Home » News » Employers Warn of Widespread Unemployment Benefits Scam Impacting Workforce Availability

Employers Warn of Widespread Unemployment Benefits Scam Impacting Workforce Availability

Employers have warned of a new unemployment benefits scam that is making it even harder to find work.

“Recently, the so-called ‘French unemployment’ has become widespread. People go in organized buses to France, there they are fictitiously employed by a French company on a minimum wage. But they can also be hired on an arbitrary salary, because their appointment is fictitious – they only stay for a week, after which they return to Bulgaria and register at the labor offices. From there, they receive unemployment compensation at the maximum level for our country for 9 or 12 months, depending on the total length of service,” AIKB chairman Vasil told the scheme Velev.

Such fraud is possible because of a gap in European legislation, Velev points out. In France, the amount of compensation is determined according to the amount of salary that a person received in the last month, while in our country the remuneration of the last 24 months before the reduction is considered.

Even if they are hired in France at a minimum wage of over 1,700 euros, when the supposedly unemployed return to Bulgaria and register at the labor offices, they automatically receive the maximum unemployment benefit for Bulgaria. At the moment, the maximum unemployment compensation in our country is about BGN 1,800 per month, and from next year it will jump to over BGN 2,200, as an increase in the maximum daily rate is planned.

With this amount in their pocket, the unemployed do not want to officially start work, which creates a problem for companies as well.

Recently, the deputy mayor of Razlog, Hristo Zaikov, complained that local hoteliers and merchants have difficulty finding workers for the winter ski season. When trying to hire staff, employment contracts are being refused en masse. They don’t want to work on a contract because they are on the stock market and receive benefits, the deputy mayor explained to deputies from the tristic commission, which was discussing preparations for the winter tourist season.

Zaikov called for measures to limit this fraud, because it is widespread in their area.

The scheme leads to a drain on the Bulgarian budget, because not the entire amount of the compensation is paid by the French social system, part of the funds are also paid by the NOI, said the employers’ organizations.

If you want to support independent and quality journalism in “Sega”,
you can donate via PayPal

2023-12-11 23:53:22


#Businesses #warn #unemployment #benefits #scam

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.