Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

Protection of Wages Convention, 1949 (No. 95) - Bulgaria (Ratification: 1955)

The Committee notes the information contained in the Government’s report and wishes to draw attention to the following points.

Article 1 of the Convention. Definition of the term “wages”. The Committee notes the Government’s statement that the term “labour remuneration” is used in the Labour Code to signify not only the basic wages but also overtime pay, and all the various allowances, such as for instance the allowance for night work, academic credentials, linguistic skills, etc.

Article 4. Partial payment of wages in kind. The Committee notes the explanations provided by the Government that the payment of wages in kind is possible only if so provided in an act of the Council of Ministers, in a collective agreement or in the labour contract. The Government indicates that existing acts of the Council of Ministers provide for different forms of additional remuneration in kind, such as warm food or special clothing, and define the type and the size of these additional in-kind payments. Recalling that the Convention requires specific provisions to ensure that the goods and products which may be offered in lieu of money are appropriate for the personal use and benefit of the worker and his/her family and that they are valued fairly, the Committee would appreciate receiving copies of acts of the Council of Ministers setting out conditions and limits for specific allowances in kind. In this connection, the Committee draws the Government’s attention to paragraphs 104–160 of its 2003 General Survey on the protection of wages, which offer guidance concerning possible ways in which legislative conformity with this Article of the Convention may be ensured.

In addition, the Committee recalls that the Convention specifically requires the partial payment of wages in kind to be regulated only by national law or regulation, collective agreement or arbitration awards, and not individual agreement. It therefore considers that section 269, paragraph 2, of the Labour Code is not fully consistent with the Convention to the extent that it permits bonuses or wage supplements in kind to be negotiated and agreed upon by the employer and the worker. The Committee requests the Government to take the appropriate action in order to bring the national legislation into line with the requirements of the Convention in this respect.

Article 6. Freedom of workers to dispose of their wages. The Committee notes the Government’s explanations that section 272 of the Labour Code, which enumerates the cases in which deductions without the worker’s consent may be lawfully made, suffices in itself to guarantee the workers’ freedom to spend their earnings as they please. However, as the Committee has pointed out in paragraph 178 of the abovementioned general survey, unfair or excessive deductions from wages is only one way in which workers can be limited in their freedom to dispose of their wages and it is therefore necessary for implementing legislation to contain an express provision generally prohibiting employers from restricting the discretion of workers as to the use they wish to make of their wages. The Committee wishes to refer also to paragraph 210 of the same survey in which it was concluded that nothing short of an explicit legislative provision setting forth a general prohibition upon employers from limiting the freedom of workers to dispose of their wages in any form and manner, directly or indirectly, can be regarded as giving full effect to the requirements of the Convention whereas other legislative measures, such as the exhaustive enumeration of authorized deductions, combined with an explicit provision to the effect that any deductions other than those explicitly permitted by law are unlawful, may be deemed to give only partial effect to the obligation laid down in this Article of the Convention. The Committee trusts that the Government will take the necessary measures to ensure that full effect is given to the terms of the Convention in this regard.

Article 7. Works stores. The Committee notes the Government’s reference to section 294 of the Labour Code which allows employers to establish and operate within their enterprises commercial, welfare and cultural services, including, for instance, shops and restaurants, hairdressers, transport services, sports facilities, travel clubs and libraries. The Committee would be grateful if the Government would specify how it is ensured in law and practice that the workers are free from any coercion to make use of such stores or services and also that the goods or services are provided at fair and reasonable prices for the benefit of the workers concerned.

Article 10. Assignment of wages. The Committee has been requesting the Government to clarify whether the national legislation regulates the notion of assignment of wages, that is to say, the possibility for an indebted worker to agree with the competent judicial or administrative authorities upon a voluntary arrangement whereby part of his/her wages are paid directly to the creditor in settlement of his/her debts. Even though the attachment of wages, i.e. the withholding of part of the worker’s wages by the employer in application of a court order, is permitted within the limits set out in the Code of Civil Procedure, it is not clear whether similar provisions exist for the assignment of wages. The Committee requests the Government to supply additional explanations in this regard.

Article 11. Protection of wage claims in bankruptcy proceedings. The Committee notes with interest the ratification by the Government of Bulgaria of Convention No. 173 in respect of both Parts II and III dealing with the protection of workers’ wage claims in case of the employer’s bankruptcy or insolvency by means of a privilege and a wage guarantee institution, respectively. In accordance with Article 3, paragraph 6, of Convention No. 173, the acceptance of the obligations of Part II involve ipso jure the termination of the obligations under Article 11 of Convention No. 95. The Committee notes also with interest the first detailed report submitted by the Government on the application of Convention No. 173 which is examined separately.

Article 12, paragraph 2. Final settlement of all wages due. The Government’s indications on the periodicity of wage payments are not strictly relevant with this provision of the Convention which relates to the obligation to settle swiftly and in full any unpaid wages at the end of the contract of employment. The Committee is therefore bound to reiterate its request for clarification concerning the legislative provisions, if any, which regulate the prompt settlement of outstanding wage payments upon the termination of the employment relationship.

Article 13, paragraph 1. Payment of wages on working days only. Further to its previous comment on this point, the Committee notes that section 270(1) of the Labour Code gives only partial effect to this Article of the Convention since it requires the payment of wages at the workplace but does not specifically provide for payment on working days only.

Article 15(d). Record-keeping. With further reference to section 270(3) of the Labour Code which provides for the payment of labour remuneration from a payroll directly to the worker concerned, the Committee would be grateful if the Government would indicate any legislative or administrative provisions regulating the form and manner in which payroll records must be kept, as well as the specific wage particulars to be shown in those records. In this connection, the Committee draws attention to Paragraph 7 of Recommendation No. 85 which offers some guidance in this respect.