. For example, if during an inspection it is found that the necessary safety measures are missing at the workplace, the inspector has the right to issue a mandatory prescription for their implementation. The prescriptions may include requirements to improve ventilation, lighting, safety of machinery and equipment, as well as other measures that will reduce the risk of occupational accidents and diseases.
Mandatory prescriptions can also be issued in the event that the employer does not comply with labor legislation regarding working hours, vacations, remuneration of labor and other fundamental rights of workers. For example, if it is found that the employer does not pay overtime allowances or does not provide the mandatory holidays, the inspector has the right to issue a prescription by which the employer undertakes to eliminate these violations within a certain period. According to Art. 405a, para. 1 of the Labor Code, non-compliance with these prescriptions may result in the imposition of penalties.
The labor inspectorate may also issue mandatory prescriptions in cases of violations related to the employment of minors or persons who have not reached the minimum age for starting work. If an inspector finds that such persons work without the necessary permits or under conditions that are not commensurate with their age and state of health, the prescription may require the immediate termination of these employment relationships or the improvement of working conditions in order to ensure the protection of minors.
In cases where hazardous substances are used at the workplace or activities are carried out that pose a high risk to the health and safety of workers, the labor inspector has the right to issue a prescription to suspend these activities until the danger is eliminated. For example, if an inspection reveals that workers are exposed to chemicals without the necessary protective equipment or ventilation systems, the inspector may issue a prescription for immediate cessation of activity until the necessary protective measures are put in place.
Mandatory regulations of the Labor Inspectorate can cover a wide range of violations and dangers, their scope and severity depend on the nature of the violations found and the risk to workers. According to Art. 405a, para. 2 of the Labor Code, the prescriptions must be fulfilled within the period specified by the inspector, failure to comply may lead to additional sanctions and measures, including suspension of the activities of the enterprise until the elimination of violations.
The Labor Inspectorate in Bulgaria has broad powers to impose fines and property sanctions when detecting violations of labor legislation. These sanctions are mainly regulated in the Labour Code (TC) and the Labour Migration and Labour Mobility Act (MLMTA). It is important to note that penalties vary in type and size depending on the nature of the violation and its severity.
The Labor Code provides for various penalties for violations related to labor legislation, they are divided into several categories depending on the type of violation:
The ZTMTM also provides for serious sanctions for violations related to labor migration and mobility:
Both laws provide for serious consequences in case of non-compliance with the imposed sanctions. Employers and officials are obliged to pay the imposed fines within 30 days after the entry into force of the criminal decree. Otherwise, interest is charged on the unpaid amount, and these interest are calculated on the basis of the basic interest rate of the Bulgarian National Bank plus 20 points, according to Art. 415b of the Labor Code.
The collected amounts of fines and property penalties are administered by the Executive Agency “General Labor Inspectorate”. This ensures that the sanctions imposed will be effectively collected and used to finance activities related to the control and compliance of labor legislation in Bulgaria.
Distinguishing between minor and serious violations of labour law in Bulgaria is important for the proper application of sanctions and for ensuring fairness in employment relations. The Labor Code provides for a classification of violations, some of them are considered minor and subject to lighter penalties, while others are defined as serious and entail significant fines and penalties.
Irrelevant are violations that are minor and do not lead to serious consequences for workers, the labor process or the employer. According to Art. 415c, paragraph 1 of the Labor Code, if the violation is insignificant and did not lead to harm to the worker or violation of his rights, the employer may be exempted from a sanction or a minimum fine imposed on him. For example, a minor violation may be a slight delay in providing a work book upon leaving, which did not lead to financial losses or legal problems for the employee.
On the other hand, serious violations of labor legislation are those that significantly violate the rights of workers or pose a danger to their health and safety. Violations such as non-compliance with the requirements for concluding an employment contract before starting work, failure to submit a notification to the NRA, or failure to register working hours cannot be considered unimportant. According to Art. 414, para. 3 and Art. 415c of the Labor Code, violations such as those concerning Art. 61, para. 1, Art. 62, paras. 1 and 3 and Art. 63, paras. 1 and 2, are defined as serious (can not be considered unimportant in any case) and are subject to penalties of up to 15,000 BGN. These include cases such as starting work without a concluded employment contract, non-compliance with the obligation to submit notification of commencement of work, and violation of the rules for introducing and complying with overtime regulations.
Other serious violations are related to non-compliance with the requirements of health and safety at work. For example, when an employer does not provide the necessary safety conditions, which puts workers at risk of occupational accidents or occupational diseases, this cannot be considered a minor violation. Such cases lead to significant penalties, which can reach up to BGN 15,000 for a first violation and up to BGN 20,000 for a repeat violation.
The Labor Code also stipulates that if a violation is assessed as minor, this does not mean that it is not subject to punishment. Rather, the penalty can be lower, and the employer can be warned about correcting the violation without imposing severe fines on him. However, this does not apply in cases where the violation relates to serious workers' rights, such as the right to an employment contract or the right to safe working conditions.
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When checking by the Labor Inspectorate, the employer is obliged to provide the inspectors with a number of documents that are related to labor relations and the provision of health and safety working conditions at the enterprise. These documents are necessary to certify compliance with labor legislation and to prove the compliance of working conditions with the requirements of the law.
First of all, the employer must submit documents that certify the conclusion of employment contracts with all hired workers and employees. According to the Labor Code, each worker or employee must have an employment contract concluded, which is signed by both parties and which contains all the necessary conditions, such as working hours, remuneration, position and other important clauses. In addition, the employer must submit the notices of the conclusion of employment contracts, which are filed with the National Revenue Agency (NRA). This requirement is enshrined in Art. 62, paras. 1 and 3 of the Labor Code, where it is stipulated that the employer is obliged to submit a notification to the NRA within 3 days after the conclusion of the employment contract.
The employer is also obliged to submit to the labor inspectors the records of the time worked, including work schedules and documents related to the accounting of overtime work. These documents are important for checking compliance with the requirements for working hours, holidays and overtime, which are established in the Labor Code, in Art. 139 and Art. 142.
The labor inspectorate also requires documents related to the payment of labor wages. The employer must provide the wage slips, which indicate the amount of the amounts paid to each worker or employee, as well as documents on the paid overtime allowances, night work and other additional remuneration provided for in the employment contracts or collective agreements.
Along with the above documents, the employer is obliged to submit the documents related to the provision of health and safety conditions at work. This includes the risk assessment of workplaces, accident protection plans, documents for training and training of safety and health workers, as well as other documents related to compliance with the requirements of the Occupational Health and Safety Act. The employer must provide evidence that all measures to protect the health and safety of workers have been taken and that they are being implemented regularly.
In checks related to labour migration and mobility, the employer must also provide documents proving the legal status of employed foreigners, including work permits, as well as documents for posting workers from or to other countries. These documents are required under the Law on Labor Migration and Labor Mobility, which provides that the employer must keep and provide inspectors with all documents that certify the legality of labor relations with foreigners.
Last but not least, the employer must also submit all internal acts that regulate labor relations in the enterprise, such as the internal labor order, health and safety regulations and other related documents. Labor inspectors may also request documents related to the activities of the enterprise that relate to working conditions, such as technical specifications of the machinery and equipment used, documents for periodic inspections and maintenance of equipment, and others.
All these documents must be provided to labor inspectors within the framework of the inspection, and the employer is obliged to cooperate and provide full access to the necessary documentation. Failure to provide the required documents may be grounds for the imposition of sanctions and additional measures by the Labor Inspectorate.
When the employer receives prescriptions from the Labor Inspectorate, he is obliged to fulfill them within the specified period and notify the inspectorate about this. To do this, a letter of fulfilled prescriptions is drawn up, which must contain specific information about the actions taken and the results achieved. Drawing up such a letter requires strict compliance with legal provisions, while it is important that it be clear and complete.
When drawing up a letter of fulfilled prescriptions, it is necessary, first of all, to clearly indicate the name of the employer, the address of the head office and the main activity of the enterprise. This information is important in order to correctly identify the entity to which the prescriptions were given.
At the beginning of the letter, it is necessary to indicate the number and date of the prescriptions that were issued by the Labor Inspectorate. This shall include an indication of the act or protocol establishing the infringements which led to the prescription being issued. Thus, clarity and traceability of correspondence is ensured.
In the following paragraphs of the letter, the employer must describe in detail what specific actions were taken to fulfill each of the prescriptions. If the prescription requires the elimination of a violation related to labor safety, the employer must describe what measures have been taken to ensure compliance with the requirements of the Occupational Health and Safety Act. For example, if the prescription requires the provision of additional safety equipment, the letter should indicate what equipment was purchased and implemented, as well as how personnel were trained in its use.
If the prescriptions relate to violations of labor legislation, such as failure to comply with the obligations to notify the NRA of concluded employment contracts, the employer must indicate that these violations have been eliminated and all necessary notifications have been submitted within the appropriate time limit. It is important to clarify that measures have also been taken to prevent future such infringements, such as the introduction of new internal procedures or staff training.
The letter must also indicate all the supporting documents that accompany the letter, such as copies of internal acts, registers, invoices for purchased equipment, protocols of trainings conducted and other documents proving the fulfillment of prescriptions. These documents must be attached to the letter and explicitly mentioned in order to facilitate verification by the Labor Inspectorate.
At the end of the letter, it is necessary to indicate that the employer expects a check from the Labor Inspectorate to make sure of the fulfillment of the prescriptions. In this way, a willingness to fully cooperate and cooperate with the control authorities is demonstrated.
It is important that the letter is signed by the legal representative of the employer or an authorized person who has the right to represent the enterprise before the state bodies. Signing the letter is key, as it confirms that all the facts and documents presented are true and correspond to reality.
When checking by the Executive Agency “General Labor Inspectorate” (IA GIT), it is essential that the employer is well prepared and informed about his rights and obligations. Protection in such an inspection begins even before the inspection itself by ensuring compliance with labor legislation and the correct maintenance of documentation. It is important to know that the employer has the right to be informed of the reasons for the check, as well as its scope. This includes the right of access to all protocols and documents drawn up during the inspection.
A key aspect of inspection protection is the proper maintenance of documentation. The employer must ensure that all employment contracts, notifications to the NRA, records of working hours and documentation related to labor safety are complete and up to date. For example, inconsistencies in the registers of working hours or the absence of notifications of concluded employment contracts can lead to serious penalties. It is also important to ensure that all prescriptions issued in previous inspections are complied with and that this is duly documented.
At the inspection itself, the employer has the right to be present or be represented by an authorized person who will monitor compliance with the procedures and protect the interests of the enterprise. For example, if inspectors request documents that are not related to the subject of the inspection, the employer has the right to challenge this request. Also, in case of disagreement with the findings of the inspectors, the employer has the right to submit objections in writing and attach additional evidence to support his position.
Choosing Elan Consulting as your IA GIT verification consultant is strategically important for the successful protection of your interests. The team of “Elan Consulting” has in-depth knowledge in the field of labor legislation and extensive experience in working with control bodies. The consultants will assist you in preparing the necessary documentation and advise you on best practices to comply with legal requirements. In addition, they will present you during the inspection, ensuring that your rights are respected and that every action of the inspectors is in accordance with legal regulations.
Another advantage of working with Elan Consulting is the ability to develop customized internal policies and procedures to ensure that your company is always in compliance with the requirements of labor legislation. This includes drawing up an internal labor order, a policy on health and safety at work and other necessary documents that will not only facilitate compliance with the legislation, but also minimize the risk of violations and, accordingly, sanctions.
With its professionalism and experience, Elan Consulting is your reliable partner, which will help you not only to successfully cope with any inspection by IA GIT, but also to prevent future problems by effectively managing labor relations and labor safety in your enterprise. This support will give you peace of mind and confidence that your business is protected and that you comply with all legal requirements.
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