The 2023 WOLEP Report on Labor Law

What makes this Report particularly noteworthy is its comparative aspect, with members from two South American and one European country. By examining different labor law frameworks and practices, readers can gain valuable insights into how legal systems address similar issues in different parts of the world. In their contributions, the members discuss a range of topics, from registration of applicants and types of employment contracts to cases of discrimination and harassment in the workplace. They also delve into the nuances of social contributions and how they are regulated in their respective countries. Overall, this Report offers a unique and informative look at labor law in three distinct countries and provides a valuable resource for lawyers, employers, and employees alike.

Mr. Fernando Buitrago (WOLEP member, Colombia)

Fernando Buitrago (Colombia): First of all, we must point out that Article 100 of our National Constitution of 1991 establishes that foreigners in Colombia shall enjoy the same civil rights that are granted to Colombians, obviously empowering the State to regulate and/or condition the exercise thereof.

On the other hand, Decree 1067 of 2015 establishes the different types of visas that a foreigner needs in order to be able to work in our country, as the case may be, these being the visas type: TP-10, TP-12, TP-13,TP-15, TP-16. In any case, it should be noted that the validity of the Temporary Visa (TP) is subject to the foreigner not being absent from the country for a period of more than 180 consecutive days. In addition, by Law 146 of 1994 and judgment C-106 of 1995, it was established that in terms of social security, foreign workers shall enjoy in the Colombian State the same rights as nationals, that is, all rights acknowledged in labor law, substantive labor code and the higher norm.

As provided in the Conventions and Recommendations of ILO (International Labor Organization) on Migrant Workers and, particularly, the International Convention on the Protection of the Rights of Migrant Workers and their Families, migrant workers and their families have their rights respected in Colombia under equal conditions as nationals, this treatment being the one that has the greatest scope and meaning in building a Social State of Law.

Finally, the aforementioned decree has indicated that any employer and/or contractor who has connections with foreigners must request the presentation of a visa that allows them to carry out said activity, Alien Identification Card, as the case may be.

Kristian Kalchev (Bulgaria): The answer to this question depends on whether the client is a EU national or a national of a third (non-EU) country, and it is important to note from the outset that a foreigner's right to work in Bulgaria is inextricably linked with their right to reside in the country.

Nationals of EU member states may enter and reside in Bulgaria without a Bulgarian residence permit for a period of up to 3 months. They are entitled to enter into a labour agreement with a Bulgarian employer without having to obtain any work permits or authorizations by the Bulgarian authorities. Once they have concluded a labour agreement in Bulgaria, they may apply for a Bulgarian residence permit with a term of validity of up to 5 years on the basis of their labour agreement.

Third country nationals (i.e. non-EU nationals), on the other hand, need a special work permit in order to be able to work in Bulgaria under a labour agreement. In the event that a third country national has obtained a Bulgarian residence permit but does not possess a work permit, they may still live in the country and provide independent services as a contractor under a service agreement but in that case they would not enjoy the rights, benefits and protection granted to employees under the Bulgarian Labour Code.

In case a non-EU national wishes to work in Bulgaria under a labour agreement and enjoy the protection ensured by the provisions of the Labour Code, they may obtain a combined work and residence permit. The two most convenient and sought-after options that afford non-EU foreigners both the right to reside and the right to work (under a labour agreement) in Bulgaria are the EU blue card and the unified residence and work permit.

Pursuant to the latest legislative changes in the legal regime governing blue cards which have just been passed by the Bulgarian parliament, the so-called blue card grants its holder the right to reside and work in Bulgaria for a period of up to 5 years. In order to be eligible for a blue card, applicants shall have either a university degree or sufficient work experience in the respective field. The labour agreement shall be concluded prior to the submission of the blue card application and constitutes one of the documents submitted along with the application. It must be emphasized that the agreement will enter into force only after the blue card has been issued, subject to the fulfilment of all requirements for access to the Bulgarian labour market.

The unified residence and work permit is a feasible plan B for foreigners who have found an employer in Bulgaria but do not satisfy the requirements of the blue card. The main issue with this type of permit, from a practical point of view, is that the employer shall provide the national authorities with evidence showing that the job position which the foreign employee will be occupying has already been advertised to Bulgarian job seekers in national and local mass media and no suitable candidates have been found.

Damián Bes (Argentina): I believe that your question refers to a natural person, without Argentine citizenship, who is of legal age (in our country it is 18 years or older) and who wants to work in this country.

If so, I have to inform you that the current regulations are very friendly so that any person may work and have a formal contract. You can work here simply by having a "precarious residence" granted by the National Directorate of Migrations and the Unique Labor Identification Code (in Spanish: CUIL - „Código Único de Identificación Laboral) granted by the National Social Security Administration (ANSES).

On the contrary, if it is a person with Argentine nationality, they should only have an ID and a CUIL, the minimum age is 16 years, with the authorization of whoever has parental authority, and from the age of 18 without this requirement.

Fernando Buitrago (Colombia): However, the employer who wishes to hire, recruit, employ, or admit a foreigner to work must observe the following procedure:

Request the presentation of the Visa that allows him/her to carry out the activity, job or trade authorized therein in accordance with the current legislation that regulates the issuance of visas, the entry and permanence of foreigners into the national territory, contained in Decree 834 of 2013 (which establishes the provisions on immigration matters of the Republic of Colombia); in Decree 941 of May 21, 2014 (by which the visas provided for in the framework of the Agreement on Residence for Nationals of the Mercosur States Parties, Bolivia and Chile are incorporated into the internal migration system, and other provisions are issued in migratory matters, issued by the Ministry of Foreign Affairs); in Resolution 532 of 2015 of the Ministry of Foreign Affairs (by which the requirements are adopted for each and every one of the classes of visas contemplated in Decree 834 of 2013 amended by Decrees 132 of 2014, 941 of 2014, 2477 of 2014 and other provisions are issued) and Resolution 6588 of 2013 of the Ministry of Foreign Affairs (by which some provisions regarding visas are issued).

Request the Immigration Certificate when they are required to obtain it, in the case of visas with a validity of more than three (3) months.

Inform Colombia Migration in writing about the hiring, contracting or admission to work and of their dismissal or termination of the contract, within fifteen (15) calendar days following termination of employment.

Cover the expenses of returning to the Country of origin or last Country of residence of the contracted or hired foreigner, as well as those of their family or beneficiaries upon termination of the contract or relationship, or when the cancellation of the visa, deportation or expulsion is applicable. This obligation shall cease when the foreigner obtains a Temporary Visa in the categories of spouse or permanent partner of a Colombian national, father or mother of a Colombian national or resident visa.

Source: Ministry of Labor, Concept No. 1200000-104634 Bogotá, D.C., June 12, 2015.

Kristian Kalchev (Bulgaria): Under Bulgarian labour law, it is the employer who shall be responsible for the registration of the labour agreement. According to art. 62, para. 3 of the Bulgarian Labour Code, the employer shall notify the National Revenue Agency of any labour agreement entered into by the employer within 3 days following its conclusion.

Damián Bes (Argentina): As I indicated in the previous answer, they must have some type of residence and a CUIL.

As regards residence, there are numerous variables to be taken into account before obtaining it (basically divided into "Mercosur" and "Non-Mercosur", and in each case it can be transitory, temporary, or permanent); all the options can be viewed here.

As regards CUIL, it can be obtained provisionally, while carrying out the immigration procedures. Afterwards it can be changed to permanent. It is a free process.

Fernando Buitrago (Colombia): In order to talk about an employment contract in Colombia, it is necessary to refer to the substantive labor code and establish its elements, since according to art. 24 of the same statute, for the existence of an employment contract, 3 necessary elements are required, namely: (i) salary, (ii) subordination and (iii) provision of the service.

Now, our labor law establishes the following employment contracts, which are regulated in the substantive labor code:

• Contract for work or labor.

• Fixed-term employment contract.

• Indefinite term employment contract.

• Apprenticeship contract.

• Temporary, occasional, or one-time contract.

Mr. Kristian Kalchev (WOLEP member, Bulgaria)

Kristian Kalchev (Bulgaria): The most significant distinction to be made, as per art. 67, para. 1 of the Bulgarian Labour Code, is between indefinite-term labour agreements and fixed-term labour agreements. This distinction is of particular importance in the context of employment of foreign employees -- foreigners may only enter into fixed-term labour agreements in Bulgaria.

Pursuant to art. 68, para. 1, item 1 of the Bulgarian Labour Code, fixed-term employment contracts may be concluded for a duration of up to 3 years, unless otherwise provided in the applicable law. Such a derogation from the general 3-year maximum term of validity of fixed-term employment contracts is contained in art. 33k, para. 2 of the Foreigners in Bulgaria Act, according to which blue cards may be issued with a term of validity of up to 5 years, which means that the labour agreement based on which the blue card is received may also have a term of validity of up to 5 years.

Damián Bes (Argentina): The most usual modalities are provided for in the Employment Contract Law no. 20744, (hereinafter referred to as LCT). The articles on this subject go from number 90 to 102bis, entitled "regarding the modalities of employment contract". Before citing the different types, the legal definition established in art. 21 indicates that: It shall be considered that there is an employment contract whatever its form or name, provided that a natural person is obliged to perform acts, execute works or provide services in favor of the other and under the dependence of the latter, during a definite or indefinite period of time, through the payment of a remuneration...

The type of employment contract preferred by law is the employment contract for an indefinite period, regulated by law no. 20744 art. 90, and as the name suggests, it does not have a termination date. The same is considered during the first three months of probationary period which implies that there are almost no penalties for the employer who hires and wants to fire the worker.

Then the planned modalities are: Fixed-Term, Seasonal, Eventual, Group or Team, and Teleworking. There is a lot to say about each of them and even combinations of some of them, but the truth is that in all cases where a contract is not made for an indefinite period (the preferred modality), due justification is required to use these variants validly and without any consequences.

Fernando Buitrago (Colombia): According to the requirements of each client, the contract shall be adapted according to their needs, adjusting it to current regulations.

Kristian Kalchev (Bulgaria): I have had the opportunity to advise both companies hiring Bulgarian and foreign employees, and individuals entering into a labour agreement with a Bulgarian employer.

Bulgarian labour law is actually favourably inclined towards employees and provides them with a very high degree of protection against arbitrary dismissals and other breaches of contract by the employer. This means that employers do not have as much room for manoeuvre when negotiating employment contracts as they do when conducting commercial negotiations with their business partners, for instance.

When I am providing legal advice to individuals seeking to enter into a labour agreement, I usually review the draft of the labour agreement proposed by the employer and try to make sure that the agreement is in full compliance with the provisions of the Labour Code. In case the individual is a foreigner who has relocated to Bulgaria in order to work here, I often suggest adding clauses pursuant to which the employer shall reimburse the employee for expenses incurred by the latter in relation to their relocation and accommodation in Bulgaria.

In the event that I am advising the employer, some of the main things I keep an eye on are the protection of the company's confidential information and reputation by means of stipulating strict non-disclosure obligations binding upon the employee as well as reasonable sanctions in case of non-compliance with the said obligations, among other things.

Mr. Damián Bes (WOLEP member, Argentina)

Damián Bes (Argentina): It is extremely variable and it depends a lot on the type of company (size, turnover and sector in which it operates). Many employers in Argentina are small companies, and in general, in this type of employer, no written contract is made, but only the registration papers and guidelines are agreed verbally. It should also be noted that, unfortunately, another significant number of employers do not directly register labor relations. The scourge of labor informality exists in our country. Some estimates place it at 20% to 30% of the economically active population. For part of compensation packages, if it refers to dismissal in Argentina, the cost for the employer to interrupt a labor relationship is charged taking into account a normal and usual Best Monthly Remuneration of the last twelve months, multiplied by the number of years of seniority in the company.

Fernando Buitrago (Colombia): In Colombia, in 2006, the Congress of the Republic issued Law 1010 which establishes the following: "Workplace harassment shall be understood as any persistent and demonstrable conduct, exerted on an employee, worker by an employer, boss or immediate or mediate hierarchical superior, a co-worker or a subordinate, aimed at instilling fear, intimidation, terror and anguish, causing work harm, generating demotivation at work, or inducing their resignation”.

At the same time, the same regulations clearly establish what workplace harassment is deemed to be in Colombia and what its modalities or classes are, these being classified into 6 groups, as follows:

1. Labor abuse. Any act of violence against the physical or moral integrity, the physical or sexual freedom and property of whoever works as an employee or worker; any insulting or outrageous verbal expression that harms the moral integrity or the rights to privacy and good name of those who participate in an employment relationship or any behavior that tends to undermine the self-esteem and dignity of those who participate in an employment relationship.

2. Persecution at work. Any conduct whose characteristics of reiteration or evident arbitrariness allow inferring the purpose of inducing the resignation of the employee or worker, through disqualification, excessive workload and permanent changes in schedule that may cause work demotivation.

3. Employment discrimination. Any differential treatment for reasons of race, gender, age, family or national origin, religious belief, political preference or social situation that lacks any reasonableness from the labor point of view.

4. Work hindrance. Any action tending to hinder the fulfillment of the work or make it more burdensome or delay it to the detriment of the worker or employee. Work hinderance actions are, among others, the deprivation, concealment or uselessness of inputs, documents or instruments for work, the destruction or loss of information, the concealment of mail or electronic messages.

5. Labor inequality. Assignment of tasks in contempt for the worker.

6. Lack of labor protection. Any conduct that tends to jeopardize the integrity and safety of the worker through orders or assignment of tasks without complying with the minimum protection and safety requirements for the worker.

In addition, the same law described above establishes that it is not workplace harassment and how to prevent such conduct, while the employer undertakes to prevent and correct workplace harassment, under the terms of article 9 of said regulations, with the obligation to include in the work regulations the mechanisms to prevent workplace harassment and establishing a confidential and conciliatory internal procedure to address and overcome workplace harassment behaviors that may occur.

In case it continues, a complaint for workplace harassment must be filed with the following administrative authorities:

1. Labor inspector

2. Municipal representatives

3. People's Advocate

The administrative authority that is aware of the complaint shall order the employer to implement the prevention plans contained in the work regulations, and schedule group activities to improve the work environment.

Finally, it is the employer who undertakes to prevent such conduct, therefore, in case of not doing so, they shall be sanctioned either by action or by omission, without prejudice to other criminal and labor sanctions.

Finally, the sanctions would be the following:

1. As a very serious disciplinary offense in the Single Disciplinary Code, when its author is a civil servant.

2. As termination of the employment contract without just cause, when it has given rise to the resignation or abandonment of work by the worker regulated by the Substantive Labor Code. In such a case, compensation is applicable under the terms of article 64 of the Substantive Labor Code.

3. With a fine of between two (2) and ten (10) monthly legal minimum wages for the person who does it and for the employer who tolerates it.

4. With the obligation to pay fifty percent (50%) of the cost of treatment for occupational diseases, health disorders, and other sequelae originating from workplace harassment to Healthcare Provider Companies and Professional Risk Insurers. This obligation shall be borne by the employer who has caused the workplace harassment or has tolerated it, without prejudice to timely and due attention to the affected worker before the competent authority determines whether their illness has been a consequence of workplace harassment, and without prejudice to the other actions enshrined in social security regulations for the managing entities against employers.

5. With the presumption of just cause for the termination of the employment contract by the worker, individual and exoneration of payment of prior notice in case of resignation or retirement from work.

6. As just cause for termination or non-renewal of the employment contract, depending on the seriousness of the facts, when the workplace harassment is carried out by a co-worker or a subordinate.

Kristian Kalchev (Bulgaria): In the event that an employee has been discriminated against or harassed in the workplace, there are several courses of action that could be taken.

First of all, such an employee may rely on the Protection Against Discrimination Act. The prohibition of discrimination shall be observed not only by the state and its bodies but also by all other subjects of law, including natural persons. Therefore, an employee who has been discriminated against or harassed in the workplace may bring a lawsuit against their employer or against any colleague of theirs who has violated the prohibition of discrimination, and claim compensation.

Secondly, if an employee has been harassed in the workplace by a co-worker, he or she may request that disciplinary action be taken against the said co-worker, potentially resulting in the latter's disciplinary dismissal.

Damián Bes (Argentina): In this case, Argentina has a general law, applicable to all citizens (and therefore to workers, since they do not lose that status) called the Anti-Discrimination Law 23592 of 1988, according to which you can basically request to nullify any act of discrimination and request either reinstatement in the job position or some type of compensation for the damages caused by the employer. There are rulings from the highest Courts validating the application of this law for the working sector. In addition, this country is one of the first to sign the ILO Convention no. 190 of 2019 entitled "Convention on Violence and Harassment". This instrument was ratified by Law 27580, approved by the National Congress on December 15, 2020, and due to its recent validity, it does not yet have so much jurisprudential reception.

• Length of rest leave

Fernando Buitrago (Colombia): Rest leave is a work permit that is provided to workers for a specific reason. Therefore, there are two types of rest leave in Colombia that can be regulatory and non-regulatory, which are defined in the substantive labor code.

1. Maternity leave: This leave is defined in Law 1822 of 2017, which establishes a term of 18 weeks.

2. Paternity leave: Law 2114 of 2021 establishes a term of two calendar weeks. This term may be extended annually by one (1) additional week for each percentage point of decrease in the structural unemployment rate, without exceeding five (5) weeks in any case. Finally, through this law, shared parental leave and part-time flexible leave were created. The first one allows parents to freely share, by mutual agreement, the last six (6) weeks of maternity leave, as long as the requirements are met; the second one is that the mother or father will be able to exchange a certain period of their maternity or paternity leave for a period of part-time work that will be equivalent to twice the time of the selected period.

3. Voting leave: When a worker exercises the right to vote, called suffrage, he/she is entitled to this type of leave, which corresponds to half a day of paid compensatory rest.

4. Leave for the performance of official positions or of compulsory acceptance: It is presented when the working citizen is called to serve on a jury, it applies to workers both in the public sector and in private companies and corresponds to a day of paid rest which must be granted within 45 days of acceptance of the position.

5. Leave due to serious domestic calamity: The serious domestic calamity is a worker's right contained in subsection 6 of article 57 of the substantive labor code and as it is a legal provision, the employer shall undertake to grant the leave when the serious domestic calamity occurs. Regarding the length thereof, the law has not said anything, however, the constitutional court, in judgment C-930 of 2009, stipulated that it will be the parties who, by mutual agreement, agree on said conditions, or in the absence of clarity, what is established by the internal work regulations of the company.

6. Bereavement leave: Law 1280 of 2009 created this leave and established a mandatory leave that the employer must grant the worker in the event of decease of a close relative. In this regard, the first paragraph of subsection 10 of article 57 of the substantive labor code added by law 1280 of 2009, grants a term of 5 business days. Finally, this leave is granted to relatives who are within the degree of kinship of the worker, such as: (parents, children, siblings, grandparents, grandchildren, spouse or de facto spouse and mother-in-law/father-in-law).

The way in which the degree of kinship with the deceased relative must be demonstrated shall be the respective birth certificate. Finally, the law grants the worker 30 calendar days to prove the fact through a document issued by the competent authority, which is usually the death certificate, so that the employer can grant this right.

Kristian Kalchev (Bulgaria): According to art. 155, para. 4 of the Bulgarian Labour Code, employees (including foreigners) shall be entitled to a paid annual leave of not less than 20 working days. Of course, this is the minimum amount of paid annual leave prescribed by the Labour Code, and the parties to an employment contract may provide for a longer term of this type of leave in their contract in accordance with art. 156a of the Labour Code.

Additionally, pursuant to art. 160 of the Bulgarian Labour Code, upon request by the employee, the employer may allow the employee to use an unpaid leave, regardless of whether or not the employee has already used their paid annual leave.

Damián Bes (Argentina): I understand that you are asking about the working day that in general (and with variations on agreements) has a maximum of 48 hours per week established. Any time worked over that time should be considered overtime. If, on the other hand, the question refers to vacation (ordinary annual leave), we are talking about a general scheme of 14 days per year, for workers with less than 5 years of seniority that subsequently increases progressively (21 days for those who have less than 10 years, 30 days for those who have less than 20 years and 35 days for those who have been with the company for more than 20 years).

- Length of notice in case of resignation or dismissal

Fernando Buitrago (Colombia): The advance notice refers to the need to notify the termination of en employment contract in advance, and it is mandatory for fixed-term contracts, except contracts of less than 30 days, that is, short-term contracts, as provided the art. 1 of Decree 1127 of 1991.

On the other hand, we must be clear that the fixed-term contract has a start date and an end date, however, if you do not want to renew the contract, the law requires prior notification to the other party of that decision.

At the same time, the Supreme Court of Justice - LABOR CHAMBER - in judgment No SL 49903 of May 30, 2019, indicated that the notice is the mere communication from the employer to the worker not to consider the employment contract renewed, which must be done in writing, within 30 calendar days until the expiration of the contract, under penalty of renewal of the employment contract.

In the same way, the obligation not to renew the contract falls solely and exclusively on the employer and not on the worker, who does not have the duty to pass said communication to his/her employer, except in the case of an executive, management and trust worker.

Kristian Kalchev (Bulgaria): As regards termination of employment relationships under Bulgarian labour law, it is noteworthy that employees are entitled to terminate their employment contracts for convenience (i.e. for any reason, without the need to establish that the employer is in breach of the contract), whereas the employer may only terminate an employee's contract on one of the legal grounds that are exhaustively listed in the Labour Code.

The length of the termination notice varies depending on the type of employment contract that the parties have entered into. The notice for termination of an indefinite-term labour agreement shall be at least 30 days, but in any event not more than 3 months. Fixed-term labour agreements, on the other hand, may be terminated with a 3-month prior notice, but in any case the term of the notice shall not be longer than the remainder of the term of the contract.

Damián Bes (Argentina): The advance notice for the worker who intends to resign is 15 days (regardless of the seniority of the employee), while for the employer the scheme is:

- 15 days notice, for workers with up to three months of seniority in the company;

- 30 days notice, for workers with more than three months and up to five years of seniority in the company:

- 60 days notice, for workers with more than five years of seniority in the company.

In all cases, notice can be replaced by paying the equivalent amount.

- The penalties applicable in the case of undeclared work

Fernando Buitrago (Colombia): The first thing to note is that, if there is no declaration of the real contract, the defendant employer shall not be obliged to do the impossible, especially if said decision comes from a court.

However, contrary to the above, the real employment contract is one resulting from a civil or commercial contractual relationship declared by the judge as an employment relationship, given that it has the elements of an employment relationship regardless of the denomination that the parties have given the contract, and the most relevant thing about it are the consequences; therefore, the worker is owed all the amounts derived from that contract such as social benefits as severance pay, vacation bonus and, eventually, the corresponding compensation.

Kristian Kalchev (Bulgaria): Lastly, on the subject of contract termination under Bulgarian labour law, it must be noted that in the event of disciplinary dismissals of employees (e.g. due to unexcused absence from work), the employer is entitled to terminate the labour agreement without providing the employee with a prior notice.

As far as penalties for undeclared work are concerned, art. 414 of the Labour Code stipulates that a penalty ranging from BGN 1,500 to BGN 15,000 shall be imposed on employers who have infringed the applicable provisions of the Labour Code. In case of repeated violations, the employer shall pay a penalty ranging from BGN 15,000 to BGN 20,000.

Damián Bes (Argentina): The first thing I should point out is that art. 23 defines a presumption of the existence of the employment contract, to the extent that there is a provision of services, even when non-labor concepts are used, to characterize the contract (e.g.: service contract). Based on this, Argentina has very tough policies against undeclared work (also herein referred to as: unregistered, informal, or "work under the table"). Although it is extremely varied, I can tell you that when it is detected administratively, there are fines applied by the municipalities or by the state for the lack of registration. And if the worker claims, there are compensatory increases of all kinds. The main ones are regulated in Law 24013 and Law 25323, which generate judicial fixation fines in favor of the worker who performed tasks without due declaration to the social security agencies.

Fernando Buitrago (Colombia): Law 100 of 1993 provides that all dependent workers, that is, workers with an employment contract must be affiliated to the social security system like all independent workers who have the ability to pay, which implies affiliation and payment of monthly contributions.

At the same time, it is the employer who has to affiliate their workers to the social security system. Thus, the worker chooses the EPS and the pension fund to which they wish to be affiliated. Finally, it is the employer who chooses the ARL. In addition, it is the employer who is responsible for both affiliation, disaffiliation and payment of contributions corresponding to the comprehensive social security system in Colombia.

Among the payments that are part of the contribution base income, we have the salary as such, overtime, extra pay for night shift, for working on Sundays and holidays, commissions and payments in kind. The contribution base income cannot be less than one minimum wage nor more than 25 minimum wages.

Rates in health, pension and occupational risks

The percentage of contributions in occupational risks correspond according to the level of risk to which the worker is exposed in their job:

Sheets taken from the internet.

Kristian Kalchev (Bulgaria): Under Bulgarian law, the employer deducts all taxes and social insurance contributions from the employee's gross labour remuneration, transfers them to the National Revenue Agency, and then pays the net amount of the remuneration to the employee.

The tax imposed on individuals in Bulgaria in respect of their taxable income, including remuneration received under an employment contract, is levied at a flat rate of 10%.

As far as social insurance contributions are concerned, we must first define the term "contributory income" used in the relevant legislation. "Contributory income" denotes the income based on which social contributions are calculated. However, it is important to emphasize that, under Bulgarian law, an individual's contributory income is not always equal to their labour remuneration. Bulgarian law has introduced the so-called maximum contributory income -- currently, the maximum monthly amount of the contributory income in Bulgaria is BGN 3,400. In practice, this means that even if an employee's monthly labour remuneration amounts to, let's say, BGN 5,000, it is the maximum contributory income in the amount of BGN 3,400 that will serve as the base on which the said employee's social contributions will be calculated.

As regards the amount of social contributions due under Bulgarian law, the figures vary depending on the category an individual falls under. The social security contributions (which are distributed into several different funds, such as the "Pensions" Fund, the "Common Diseases and Maternity" Fund, and the "Unemployment" Fund) payable in respect of the income received by individuals who fall under the most common category (the so-called third category of workers), amount to 24.3% of the employee's contributory income. In addition to the aforementioned contributions, employers also have to subtract 8% of the employee's contributory income from their gross monthly remuneration and transfer that amount to the public authorities in the form of a public health insurance contribution.

The above rules apply to foreign employees as well, as far as social security contributions are concerned (the ones distributed into the unemployment, common diseases and maternity, and pension funds).

There are, however, some peculiarities when it comes to public health insurance of foreigners in Bulgaria and the payment of health insurance contributions in respect of their income. Certain categories of foreigners are subject to mandatory health insurance by the Bulgarian public healthcare system -- those include foreigners who have been granted long-term or permanent residence permits, persons under temporary protection, and (following legislative changes that entered into force at the beginning of this year) holders of blue cards. Accordingly, the 8% health insurance contributions applicable to Bulgarian employees apply to such foreigners as well.

On the other hand, foreign employees who reside in Bulgaria on the basis of a prolonged residence permit are not subject to mandatory health insurance by the National Health Insurance Fund -- instead, they are required by the Foreigners in Bulgaria Act to provide the Migration Directorate with the Ministry of Interior with a medical insurance policy issued by a private insurance company, which covers the entire duration of the stay requested by the foreigner (up to 1 year in case of prolonged residence permit applications). Accordingly, no public health insurance contributions shall be due in respect of such employees since their private medical insurance policy serves as a surrogate of such contributions.

Damián Bes (Argentina): The Social Security system in Argentina is made up of a percentage paid by the worker (around 20% of their gross salary) and a percentage paid by the employer (around 25% of what the worker charges). This amount covers future retirement, work risk insurance, and medical care (known as Health Insurance Plan). It may vary slightly since there are, in some cases, discounts for the union with trade union status (most representative), for some additional insurance, among other examples, depending on the activity.

Fernando Buitrago (Colombia): The first is compliance with internal regulations, followed by the duty to observe the right of workers employed by a multinational company to establish unions and representative organizations of their choice or to join them.

Similarly, the duty to contribute to the effective abolition of child labor and take immediate and effective measures to urgently guarantee the prohibition and elimination of the worst forms of child labor.

Likewise, to comply with regulations regarding employment and labor relations that are not less favorable than those practiced in companies with similar conditions in the host country.

It will also be necessary to adopt the appropriate measures in order to guarantee, in their activities, health and safety in the workplace.

Finally, to the greatest extent possible, to employ local staff for their activities and provide them with training in order to improve qualification levels, in collaboration with workers' representatives and, where appropriate, with competent public authorities.

Kristian Kalchev (Bulgaria): As has already been pointed out above, Bulgarian labour law is highly favourable to employees and affords them a high degree of protection.

Transnational companies should be very cautious and mindful of the repercussions that a certain company policy or action might have in respect of their employees and their labour rights safeguarded by the Labour Code. More specifically, companies should be very mindful of any dismissals of employees, especially disciplinary dismissals, and shall always make sure that they strictly follow both the letter and the spirit of the law whenever they opt to terminate an employee's contract.

With regard to foreign employees, particularly non-EU nationals, companies shall comply not only with the labour laws but also with the applicable migration requirements -- whenever a company hires a foreign employee, it must necessarily procure all residence and work permits that may be required by the national authorities.

Damián Bes (Argentina): The most important recommendation is that any company previously carry out (through a legal study) a complete study of the sector in which it intends to develop. In Argentine Labor Law, hiring for financial services is not the same as hiring for construction. The regimes and obligations are very dissimilar and require good previous support, which allows minimizing risks. The trade union issue also requires suitable professionals to successfully manage labor relations with as little conflict as possible (beyond the normal bargaining between the employer and worker sector).

Vous êtes un aigle juridique passionné par la collaboration? Joignez vos forces à celles d'autres professionnels du droit et élevez votre pratique à un niveau supérieur. N'attendez pas, inscrivez-vous dès maintenant à WOLEP et entrez en contact avec des juristes partageant les mêmes idées Enregistrez votre compte ici.