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Protection of Workers' Claims (Employer's Insolvency) Convention, 1992 (No. 173) - Bulgaria (RATIFICATION: 2004)

Article 6 of the Convention. Protection of workers’ claims by means of a privilege. Scope of protected claims. Further to its previous comment, the Committee notes the Government’s explanations that the terms “labour remuneration due under individual employment contract” and “monetary compensations owed by the employer under a legal regulation” in section 3 of the Act to Guarantee the Employees’ Receivables in Case of Insolvency of the Employer of 2004 (Wage Guarantee Act) are meant to cover all sums payable by the employer under an employment contract, including wages, annual leave and all other types of paid leave or paid absence, as well as compensation for terminating the employment relationship. The Committee observes, however, that these explanations refer to the legislation concerning the wage guarantee fund, whereas the Commercial Law of 1991, which regulates the order of distribution among privileged creditors, refers generally to claims deriving from employment contractual relations. The Committee accordingly requests the Government to specify how it ensured that the preferential treatment of workers’ claims in bankruptcy proceedings covers at least unpaid wages as well as claims for holiday pay, other types of paid absence and severance pay, as required under Article 6 of the Convention.

Articles 9 to 13. Protection of workers’ claims by a guarantee institution. The Committee notes the Government’s indication that, pursuant to the Law on the State Public Social Security Budget, it has been decided that no contributions would be paid in 2011 to the wage guarantee institution because of the accumulation of sufficient funds. In this connection, the Committee notes the comments made by the Confederation of Independent Trade Unions in Bulgaria (CITUB), according to which the CITUB and the Labour Confederation “Podkrepa” may have consented to the suspension of employers’ contributions for 2011 owing to exceptional circumstances linked to the crisis but they would not be prepared to accept similar measures in 2012. Noting that under section 14 of the Wage Guarantee Act, the fund is primarily financed through compulsory employers’ contributions, and also noting that in recent years the rate of the employers’ contribution decreased from 0.5 to 0.1 per cent, the Committee requests the Government to further explain the reasons that led to the suspension of the employers’ contributions to the fund and also to clarify how it ensures under the circumstances that the payment of workers’ claims arising out of the employer’s insolvency remains guaranteed. Moreover, noting that, under section 22 of the Wage Guarantee Act, the payments guaranteed by the fund are limited to a prescribed amount which, however, may not be lower than two-and-a-half times the national minimum wage, the Committee requests the Government to indicate how it is ensured that the maximum amount is maintained at a socially acceptable level, as prescribed by Article 13 of the Convention.