Bulgaria remains one of the significant source countries for labour trafficking in Europe, although the problem has not been on the priority list of institutions for a long time being overshadowed by the problem with trafficking for sexual exploitation. The predominant part of labour trafficking follows simple business models, whereby victims are recruited and exploited without any formal contracts in economic sectors such as agriculture, construction, cleaning and senior care. However there is a growing new trend of employing legitimate business structures in order to conceal trafficking activities. In many of these cases labour trafficking is intertwined with various forms of tax and social contributions evasion or fraud and traffickers make use of schemes for bogus self-employment or posting of workers abroad.
The working paper explores the modus operandi of traffickers, the business model and the financial flows associated with trafficking for labour exploitation.