Hire in Bulgaria

The employee must begin work within seven days after the employer produces a signed copy of the contract and a notification form certified by the appropriate regional department of the NRA. If the employee fails to assume job responsibilities within this period, it will result in dissolution of the contract.

The performance of the contract begins when the employee begins work. This must be verified in writing.

If there is a collective labor agreement concluded prior to the signing of the individual contract, the individual clauses of the latter should be more favorable to the employee than those outlined in the collective agreement. Otherwise, the individual clauses will be deemed void.

Background checks can be conducted by employers and are generally completed by requiring the applicant to produce a series of documents. The following must be presented to the employer before entering into an employment contract:

• medical certificate confirming the applicant’s general health status
• document verifying a specific professional qualification or capacity
• limited personal data (needed for the identification of the employee only)
• a criminal record certificate for specific jobs (this requirement should be explicitly stated in the legislation)

The employer is responsible for organizing the mandatory preliminary health check for all employees before starting the employment relationship. This process is paid at the expense of the employer.

The legal work week for full-time employees must not exceed 40 hours per week. This amounts to eight hours per day in a five-day working week.

In the case of a six-day working week, the length of the working day prior to the weekend must not exceed five hours.

Working time is limited to 35 hours per week for minors in Bulgaria. This amounts to seven hours per day.

The termination of employment in Bulgaria is strictly regulated by the Labor Code and can be based on:

1. mutual agreement
2. limited objective reasons, such as fulfilment of work or lapse of time (for temporary contracts)
3. unilaterally by each one of the parties in the cases explicitly prescribed in the Labor Code.

The grounds for unilateral termination will determine if a prior notice to the other party is required. Termination without notice can be due to refusal of an employee to undergo prescribed medical examination, breach of contract or retraction of academic rank or degree. The dismissal must be issued in writing by the employer, executed within two months of the discovery.

An employment contract in Bulgaria may be terminated by the employer with notice only on the grounds specifically prescribed by the law These include company closure, reduction of work volume, inefficient employee work performance and change of job requirements. The notice of employment termination must be provided in writing with 30 days notice, unless agreed otherwise.

An employment contract may be terminated without notice by the employee for the following reasons:

• inability to perform the work due to illness and refusal of the employer to offer an alternative suitable job
• delay of remuneration payment
• illegal modification of the employment contract by the employer
• substantial deterioration of working conditions

Following termination, the employee receives all the necessary documents. These include their labor book as well as their certificates for income tax and social security payments.

The National Revenue Agency must be notified of the termination within seven days. This notification is done by way of a standard form, which specifies the details of the termination.

The following groups of employees are protected and may be terminated only with prior approval from the labor inspectorate.

• mothers of children under the age of 3
• spouses of military servicemen
• an employee in occupational rehabilitation
• certain sick employees
• employees on leave
• employees who are elected as an employees’ representative
• pregnant women who have committed a disciplinary offense

Post termination non-compete clauses in employment contracts are not valid and non-enforceable in Bulgaria, even if the employee has explicitly consented to the non-compete clause in advance and is compensated for the obligation. Therefore, any compensation paid should be returned by the employee as ‘paid without cause.’

The employee may terminate the employment contract by providing the employer the appropriate notice in writing. The required notice periods for fixed-term employment contracts and indefinite period employment contracts are different.

For indefinite period employment contracts, the notice period is 30 days. This can be up to a maximum period of three months, as stipulated in the employment contract.

For fixed-term contracts, the statutory notice period is three months. The notice period can be for no longer than the remaining period of the contract.

The employee can terminate the employment contract without notice if the employer breaches its legal or contractual obligations. In this case, the termination must be in writing and include the reason for the termination.

An employer must provide an employee with a month’s written notice outlining the termination. The notice period can be up to three months, so long as this is specified in the contract.

In all cases of dismissal, an employer must compensate an employee for all payments due under the employment agreement. This includes salary payments as well compensation for annual vacation accumulated but not used during the time of employment.

The statutory requirement is one month’s salary for termination on specific grounds, such as. redundancy or economic conditions.

The severance is two month’s salary for a termination due to illness for employees of at least five years of service or at retirement age.

Any annual leave remuneration due to an employee but not yet drawn must be paid to the employee upon the termination of the employment contract for any reason This is compensated at the wage rate prevailing on the termination date.

Fixed-term contracts are permissible for the following circumstances:

• for a specific period that may not exceed three years (e.g., seasonal or short-term projects)
• for activities that are not seasonal or short-term, the employment contract may be concluded for at least one year
• contracts regarding the attainment or enhancement of qualifications (retraining)

The duration of fixed-term contracts may range from one day up to several years. Termination of the fixed-term contract occurs upon expiration of the term specified in the contract.

A fixed-term contract made with a single employee for a single position can be renewed only one time. The renewed contract must be for a duration of at least one year.

A fixed-term becomes an indefinite contract if an employee continues to work for the employer for five or more days after the completion of the fixed-term contract without written objection by the employer.

Employees working under fixed-term employment contracts enjoy the same rights and benefits as permanent employees. It is therefore neither easier nor cheaper to terminate a fixed-term employment contract than an indefinite employment contract before the expiration of its term. However, employers do benefit from the special ground for termination of a fixed-term employment contract once the term has expired.

An employee has the right to propose amendments in writing to switch from a fixed term to an indefinite employment contract. If the employer refuses, they must provide a written explanation for their decision.

The employment record book is an official document and maintains a certification function. The employer must issue this at the commencement of employment. The registrations into the employment record book may be performed by specific persons (the employer or accountants) or by the employment office in cases where the contract has been terminated.

All documents related to payroll should be stored for 50 years. If a company goes into liquidation, all payroll reports must be archived with the National Social Security Institute.

The employer is responsible for 70% of the employee’s wages for the first two days of sick leave, upon receipt of a medical certificate. The National Social Security Institute must cover the rest of the sick leave, once the employee provides necessary documentation.

From the fourth day onwards, the government will pay sickness benefits in the amount of 80% for ordinary cases This amount is enhanced to 90% if the illness or injury has been caused by the employee’s occupation.

An employee must work at a company for a minimum of six months in order to receive these benefits.

Maternity Leave

Pregnant employees in Bulgaria are entitled to take 45 days of paid leave before their child’s due date and up to 410 days after. In cases where the baby is born within the 45 days, the remaining days can be carried over and used after the birth.

Maternity leave pay is paid for by the government as long as the employee has been working for at least one year. They must also have made social security contributions. Pay is calculated at 90% of the average salary earned during the preceding 24 months.

Paternity Leave

A father (including adoptive fathers) is entitled to 15 days of paid paternity leave following the birth of a child. Once the child has reached at least six months of age, the father can use any unused maternity leave. This is only done with the mother’s consent.

The father may take up to two months of leave to raise a child under the age of 8. The leave is paid for by social insurance. To be eligible, the father must not have taken leave to raise a child younger than two and not have used leave transferred from the mother. The father who wants to take this leave must notify his employer at least 10 days in advance.

Childcare Leave

After the use of the pregnancy and childbirth leave, the female employee has the right to additional childcare leave until the child reaches two years of age if the child has not been placed in a childcare establishment. With consent of the mother, this leave can be granted to the father or to one of their parents.

If an employee has a child or family member that is sick or disabled, he or she is entitled to sick leave as if it were their own disability or illness.

The time of use for such leave is correlated to the length of employment service.