A proposal to alter the guaranteed recovery of payments due to employees and workers when their employer becomes insolvent has been filed with Parliament.

The Labour and Social Policy Commission’s proposal aims to increase the protection for some employees and make it easier for them to recover any pay they are owed.

At present, the guarantee extends to all current and former employees and workers (whose contract was terminated during the last 3 months prior to insolvency), but is limited to 3 months’ earnings in the 6 months prior to insolvency.

A number of changes have been made to insolvency procedure to remove various discrepancies and controversial practices:

In the wake of increased competition stemming from the recent liberalisation of the Bulgarian electricity market, more and more electricity players and major electricity traders such as Future Energy and Energy Financing Group are now facing serious financial difficulties.

According to reports, some are now fighting to stay afloat after the initiation of insolvency proceedings. Given this increased market pressure, analysts state it is likely these and other energy traders may declare bankruptcy and face eventual liquidation.

We saw important amendments to the Bulgarian Commerce Act (the “Act”) come to life at the very end of 2016, most notably regarding:

Notary certifications – currently in effect