BETWEEN
THE MINISTRY OF LABOUR AND SOCIAL POLICY AND THE MINISTRY OF
FINANCE OF THE REPUBLIC OF BULGARIA
AND
THE MINISTRY OF SOCIAL AFFAIRS AND EMPLOYMENT
OF THE KINGDOM OF THE NETHERLANDS
ON COOPERATION CONCERNING ENFORCEMENT OF THE RULES ON
SOCIAL POLICY, IN CASE OF CROSS-BORDER LABOUR AND SERVICES, AND
THE ENFORCEMENT OF SOCIAL SECURITY REGULATIONS .

Signatories, the Minister of Labour and Social Policy and the Minister of Finance of the Republic of
Bulgaria, and the Minister of Social Affairs and Employment of the Kingdom of the Netherlands.
Referring to the Resolution of the Council and the Representatives of the Governments of the
Member States meeting within the Council of 22 April 1999 on a ‘Code of Conduct for improved cooperation between authorities concerning the combating of trans-national social security benefit and contribution fraud and undeclared work, and concerning the transnational posting of workers’;
Having regard to Directive 96/71/EC of the European Parliament and of the Council of 16
December 1996 concerning the posting of workers in the framework of the provision of services and in particular Article 4, paragraphs 2 and 3 of that directive, which state that
Member States shall make provision for cooperation between the public authorities which, in accordance with national legislation, are responsible for monitoring the terms and conditions of employment referred to in Article 3 and that such cooperation shall in particular consist in replying to reasoned requests from those authorities for information on the trans-national hiring-out of workers, including manifest abuses or possible cases of unlawful trans-national activities;
Having regard to Directive 95/46/EC of the European Parliament and of the Council of 24
October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data;
Considering that in connection with the increase in cross-border labour and services, it is desirable to intensify cross-border cooperation in the field of enforcement of the regulations concerning social policy and for that purpose, to designate competent bodies and modes of cooperation;
Considering that cross-border cooperation in relation to the application of social security schemes and taxes has already been provided for under Regulations (EEC) No 1408/71 and
574/72 and the conventions and agreements concerning fiscal matters, so that supplementary arrangements are desirable only with regard to the enforcement of regulations concerning terms of employment, working conditions in case of cross-border labour and services;
Considering, however, that the authorities involved in the administration of the social security schemes should be party to intensifying the cooperation, as these authorities already have at their disposal part of the information that may be of interest for the enforcement of the regulations concerning terms and conditions of employment, in case of cross-border labour and services, and for the enforcement of social security regulations;
2

HAVE COME TO THE FOLLOWING UINDERSTANDING:
I.
1.
The purpose of this Letter is to improve and intensify the bilateral cooperation concerning the combating of illegal work, the enforcement of the rules on terms and conditions of employment in case of cross-border labour and services, and the enforcement of social security regulations.
2.
Annex 1 to this Letter contains an indicative list of regulations, in force at the date of signing of this Letter, on the basis of which the cooperation will take place.
II.
This cooperation envisaged in this Letter applies to the entire territory of the Republic of
Bulgaria and to the entire European territory of the Kingdom of the Netherlands.
III.
Annex 2 contains a list of authorities and institutions that are directly involved in the cooperation at the date of signing of this Letter. These authorities and institutions can directly contact each other.
IV.
The authorities and institutions referred to in Annex 2 will support each another, in combating illegal work, and in the enforcement of the rules on terms and conditions of employment in case of cross-border labour and services, and in the enforcement of social security regulations subject to national law then in effect, particularly by means of: a.
exchanging information on the organization and activities of the supervisory and implementing authorities and institutions; b.
designating of contact persons at these authorities and institutions; c.
jointly planning and implementing of preventive measures in their respective areas of operation; d.
performing joint risk assessments and database comparisons to aid such assessments, subject to national law then in effect concerning the protection of personal data, e.
exchanging information about working methods and methods of supervision; f.
responding to requests for information; g.
communicating on their own initiative (spontaneous communications); h.
assisting in the investigation of the circumstances of an occupational accident or in connection with the handling of a complaint; i.
temporary exchanges of workers.
V.
1.
Requests and spontaneous communications as referred to in point IV, under letters f. and g, will in any case include the following information: a.
distinguishing characteristics of companies, or persons who carry out crossborder activities that are the subject of a request or communication;
3

b.
a brief, clear account of the reason for the request or communication.
2.
Requests should also state the name of the requesting body, the subject and the reason for the request, as well as the information to be sent or actions to be taken.
3.
Requests and spontaneous communications may be made by post, fax or email.
4.
Requests and spontaneous communications will not be handled a.
if it would require a disproportionate administrative effort to do so, b.
if it would be in breach of provisions of national law to do so.
5.
A request need only be granted in so far as the requested party has access to the information in question or, can obtain access to it, under national law.
6.
If the requested party does not have access to the requested information, but one of the other cooperating authorities or institutions has that information at its disposal, the request will be forwarded to the latter institution. If the request is forwarded to another institution, the requesting party will be informed of that fact.
7.
The requesting party will state a reasonable time limit within which it would like the request to be handled. If a request cannot be handled within the stated time limit, that fact and the reasons for that will be communicated to the requesting party.
8.
Annex 3 contains an indicative list of information which could be exchanged.
VI.
The administrative cooperation and activities under this Letter will be free of charge.
VII.
1.
If one of the institutions designated by one of the Signatories delivers personal data, electronic or otherwise, to one of the institutions designated by the other Signatory, the rules of the delivering State concerning the protection of personal data will apply. The law of the receiving party concerning the protection of personal data will apply to each case where data is processed by the receiving party. Processing is understood to include the forwarding, storage, alteration and destruction of data.
2.
The personal data obtained on the basis of this Letter may only be used for the purposes referred to in point IV and in accordance with legal provisions on personal data protection.
VIII.
1.
A working group will be brought into existence, which will be given the task to promote the good coordination of the activities concerning this Letter, and periodically evaluate the functioning of the Letter. This working group will be made up of representatives of the authorities and institutions mentioned in point III. Signatories will, each for itself, appoint a person who in matters concerning this Letter will serve as central contact person, and will jointly form the Secretariat of the working group.
4

2.
The working group will meet in any case one year after signing this Letter, and then at least every two years.
3.
The working group may invite representatives of other national authorities or institutions of the Signatories or other Member States of the European Union that have an interest in the achievement of the objectives of this Letter to take part in its activities.
IX.
1.
Signatories will, within six months after signing this Letter, regulate the implementation procedures of the cooperation envisaged for their policy area.
2.
Signatories will inform each other about changes taking place, after signing this Letter, in the regulations and authorities and institutions, mentioned in the Annexes 1 and 2, as far as of interest for the application of this Letter.
X.
The cooperation envisaged in this Letter becomes effective on the date of signing.
XI.
This Letter creates no rights or obligations under international law.
XII.
The cooperation in this Letter is entered into for an open-ended period. Either Signatory may terminate it by so notifying the other Signatory (or Signatories) in writing. The termination will become operational three months after the notification has been received by the other
Signatory (or Signatories).
Done at Sofia, on 19 November 2008, in two duplicates each one in the Bulgarian, Dutch and
English languages, all texts being equally authentic. In case of divergences of interpretation, the English text shall prevail.
The Minister of Labour and Social
Policy of the Republic of Bulgaria
Emiliya Мaslarova
The Minister of Finance of the
Republic of Bulgaria
On behalf of
The Minister of Social Affairs and
Employment of the Kingdom of the
Netherlands,
The Ambassador of the Kingdom of the
Netherlands in Sofia,
Plamen Oresharski Willem van Ee
5

ANNEX 1
A. For the Netherlands:
- Working Conditions Act;
- Working Hours Act;
- The Aliens Employment Act;
- Terms of Cross-border Employment Act;
- Minimum Wage Act;
- Collective Labour Agreement Act;
- Placement of Personnel by Intermediaries Act;
- Work and Social Assistance Act.
- The social insurance acts, administered by the bodies listed in Annex 2A, under c. and d, on basis of the chapters 5 and 6 of the Structure Employment and Income Act
(SUWI)
B. For Bulgaria:
- Labour Code;
- Law on Safety and Health at work;
- Law on Employment Promotion;
- Law on the Foreigners in R Bulgaria;
- Law on Entering, Residing and Leaving the Republic of Bulgaria of European Union;
Citizens and Members of Their Families;
- Social Insurance Code;
- Tax and Contributions Procedures Code;
- Law on National Revenue Agency;
- Law on family Allowances for Children;
- Social Assistance Act
6

ANNEX 2
A. For the Netherlands:
- The Ministry of Social Affairs and Employment of the Kingdom of the Netherlands;
- The Labour Inspectorate (central contact point for the implementation of Acts mentioned in Annex 1);
- The Social Information and Investigation Service (SIOD) for larger, common cross border operations;
- National institute for employee insurance (UWV, department IBF), as central contact point for the implementation of Acts on social security and social assistance;
- The Social Insurance Bank (SVB), central contact point for the implementation of
Acts on social security regarding residents.
B. For Bulgaria:
- The Ministry of Labour and Social Policy;
- The Ministry of Finance;
- National Revenue Agency (central contact point for the implementation of Acts mentioned in Annex 1);
- Executive Agency Chief Labour Inspectorate (central contact point for the implementation of Acts mentioned in Annex 1);
- National Social Insurance Institute;
- Social Assistance Agency;
- Employment Agency.
7

ANNEX 3
A. Requests concerning an undertaking with cross-border activities, in particular information about: a.
the undertaking’s date of establishment; b.
the legal form of the undertaking; c.
the nature of the undertaking; d.
the address of the undertaking’s head office and any branch offices; e.
the directors of the undertaking; f.
the division of ownership and entitlement to profits among the partners in the undertaking; g.
permits granted to the undertaking; h.
notifications made and registrations filed by the undertaking; i.
risk assessments and evaluations conducted by the undertaking; j.
activities of the undertaking in its country of establishment; in particular, whether the undertaking’s economic activities are of any significance.
B.
Requests concerning the employment relationship between an undertaking and any of its workers posted in the receiving country, in particular information about: a.
how the worker is accounted for in the employer’s records; b.
the nature of the contract of employment with the employer; c.
the date that the worker entered into employment; d.
information on the employee’s pay; e.
whether the employee is insured under the legal system of social security; f.
records of the worker’s working hours.
C. Requests concerning the posted worker, in particular information regarding: a.
the worker’s residence permit for the country where the employer is established; b.
the worker’s work permit in the country where the employer is established; c.
the worker’s qualifications; d.
the identity of the worker and his identity papers.
D. Requests for investigation of the circumstances of an occupational accident or in connection with the handling of a complaint may relate to the following aspects of an investigation: a.
interviewing a victim of an occupational accident; b.
interviewing witnesses to an occupational accident; c.
interviewing the victim’s employer; d.
interviewing the complainant and his employer; e.
results of investigation of the occupational accident, when investigated by the investigatory body
E.
Request regarding the applicant or recipient of social assistance benefits may refer to: a.
the residence of the applicant or recipient; b.
the family situation of the applicant or recipient;
8

c.
benefits or other income of the applicant or recipient, and his family members, as far as relevant for the entitlement to social assistance benefits; d.
property and financial means of the applicant or recipient, and his family members, as far as relevant for the entitlement to social assistance benefits.
F. Only as far a necessary for the cooperation in combating illegal labour and the enforcement of the rules on terms and conditions of employment in case of cross-border labour and services, and in as far as the in Annex 2 mentioned bodies have information at their disposal, requests may also regard information about social security.
9