Archive for July, 2010

Changes to Labor Law Abolish Paid Leave Carry-over

Friday, July 30th, 2010

Following much debate the changes proposed by the government in Bulgaria’s Labor Code finally came into effect on July 30, 2010. Under the new regime, employees must use their paid annual leave by the end of the calendar year to which it refers, and will not be entitled to carry it over into future years and respectively get compensated for carried-over leave upon termination of their employment. However, a part of the paid annual leave, amounting to not more than 10 working days (more in cases of sickness, pregnancy etc.), may be deferred by the employer to the next calendar year due to important production reasons. In that case, the entitlement will have to be used in the next calendar year to which it is deferred. Any unused paid annual leave accumulated until January 1, 2010 for previous calendar years can be used only until December 31, 2011.

The changes address a serious contingent liability issue for Bulgarian companies and other employers, which had to accrue provisions for unused paid leave carried over from previous years. In some companies that resulted in significant amounts being allocated, due to the fact that employees had accumulated significant unused paid leave entitlement, which had to be compensated upon termination (including retirement) based on the current salary level of the employee.

Competition Authority Rejects Dominance Complaint on Tying in the Pay-TV and Telephony Markets

Saturday, July 17th, 2010

The Bulgarian Commission for the Protection of Competition rejected a complaint brought by the Bulgarian Telecommunications Company, Bulgaria’s incumbent telecom, against CableTel, a prominent local Pay-TV, internet and telephony operator (now operating under the Blizoo brand) on alleged abuse of dominance by reasons of tying and bundling of Pay-TV services and telephony offers. The Commission challenged the complainant’s claim that CableTel is indeed dominant in the Pay-TV market, and further found that the offers of the respondent were not abusive, even if reviewed under an assumption of dominance.

Borislav Boyanov & Co. represented CableTel throughout the proceedings before the Commission. The firm’s team was lead by partner Peter Petrov.

The International Comparative Legal Guide to: Pharmaceutical Advertising 2010

Friday, July 16th, 2010

PhAdv2010C

 

This article appeared in the 2010 edition of The International Comparative Legal Guide to: Pharmaceutical Advertising; published by Global Legal Group Ltd, London.

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Interest Rate Calculation Method is Fixed at Entry into the Credit Agreement, according to the Amended Consumer Credit Act

Thursday, July 15th, 2010

The Parliament adopted at its meeting today amendments in the Consumer Credit Act. They provide that the banks cannot unilaterally change the methodology for calculating the interest rate after entry into the credit agreement.

The MPs agreed that creditors must publish on their website the current rate of the reference interest rates used by them and the methodology for determining the reference interest rate. The creditor is also obliged to maintain on its website data on the value of any reference interest rates, which it has identified.