Widespread Hiring Without Contracts in Hospitality Sector
The Bulgarian General Labour Inspectorate Executive Agency (GLI) has raised alarms over a persistent and widespread issue in the country’s hospitality and restaurant industry—the employment of workers without formal labor contracts. Since the beginning of 2025, 416 individuals have been found working without proper documentation in this sector, out of a total of 2,111 such cases across all industries, according to the agency’s latest report.
The Labour Inspectorate conducted 3,946 inspections in the hospitality sector alone during the first half of 2025. These checks uncovered 17,459 violations of labor laws. Among them, 9,758 infringements were related to the establishment and execution of employment contracts, while 7,522 involved failures to provide safe and healthy working conditions.
Additionally, 172 violations were found regarding the employment of foreign nationals in Bulgaria. As a result of these inspections, authorities have issued 982 administrative offense reports, and nearly 1.5 million BGN worth of fines and settlement agreements have been confirmed.
Another major concern is the employment of minors. So far this year, 8,686 permits have been issued for employing individuals under 18 in the hospitality and restaurant sector. Although regulated, this type of employment demands close supervision to prevent exploitation and ensure compliance with labor laws.
The hospitality sector remains under close scrutiny due to its high risk for undeclared labor, particularly during the busy tourist seasons. In response, the Labour Inspectorate has implemented year-round inspections and intensified its efforts during summer and winter in popular tourist destinations.
In June, Labour and Social Policy Minister Borislav Gutsanov reaffirmed the government’s commitment to strict oversight, stating that summer inspections would focus on tourism, construction, and agriculture—sectors with a high demand for seasonal and temporary workers.
“The goal is not only to enforce regulations but to protect the rights and dignity of workers,” said Gutsanov. “Everyone deserves fair pay and safe working conditions, and businesses that ignore the law must face the consequences.”
The agency continues to encourage workers to report violations and urges employers to comply with legal hiring practices, warning that intensified checks will continue throughout the summer.
This ongoing situation underscores the broader challenges of combating informal employment and protecting workers in a rapidly growing but heavily seasonal industry.