Resources Company management Hiring freelancers

Hiring freelancers

Some companies prefer hiring workforce as private contractors instead instead of signing labor agreements. There are two reasons for such decision:

1. Private contracts are much easier to terminate;
2. Social security contributions for private contractors are generally lower

This practice comes with a certain risk because under Bulgarian law private contracts can’t be used to substitute labor contracts. If a violation is established upon inspection by the public authorities the company may be subject to fines up to several thousand BGN.