(Last updated 04.09.2023)
This article provides information about the terms and conditions under which you can lease employees to another company. This is a common practice. You enter into an employment contract with an employee and send him to work for another employer, who pays you an agreed amount for this service. This activity is legally regulated and can be performed legally only after the respective registration and issuance of a temporary employment certificate. Leasing staff is different from staffing. You can read more about the second type of activity here.
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Who has the right to lease staff?
Any natural person or legal entity who carries out commercial activity, ie. it is registered as ET, OOD (LTD), AD(JSC) etc. can lease staff. Therefore, the first condition you must meet is to have a registered company in Bulgaria or abroad. If your company is foreign, it must legally operate on the territory of Bulgaria.
If you already have a registered and operating company, it must meet the following conditions:
- have no monetary obligations to the state or to the municipality;
- not be declared bankrupt or in liquidation;
- have no administrative penalties imposed;
- to have a group insurance concluded in the amount of BGN 200,000 or a bank guarantee in the amount of BGN 200,000 for the receivables of the employees who will be hired by them to provide temporary work;
- to have operating internal regulations and drafts of a contract with a business owner and a contract with an employee;
- the company’s representative has not been convicted of a crime.
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What certificates do you need?
“Staf leasing” is also known as “providing temporary employment”. In order to legally carry out this activity, your company must apply for a certificate of temporary employment with the National Employment Agency. After submitting the necessary documents proving that you meet the above conditions, the application will be considered within 14 days. In case of irregularities in the documents, the Agency shall give instructions for their elimination within 30 days.
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What is the validity of the certificate?
The temporary employment certificate is issued for a period of 5 years. A fixed fee of BGN 740 is payable for the service. All parties having the right to provide temporary employment to their staff are registered in a public register at the National Employment Agency. You can check here. The register gives updated information about the name of the agency, its address, certificate number and validity. We recommend signing contracts only with agencies from the above list.
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What contracts the leasing agency can sign?
4.1. Labour contract with an employee
The agency must enter into an employment contract with an employee in order to send him to perform temporary work in the enterprise of a client (User Company), under his guidance and control. The leased workers cannot be more than 30 percent of the total number of all workers. Also, employees of the first and second categories of labour may not be leased, nor may they be sent to enterprises related to the national security and defense of the country, as well as to enterprises where there is a strike at that moment. Another important condition is that the labour contract with the employee is concluded until the completion of a certain job or for the replacement of an employee who is absent from work.
4.2. Contract with a user company
The agency has the right to receive remuneration under a contract with the user company against the provision of the leased employee. Leasing staff provides more flexibility and freedom for the user company, since most of the obligations are for the agency.
In case you have questions about the registration of a temporary employment company or you need to prepare any of the documents for carrying out the activity, you can contact us via the Contact Form. More information about a similar activity recruitment agency (HR agency) can be found HERE.
