What types of employment contract are recognised in Bulgaria?
In Bulgaria, employment relationships are primarily governed by the Labour Code.. The Code recognizes several types of employment contracts, each designed to suit different working arrangements. The main types include:
1. Permanent (Open-Ended) Employment Contract
Most common type.
No fixed end date.
The employment continues until terminated by either party, following the legal termination procedures.
Provides strong employee protection (e.g. notice periods, severance pay, etc.).
2. Fixed-Term Employment Contract
Has a defined start and end date or tied to the completion of a specific task/project.
Permissible only under specific circumstances defined by law, such as:
- Seasonal work
- Temporary replacement of an employee
- Project-based or temporary tasks
Usually limited to a maximum of 3 years, with restrictions on successive renewals to prevent abuse.
How can a contract of employment be terminated in Bulgaria?
In Bulgaria, the termination of an employment contract is regulated by the Labour Code and must follow specific legal procedures to ensure its validity. Termination can occur in several ways, depending on the type of contract and the reason for ending it.
Main Ways to Terminate an Employment Contract in Bulgaria:
1. Mutual Agreement
Both employer and employee mutually agree in writing to terminate the contract.
No notice period required unless agreed upon.
Most flexible and least contentious method.
2. Unilateral Termination by Employee
a) With Notice – the employee may resign by giving written notice (usually 30 days).
b) Without Notice – the employee can resign immediately in cases such as:
- Employer delays wage payment for over a month.
- Workplace conditions are unsafe or illegal.
3. Unilateral Termination by Employer
a) With Notice – permissible in specific cases, including:
- Staff reduction or closure of business.
- Lack of qualifications or poor performance.
- Employee becomes eligible for retirement.
Requires 30 days’ notice (or more, if stipulated in contract).
b) Without Notice (Disciplinary Termination)
For serious violations, including:
- Absence from work without valid reason.
- Alcohol or drug use at work.
- Gross misconduct like theft or violence.
Must be executed within 2 months of learning of the offense, but not later than 1 year of the offence.
A written disciplinary procedure is required.
4. Termination During Probation Period
Usually probation period is agreed in favour of the employer, however it may be agreed in favour of the employee or in favour of both parties. The entitled party can terminate without notice if a probationary clause is included.
5. Expiry of a Fixed-Term Contract
Automatically ends upon:
- Reaching the agreed date
- Completion of a specific task
- Return of the replaced employee
No notice required.
Is it possible to employ employees as teleworkers in Bulgaria ?
Yes, it is legally possible to employ teleworkers in Bulgaria, and this is explicitly regulated by the Bulgarian Labour Code
Key Requirements for Telework Employment
1. Written Agreement
Telework must be agreed upon in writing, either:
In the initial employment contract, or
As an addendum to an existing contract.
2. Voluntariness
Teleworking must be voluntary for both parties.
Neither party can impose it unilaterally unless allowed by special legal provisions (e.g. emergencies like COVID-19).
What are the rights for women who become pregnant during their employment contract, and are they protected from being dismissed?
An employer cannot terminate the employment contract of a pregnant employee without prior permission from the Labour Inspectorate, even with cause. A termination is possible only during the Probation period. The Labour Inspectorate rarely grants approval to dismiss a pregnant employee unless there is very serious cause (e.g. company liquidation).
Maternity Leave Rights
- Standard Maternity Leave – Article 163 of the Labour Code:
410 calendar days total per child
Starts 45 days before expected birth date
Leave is paid by the National Social Security Institute (NSSI), not the employer
The amount is 90% of the employee’s average gross salary (based on the last 24 months)
Parental Leave
After maternity leave, the mother (or the father, with her consent) is entitled to:
Childcare leave until the child turns 2 years old.
Additional unpaid leave until the child is 8 (under certain conditions)
Medical Leave During Pregnancy
Pregnant women have the right to:
Paid sick leave for pregnancy complications (certified by a doctor)
Paid leave for medical check-ups during working hours
Transfer to lighter work or adjusted duties if their current position poses health risks
Workplace Protections
Employers must:
Ensure safe working conditions for pregnant women
Avoid assigning night work, overtime, or harmful physical tasks
Modify work conditions if needed (e.g., seating, rest breaks)
What types of paid days-off are the employees entitled to in Bulgaria?
1. Annual Paid Leave
Minimum: 20 working days per calendar year
Entitlement arises after 8 months of service with any employer
Can be taken all at once or in parts, by mutual agreement
Unused leave may be carried over, but should ideally be used within 2 years
2. Public Holidays (Paid Non-Working Days)
3. Maternity and Paternity Leave (Paid by Social Security)
Maternity Leave:
410 calendar days, starting 45 days before due date
Paid at 90% of gross salary (via National Social Security Institute) with a cap.
Paternity Leave:
15 calendar days after the child’s birth
Paid at 90% of gross salary (via NSSI) with a cap
4. Parental/Childcare Leave (Paid and Unpaid)
Until the child turns 2: Paid leave (minimum wage level) if taken by the mother or transferred to the father/grandparent
Additional unpaid leave available for parents until the child turns 8
5. Temporary Incapacity Leave (Sick Leave)
Paid by the employer for the first 3 days at 70% of average earnings
From day 4 onward, paid by NSSI at 80%–90% with a cap, depending on the illness
Requires a medical certificate
- Other Leaves in specific cases (death in family, public service, exams etc.)
Is it possible to include a non-competition clause in the employment contract, and what are the grounds for concluding a valid non-competition agreement?
Yes, non-competition clauses are legally allowed in employment contracts in Bulgaria, but they are not enforceble after termination of the employment contract.
What happens to employees if their employer goes bankrupt?
When an employer in Bulgaria goes bankrupt, employees are granted specific protections under the Labour Code, the Commerce Act, and the Protection of Workers in the Event of Employer Insolvency Act.
Employees become creditors of the bankrupt company. Their claims are treated as privileged.
If the employer cannot pay, employees may receive compensation from the Guarantee Fund for Workers’ Claims (administered by the National Social Security Institute).
Conditions for State Compensation:
Employer must be officially declared insolvent by the court
Employee must file a claim with the National Social Security Institute (NSSI)
What the Guarantee Fund Covers:
Unpaid wages for up to 3 months
Up to a legal limit, which is adjusted annually (e.g. ~1,600 BGN/month in recent years)
