Latest Publications
On 25.03.2025 in issue 25 of the State Gazette the Public Social Insurance Budget Act was promulgated, through which the Social Insurance Code (SIC) was amended. Part of the amendments provide that maternity compensations are not paid if the mother is engaged in a second employment contract with the same or another employer and is insured for common disease and maternity on that basis.
»FAILURE OF AN OBLIGATION TO INFORM EMPLOYEES
On 11 February 2025, the Supreme Court of Cassation (SCC), by decision No. 82 in Case No. 931 for 2024, upheld an employee's claim to receive a more favourable retirement compensation guaranteed by a collective labour agreement (CLA) to which the employee was not a party due to the employer's failure to inform the employee of the existence of a CLA within the company.
»CHANGES IN THE FIRST REPORTING PERIOD FOR NON-FINANCIAL REPORTING
The requirements of Directive 2022/2464 in relation to the amendment of Directive 2013/34/EU (Accounting Directive) on sustainability reporting by companies were introduced with amendments in the Accountancy Act (AA), promulgated in SG No. 72, effective as of 06.07.2024. On 17.01.2025 an Amendment Bill to the above AA Amendment Bill was submitted to Parliament providing for one-year postponement of the first reporting period, for which companies must include a sustainability report in their annual activity report.
»UPCOMING CHANGES TO THE CYBERSECURITY ACT
In December 2024, a draft bill amending and supplementing the Cybersecurity Act was introduced to the Parliament. The Bill aims to implement the new requirements of Directive (EU) 2022/2555 (commonly referred to as NIS 2) in terms of enhancing the protection of critical infrastructure against cyber threats and to introduce stricter requirements for more sectors and organizations within the European Union.
»WORK PERMITS PLATFORM
In October 2024, the Work Permits Platform (the Platform) was launched. It is predicted that thanks to the Platform, the time taken to complete the procedure shall be significantly reduced. The platform shall greatly facilitate both the administrative authorities and the whole process of long-term and short-term recruitment of employees from counties outside of the European Union.
»CROSS-BORDER CONVERSIONS UNDER THE COMMERCIAL ACT
State Gazette, issue No 82/ 27.09.2024, introduces amendments and supplements to the Commercial Act, part of which transpose Directive 2019/2121 for supplement of Directive 2017/1132 as regards cross-border conversions, mergers, and divisions into Bulgarian legislation. The current regulation of the Commercial Act (CA) provided for conversion of companies with the participation of companies from EU/ЕЕА Member States only by merger or by acquisition. The new amendments add to these possibilities new forms of conversion through division by incorporation, separation with incorporation and separation by incorporation of a sole company.
»QUICK LIQUIDATION OF COMPANIES
For the voluntary liquidation of companies up to now the law provided only one procedure, which does not differentiate between the liquidation of an operating enterprise or of a company, which never carried on business or ceased business activities but is not deleted from the Commercial Register. Up to now the liquidation procedure was lengthy, taking minimum an year, requiring various stages of notification to the Commercial Register and the receipt by the trader of certificates from the National Revenue Agency (NRA) and the National Social-Security Institute (NSSI). The new quick liquidation procedure can be used by a company meeting the 6 conditions.
»PROCEDURE AND DATA FOR REGISTRATION IN THE NEW EMPLOYMENT REGISTER
With the latest amendments to the Labour Code (LC) dated 26 September 2023, it was foreseen that the employees’ Labour Book be replaced with a Single Electronic Labour Record and create an Employment Register in which the data on employment relationships would be registered. On 2 August 2024 an Ordinance on registration in the Employment Register was promulgated. The Ordinance aims to regulate the terms, and the procedure for the submission and registration of the data in the Register, as well as the conditions and the procedure for access to the registered data.
»UNIFIED INFORMATION SYSTEM ON SPATIAL DEVELOPMENT
The latest legislative proposals on the National Assembly’s website include a bill of amendments to the Spatial Developing Act (SDA). The Bill provides for the implementation of a Unified Information System on Spatial Development, Investment Design and Construction Permitting. The System shall be maintained by the Minister of Regional Development and Public Works.
»AMENDED UNDERTAKINGS INDICATORS IN THE ACCOUNTING ACT
Two significant categories of public relations are affected by the amendments and supplement to the Accounting Act by a Draft Law published on the website of the National Assembly on 4 July 2024. The first relates to transposition Directive (EU) 2022/2464 in connection with the amendment of Directive 2013/34/EU (the Accounting Directive) regarding sustainability reporting. The second major group of amendments relates to the financial size indicators for micro-, small, medium-sized and large undertakings.
»REGISTRATION OF VARIABLE CAPITAL COMPANIES IS POSTPONED
A new type of company aiming to facilitate the registration and operation of startup companies – Variable Capital Company (VCC) - was introduced in the Bulgarian law system. The deadline for ensuring the technical possibility to register the VCC was further extended to 31 March 2025.
»ANOTHER CHANGES IN THE ACT ON THE PROTECTION OF PERSONS REPORTING OR PUBLICLY DISCLOSING INFORMATION ON BREACHES
On 21 June 2024, a Bill on amendment and supplement to the Act on Protection of Persons, Reporting Information or Publicly Disclosing Information on Breaches (the Act) was submitted for adoption to the National Assembly. The amendments are intended to correct terminological and technical errors in the Act and to reflect the findings of the European Commission.
»AMENDMENTS ON THE REMOTE WORK
On 29.03.2024, State Gazette issue No 27 introduced amendments and supplements to the Labour Code, which provide greater flexibility and security in case of remote work, allocate the responsibility of the employer and the employee in terms of healthy and safe working conditions, introduce requirements in the reporting of work and the control of the working time.
»AMENDMENTS TO THE ACCOUNTANCY ACT – SUSTAINABILITY REPORT
At the beginning of March a Draft Law of Amendments and Supplements to the Accountancy Act was published on the Internet website of the Ministry of Finance and on the Portal for Public Consultations for public consultation. The Draft Law obliges the enterprises to include clearly distinguishable section in their annual activity reports concerning sustainability matters (Sustainability Report).
»THE SUPREME COURT OF CASSATION DECIDES THAT PROVIDING LOANS BY OCCUPATION IS NOT A CRIME
On 15 March 2024 the General Assembly of the Criminal Chamber of the Supreme Court of Cassation (SCC) issued an Interpretative Decision on Interpretative Case No 1/2020, according to which provision of loans/ credits by occupation with funds not raised by public solicitation of deposits or other repayable funds does not constitute banking activity and its performance without permission does not constitute the crime of usury under Art. 252 (1) of the Criminal Code.
»AMENDMENTS TO THE INVESTMENT PROMOTION ACT
With State Gazette No 20 of 8 March 2024 Law of amending and supplement of the Investment Promotion Act was promulgated, which introduces a national screening mechanism for foreign direct investment related to security or public order, in accordance with Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for screening foreign direct investment in the Union.
