Bulgaria is among 27 European Union member states that have two years to pass into national law the provisions of a European Council directive on a "Blue Card" system to ease residence and work permits for highly qualified foreign employees.

The Blue Card system, approved earlier this year by the European Parliament, was given the nod by the European Council on May 25, the same day that it adopted a directive aimed at fighting illegal immigration by prohibiting the employment of illegally staying third-country nationals, laying down minimum common standards on sanctions and measures to be applied in the EU member states against employers who infringe the ban.

According to a statement on the European Commission website, the new rules seek to put an end to abuses by unscrupulous employers who conclude contracts with people illegally resident in the EU, paying them low salaries amid poor labour conditions.

Employers in the EU will be obliged to require that before taking up employment, a third-country national has a valid residence permit or other authorisation to be in the country.

Employers will have to keep for at least the duration of the employment, a copy or record of the residence permit or authorisation for stay for inspection by the relevant authorities of the member states.

Employers will have to notify the relevant authorities of the start of employment of third-country nationals within a period laid down by each member state.
Penalties for infringements of the prohibition will include financial sanctions, which will increase according to the number of illegally employed foreigners. Employers will have to pay the costs of return if an illegal employee is deported.

Other sanctions may also be applicable to employers of illegal workers, such as exclusion from entitlement to public funding or from participation in public tenders.
Currently in Bulgaria, employers caught with illegal foreign workers face fines of 20 000 leva for each worker, and the employees themselves could be fined 5000 leva.

Labour and Social Policy Minister Emilia Maslarova said in July 2008 that companies found to be repeat offenders against labour laws would be excluded from participation in EU operational programmes and all other EU funding of projects in Bulgaria. This is an approach not dissimilar from that approved by the European Council.

Approval by EU institutions on moves against illegal employment of foreign employees may be seen against the background of the issue being increasingly sensitive throughout the EU, not only politically – especially for right-wing and nationalist parties – but also economically as domestic labour markets feel threatened by competition from foreign workers.

The Blue Card system approved by the European Council establishes more attractive conditions for third-country workers to take up highly qualified employment in EU member states, by creating a fast-track procedure for issuing a special residence and work permit.

The Blue Card will facilitate access to the labour market to their holders and will entitle them to a series of socio-economic rights and favourable conditions for family reunification and movement across the EU.

The directive sets out the common criteria to be set by the EU member states for applicants of the Blue Card without prejudice to more advantageous conditions provided for by national laws.

An EU Blue Card will be between one and four years, and may be renewed. A Blue Card may also be issued or renewed for shorter periods to cover a work contract period plus three months.