SANCTIONS

Compulsory Administrative Measures

Labour Code

Art. 404. For prevention and termination of violations of labour legislation, or of the legislation related to the public service, as well as for prevention and elimination of damages resulting thereof, the control bodies of the Labour Inspection, as well as the bodies under Articles 400 and 401, by their own initiative or by proposal of the trade union organisations, may apply the following compulsory administrative measures:

1. to issue mandatory instructions to the employers, user enterprises and appointing bodies and to the officials for elimination of violations of labour legislation, of the legislation, related to the state service, including their obligations with respect to social and community services for employees, as well as for elimination of flaws in providing safe and healthy working environment and for the obligations for informing and consulting the workers and the employees under this code and under the Act on Informing and Consulting Workers and Employees in Multinational Undertakings, Groups of Undertakings and European Companies;

2. to suspend commissioning of buildings, machines and facilities, production lines and projects, which violate the regulations for healthy and safe working environment and social services;

3. to halt the operation of enterprises, production lines and projects, including construction or overhaul thereof, as well as machines, facilities and work stations, whenever the violation of the regulations for healthy and safe working environment are hazardous to the life and health of people, to place a special sign indicating the applied compulsory administrative measure, where in cases of unpermitted removal, administrative penal liability shall be born;

4. to cancel the implementation of unlawful decisions or orders of employers, of appointing bodies and officials;

5. to suspend from work workers and employees who are not familiar with the regulations for healthy and safe work environment and do not have proper qualifications, and also employees under 18 years of age, in respect of whom the permission to be employed under Art. 302, Para 2 and Art. 303, Para 3 has been withdrawn;

6. to give prescriptions for introduction of a special regime of safe work in case of a serious and immediate danger for the life and health of the employees where it is impossible to apply item 3;

7. for repeated violation of art. 62, Para. 1, to stop the activity of the working premises or of the enterprise until the removal of the discrepancy;

8. to give compulsory prescriptions to employers, to the appointing bodies and to the officials for ceasing offence related to recording salaries in amounts lower than the amount paid by the employer, respectively by the appointing body, to the employee for his work; in case the prescription is not complied with within the time limit indicated therein or in case of a repeated offence, the control bodies of the Labour Inspection may suspend the activity of the enterprise until the offence is ceased;

9. Where the circumstances referred to in Art. 138, para 4 are present – to issue mandatory instructions to employers, assignment authorities and officials concerning amendment of the part-time employment contract to a normal working hours employment contract;

10. to provide mandatory instructions to employers or to officials authorized by the latter to send notifications of concluded employment contracts in case they find that the deadline for sending thereof under Art. 62, para 3 has not been observed;

11. to provide mandatory instructions to employers or to officials authorized by the latter to send notices of deletion of notifications of concluded employment contracts under Art. 62, para 3, which have been sent beforehand, in case they find that there is no evidence available for the existence of employment legal relation;

12. to give mandatory instructions to the employer and the appointing authority for the payment of unpaid labour remunerations and compensations after termination of the employment relationship.

(2) The Minister of Labour and Social Policy shall define by an Ordinance the rules for placement and graphic image of the sign under Para. 1 item 3

(3) Where the mandatory instruction under Para. 1, item 1 and/or item 12 refers to remedying offenses of the labour legislation and respectively of the legislation related to public service, it may be issued upon request of the employee prior to bringing an action before the court; after the action has been brought, the issue may only be settled in court.

(4) Whenever, pursuant to the preceding Para. 3, on the same issue there are both a mandatory instruction issued and an effective court ruling which contradict each other, the ruling of the court shall be valid.

(5) Mandatory instructions under Para. 1, item 11 shall be considered delivered on the date of issuance thereof, where the employer, their representative or the person authorized to receive employer’s correspondence cannot be found at the registered address of the employer.

(6) A copy of the effective instruction under Para. 1, item 12 shall be provided by the control bodies to the worker or employee upon the latter’s request.

(7) In enforcing the compulsory administrative measures, the control bodies of the Labour Inspection shall not be liable for any damages caused.

Appeal of Compulsory Administrative Measures

Art. 405. Compulsory administrative measures under Para. 1 of the preceding Article may be appealed pursuant to the Administrative Procedure code. An appeal shall not suspend the execution of the compulsory administrative measure.

Labour Migration and Labour Mobility Act

Art. 72. (1) The General Labour Inspectorate Executive Agency may apply the following administrative measures of compulsion:

1. to issue mandatory instructions to employers, officials, local entities who have admitted to work posted or sent workers and employers of the EU Member States, or from third-countries, so as to stop the violations under this Act;

2. to stop the execution of unlawful decisions or orders of employers or officials in the field of employment under this Act;

3. to issue mandatory instructions to employers, appointing authorities, officials and local entities who have admitted to work posted or sent workers and employers of the EU Member States, or from third-countries, so as to remove violations, related to the assigning in the payroll ledger and the payment of amounts for remuneration which are below the minimum adopted for the country for the respective category of workers;

(3) The compulsory administrative measures under para. 1 may be appealed under the Administrative Procedure Code and the appeal does not suspend their implementation.

Art. 73. In the event where the employer acts as a subcontractor, the contractor – with the employer as his direct subcontractor - and any subsequent contractor who also has the employer as his subcontractor, may be liable alongside with the employer or instead of the employer regarding all obligations under the law, when it is established by an act of a competent authority that they have known about the violations towards posted or sent workers or employees, towards seasonal workers, towards employed foreigners, illegally residing on the territory of the Republic of Bulgaria, and they have failed to inform the controlling bodies.

Administrative Pecuniary Sanctions (Fines)

Labour Code

Liability for Violation of Normative Requirements for Healthy and Safe Working Conditions

Art. 413. (1) Whoever violates the regulations for provision of a healthy and safe work environment shall be fined with BGN 100 to 500, unless liable to a heavier sanction.

(2) Any employer who fails to perform his obligations to provide a healthy and safe work environment shall be punished with a property sanction amounting from BGN 1 500 to 15 000 and the guilty official, unless subject to a more severe penalty - with fine amounting from BGN 1 000 to 10 000.

(3) For repeated violations the penalties shall be:

1. under para 1 - a fine of BGN 500 to 1000;

2. under Para. 2 - a property sanction or a fine amounting from BGN 20 000 to 30 000, respectively a fine amounting from BGN 5 000 to 20 000.

Liability for Violation of Other Provisions of the Labour Legislation

Art. 414. (1) Any employer who violates the provisions of the labour legislation except for the rules for ensuring healthy and safe working conditions, if not subject to a heavier penalty, shall be punished with a property sanction or a fine amounting from BGN 1500 to 15 000, and the guilty official, if not subject to heavier penalty – with a fine amounting from BGN 1 000 to 10 000.

(2) For repeated violation under Para. 1, the sanction shall be a property sanction or a fine amounting from BGN 20 000 to 30 000, respectively a fine amounting from BGN 5 000 to 20 000.

(3) Any employer who violates the provisions of Art. 61, Para. 1, Art. 62, Para. 1 or 3, and Art. 63, Para. 1 or 2, shall be punished with a property sanction or fine amounting from BGN 1500 to 15 000, and the guilty official – with a fine in the amount from BGN 1000 to 10 000, for each separate violation.

(5) Any employer who violates the provisions of Art. 130a, Para. 1 and 2, Art. 130b, Para. 1 and 2, and Art. 130c, Para. 1 and 2, shall be punished with property sanction or fine amounting from BGN 1 500 to 5 000, and the guilty official – with fine amounting from BGN 250 to 1 000, for each separate violation.

Liability for Not Implementing Instructions and Obstructing Controlling Bodies

Art. 415. (1) Whoever fails to implement a mandatory instruction of control bodies for observing the labour legislation, shall be punished with a fine or a property sanction amounting from BGN 1 500 to 10 000.

(2) Any employer who unlawfully obstructs a control body on compliance with labour legislation in implementing their duties, shall be punished with a property sanction or fine of BGN 20 000, if not subject to a heavier penalty, and the guilty official – with a fine of BGN 10 000, if not subject to a heavier penalty.

Labour Migration and Labour Mobility Act

Art. 75. (1) Physical and/or legal entities who do not fulfil a mandatory prescription of the controlling bodies under Art. 72, para. 1, shall be imposed a fine, respectively a proprietary sanction ranging from 1 500 to 10 000 BGN, and for a repeated offense - from 3 000 to 20 000 BGN.

(2) Employers, officials or physical entity, local entity who has admitted to work posted or sent EU Member States workers and employees, or from third-countries, who unlawfully preclude the controlling bodies from carrying out their duties shall be imposed a fine, respectively a proprietary sanction ranging from 10 000 to 20 000 BGN, unless subject to a more severe penalty.

Art. 75a. Any third-country foreigner, who works or has been admitted as a person posted or sent to the Republic of Bulgaria within the provision of services without the corresponding permit or registration with the Employment Agency, shall be punished with a fine from BGN 500 to 5 000.

(2) The penalty under Para. 1 shall also be imposed on any employer - a natural person, for whom a foreigner works, or who has accepted legally-staying foreign third-country nationals, without the corresponding permit or registration with the Employment Agency, and on any employer - legal entity a proprietary sanction shall be imposed amounting from BGN 2 000 to 20 000, unless subject to more severe punishment.

(3) The penalty under Para. 1 shall also be imposed in cases where labour activity is carried out under the conditions of Art. 24, Para. 3 by any foreigner holding a short-stay visa on grounds other than seasonal work.

(4) Where the violations under Para. 1 and 2 are repeated, a fine shall be imposed between BGN 1 000 to BGN 10 000, and legal persons shall be subject to a pecuniary sanction in the amount from BGN 4 000 to BGN 40 000.

(5) The penalties under Para. 1 and 2 shall also be imposed in cases where labour force is provided under the conditions of Art. 8, Para. 1 by a foreigner who does not have access to the labour market.

(6) Penalties under Para. 2, 4 and 5 shall be imposed on the employer for any illegally employed legally residing foreigner.

Art. 76. (2) Any local person, who has taken in employment a worker or employee posted or sent from another Member State of the European Union, a state party to the Agreement on the European Economic Area or the Swiss Confederation, or taken a third country employee, thus violating the terms and conditions for posting or sending in the provision of services, a fine or pecuniary sanction shall be imposed of BGN 5 000 for each foreigner, and for a repeated offense - from BGN 5 000 to BGN 10 000.

(3) Employer who has failed to declare at the Employment Agency, within the statutory period, the employment of third-country nationals without granted permanent residence permits in the territory of the Republic of Bulgaria but members of Bulgarian citizens or of the European Union nationals, of a country - party to the Agreement on the European Economic Area or of the Swiss Confederation, and who, by virtue of international treaties with the European Union, are entitled to free movement, shall be imposed a fine, respectively a proprietary sanction amounting to 2 500 BGN, and for a repeated offense - from 2 500 to 5 000 BGN.

Art. 77. (1) Employer - a natural person who violates the prohibition of Art. 13, Para. 1 shall be liable to a fine from BGN 750 to 7 500, unless subject to a more severe punishment.

(2) Where the violation under Para. 1 is carried out by an employer - a legal person, a pecuniary sanction shall be imposed from BGN 3 000 to 30 000.

(3) Where the violations under Para. 1 and 2 are repeated, a fine from BGN 1 500 to BGN 15 000 shall be imposed, and legal persons shall be subject to a pecuniary sanction from BGN 6 000 to BGN 60 000.

(4) Penalties under Para. 1 - 3 shall be imposed on the employer for any illegally residing foreigner hired.

(5) Employers under Para. 2 shall not participate in the measures for promotion of employment under the Employment Promotion Act for a period of one year from the moment the violation has been established.

Art. 78. (1) In case when there is no other penalty provided for a violation of this act, the guilty persons shall be imposed a fine or a proprietary sanction ranging from 1 500 to 15 000 BGN.

(2) When the violation under par. 1 is repeated, a fine or a proprietary sanction shall be imposed ranging from 5 000 to 20 000 BGN.

Employment Promotion Act

Art. 81a. (1) Undertakings providing temporary employment without registration shall be imposed a fine, respectively a property sanction, amounting to BGN 5000, and in case of repeated offence – between BGN 5000 and 10 000, and between 10 000 and 20 000 for each subsequent offence.

(2) Undertakings providing temporary employment in breach of the requirements of Chapter Eight "a" shall be imposed a fine, respectively a property sanction in amount between BGN 1000 and 2500, and in case of repeated offence – BGN 2500 and 5000.

Related Provisions

Employment Promotion Act

Art. 74f. (2) For registration of the activity referred to in Para 1 (as Undertaking providing temporary employment) may apply local natural or legal persons, or foreign legal persons with commercial activity in the Republic of Bulgaria, meeting the following conditions:

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6. have not been imposed administrative sanctions under Art. 81, Para 1 or Art. 81a, Para 1 within a period of three years before the date of applying for the registration;

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(3) The persons must meet the conditions of Para. 2 during the whole person of registration.