81. Q: My employer wants to reduce the salaries in the company. Can he do that without our agreement?
A: The employer is not allowed to change the conditions of the labour contract unilaterally and this includes changes in the amounts of the working salaries. According to the law, he is entitled to change the salary unilaterally only if he is increasing it. In case when the employer is intending to decrease the salary, then he can do that only after the explicit written consent of the employee. This can be done by signing a new contract with the amended salary amount or by adding annex to the existing contract with the new conditions.
82. Q: I am thinking of starting a new business in Bulgaria and I was wondering whether to register a new company or to buy an already made shelf company. Which one of these would you recommend?
A: We would not recommend buying a ready-made (shelf) company for several reasons. First, this is not a very popular practice in Bulgaria because of the fact that the ordinary company registration takes no longer than 2-3 business days which is almost the same period related to the transfer of a shelf company and the minimum initial share capital is only at the amount of EUR 1. Second, before a shelf company is purchased there should be a very detailed due diligence performed for ensuring there is no outstanding liabilities of the company whatsoever. And third for all the activities described above, the purchase of a shelf company will not cost less than just establishing a new secure one.
83. Q: The company I am working for is delaying my salary for 6 months now. What can I do according to the Bulgarian legislation?
A: You can claim the due salaries by submitting a request to the court. If you decide so, you should bear in mind that you have to do that within 3 years after the date when the payment was due. In case when the employee is duly performing his/her obligations (as appointed in the labour contract), the employer is obliged to pay at least 60% of the gross remuneration, but not less than the minimum work salary amount, which is set in the country. The rest of the amount, of course, remains due and it is to be paid together with the legally set interest rate. If the employer is breaking his obligations and is not performing his legally defined responsibilities, you can always turn to the Labour Inspection. This is the authority which can perform corrective actions and to sanction the employer. Finally, in case of a delay of the monthly remunerations, employees are entitled to terminate their labour contracts without the one-month prior notice.
84. Q: I work in a factory. A month ago our orders increased and my manager assigned to me other job. Is he entitled to do so?
A: The employer is entitled to assign to you work which is different from the one described in your contract maximum for 45 days per year. For this job, though, he is not entitled to pay you a lower amount from the gross amount of your salary under the current labour contract.
85. Q: What are my and my employer’s rights and obligations if I am practicing domestic labour?
A: When working at home (in accordance with Art. 107 from the Labour Code), the working place is the employee’s home or some other premises of his choice. This means that the working place is not being defined by the employer and it’s not his property.
Domestic labour is for example if someone packages cleaning products at his place and the employer provides the packages and the cleaning products. Usually, when such work is being negotiated between the employer and the employee, a preliminary inspection is being conducted in order to determine if the necessary working conditions are in place – is there electricity or water (if needed), is it light and warm enough, is there the necessary inventory, etc.
In case you are interested in such kind of job, the labour contract needs to set the following conditions: the location of the working place, the working remuneration, the order of the assignment and the reporting of the work, the order of the materials supply and the submission of the ready production, the expenses for the materials and their payment.
The employer is obliged to provide you with safe and healthy conditions for fulfilling your job obligations – he needs to provide you with instructions on these conditions specifics and how to avoid any threads and dangers at the working place.
The employer has to also guarantee to you an equal remuneration and attitude with those given to the rest of the employees of the company, as well as social and health insurance, qualification and education, generally everything that is due to the employees under the power of a regular labour agreement, regardless of their working place.
The employee, on the other hand is obliged to provide the employee and the control bodies with free access to the premises.
86. Q:How is the corporate income tax base being defined?
A: The taxable base is being defined by the annual gross income decreased by the direct expenses which are incurred by the Bulgarian company at the course of producing the goods or rendering the service for the clients in the respective year.