Informal Employment Persists in Bulgaria’s Service and Restaurant Sectors

Business | January 18, 2025, Saturday // 09:51
Bulgaria: Informal Employment Persists in Bulgaria’s Service and Restaurant Sectors @Pixabay

The practice of hiring workers without formal employment contracts remains a widespread violation of labor and social security laws in Bulgaria, according to data from the Confederation of Bulgarian Trade Unions (CITUB) collected over the past year. The most frequently affected sectors include services, repair work, and the restaurant industry.

Velichka Mikova, CITUB’s national secretary for "Legal Protection of Labor," emphasized in an interview with Bulgarian National Radio that signing a written employment contract is a mandatory requirement when starting a job. However, many workers, particularly young people, often accept informal arrangements, lured by the prospect of receiving untaxed cash payments. Employers exploit this by arguing that such arrangements benefit both parties financially, the union noted.

In addition to signing employment contracts, workers should also receive a clear job description. Chief CITUB expert Yordan Daskalov pointed out that while this is a legal requirement, some employers neglect to provide job descriptions to their employees, leaving workers unaware of their specific roles and responsibilities.

The union expressed concern that such practices not only undermine labor rights but also negatively impact social security contributions and workers’ protections. Efforts to address this issue continue, with CITUB urging employees to insist on proper documentation and employers to adhere strictly to labor regulations.

Source: econ.bg

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Tags: workers, employment, Bulgaria

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