Code of Conduct | Due Diligence Report
Pernik Fashion Industry Ltd. confirms that it conducts its business operations in full accordance with Bulgarian and superior or additional European legislation. Bulgaria has been a full member of the European Union since 2007, and has been part of the Schengen area since 2024, which means that travel is possible without passport controls and goods are no longer checked at the borders in the European Union. All general legislation that the European Union establishes for all member states therefore also applies to Bulgaria. In 2023 it was determined that in 2026 the Bulgarian currency Lev will be replaced by the euro, which means that Bulgaria will also become a member of the eurozone.
Clothing productions in Bulgaria are subject to increased supervision of compliance with legislation, for this reason not only administrative audits are carried out by the Bulgarian government, but also unannounced company visits by the local labour inspectorate are carried out. Financial transactions are monitored by banks that take their liability to prevent unauthorized transactions and the possible resulting crime. For this reason, financial transactions must be regularly accounted for. Accredited accountants check the existence of agreements and assess their content.
Pernik Fashion Industry want to do good, for people, animal and planet. By this reason we keep in mind ethical, sustainable, eco friendliness and responsibility.
Read more about what we have to comply with and what we do on various topics.
Child labour
No one may be under the age of 16 according to Bulgarian law. Young workers (workers under the age of 18) may not be exposed to dangerous, unsafe or unhealthy working conditions or materials. All young workers must be given adequate protection against such hazards. This is also stipulated in the ILO convention that is part of Bulgarian law. (ILO conventions: 138, 182). Read more about the ILO Conventions, concerning Bulgaria, which are incorporated into Bulgarian law. Pernik Fashion Industry is not working with employees under the age of 18, and is not working with dangerous materials.
Forced Labor
Pernik Fashion Industry Ltd. has a zero tolerance policy against forced labor, and can confirm that no forced labor takes place. The local labor inspectorate, as part of the Bulgarian government, regularly visits Pernik Fashion Industry Ltd. unannounced to check all required documents. Our employees are never forced to perform work that is not agreed upon, neither in the type of work itself, nor at the time of the work.
Pernik Fashion Industry Ltd. does not keep any employee documents other than legally required copies, which are stored according to the European legislation according to the GDPR rules. All employment contracts are recorded and documented according to Bulgarian law and accredited by a registered accountant and drawn up in their native language, specifying the employment relationship and the compensation (salary) in return. Pernik Fashion Industry Ltd. does not use external employment agencies, and as a company is responsible for the costs of obtaining employees, including all recruitment related costs. An exception to this is when using the local organization, as part of the municipality of Pernik, which mediates in helping unemployed people find a job. Pernik Fashion Industry Ltd. monitors that this organization does not force anyone to work by means of violence, deception, intimidation, coercion or as a punishment for personal opinions, other than as laid down in the relevant law, which complies with the ILO conventions: 29, 105, 182, when recruiting or offering employees.
Discrimination
Pernik Fashion Industry Ltd. does not discriminate against employees at any stage of the employment relationship on the basis of race, religion, gender, sexual orientation, color, national origin, age, physical or mental disability, medical condition, political opinion, trade union membership, social group, marital status, pregnancy or any other classification protected by local, national and international law. All employment relationships include effective mechanisms to protect migrant, temporary or seasonal workers from any form of discrimination which are also enshrined in Bulgarian law as part of ILO Conventions: 100, 111.
Harassment, Abuse and Disciplinary Measures
Pernik Fashion Industry Ltd. guarantees that all employees are treated with respect and dignity. No employee shall be subjected to physical, sexual, psychological or verbal harassment or abuse, or to financial penalties as a disciplinary measure. (ILO Convention: 190)
Blow the whistle
Pernik Fashion Industry Ltd. has a special page on its website where a whistle can be blown when something is not according to the rules or when employees or third parties want to report abuses, anonymously or not. The reports do not only apply to the own entity but to all companies to which Pernik Fashion Industry Ltd. can be connected. The page with the form can also be reached via this link.
Health and Safety
Pernik Fashion Industry Ltd. provides its employees with a safe and healthy workplace, designed to prevent accidents and injuries arising from or occurring during work. Pernik Fashion Industry Ltd. complies with all applicable Bulgarian laws regarding working environment, sanitation and safety, including a room with bed and showers. In addition, the local fire department carries out unannounced inspections, in the area of general safety and fire safety.
Employment Conditions
Pernik Fashion Industry Ltd. has and complies with rules and employment conditions to respect and protect workers with at least their rights under national and international labour and social security laws and regulations. (ILO Convention: 198)
Wages and Benefits
Each employee receives compensation for a regular month of work sufficient to meet the employee’s basic needs and generate a certain disposable income, as determined by the Bulgarian government. Pernik Fashion Industry Ltd. pays at least the minimum wage or the prevailing wage, whichever is higher, and complies with all legal requirements regarding wages and benefits required by law or contract. If the compensation does not meet the employee’s basic needs and does not generate sufficient disposable income, Pernik Fashion Industry Ltd. will take appropriate measures to gradually achieve a level of compensation that does. (ILO Conventions: 25, 131). For this reason, Pernik Fashion Industry Ltd. pays above average.
Employer taxes Social security contributions & Sickness absence
Pernik Fashion Industry Ltd. pays premiums to the Bulgarian National Health Insurance Fund (NHIF) for its employees, which entitles employees to basic medical care. Employees are entitled to paid sick leave, of which the employer pays 70% of the basic income for the first three days. The fourth day onwards is paid by the National Social Security Institute (at 80% of an employee's income. In addition, premiums are paid for Social security (Pension), Additional obligatory social security, Professional and non-
Maternity absence
The paid maternity leave for women in Bulgaria extends up to 410 days, starting 45 days before the due date of birth. And this makes Bulgaria, together with Sweden, the best maternity leave in the world.
Paternity Leave
Fathers are entitled to Paternity Leave of 15 calendar days, fixed to be taken from the day the baby is discharged from the maternity hospital (of this day is a non-
A further 2 months of leave, paid by the National Social Security Institute, to raise a child under the age of 8 is available to the father providing he has not already taken leave to raise a child younger than two and has not used maternity leave transferred from the mother. To use this leave, the employer must be notified at least 10 days in advance.
Parental Leave
Once a child has reached the age of 2 years old, unpaid Parental Leave of up to 6 months is available to be used by each parent until the child reaches the age of 8 years old, providing the child is not in a state-
Other Leave
- Marriage Leave – Employees are entitled to two days of paid leave in the event of their marriage.
- Bereavement Leave – Employees are also entitled to two days of leave to attend the funeral of a family member.
Holidays
As standard, an employee is entitled to a minimum of 20 paid vacation days per year, based on a full-
Working Hours
Pernik Fashion Industry Ltd. does not oblige employees to work more than the regular hours and overtime that are legally allowed.
Pernik Fashion Industry Ltd. maintains a maximum working week of 48 hours, according to the ILO convention. Where Bulgarian law uses 56 hours. A working day may never exceed 12 hours according to Bulgarian law. And every employee has the right to an uninterrupted rest period of 36 hours in every seven-
Overtime
Overtime is only done by mutual consent and is paid by law with 150% surcharge, when the overtime is during regular working hours and working days. A surcharge of 175% is paid for overtime during weekends. A surcharge of 200% is paid for overtime during national holidays. Pernik Fashion Industry Ltd. never makes employees work on national holidays (14 days per year). Employees are never asked for overtime on a regular basis. (ILO Convention: 1)
Freedom of association and right to collective bargaining
All employees of Pernik Fashion Industry Ltd. are free to join organizations of their choice. This includes the right to form and join trade unions and other workers’ organizations and to engage in collective bargaining without fear of intimidation, interference or reprisal. Pernik Fashion Industry Ltd. has developed effective, respectful and transparent grievance procedures to resolve disputes and complaints and to ensure effective communication between employees, employee representatives and our management. (ILO Conventions: 87, 98, 135)
Subcontracting
Pernik Fashion Industry Ltd. does not work with subcontractors to perform work, unless its Clients request this and take responsibility for it themselves, whereby Pernik Fashion Industry Ltd. receives a written order for this in advance. If Pernik Fashion Industry Ltd. invokes force majeure and must subcontract work, in whole or in part, to a third party, it will take responsibility for this itself and impose the same requirements on the third party as stated in this statement. Pernik Fashion Industry Ltd. will consult with the Client about this at all times. If work with third parties has been approved by representatives of the Client, Pernik Fashion Industry Ltd. is obliged to disclose in writing the physical locations of all facilities that contribute to the production or transport of the Client.
Environment
Pernik Fashion Industry Ltd. has policies and procedures in place to manage and minimize our environmental impact. This includes the consumption of resources, as well as water use and air emissions. Pernik Fashion Industry Ltd. does not use chemicals and hazardous substances at its production site. Despite this, it will monitor suppliers with whom it does business, as well as suppliers who supply on behalf of Clients. This is to protect its own employees and consumers. Pernik Fashion Industry Ltd. will therefore comply with all applicable environmental laws and regulations, as well as third parties with whom it does business to take initiatives to promote greater environmental responsibility. Despite the fact that Pernik Fashion Industry Ltd. implements all basic policy standards in the context of sustainable business, it will record in a comprehensive written description of environmental policies and standards in 2025 in order to apply and monitor these. Whereby Pernik Fashion Industry Ltd. can continuously monitor its energy and raw material consumption, emissions, CO2 footprint and waste processing and can make this known to its clients.
Note
Although Pernik Fashion Industry Ltd. has compiled this report with the utmost care. Parts may not be fully explained or missing. Pernik Fashion Industry Ltd. asks to report this by email to jaap{@}PernikFashionindustry.com to provide further explanation or additional information.
