Staff leasing is fully regulated with the latest changes in the Bulgarian Labor Code

Temporary employment is a solution of a variety of operational problems associated with the workforce you needed to achieve your current and future business objectives. The necessity of rapid response upon increasing or decreasing the volume of work, or in seasonal activities or upon expanding portfolio of products and services has created a new kind of intermediary services, known as Staff Leasing. The number of companies providing these services has recently increased, following the trend of growth of temporary employment as a form of labor relationships in European countries.

The requirements of Directive 2008/104/EC on work through temporary employment agencies were introduced with the amendments to the Labor Code, promulgated in SG, Issue Nr. 7/2012. In Chapter Five is added a brand new Section VIII-v named “Complementary conditions for operation by a company providing temporary work” which contains the legal framework for these specific employment relationships. Parties in these relationships are on the one hand, companies providing staff leasing services , called in LC “companies providing temporary employment”, on the other hand, companies that hire temporary staff, called in LC “user undertakings” and the third party are the employees that sign a labor contract with providers of temporary employment.

The Labor Code regulates in details the relationships created upon the conclusion and termination of employment contracts for staff leasing, the rights and obligations of all parties in these relationships as well as provisions for administrative and criminal liability for a breach of mandatory statutory provisions. The activity of providing temporary work can only be performed after successful registration in the Employment Agency.

Temporary employment is a response to labor market dynamics and a tool in resolving of some employment problems caused by the global economic crisis. With the licensing and legislative regulation of staff leasing services, the interests of both employers and workers are safeguarded . Companies that use staff leasing can concentrate on their core business activities and save valuable time and resources for personnel selection and recruitment, which makes them more flexible and competitive on the market. The temporary employment agencies deal with all matters relating to the conclusion and termination of the employment contract with the worker, including the payment of social contributions, tax issues and other legal obligations relating to employment.

In these times of economic crisis, the use of effective and flexible models in a company’s resource management is a sign of viability and managerial wisdom, adequate behavior in a high risk market environment.