SUBJECT: THE 60/40 MEASURE

Ref. № 04-00-21 #1/05.10.2020 г.

TO

MRS. MARIANA NIKOLOVA

DEPUTY CHAIRMAN OF THE COUNCIL OF MINISTERS AND CHAIRMAN OF THE NCTS

MRS. DENITSA SACHEVA

MINISTER OF LABOR AND SOCIAL POLICY

SUBJECT: Draft amendments to Council of Ministers Decree 151/2020 and the continuation of support for enterprises whose exceptional epidemiological situation related to COVID-19 and the ensuing consequences have a strong negative impact on the employment

DEAR MRS. NIKOLOVA,

DEAR MRS. SACHEVA,

BIA supports the proposed changes in the Council of Ministers № 151 of 03.07.2020.

At the same time, the current situation shows that it is difficult and even impossible to predict the duration of a pandemic or new pandemics, which is why it is necessary to provide legal certainty, an effective and continuous mechanism for dealing with employment crises, not just until the end of 2020. In this regard, we propose the inclusion in the Law on the Budget of the Social Security for 2021 (LSDA) of a provision analogous to that of §6a of the TFP of the Social Security for 2020, namely “In 2021 funds from the Unemployment Fund of the State Social Insurance may also be spent on measures related to employment, under conditions and in accordance with the procedure determined by the Council of Ministers. "

We have the following comments on the draft amendments to the Council of Ministers 151/2020 for discussion:

1. Under §1, item 4: “The current para 5 shall become para 6 and in it the words“ from 1 July to 30 September ”shall be replaced by“ from 1 October to 31 December ”.

We propose to keep July as the starting month for the payment of compensations under this decree, as no deadline for application has been set at the moment. This will allow employers to submit applications after 1 October, relating to the period July-September 2020.

2. Under §2: “In Art. 2, para 2 the word “June” shall be replaced by “September”.

We propose that the text be retained in its current version so that employers in the hotel and restaurant sector, who already use the measure for employees appointed after 01.06.2020, have the opportunity to continue to use it for the same employees, and not only for those appointed after September 2020

In addition, we propose changes in the Council of Ministers № 151 of 03.07.2020, which should be discussed at the expert level and in case of assessment of technical feasibility to be taken into account when preparing the updated project.

3. In Art. 1, para. 1, item 4 the expression “from March 13 to June 30, 2020” shall be replaced by “the declared state of emergency or extraordinary epidemic situation under Art. 1, para. 1 “;

4. In Art. 1, para. 2 "insurance income for May 2020" to be replaced by "insurance income for the month preceding two months, the one during which the application was submitted";

5. In Art. 1, para. 3 the words "May 2020" shall be replaced by "the month preceding by two months the month in which the application is submitted";

6. In Art. 1, para. 3, item 1 "May" shall be replaced by "the month preceding by two months the one during which the application was submitted";

7. In Art. 1, para. 3, item 2 "May" shall be replaced by "the month preceding by two months the one during which the application was submitted";

8. In Art. 2, para. 1 "May 2020", to be replaced by "the month preceding by two months the month in which the application was submitted";

9. We propose to discuss the possibility of paying lower than the determined remuneration with CMD 151 for payment of the aid. The lower amount can be declared by the employer with the application for compensation.

For example: The employer has agreed with the employee for a new amount of remuneration or a change of position, which determines the payment of less than paid in the month that serves to determine the amount of assistance (this happens quite often and reflects quite normal processes in one company). If such an opportunity is not added, the employer is not able to apply for assistance for this employee, although he maintains his employment, albeit under changed conditions.

10. To be able to apply for aid for newly hired workers for a position in the establishment plan of the company, the person of whom has met the conditions for receiving aid, but currently does not work for the company for reasons beyond the control of the employer. The aid may not exceed the gross remuneration received for the position.

For example: Employee A takes position X. Benefits were used for him in the period July-September 2020. The person goes into maternity leave in October or leaves. A new employee is appointed - B in position X, but no assistance can be used for him. The employer retains the full-time position, but the fact that the person occupying it is different deprives the employer of the opportunity to use assistance.

11. To provide an opportunity to receive assistance for employees who were part of the employer's team up to a year ago and the employer hires again. This is not possible at the moment, and is not only maintaining but also increasing employment, and should be encouraged.

12. To reduce by 1/2 the term of the obligation to maintain the employment of the employees after the period for which assistance has been used. The proposal is crucial for the Tourism sector, given the seasonal nature of employment.

13. To allow application for aid for a month in which the sales do not realize the determined decrease in CMD 151, in case the cumulative for the last 3 (three) months the company fulfills the respective conditions.

For example: Result for July 2020 -78%; result for August -18%; result for September -54%. An average decrease in the result for the quarter -50%, as aid can be taken, incl. for August.

The proposed changes will make it easier for both employers and law enforcement agencies, and will create security for workers to maintain their employment.

WITH RESPECT,

RADOSVET RADEV

Chairman of the Board of BIA