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The Law on the Introduction of the Euro – Legal and Strategic Implications for Business
In Insight onWith the promulgation of the Law on the Introduction of the Euro in the Republic of Bulgaria (ZVE-RB) on August 7, 2024, the country has undertaken a decisive legislative step toward full accession to the Eurozone, scheduled to take effect on January 1, 2026. This enactment represents not only a significant legal development, but also a strategic economic measure with broad implications for the national financial system and the business sector.
The law regulates the core aspects of the monetary transition and establishes institutional and procedural mechanisms designed to ensure transparency and safeguard the public interest. Its provisions aim to mitigate the risk of price manipulation and contain potential inflationary pressures during the changeover period.
It especially sets the fixed exchange rate between the Bulgarian lev and the euro at 1.95583 leva for 1 euro and outlines a series of specific procedures related to the transition period. These include methods for public awareness of the forthcoming changes, the stages of implementation and adaptation, and the entire process of introducing the new currency.
For businesses, the introduction of the single European currency entails both strategic opportunities and regulatory challenges. One of the main mandatory measures is the obligation to display prices in both leva and euros, which should be implemented within one month of the adoption of the official decision by the Council of the European Union (July 8, 2025) to adopt the euro within 12 months of its introduction (December 31, 2026). The dual pricing obligation is intended to promote transparency, deter speculative practices, and mitigate psychological inflationary effects commonly associated with currency transitions. It enables consumers to monitor pricing behavior and facilitates a smoother adaptation to the new monetary system.
A notable change is the process for the free exchange of leva into euros, which will be guaranteed by banks for amounts up to BGN 30,000 and by Bulgarian Post for amounts up to BGN 1,000 per day during the first six months after the introduction of the single currency. Following this initial six-month period, banks may implement fees, whereas the Bulgarian National Bank will remain obligated to provide free exchange with no restrictions on time or amount.
Of practical importance is the mandatory return of change only in euros for payments in leva during the first month after the introduction of the euro, which requires the timely updating of cash registers, accounting software, and ERP systems, as well as training for staff on how to work with the new currency.
Additionally, on July 2, 2025, the government approved an updated National Plan for the Introduction of the Euro, which outlines specific deadlines and requirements for the technical preparation of businesses. This includes the adaptation of software systems and employee training (as mentioned earlier), as well as the updating of contracts denominated in leva. Contracts initially drawn up in leva will be automatically converted to euros at the fixed exchange rate, without the need for annexes, unless the parties involved agree otherwise. While this simplifies the administrative transition, it requires careful legal scrutiny of contracts that include clauses related to currency risks or specific payments. Starting in 2026, cash registers and accounting software must be updated to accommodate the euro currency.
One of the main strategic benefits expected for businesses from the introduction of the euro is the reduction of transaction costs when trading with partners from the eurozone and the improvement of lending conditions, as well as the increase in Bulgaria’s attractiveness to foreign investors.
On the other hand, companies should also prepare for potential risks such as inflationary pressure and possible administrative complications. Maintaining customer confidence and preventing possible speculative practices through clear communication and fair pricing will be key to a successful transition.
As Bulgaria prepares for the integration of the euro into its economy on January 1, 2026, next year will be pivotal for the business landscape. The changes outlined in the Law on the Introduction of the Euro require not just adaptation but a complete reevaluation of internal processes, contractual arrangements, and strategic planning. Companies that address these challenges proactively, with clear legal and organizational frameworks, will be far better positioned in the new financial environment. This includes revising and updating commercial contracts, accounting practices, information systems, and ensuring staff are prepared to work with euros. For a smooth and risk-free transition, it is crucial to collaborate with skilled legal advisors who can provide timely and practical solutions in line with both the regulatory requirements and the economic realities.
Murgova & Partners Attorneys-at-Law possesses extensive expertise and practical experience in advising clients on a broad spectrum of legal matters, including recent legislative developments such as the introduction of the euro in the Republic of Bulgaria. Our team provides comprehensive legal support to both commercial entities and public institutions in navigating and complying with the new regulatory framework governing the transition to the single European currency. This publication is intended for informational purposes only and does not constitute legal advice. Each case requires a tailored assessment based on its specific facts and circumstances. For professional assistance, please contact our legal experts via www.murgova.com.
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IMPORTANT NOTIFICATION!!!
In Insight onDear Clients, Colleagues and Partners,In connection with the increased attempts to send malicious e-mails misleadingly claiming to be from law firms, including ADD Murgova & Partners, we would like to draw your attention to some basic guidelines to protect you in such a situation.Known as “phishing” emails, they are designed to trick the recipient into providing certain information or accessing certain links or files, most often containing malicious code.To protect yourself, we advise you to- Look at the email address from which the message was sent, not just the part of the message that identifies the sender. Usually, such malicious messages are sent from email addresses with an extension after the “@” that has nothing to do with the party being impersonated as the sender;
- Look at the whole message – for general addresses, errors in the text, requests for urgent action, and other indicators that it is not specifically addressed to you;
- Under no circumstances should you provide personal or sensitive information;
- Do not access any links or files attached to the email in question until you have verified that the message is indeed from a legitimate source. Please do not reply to or download any content from such emails.
- Check the URL before accessing links by hovering over the link, and never access links that start with http: instead of https:
- Do not take action before consulting the IT department;
- Keep your anti-virus software up to date.
In addition, we would like to inform you that Murgova & Partners Attorneys-at-law has not sent such messages, and if you have received them, please have in mind that these are part of such phishing attack. Please do not open such e-mails and do not download their attachments!
Our team is here to help! Contact us at office@murgova.com -

Changes in the issuance proceedings of the “EU Blue Card” for access of highly qualified foreign nationals to Bulgaria
In Insight onWHAT IS THE PURPOSE OF THE SO-CALLED “EU BLUE CARD”?
The “EU Blue Card” enables highly qualified third- country nationals, employed by a Bulgarian employer, to exercise highly qualified employment under an employment relationship in Bulgaria.
A set of new, easier rules for issuing an “EU Blue Card” for access to the labor market of third-country nationals are in force since the 25th of January 2023.
The new set of rules introduces a more flexible regime for accepting highly qualified third-country nationals in Bulgaria, providing opportunities for remote work, for long-term and short-term business trips, including in the territory of the EU.
CHANGES IN THE LABOR MIGRATION AND LABOR MOBILITY ACT
• With Issue № 8 from the 25th of January 2023 of the State Gazette, The Labor Migration and Labor Mobility Act was amended and supplemented, which resulted in indirect changes to the Foreigners in the Republic of Bulgaria Act.
• The introduced changes facilitate the terms and conditions for attracting highly qualified specialists in all sectors of our economy through the issuance of the so-called “EU Blue Card”.
WHAT DO THE CHANGES ENVISAGE ?
• The scope of people, considered to be engaged in a highly qualified employment, is being expanded. In addition to the current requirement for the presence of a university education, the possibility of recognizing a minimum of 5 years of experience and education, which is comparable to an acquired university education, is being introduced. The needed documents can now be submitted electronically.
• An opportunity for remote work from Bulgaria and abroad is presented for the first time.
• Holders of the “EU Blue Card”, issued by the Republic of Bulgaria, have the opportunity to enter and reside in another member state for a period of up to 90 days within a period of 180 days for the purpose of carrying out particular professional occupation.
• The mandatory period of employment in Bulgaria for the person who received an “EU Blue Card” is being reduced from 24 to 12 months. The specified limitation does not apply to the cases of secondment of workers and employees, holders of the “EU Blue Card”.
• The validity of the “Blue Card” is extended from 4 to 5 years, and a minimum period of no less than 24 months is also being established.
• The minimum term of the employment contract is reduced from 12 to 6 months.
“Murgova and Partners” Attorneys at Law has extensive experience with proceedings regarding the issuance of the “EU Blue Card”, as well as any needed additional assistance to employers and third-countries nationals. The law firm also has experts in the field of labor and migration law with successful practice in the procedures for issuing a permit for access to the labor market for foreign nationals.
You can contact us at www.murgova.com. or on tel. 0894 300 484
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Legal Thinking and Litigation Strategies Workshop
In Insight onDear colleagues, partners and students,
We are glad to invite you to attend the first workshop organized by Murgova and Partners team in partnership with the Bulgarian Industrial Association (BIA), the Court of Arbitration at BIA, and The Center for American Studies in Poznan, Poland.
The event will cover rarely discussed subjects in our daily practice of law, namely, Legal Thinking and Litigation Strategies.
Why are legal thinking strategies so important?
Everything we do in the legal profession is with the perspective of resolving or otherwise dealing with conflicts. Having the correct legal thinking strategies in a conflict from the get-go is indispensable to understanding how to apportion our time and resources in a conflict, in order to address only what is pertinent to actually winning the “war” at the end.
The workshop will cover practical legal thinking short-cuts that will equip you with fresh and tested approaches to issues arising in legal disputes.
When: October 13th 2022, 14:00 EEST (UTC+3)
Where: Conference hall at BIA, located Sofia, 76 Chataldzha Str.
The workshop will be presented in English.
The Moderator of the event will be Mrs. Petya Murgova – managing partner and leading team member in Dispute resolution and Mediation at Murgova and partners.
We are glad to announce as well that our guest lecturer will be attorney Mr. Valery Loumber, Academic Director at the Center for American Studies (“CFAS”) in Poznan, Poland. Mr. Loumber has over 20 years of legal experience in the United States, including experience in private practice, as staff attorney for several federal judges, as a lecturer and professor of law, and also as a judge. Currently, he is a partner at the litigation law firm of Gavrilov & Brooks in Sacramento, California.
The workshop will be with duration of 3 hours and is free for students.
For other attendees the participation fee is in the amount of 36 EUR.
Should you wish to participate please contact us at office@murgova.com for more payment details.
We are looking forward to meeting you there!
Petya Murgova
and Murgova & Partners Team
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How to use photographic works on the Internet without infringing the author’s rights?
In Insight onIn our practice in the field of intellectual property and protection of copyright and related rights, we more and more often encounter various cases in which photographic works are used on the Internet by third parties other than the authors or the copyright holders. We witness how some users perceive someone else’s works available in the virtual space which are a subject to free use, and in such cases the consideration of certain specific features is omitted, which in general leads to copyright infringement.
With the current article we present you the main guidelines that you should follow when using photographic works on the Internet, so as not to infringe copyright.
In English, the general term “copyright” has been adopted, which contains the rights of the authors of various works of intellectual property much more comprehensively. Bulgarian law considers either the general concept of “copyright and related rights” or the different types of such rights.
What do you need to know about intellectual property rights to photographic works in the light of their use on the Internet?
The Bulgarian Act on Copyright and Related Rights (ACRR) considers several hypotheses regarding the use of photographic works, without, however, considering the specific hypothesis of their use on the Internet, which should be equated to a public display within the meaning of our law. According to the Act on Copyright and Related Rights, the right to publicly display photographs belongs to the author or to a person to whom the author has transferred this right. Therefore, as a rule, the free use of photographs (including on the Internet) without the consent of the author is prohibited. This rule applies even to portrait photographs, as the law allows the author and the person photographed to agree on the terms of the use of the photograph. It is important in these hypotheses to note that the photographer should in the first place obtain the consent of the person being photographed to photograph him.
An exception to the rule above according to the Act on Copyright and Related Rights is allowed when using works (including photographic ones) that are constantly exhibited on streets, squares and other public places, if this is done for information or other non-commercial purposes. Such use does not require the consent of the copyright holder and no remuneration is due.
The following exception under our law for the use of a photographic work without the consent of the author is permissible in the reproduction of the work, regardless of the medium, by an individual for its personal use, provided that it is not made for commercial purposes. In this case, however, a payment of fair compensation to the author is due.
Regardless of which of the hypotheses of use it falls under, however, the fundamental right of every author, including photographers, should not be forgotten, namely that their authorship should be indicated or the so-called “photo credit” should be given. ”. Even the general terms and conditions of websites that offer access to and use of completely “free” photographs contain texts according to which the reference to the author and/or the source of the photograph is always good, and in our opinion the best practice.
This recommendation is based not only on our experience in solving many similar cases when using photographs on the Internet, but also on the basis of our work with highly developed ways to monitor the use of photographs on the Internet. Advances in technology have made it possible to create automatic platforms that detect the use of photos on the Internet and notify photographers of any such use. The assessment of whether the use is lawful or not is usually made by the author himself or by the attorney engaged by him.
In addition, it should be kept in mind that referring only to the source from which the photograph is used may also not be sufficient. According to the Act on Copyright and Related Rights, without the consent of the copyright holder and without payment of remuneration, it is admissible to reproduce works related to a current event, so that these works are used by the media to a limited extent, justified by the purposes of the information indicating the name of the author, unless this is not possible. Make sure that it is really impossible to find the name of the author of the photograph, as these would usually be rare hypotheses. It is a common practice, especially for young photographers, to publish their works on the Internet and to provide the opportunity to use them without remuneration, but with obligatory reference to the author himself. This guarantees copyright when using the “free” photo. Omission of the author’s reference in the use of such works equates to copyright infringement with all the consequences of the law.
For such violations ACRR provides a property sanction in the amount of BGN 2,000 to BGN 30,000, and the possibility remains open for the author to claim compensation for property and non-property damages in court. Here we should also take into account the hypothesis that, if you have used photography by foreign authors, the Bulgarian law will not be applicable and possibly the court case for establishing copyright infringement is very likely to be subject to a foreign court, thus the defence possibilities would be further complicated, and in addition you might be charged with high court costs and attorney’s fees. In such cases, we usually advise our clients to use out-of-court means to reach an agreement with the other party. Negotiation and mediation are extremely appropriate and successful solutions in such cases.
To avoid such consequences and risks when using third parties’ photographic works on the Internet, we advise you to follow the recommendations in this article, as well as to consult with attorneys-at-law with vast experience in the field of intellectual property, just like us in “Murgova and partners” Attorneys at Law. If you have any questions or need advice, we will be happy to help you. Contact us through www.murgova.com
*Image by mohamed Hassan from Pixabay
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What you need to know to organise your online advertisement
In Insight onIn our previous article on the subject, we have presented you some of the most important requirements that the legislation sets for online trading. In its continuation with the current article we would like to provide you with information considering several additional, but fundamental questions for every trader. Thereinafter we will focus on how product advertising should be organized so that, without violating statutory prohibitions, the trader can distinguish his own from those of his competitors and thus direct the consumer demand to them, as well as how should promotional/discount campaigns be organized.
Requirements for comparative advertising to be observed:
The legislation is based on the perception that the comparison between the qualities of different products is predominantly useful for the consumer and therefore comparative advertising is allowed in compliance with the requirements aimed at preventing malicious harm to the interests of competing companies. On the other hand, the comparison between the products of competitors always carries the risk of harming the interests of the competitor, since the purpose of advertising is precisely to highlight the advantages of the advertised product and thus direct consumer demand to it.
Therefore, and in order to avoid the restrictions of the prohibited comparative advertising, more often than not established methods are used in which the ads themselves set a basic appearance of similar products in order not to target those of a particular competitor, but despite that the effect of emphasizing the positive characteristics of the advertised product is achieved.
What should the advertising message of the trader who has decided to take advantage of the opportunities for comparative advertising look like?
- The comparison should be objective, between products and services that satisfy the same needs. Otherwise, there is no way to make a real and adequate comparison, and advertising will not be objective;
- Advertising messages that make false claims, use vague or misleading messages, withhold or exaggerate information, and that harm the competitors’ name or trademarks in bad faith should be avoided.
Requirements for organizing promotional/discount campaigns:
When organizing discounts, the trader should comply with the following requirements:
- It is recommended for larger campaigns to prepare clear rules for the discount, provided for customers;
- The discount announcement should contain information about the goods and services which are on a discount and the duration of the reduced price;
- The announcement should be made in one of the ways provided in the Consumer Protection Act, so that the comparison between old and new price is visible;
- The old price, which will be stated in the discount announcement, is considered to be the one applied by the trader at least one month before the discount (this condition was introduced to avoid price speculation and the so-called “fictitious reductions”). ;
- The reduction period should be between 1 working day and 1 month;
- The conduct of a discount campaign does not entitle the trader solely because of the proposed lower price to “take away” certain rights of consumers (eg the right of withdrawal, complaint, etc.).
It is important to keep in mind that non-compliance with the requirements for lawful conduct of discount campaigns could lead to the imposition of administrative sanctions on the trader, but more significant would be the “sanctions” imposed by consumers themselves, who as a result of established unfair practice, would redirect their demand to other similar products of competing companies.
On the other hand, it is important to keep in mind that a large part of the e-commerce legislation aims not only to protect the interests of consumers, but also to protect the competitive environment. Therefore, when taking a number of actions in an online environment, the trader should continue to comply with the rules of competition law, which he adheres to in his usual course of business.
This article has outlined some of the most important aspects that every trader should keep in mind when conducting online trading. The variety of factual relationships leads to the emergence of many other cases that require a complex and timely solution from the trader. Therefore, we at Murgova and Partners Attorneys at Law are next to our clients every day, providing them with constant assistance in finding the most appropriate solutions. If you need additional information and assistance, you can visit our website: https://murgova.com/
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How to prepare your online store in accordance to legislation
In Insight onDuring the past period of social distancing and restrictions we have witnessed an unprecedented boost in the development of e-commerce. The inability of many retailers to continue direct sales of goods and services to their customers has led to the relocation of a number of businesses online. An interesting phenomenon is that in the online environment have moved even services, the added value of which is to provide an individual experience of the client (eg classes in creative activities, etc.).
In order to adequately organize its activities in a dynamic environment and to protect themselves from unwanted sanctions, every trader should ensure compliance with certain requirements set from a legal point of view. In this article we will summarize some of the most important of them, the observance of which we define as particularly important in order to legally exercise the commercial activity of companies in the online environment.
Obligation to provide information to customer-users
The relationship of the online trader with consumers (individuals who buy goods or services for their non-professional needs) has a significant and inevitably accompanying them in their entire development light motive. This is the requirement for the trader to provide the consumer with as much information as possible, which will enable him to make an adequate decision for product selection. In its turn, the latter is partly difficult due to the fact that in online trading consumers cannot see and directly compare several similar products (something they can do without a problem when physically buying goods). Therefore, the legislation introduces several additional requirements for the trader, the implementation of which aims to guarantee the consumer’s right to information in its various aspects and in its full scope.
These requirements are set out in several national and European regulations, given the qualities of the parties in the relationship in e-commerce leading among which is the Consumer Protection Act (“CPA”). According to the requirements of the latter, before the consumer is bound by a contract, the trader should have provided him with information on:
- your trade name, address of management, phone number, e-mail;
- the main characteristics of the goods or services (through a textual description of their main parameters such as size, material from which the goods are made, etc., as well as through a photo that objectively presents the product);
- the final price of the goods or services including all taxes and fees;
- payment terms, including accepted means of payment (information regarding the payment should be provided in a clear and obvious way close to the button through which the user places his order);
- terms of delivery (including whether there are any restrictions on the delivery itself, as well as the date of delivery);
- information on whether a right of withdrawal is provided and under what conditions it can be exercised;
- conditions of a legal guarantee for correspondence of the products, and if any-of an additional commercial guarantee, as well as additional information under what conditions, in what terms and where the granted rights are exercised.
In addition to the above, the Electronic Commerce Act (“ECA”) strengthens the requirements for providing unimpeded access to certain information, which further includes:
- designation of an authority which controls the activity of the trader;
- VAT registration information.
Last but not least, the legislation in the field of personal data protection requires the trader (who also has the capacity of Administrator within the meaning of the General Regulation on Data Protection) to provide certain information to users whose data are processed when accepting orders in online stores. Part of it overlaps with the one already described, and in addition the trader-administrator should inform the client – subject of personal data about:
- an appointed data protection officer (if any) and contact details;
- purposes of data processing and legal basis for processing operations (the most common case in online trading will be for the purposes of contract execution – the customer’s order);
- data recipients;
- data retention period;
- information about the rights of the clients in relation to the provided personal data;
- information on the right to appeal and to which authority the same can be exercised;
- information on whether the provision of data is mandatory or voluntary and what would be the consequences of not providing it.
It is important that the full required information is provided by the trader to the consumer and that this circumstance can be proven by the trader.
How to document the presentation of all the described information?
A very large part of the information described above is usually contained in several basic acts of the trader related to his commercial activity, including that carried out in an online environment. Here we will consider the most important of them, as well as some of their significant specifics:
- General terms and conditions: given the standardized form of the relations between the parties, it is an established practice for the contracts within the framework of online trade to be concluded under general conditions.
In addition to the information described above, the General Terms and Conditions most often contain information about the customer registration procedure (if required for placing an order), as well as the sequence of actions when placing an order. Something that is often missed is the inclusion of information and an active link to the Public Online Dispute Resolution Platform.
In case the trader wishes to collect additional declarations, consents, etc. from the clients, which are not among the obligatory requisites of the General Terms and Conditions, he should do so with a separate document. This is important because with the adoption of the General Data Protection Regulation, the previous practice of including in the General Terms and Conditions or in another general document a number of additional statements to be made by the user in a single action has been established as vicious (usually by pressing on the “I agree to the Terms and Conditions” button).
- Confidentiality rules: they perform the purpose of an act presenting preliminary information to data subjects within the meaning of the General Data Protection Regulation. Following the adoption of this Regulation, it has become established practice to place this document in a publicly accessible place (eg in the trader’s office, on his website, etc.).
- Cookie policy: contains information about what cookies are, what types the trader uses on his website and how they can be regulated. It is known that there are cookies without which the website cannot function and are therefore considered strictly necessary. On the other hand, there are those that are not necessary for the functioning of the website – e.g. marketing and other Particular attention should be paid to the so-called third party cookies (installed by third parties). For the majority of cookies, which are not strictly necessary for the functioning of the website, the regulations require the collection of prior explicit consent for their installation on a user device by the visitors of the website. It is worth mentioning here that the consent should be explicit and the so-called pre-ticked boxes.
This article outlined some of the most important aspects that every trader should keep in mind when starting an online business. In our next article we will provide you with additional information on how to organize the advertising of products so that without violating statutory prohibitions, the trader can distinguish his own products from those of his competitors and thus direct the consumer demand for them, as well as how discount campaigns should be organized.
Murgova and Partners Attorneys at Law has significant experience in advising online traders. If you need additional information and assistance, you can visit our website: https://murgova.com/
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Summary on the important measures under the measures and actions during the state of emergency act, adopted under decision of the National assembly on March 13th 2020
In Insight onWith Decree No. 71 of 23.03.2020 the President of the Republic of Bulgaria promulgated The measures and actions during the state of emergency act, adopted under a Decision of the National Assembly on March 13, 2020.
The present document aims to give a brief overview of the adopted texts, and we would also like to note that the team of Murgova & Partners Attorneys at Law is currently working on subsequent memos, which will give more detailed information on the specific measures, broken down by areas. We expect these texts to be published in the upcoming hours and days.
The Act introduces specific measures for the period of the declared state of emergency in several directions: suspension and extension of a number of procedural terms (deadlines), termination of pending procedures, restriction of notarial proceedings, enabling employers to take measures for reorganization of the work process, empowering military forces to undertake certain actions. The Transitional and Final Provisions amend a number of provisions of the existing legislation connected to the accepted measures and it must be noted that the amendments are substantial and are subject to a separate independent analysis within the specific area.
1. Measures, concerning the employers
Working remotely
As we have already mentioned in our review of the Draft version of the of the Act, prior to its final adoption, the employer is given the opportunity, depending on the specific nature of the work and the possibility of securing it, at his own discretion to introduce working from home or working remotely. The employer is also entitled to provide an employee up to one-half of the paid annual leave which can be done regardless of the consent of the employee.
By virtue of explicit Order the Employer may suspend the working process of the company or part of it, of all of its employees or of part of them for the period of the state of emergency. The working process of the company may be also suspended by virtue of an explicit order issued by the competent state authority.
The Employer is entitled to implement part-time work for employees.
As a measure in support of the employers, the National Social Security Institute is envisaged, through the means of the Unemployment Fund, to cover 60% of the amount of the social security income for January 2020 for people, insured under art. 4, subart. 1, item 1 of the Social Security Code (employees regardless of the nature of work). Which employers will have the opportunity to benefit from the measure is yet to be determined, and the Act provides for the conditions for this to be determined by a following act of the Council of Ministers.
Special rules have been introduced for workers who provide or assist in the provision of medical care, respectively for civil servants who, by job description or by order of a manager, assist in the provision of medical care. They are not subject to the restrictions on overtime and its duration under the Labor Code and it is similar with the police and fire safety and public protection bodies that work overtime on regulatory restrictions.
Murgova & Partners Attorneys at Law is available for clarifications and drafting of respective documentation. We are currently working on a detailed article on all measures introduced by the Act concerning employers.
2. Restrictions related to procedural terms (deadlines), pending procedures and proceedings
As of 13.03.2020 and until the state of emergency is lifted all procedural terms (deadlines) related to all and any court, administrative, arbitration and executions procedures and cases are suspended. This restriction is not be applicable to the terms (deadlines) related to criminal procedures, extradition and coercive measures. Furthermore, prescription terms are ceased, as well as terms for the implementation of instructions given by an administrative authority.
Various procedural terms under the Social Security Code, The act on the foreigners on the territory of the Republic of Bulgaria, the Act on the national community centers, the Act on the Pre-school and School Education, the Act on Corporate Income Tax, the Act on Personal Income Tax , the Social Security Procedure Code, the Act on Independent Financial Audit, the Insurance Code, the Act on Public Offering of Securities, the Act on Financial Instruments Markets, the Act on the activities of collective investment schemes and other collective investment undertakings, have been extended or suspended.
The validity period of the documents for residence of foreigners, the validity period of ID cards and driving licenses have been extended.
The introduced changes are quite detailed, with exceptions in each case. This makes detailed analysis impossible in the context of this short document. Our team at Murgova & Partners Attorneys at Law is working on a detailed article focusing specifically on these measures. We recommend a mandatory consultation with a lawyer regarding the suspended deadlines, the effect of this measure and their resumption after the state of emergency has been lifted.
All procedures for public sale or entering into possession have been suspended.
The Act imposes a moratorium on the blocking of bank accounts owned individuals and medical establishments, the attachment of salaries and pensions, the inventory of movable property and real estate owned by individuals.
Notarial proceedings are restricted and only “urgent” notarial proceedings are permitted. The text is likely to raise questions because of the lack of a legal definition of “urgent”.
Until the state of emergency is lifted, the effects of late payment on the obligations of private entities, including interest and penalties for late payment, as well as non-monetary consequences such as early repayment, contract termination and seizure of property, shall not apply.
The deadlines for payment of amounts due in connection with the supply of electricity to household customers are extended from 10 to 20 days.
Murgova & Partners Attorneys at Law is working on a detailed article on all measures introduced by the Act and concerning changes within the statutory deadlines.
3. Restrictions on procurement procedures
The adopted measures provide that the Act on the public procurement is not applicable in respect to the purchase of medical devices and personal protective equipment necessary to provide anti-epidemic measures. PPA is not applicable in respect to the procurement of pesticide and hospital waste disposal activities.
The contractors are given the opportunity to renegotiate the deadline for implementation of the public procurement.
Murgova & Partners Attorneys at Law is working on a detailed article on all measures introduced by the Act in relation to public procurement.
4. Measures in educational establishments
For students in day, evening, part-time, individual and combined form of education, as well as in a dual system of education, distance learning must be introduced within an electronic environment using the means of information and communication technologies. Teachers and pedagogical specialists carry out the education by providing a workplace in their home or their chosen premises and by using the necessary technological equipment.
The Minister of Education and Science has been given the opportunity by virtue of an Order to introduce temporary rules regarding the education.
5. Restrictions and measures in the activities of pharmacies and the export of medical products
Pharmacies may dispense medical products only on the basis of a prescription book, without presenting a prescription according to the data on dispensed medical products recently entered in the prescription book, under the terms and procedures determined by the National Health Insurance Fund, until the state of emergency is lifted and two months after its abolition.
During the state of emergency, by virtue of an Order of the Minister of Health the export of certain medical products may be prohibited, with the prohibition being accompanied by an administrative sanction of up to BGN 50,000 depending on the offender.
6. Restrictions related to the EU structural and investment funds’ funds
The possibility of unilaterally modifying grant contracts by the managing authorities, granting grants under simplified rules, shortening the timeframes for direct grants, issuing non-present decisions on all matters of competence of the Program Monitoring Committee are envisaged. The application of some articles from the European Structural and Investment Funds Management Act is excluded.
The Murgova and Partners’ team is available for any additional consultations about the restrictions described herein above, and we are also working on a detailed article on all measures introduced by the Act.
7. Other measures
The Act also introduces a number of other measures, such as:
The possibility of the military forces to participate in the implementation of anti-epidemic measures, under the conditions and in the order determined by an act of the Council of Ministers, such as carrying out identity checks on people, under certain conditions to restrict the movement of people and vehicles until to arrival of the Ministry of Interior bodies and others.
Within 7 days of the promulgation of the Act, medical establishments, state institutions and telecommunications operators through certain officials should carry out an extraordinary check of the technical condition of their energy facilities intended for the supply of electricity.
Entry into force of the law
With the exception of some explicitly stated provisions (with an effect from the date of promulgation), the Act enters into force retroactively – 13.03.2020 and applies until the state of emergency is lifted.
The Murgova & Partners’ team is available for further clarification on the issues raised in this article, and we can assist with any specific legal issues raised by the Act.
Sofia, March 25th, 2020
The Team of Murgova & Partners Attorneys at law
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Summary on the important measures
In Insight onSubject to implementation during the state of emergency, declared in the Republic of Bulgaria within the time period as of March 13th 2020 until April 13th 2020
(this Summary is up-to-date as of March 18th 2020)
By virtue of the project of the Act on the measures applicable during the state of emergency, hereinafter referred to as “the Act” and/or “the project of the Act”, (declared with Decision dated March 13th 2020), issued by the National Assembly, are provided numerous measures which shall be implemented on the territory of the Republic of Bulgaria within the time period of the declared state of emergency.
The present document aims to summarize the most important (from business perspective) emergency measures, provided by the project of the Act.
As of the date of preparation of the current document, the project of the Act has been adopted in general at its first reading conducted by the National Assembly. Considering that future amendments might be made within the final version of the Act, we reserve our right to amend the current document accordingly.
The Transitional and final provisions of the project of the Act provides amendments in a numerous legal acts for the purpose of the implementation of all emergency measures. Such legal acts are:
a. The Criminal Code;
b. The Labour Code;
c. The Social Security Code;
d. The act on the disabled individuals;
e. The act on the Bulgarian identification documents;
f. The act on the foreigners on the territory of the Republic of Bulgaria;
g. The act on the defence and the military forces of the Republic of Bulgaria;
h. The act on the civil servants;
i. The act on the national community centers;
j. The act for amendment of the Act on the administrative regulations of economic activities, related to oil and products of oil origin.
Within the discussions conducted in the National Assembly between first and second reading of the project of the Act, have been proposed additional amendments in other legal acts for consideration. The most important of them are the National health act, the Act on the medical establishments, the Act on the public procurement procedures, etc.
Murgova and Partners Attorneys at law is available to provide to its Clients the full set of legal services and consultations related to analyzing and implementing the emergency measures. Further to the above, our law firm might assist its Clients with preparation of all necessary internal company documents, including specific internal rules, policies, orders, decisions, etc.
The emergency measures included in the project of the Act aim to prevent, to restrict and to overcome the infection with COVID – 19 as well as the consequences of the spread of COVID – 19.
1. Restrictions on gathering of individuals and on their movement
1.1. All visits of entertainment and gaming rooms, discos, bars, restaurants, fast food restaurants, drinking establishments, cafes, pastry shops, trade centers (MALLS) – with the exception of banking and insurance offices, grocery stores and pharmacies placed therein, are forbidden.
The restaurants and fast food restaurants are entitled to organize food deliveries, following strict sanitary and hygiene requirements.
It should be outlined that the list of restricted business activities is exhaustive. Thus, all of the activities which are not mentioned above, might be further executed following the current requirements, as well as following strict sanitary and hygiene requirements.
1.2. All school sessions as well as the visits of kindergartens, schools, universities, etc, are forbidden. If possible, each school, kindergarten and university should organize distance training of its students.
1.3. All mass events, including sport events, cultural and scientific events are also forbidden. Falling within the present item are also cinemas, theaters, concerts, museums, fitness room visits, etc.
1.4. All planned medical consultations, medical examinations, immunizations, organ transplantations as well as visits in hospitals are forbidden.
1.5. All trainings and business trips (conducted on the territory on the Republic of Bulgaria as well as on the territory of any other foreign country) are forbidden.
1.6. All visits of correctional institutions (including prisons and other similar establishments) are forbidden.
1.7. Each individual travelling abroad is entitled to have medical insurance of an obligatory character.
The measures listed above might be expanded and amended with an Order issued by the Minister of Health after recommendation of the National Operational Headquarters.
2. Restrictions related to procedural terms (deadlines), notary and other procedures
During the state of emergency in the country all procedural terms (deadlines) related to all and any court, administrative, arbitration and executions procedures and cases are suspended. This restriction shall not be applicable to the terms (deadlines) related to criminal procedures.
The formulation of the initial text of the respective provision is rather vague as it is not clear which is the initial moment as of which these terms are considered suspended. Therefore, this ambiguity shall be clarified when the final version of the Act is being adopted by the National Assembly. Taking this into consideration, it is our opinion that until the finally adopted Act is being published and enforced (following the applicable legislative procedure) the procedural terms are not suspended and thus – they shall be met. Furthermore, it shall be additionally clarified if procedures related to imposition of administrative penalties fall within the scope of this restriction. Considering the formulation of the initial text of the provision, we believe that these procedures are also falling within the scope of this restriction, but this should be explicitly clarified by the National Assembly.
In addition, the provisions related to objection of administrative acts is rather unclear as well. If these terms are also considered suspended, this might prevent numerous administrative acts (such as Decisions issued by Assignors under the Act on public procurement procedures) from entering into force and execution.
Further to the above, all procedures for public sale or entering into possession initiated by private bailiffs, are considered terminated. It should be outlined that there is no differentiation provided between procedures for entering into possession against individuals or legal entities. The broader formulation of the text of the respective provision leads to the conclusion that the restriction is applicable to all procedures for entering into possession (irrespective of the capacity of the debtor).
Further to the above, all procedures initiated for preservation of funds stored on bank accounts, restraining of pensions or labour remunerations as well as for preparation of inventory list of movable and immovable property (within enforcement procedure) are also suspended. All of these restrictions are applicable only when the debtor is individual, which means that all similar procedures conducted against companies, non-profit organizations, etc. might be proceeded.
The project of the Act also provides that all notary procedures, with the exception of those of an emergency or urgent character, shall not be conducted. The Notary Chamber is obliged to secure at least one notary public (with territorial competence) on duty, following strict sanitary and hygiene requirements. These new provisions are followed with additional ambiguities. First of all, there is no definition or at least indicative list which notary procedures shall be considered with such of an emergency or urgent character. Therefore, this circumstance shall be considered case-by-case which might lead to misuse of the specific notary procedure, delay with filing of Notary deeds before the Registry Agency, conduction of numerous deals with identical real estate and many other risks for the business. Thus, it is our professional opinion that the new provisions related to notary procedures shall be additionally clarified in order to avoid the mentioned negative outcomes.
3. Restrictions of the working process
All employers are obliged to implement procedures for distance fulfillment of employees’ obligations. In the event that this is not possible, strict safety and anti-epidemic measures shall be implemented within the working premises. Such measures might include filtering procedure on arriving employees, disinfection, ventilation of premises, trainings on personal hygiene, etc. Employers are also obliged not to allow to work employees or third parties (external to the employer’s organization) with symptoms of severe diseases.
Under the general state inspector’s recommendation the employer shall also organize the working process by securing at least 1 meter distance between all employees.
In relation to the above, the administrative directors within the employer’s organization shall report the implemented measures as well as they shall certify the smooth conduction of the working process.
Our law team is readily available for discussion of the most appropriate form of reorganization of the working process within your company, considering the specifics of your business activity.
Further to the above and as already stated, additional amendments shall be made in the Labour code for the state of emergency, such as:
a. The Employer will be entitled to assign to the employees distance fulfillment of their obligations, irrespective of their consent to this decision.
b. By virtue of explicit Order the Employer might suspend the working process of the company or of its part, of all of its employees or of part of its employees for the period of the state of emergency. In this case, the Employer is obliged the pay the full amount of the gross remuneration of the employees.
c. The working process of the company might be also suspended by virtue of an explicit order issued by competent state authority. In this case, the Employer is obliged to pay 50 % of the gross remuneration of the employees, but not lesser than 75 % of the minimum state wage.
d. The Employer is entitled to implement part-time work for employees initially engaged on full-time – for the period of the state of emergency.
All of the mentioned changes in working conditions (including the remunerations of the employees, holidays and leaves) shall be subject to explicit order issued by the Employer and provided to the attention of all employees which should also sign specific declarations that they are acquainted with these changes. Further, it is our understanding that for the purposes of clarity, these changes shall also be subject to supplementary agreements signed by the Employer and each employee (under the requirements of art. 119 of the Labour code).
e. When the working process of the company is suspended, the Employer is entitled to provide paid leave to the employee (irrespective of latter’s consent on this decision). This right might be exercised also over individuals which do not have 8 months working experience. In the event that some employees do not have any paid leave left, they might be provided with unpaid leave for the period of the state of emergency.
f. The Employer is obliged to provide leave under the request of the following employees:
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Pregnant employees or such in advanced stage of in vitro treatment;
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Mothers or single fathers of children up to 12 years old or of disabled children – without limitations in their age;
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Employees under 18 years old as well as employees with decrease of performance of 50 or more %;
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Employees subject to the protection provided by art. 333, subart. 1, item 2 of the Labour code.
4. Restrictions related to the EU structural and investment funds’ funds
The possibility of unilaterally modifying grant contracts by the managing authorities, granting grants under simplified rules, shortening the timeframes for direct grants, issuing non-present decisions on all matters of competence of the Program Monitoring Committee are envisaged. The application of some articles from the European Structural and Investment Funds Management Act is excluded.
The Murgova and Partners’ team is available for any additional consultations about the restrictions described herein above.
5. Assigning of tender procedures and procedures under the Act on the public procurement procedures
After decalaring the state of emergency in the country an amendment to the Act on the public procurement procedures was announced in State Gazette, No 23/14.03.2020. The amendment provides that the Act on the public procurement procedures will not be applicable about buying of medical devices and personal protective equipment necessary to provide anti-epidemic measures introduced by an act of the Minister of Health or a director of a regional health inspection in cases of declared emergency situation under art. 84, p. 12 from the Constitution of Republic of Bulgaria.
However, the initial draft of the Act does not provide any additional measures considering assignment and organization of tender procedures and public procurement procedures under the Act on the public procurement procedures. Our opinion is that this omission would rise lots of questions and hinders for the assignors about all started and new procedures under PPA and the tender ones as well. Part of these matters are included during the discussions before first and second reading of the Act.
There are expert discussions and proposals in the media but so far, no official opinion by any competent state organ has been announced. We will keep you informed about any further and detailed information considering these measures.
6. Other important matters
Up to date there are discussions about introduction of emergency economic measures supporting the business in several areas. The discussed measures are not final and they will be further clarified and completed. Considering their specifics we are expecting further amendments to be made in the draft of the Act before its finalization and that may affect some of the commented measures herein above as well.
Herein below, we will present the discussed measures in brief and we will inform you further when they are finalized.
The discussed economic measures are anticipated as follows:
6.1. The Employment Agency will pay off 60 % from the employees’ remunerations for a 3-month period for certain employers categories after a special application procedure is initiated by the employers;
6.2. Assistance or provision of reliefs for payments under commercial credits;
6.3. Extension of deadlines for tax and accounting closures as well as for declaring and payment of taxes.
The team of Murgova and Partners Attorneys at law is by your side during this challenging period as will assist and consult you about all specific legal matters raised by the emergency situation. We will keep you informed about the final draft of the Act once it is adopted by the National Assembly.
The Team of Murgova & Partners Attorneys at law
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European order for payment
In Insight onEuropean order for payment
The European Union aims to create, maintain and develop an area of freedom, security and justice in which the free movement of persons is guaranteed. In order to achieve this objective and in order to ensure the proper functioning of the internal market, the Union provides the adoption of measures in various fields, one of which is the field of judicial cooperation and civil matters having cross-border implications.
The EU also aims to guarantee stability of the economic operators by limiting the causes that lead to insolvency, notably by ensuring the prompt and effective recovery of outstanding debts, over which no legal controversy exists.
The adoption of Regulation (EC) № 1896/2006 of the European Parliament and of the Council of 12 December 2006 Creating a European Order for Payment Procedure is the result of the simultaneous efforts of the EU in these two fields.
The European Order for Payment (EOP) is intended and developed to be a quick and at the same time effective mechanism for recovery of uncontested pecuniary debts within the European Union.
The procedure is applicable in all Member States except for Denmark. In other words, this means that such an order could be issued or enforced by the respective competent court in each Member State except for Denmark. The regulation applies only to claims arising from civil or commercial matters – for example commercial transaction receivables (forwarding agreements, lease agreements, etc.) or claims arising from civil contracts (leasehold agreements, loan agreements, etc.), which have cross-border implications.
A specific case could be defined as a cross-border case if one of the parties is domiciled or habitually resident in a Member State other than the Member State of the court that has been seised. The two terms shall be interpreted with regard to their meaning expressed in Regulation (EC) 44/2001.
The procedure provides an additional and thus optional remedy for the claimant that does not prevent him from undertaking procedures under the respective national legislation. The regulation develops a simplified and speeded-up procedure that reduces the litigation costs and ensures the free circulation of European Payment Orders within the Union.
The procedure commences once a claim is submitted before the respective competent court. In order for the claim to be valid, it shall be drafted in accordance with an established form. The claimant shall identify the parties and the amount of the claim (the principle, and where applicable the interest demanded on the claim, the contractual penalties and other costs related). The claimant shall also state the cause of his action and the circumstance in connection with his claim, as well as a description of the evidence supporting the claim. Along with this, the grounds of the jurisdiction and the cross-border nature of the case shall be defined. The claimant is not required to provide the court with any other additional documents, though he may do that at his discretion.
In fact, if the requirements of the Regulation that concern the application form are met and if the court adjudges that the claim appears to be founded, the latter shall issue, as soon as possible and usually within 30 days, a European Order for Payment. When issuing such an order, the court also uses a unified form.
In order to provide the defendant with information that would help him arrive at an informed decision about his possible actions, the application form requires thorough description of the circumstances related to the claim. Either the defendant could pay the amount stated in the order, or he could lodge a statement of opposition with the court within 30 days of service of the order on him. Where a statement of opposition is lodged, the EOP could not be enforced by the court. In that case, the proceedings shall continue in accordance with the rules of the ordinary civil procedure unless the claimant explicitly requests the termination of the procedure.
The claimant, who succeeds in proving the merits of his claim before the court, receives an enforceable titulus in a relatively short time. On the other hand, the defendant is protected – if the claimant does not manage to provide a detailed description of the circumstances related to his claim, the court will not issue an order. Even if the court issues such an order, the defendant may lodge a statement of opposition that will lead to transformation of the procedure to the ordinary civil once. The latter would prevent the quick effect of the EOP.