- Only applies to labor agreements.
- Unconditional for employers, whose operations have been discontinued by order for the duration of the State of emergency.
- For the rest of the businesses – in case of a minimum of 20% decrease in revenue compared to March 2019
(discontinued by order for the duration of the State of emergency)
- retail in shopping centres (with the exception of retail of food, medicines and cigarettes)
- certain kinds of passenger transportation services
- restaurants and fast-service establishments, drinking establishments
- tour operators
- organization of convention and trade shows
- private kindergartens
- theatres and other creative and arts activities, culture
- sports and other entertainment and recreational activities, physical well-being activities
1) The Employer
- is a local natural person / legal entity or a foreign legal entity engaged in business activities in the Republic of Bulgaria
- does not receive funding for remuneration and social security contributions from the state budget, with European structural and investment funds (ESIF) or other public funds
- should pay the full amount of the person’s remuneration for the month in question
- does not have any outstanding public liabilities, except for those that are deferred, disbursed or secured
- has not been declared insolvent and is not in insolvency or liquidation proceedings
- do not terminate employment contracts on the following grounds: closure of part of the enterprise or redundancy; reduction of the workload or discontinuance of the labour activity for more than 15 working days during the period for which they are compensated
- there is no violation of the provisions of the Labour Code established by a penal decree or court decision
2) The duration:
- for the duration of the State of Emergency Measures Act
- for a maximum of 3 months
3) The amount of the compensation
- 60 % of the amount of the insurable earnings of the person for January 2020
DOCUMENTATION & PROCEDURE
1) Required documentation
- an application form
- Order for discontinuance of the operations during a declared State of emergency
- Declarations for the circumstances: (i) maintaining the employment of the persons and (ii) absence of dismissals of employees and workers on the basis of Art. 328, par. 1, items 2, 3 and 4 of the Labour Code during the period for which compensations are paid
- a list of the workers and employees
- a bank account
- Declaration by the employer and evidence for the decrease in revenue
- 7 working days deadline for review and performance of an official conformity check
- Payment of the compensation is performed by the National Social Security Institute (NSSI)
- What act will confirm or reject the application of the employer?
- What is evidence for decrease in revenue?
- In what order will refusals for compensation be appealed?
If you have these or other questions, please contact: Dennitsa Dimitrova, Partner & Head of KP Tax ([email protected]) and Andrey Alexandrov, Partner & Head of Employment & Social Security ([email protected]).