Guaranteed claims of employees upon bankruptcy of the employer


The order for granting and repaying the guaranteed receivables is regulated in the Employer's Insolvency Guaranteed Claims Act (LRWASR), prom. 37 of 2004 and in the Ordinance on the Procedure and Method of Informing Employees and Granting and Paying the Guaranteed Claims in Bankruptcy of the Employer (NPRISOSIGVNR), adopted by Decree of the Council of Ministers No 362 of 29.12.2004, in force from 01.01.2005.
 
1. Obligated persons under the Law for the Protection of the Environment:
 
Obligation to contribute to the Guaranteed Employee Benefits Fund has all natural and legal persons who meet cumulatively the following conditions:
 
they hire persons under an employment relationship, ie they have the qualities of an employer;
bankruptcy proceedings may be instituted against them under the terms of the Commercial Act (CC) or other special laws.
(Article 2 of the LRWASR)
 
2. Amount of contribution and time limits for submission:
 
Contributions are payable by all employers - persons legally liable on the received, including accrued and unpaid gross salaries or unpaid monthly wages but on no more than the maximum monthly amount of the insurance income determined by the Law on the Budget of the State Public Insurance (SBA) for the relevant calendar year.
 
Contributions to the fund are paid at the same time as the social security contributions for the state public insurance. They are entirely at the expense of the employer, and their amount is determined by the ABSTA for each calendar year; can not be higher than 0.5 per cent of the gross salary and is not bound by the minimum monthly amount of the insurance income by activities and groups of professions. No contributions to the Fund shall be made in 2018.
 
(Article 20 of the ABLAS, Article 16, paragraph 1 of the ABSTA for 2018)
 
3. Nature of the guaranteed receivable:
 
Guaranteed claims on employees are accrued and unpaid:
 
wages paid by the employer under individual and collective labor contracts. For the purposes of this Act, these are the gross salaries, including the basic salary and additional remuneration due under an individual or collective labor contract. There are no wages paid on a regular basis or once paid to the employees for working, uniform and representative clothing, payments from the social expenses and the like;
cash benefits payable by the employer under a statutory instrument. These are mainly cash benefits under the Labor Code and under Art. 40 para. 5 of the Social Insurance Code.
(Article 3 of the LLLVPS)
 
4. Entities:
 
Entitled to a guaranteed claim are employees who are or have been in employment with the employer, regardless of its duration and the length of working time.
 
For the benefit of individuals to be entitled to secured claims, their employer must have acted for at least 12 months prior to the commencement date of the insolvency or the excess due to the judgment opening insolvency proceedings.
 
(Article 4 of the LLLVPS)
 
5. Origin of the Guaranteed Receivable:
 
The right to guaranteed employees' claims arises from the date of entry in the Commercial Register of the court decision for:
 
opening insolvency proceedings;
initiation of insolvency proceedings with simultaneous declaration of bankruptcy;
opening insolvency proceedings, ordering the cessation of the business, declaring the debtor bankrupt and stopping the proceedings due to insufficient assets to cover the costs of the proceedings.
(Article 6 of the LLLVPS)
 
6. Persons who, by virtue of the Act, are excluded from the circle of rightful persons:
 
No secured claim is paid to the following categories of persons who, at the time of the onset of the insolvency or the overdue liability, have the quality of:
 
partners in the trading company;
members of the management and control bodies of the trader;
spouses and relatives in direct line of the trader-natural person or of the persons under items 1 and 2.
(Article 7 of the LLLVPS)
 
7. Procedure for informing the employees of the open insolvency procedure of the employer:
 
Within 14 days from the entry in the Commercial Register of the court decision, the employer is obliged to inform his employees about the date of entry and the procedure for obtaining secured receivables.
 
The employer fulfills his obligation to inform employees in the following order:
 
by means of a written notification to the employees' representatives and by placing a notice in an appropriate place in the undertaking - for the employees whose employment relationship at the date of registration of the judgment was not exceeded  for employees who are employed in a Bulgarian employer - undertaking which carries on business in the territory of the Republic of Bulgaria and is a separate part of another undertaking operating in the territory of another Member State of the European Union or another state The European Economic Area where, under the law of that State, the enterprise is bankrupt and this also applies to the part of it in the Republic of Bulgaria, the obligation of the the employer's employer to inform employees arises from the date on which the occurrence of insolvency proceedings under the law of the other State has become known to him.
(§ 1 of the Law on Biological Diversity, Article 3 of the RNSCR)
 
8. Procedure for establishing the right of employees to secured claims:
 
Within 21 days of the entry of the judgment in the Commercial Register, the employer shall draw up a statement of the amount of the accrued and unpaid labor remuneration and / or cash benefits for each entitled person in 3 copies. The copy for the entitled worker is handed in person or sent via a licensed postal operator with return receipt.
 
Within one month from the entry in the Commercial Register of the court decision to initiate insolvency proceedings, the control authorities of the competent TA NSS undertake a check with the employer in which it establishes whether the conditions of the LRWSR exist for the right of the employees to a guaranteed receivable . A written statement of findings shall be drawn up for the outcome of the inspection.
 
In the course of the inspection and within the time it takes, the employees may file objections with which to contest the data in the report prepared by the employer. It is obliged to notify the supervisory authorities of the objections received, to give an opinion on their merits and to prepare a new reference or refuse to issue it.
 
When irregularities are detected in the reports or inconsistency of the data, as well as on the objections raised by the persons in the cases where the employer refuses to prepare a new reference, the control authorities shall issue mandatory instructions and a term for correction of the irregularities and / or discrepancies.
 
(Article 4, Article 5 of the NIRISIGIGNER)
 
9. Documents to be filed by a person for a secured claim:
 
The guaranteed receivable is granted on the basis of a declaration-form declaration submitted by the employee at the NSS within the registered office of the employer within three months of entering in the Commercial Register the decision to open insolvency proceedings or the date of informing workers and employees of the Bulgarian employer for the fact that insolvency proceedings have been opened under the legislation of another country. This deadline is obligatory and non-compliance is one of the grounds for refusal to pay a secured claim. The declaration is filed personally, through an authorized person or through a licensed postal operator with a return receipt. It shall be accompanied by:
 
identity document - for reference;
a report prepared by the employer on a standard form on the amount of accrued but not paid salaries and cash benefits;
original (for reference) and a copy of an expert decision of TEMC / NEMC for reduced working capacity 50 and over 50 per cent (if any)
power of attorney - when documents are filed by proxy.
Upon acceptance of an application-declaration with irregular and / or missing documents, the TA of the NSSI shall notify the person within 3 days and give him the necessary written instructions for submitting the missing documents and / or for eliminating the irregularities. If the irregularities are not remedied and / or the missing documents are not submitted within 7 days after the notification, the TA NSS shall assess the right and determine the amount of the guaranteed receivable on the basis of the available regular documents.
 
(Article 25 of the Law on Biological Diversity, Article 6 and Article 8 of the NNRSHR)
 
10. Amount of the guaranteed receivable:
 
In determining the amount of the guaranteed receivable, the Act divides the eligible persons into two main groups:
 
(a) employees, whether they are or have been in employment, with paid but not paid monthly salaries and cash benefits at the expense of the employer due by virtue of a statutory instrument or a collective agreement; for these persons the guaranteed claim is in the amount of the last six accrued but unpaid monthly wages and cash benefits during the last 36 calendar months preceding the month in which the decision was entered, but not more than the maximum amount set for such cases meninges amount of secured claims (for 2018. - 1300 lev); (Article 22 (1) (1) of the Law on Biological Diversity, Article 16 (2) of the ABSTA for 2018);
 
b / workers and employees whose legal relationships have been terminated in the last 36 months before the date of entry of the decision under Art. 6 and to which
 
 
 


«Back
 

Guaranteed claims of employees upon bankruptcy of the employer Guaranteed claims of employees upon bankruptcy of the employer