01.06.2015

KRIB's position on a bill to amend and supplement the Act on Guaranteed Receivables of Workers and Employees in the Event of Employer's Bankruptcy, No. 554-01-101, submitted by Dimitar Bayraktarov and a group of people's representatives

MR HASSAN ADEMOV
CHAIRMAN OF
LABOR COMMISSION,
SOCIAL AND DEMOGRAPHIC POLICY
TO THE NATIONAL ASSEMBLY

REGARDING: Draft law amending and supplementing the Law on Guaranteed Receivables of Workers and Employees in the Event of Employer's Bankruptcy, No. 554-01-101, submitted by Dimitar Bayraktarov and a group of people's representatives

DEAR MR ADEMOV,

On the occasion of the ZID submitted for discussion in the National Assembly of the Law on guaranteed claims of workers and employees in case of bankruptcy of the employer, the Confederation of Employers and Industrialists in Bulgaria expresses the following position:

The law on the guaranteed claims of employees in case of insolvency of the employer is in accordance with Directive 2002/74/EC of the European Parliament and of the Council amending Directive 80/987/EEC of the Council on the approximation of the laws of the Member States regarding the protection of employees in case of insolvency of their employer and corresponds to the ratified text of Article 25 of the European Social Charter.

The proposed legal change expands the subject scope of the law, as, in addition to the bankruptcy of the employer, it is envisaged that the awarded claims arising from an employment relationship, with an effective court decision, will be guaranteed in favor of the workers and employees for whom the person has been issued an executive order. sheet.

The proposed changes will create additional conditions for misuse of funds from the fund, as well as opportunities to drain the fund through deliberate non-payment of wages. This, in turn, will lead to the decapitalization of the fund, the obligation to pay and an increase in the amount of the contribution to the fund and will change the basic principles on which the fund was formed, namely - to guarantee payments to workers and employees in the event of the bankruptcy of their employer, rather than becoming the main payer of labor wages.

The Confederation of Employers and Industrialists in Bulgaria categorically does not support the proposed bill.

The current law and the regulated scope of guarantees fully complies with the EU directives that apply to workers' and employees' claims arising from employment contracts or employment relationships and that exist in relation to employers who are in a state of insolvency within the meaning of the directive.

We would also like to point out that the directive provides for Member States to introduce limits on the liability of the guarantee institutions, which should be consistent with its social objective and does not allow for an extension of the scope as proposed in the draft law.

With respect,
Eugene Ivanov
Ex. director