Control on the Black Sea Coast: Bulgaria Intensifies Measures Against the Shadow Economy

Bulgaria is tightening controls along the Black Sea coast to combat the gray economy in tourism. The Minister of Labor and Social Policy, Borislav Gutsanov, will join an inspection by the Directorate of Labor Inspection – Burgas at the Sunny Beach resort, as officially announced by the ministry's press center.

Why are inspections being stepped up?

This move is part of a large-scale campaign that started in June with the goal of curbing unregulated practices in key sectors for the summer season. According to information from the ministry, the inspections cover all tourist settlements along the coast, with a focus on hotels and restaurants – sectors traditionally vulnerable to violations.

Despite the sunny weather and carefree atmosphere of the seaside resorts, serious problems with labor laws are hidden behind the facade of the summer season. The labor inspectors are on the ground with clearly set goals:

Limiting undeclared work, enforcing regulations for working hours and employee pay, as well as guaranteeing the safety and health of workers. In addition, a special emphasis is placed on the legal hiring of foreign nationals from third countries and of minors, whose exploitation is often easier.

The risk in the tourism sector is heightened due to the widespread use of various forms of undeclared work. These practices not only deprive the state of tax revenue but also place workers in an unenviable position, without social security and protection.

Violation statistics

Official data provided by "The General Labor Inspectorate" earlier this month confirm the seriousness of the problem. Since the beginning of the year, almost 31,750 inspections have been conducted across all economic activities. More than 123,400 violations were found, which indicates widespread problems.

• 54,580 violations are related to the execution of labor relations.
• 68,000 violations concern the provision of healthy and safe working conditions.
• The most striking number is the cases of work without a labor contract – a full 2,240.

The Inspectorate continues to report a particularly high number of employees working in the gray sector, specifically in hotels and restaurants. Since the beginning of the year, 416 people have been found working without a labor contract in this sector, out of a total of 2,111 established cases across all economic sectors. These figures unequivocally underscore the need for increased control and stricter measures to guarantee workers' rights and ensure fair competition in the tourism industry.