Changes to the Law on measures and actions during the state of emergency

What happens to cancelled trips, which court deadlines don't stop running, what are the consequences of late payment, and how does the 60:40 measure change?

On 09.04.2020 the amendments to the Law on Measures and Actions during State of Emergency were published in an extraordinary issue of the State Gazette. These changes provide answers to a wide range of questions affecting businesses and citizens.

What are the consequences of cancelled trips?

The pandemic and the state of emergency have led to the cancellation of many organised trips and excursions. The actions that tour operators and travellers can take are now settled. In the event that a tour operator needs to refund a trip, it has several options:

1) May provide a voucher for the amount paid to be used at a later date by the customer;

2) May reach an agreement with the customer for a substitute travel package;

3) If the traveller does not agree in respect of either of the two options, the tour operator must refund the amount paid no later than one month from the date of the cancellation of the emergency.

What are the consequences of late payment?

Article 6 of the law, which affected the entire civil turnover, was also amended, exempting private parties from liability for late performance of any monetary obligations. This rule now covers only credit and leasing contracts. It is only in these cases that default interest and penalties do not apply, the obligation cannot be declared due before maturity and the contract cannot be terminated for non-performance. This also applies where the claim is assigned to a third party.

What are the changes in relation to the 60:40 measure?

Until now, the 60:40 measure involved the state paying 60% of the wage of each worker for whom compensation was claimed. In order to increase the interest in this support, the State now also covers the insurance contributions, which are generally borne by the employer. In case you would like more information about the measure and how to benefit from it, you can read more in our article dedicated to it or contact us.

What other changes affect employers, employees and workers?

First, there has been an important change in the Tax and Social Security Code (TSSC). Thus, the non-investable labour income was increased from 250 BGN to 610 BGN, i.e. the amount of the minimum wage. Non-seizable income is that income against which enforcement cannot be directed and on which no attachment can be imposed.

Second, for the duration of the state of emergency the employment contracts under Art. 1 of the Labour Code for short-term seasonal work may also be concluded for more than one day, this time not being recognised as length of service. Such contracts can now also be concluded by tobacco growers, and specimen contracts can be obtained from the Labour Inspectorate and electronically.

Which deadlines stop and which continue to run?

1)     Procedural time limits

The general rule remains that from 13 March until the end of the state of emergency, procedural time limits in judicial, arbitration and enforcement proceedings shall be suspended. However, exceptions to this rule have been introduced for cases in which time limits do not stop. This includes interim proceedings, cases under the EUSIFA, suspension of execution of administrative acts, etc. The list includes 21 types of criminal cases, 7 types of civil and commercial cases and 16 types of administrative cases.

In this regard, during the state of emergency, the courts will be able to hold open hearings remotely, with the parties and participants in the process participating virtually. The Commission for the Protection of Competition will also be able to hold such hearings. As for the judicial recess in 2020, it has been cancelled.

2)     The time limits for the implementation of instructions given by an administrative authority

The rule that these time limits shall cease to run shall be abolished. This does not only apply to proceedings under the European Structural and Investment Funds Management Act.

What is the fine for violating health measures?

The fine for breaching health measures has been reduced from BGN 5 000 to BGN 300 to BGN 1 000. In case of a repeated violation, it will be from 1000 to 2000 BGN. As for sole traders and legal entities, they will be fined from 2000 to 5000 BGN.

What other changes have been introduced?

Other changes have been introduced such as the ability to reduce the amount for rent contributions by ministers and individual executives, relaxed requirements for donations of protective equipment, disinfectants and alcohol, and the ability for collective bodies to make decisions via video conferencing.