In order to carry out the activity of providing temporary employment by supplying workers or employees to other undertakings, a company is required to hold valid registration as a temporary-work agency with the Employment Agency. This registration is a mandatory condition before the undertaking may begin to offer temporary-employment services.

Temporary-work agencies should be distinguished from companies carrying out intermediation activity for job placement. The latter sign a civil contract for intermediation with job applicants, who subsequently conclude an employment contract directly with the employer found by the intermediary company. By contrast, temporary-work agencies conclude employment contracts with the persons they hire under Article 107р of the Labour Code and supply them for work to user undertakings. It is important to note that the workers do not sign an employment contract with the company at which they perform the work.

Who may be registered as a temporary-work agency?

Registration to carry out activity as a temporary-work agency may be obtained by:

  • local natural persons;
  • local legal persons;
  • foreign legal persons that carry out commercial activity on the territory of the Republic of Bulgaria.
Documents for Registration

For the agency to be successfully registered, the following documents must be submitted:

  1. Application for registration – filed electronically for the activity as an undertaking providing temporary work.
  2. Evidence of financial security – a group insurance policy or a bank guarantee of BGN 200,000 is required, intended to cover the claims of the workers who are to be hired.
  3. Internal rules for the activity – a document governing the internal order and procedures of the agency.
  4. Sample contracts – a draft contract with a user undertaking and an employment contract under Article 107р of the Labour Code with a worker or employee.

For foreign legal persons, additional documents are required, which include:

  • certificates proving that the person has not been declared insolvent and is not in insolvency or liquidation proceedings;
  • criminal record certificates of the representatives of the foreign company and other documents specific to the registration.
The Document Submission Process

The application and accompanying documents must be submitted solely by electronic means through the centralised electronic register of natural and legal persons carrying out intermediation activity or providing temporary work, pursuant to Article 25а(1) of the Employment Promotion Act. Acceptance of documents on paper at the registry office is not permitted.

Conditions for Approval by the Employment Agency

After the documents have been submitted, the Employment Agency carries out a check ex officio in order to establish compliance with the following requirements:

  • the absence of monetary obligations to the State or the municipality under Article 162(2) of the Tax and Social Insurance Procedure Code, unless the obligations have been rescheduled or deferred;
  • the applicant is not in insolvency or liquidation proceedings;
  • the company has not had its registration terminated on the grounds under Article 74м(1)(2) or (3), or under Article 15(1) of the Ordinance on Intermediation Activity, in the three years prior to submitting the application for registration;
  • the persons representing the entity have not been convicted of an intentional offence of a general nature, unless they have been rehabilitated;
  • the absence of administrative penalties under Article 81(1) or Article 81а(1) of the Employment Promotion Act in the last three years prior to applying.

In addition to these checks, the Employment Agency also sends an enquiry to the General Labour Inspectorate as to the existence of any penal decrees against the applicant.

Rectification of Deficiencies and the Approval Procedure

If inaccuracies or missing documents are established, the applicant has a 30-day period in which to remedy the omissions. Upon completion of the check, the Employment Agency issues an opinion – for approval or for refusal of the application. In the event of a refusal of registration, the decision may be appealed.

Issuance of the Certificate of Registration

The Executive Director of the Employment Agency or an authorised official issues the certificate of registration within 14 days of acceptance of the application. The certificate is issued as an electronic document.

A state fee of BGN 740 is payable to obtain the certificate of registration.

Period of Validity and Checks

The agency's registration is valid for a period of five years and is entered in the public register of the Employment Agency. Each year, by 30 June, temporary-work agencies are subject to a check by the Employment Agency for compliance with the registration conditions. In addition, they are obliged to submit certified copies of the insurance policy or the bank guarantee of BGN 200,000 for the relevant year.

If you need legal advice and assistance with registering a temporary-work agency and the requirements for an employment contract under Article 107р of the Labour Code, contact us on telephone 0887550706 or by e-mail: [email protected]