Staff Leasing in Bulgaria: What Applicants Need To Know

The term “staff leasing”, also known as “contracting”, is a practice whereby agencies such as Blue Lynx can hire people on behalf of other companies. This is a relatively new service on the Bulgarian market, that’s rapidly gaining popularity among companies in our country.

Contracting is extremely useful for employers because it saves them time, resources and effort. But how are things from the point of view of the candidates? In this article, we’ll try to answer this and other interesting questions you might ask yourself as a contractor.

Staff leasing? What’s this?

If this is the first time you’ve heard the term, don’t worry – it’s not some kind of illegal activity. Staff leasing is a business practice in which a legal entity (e.g. an agency) hires and provides staff for another legal entity (another company) under its management and control. This service is mainly provided by recruitment agencies and is a flexible solution for employers who want to hire new employees but are unable to hire them permanently.

Are contractors legally protected?

The answer, of course, is yes. Contracting is legally described in Article 107 of the Bulgarian Labour Code. To offer staff leasing, an agency must be registered and licensed to carry out employment mediation services. It must meet all the necessary legal requirements to protect and benefit all parties affected. The peculiarity here is that the contracts concluded with the agency are only temporary, which under Bulgarian law means no more than 3 years.

Which sectors are suitable for contracting?

Staff leasing is usually preferred in sectors and industries where the main activity doesn’t require permanent employment or where the number of employees fluctuates on a project basis. This doesn’t mean that the company isn’t reliable, on the contrary.

In Bulgaria, the most common companies that choose staff leasing are:

• Car companies;
• Manufacturing companies/factories;
• Pharmaceutical companies;
• Transport and logistics companies;
• Foreign companies that aren’t (yet) registered in the country.

What are the advantages for candidates?

When it comes to staff leasing, it’s quite normal for applicants to be afraid of being “cheated” by the company they’ll be working for. In fact, the service offers many advantages, not only for employers but also for contractors. In other words, it’s a win-win situation.

1. Finding a job faster

Agencies that offer contracting services are usually experienced in recruitment and have a wide network of clients and candidates. They can find the right job for you even if you’ve already had unsuccessful job search attempts. This speeds up the whole process considerably and saves you time and money.

2. Better social benefits

Contracting agencies often offer desirable and competitive employee benefits because they can negotiate with service providers. This allows their contractors to access extended health insurance packages, dental plans, meal vouchers and more.

3. Good opportunity for inexperienced candidates

Contracting can also be a good option for people who don’t have much experience but would like to find a good job. Inexperienced candidates can be referred to a temporary position with the prospect of a permanent job. In many cases, companies want to keep employees who’ve shown good skills during the time they’ve been hired and offer them a permanent contract.

4. Personal HR support

Staff leasing agencies aren’t only responsible for the remuneration and documentation of contractors. In addition to these activities, they provide extensive HR support to their contractors. Often small to medium-sized companies don’t have a functioning HR department. The staff leasing programme provides applicants with access to information, support and personal assistance from the agency that hired them.

5. Stability and security

Most agencies that offer staff leasing are stable and secure companies that have established themselves on the market and have extensive experience in hiring. This means that all their processes are simple, quick and accurate. Moreover, contractors can be sure that they’ll receive their monthly remuneration on time and without unnecessary delay.

And yet – why won’t they hire me permanently?

One of the most common questions that arise from candidates is this – every employee would like security and safety in their future workplace. The truth is that the reasons can differ – from legal restrictions to compliance with company policy or the high workload of the HR department. Additionally, sometimes the positions offered for staff leasing are related to seasonal work or work on projects that are limited in time.

No matter the exact reason, you need to know that contractors are legally protected and their rights are no different in any way from those of permanent employees. Plus, many companies hire people on a project basis, but later continue the relationship with a permanent contract.

Takeaways

• Staff leasing is a practice whereby one legal entity can hire staff on behalf of another legal entity
• The general conditions for contracting are described in Article 107 of the Bulgarian Labour Code
• Staff leasing is usually practised in sectors and industries where the activity doesn’t require permanent employment or the number of employees fluctuates on a project basis
• Being a contractor has many advantages, such as faster job finding, better social benefits, individual HR support