End-to-End Employer of Record Services for Bulgaria

The relationship between an employer and employee is regulated by the Bulgarian Labour Code. The relationship between the parties around employment contracts is regulated by the Bulgarian Obligations and Contracts Act and by the written agreements between the parties themselves. Employment contracts must be filed with the Bulgarian National Revenue Agency within three days of signing (and no later than the date of commencement of employment prior to the employee performing their duties).

The Bulgarian labour and social security law divides employees into three categories depending on the nature of their work and their specific working conditions: first, second and third category of work.

The Council of Ministers determines which type of work belongs to which category. The most common category is the third category of work, which provides the most standard and favourable working conditions. Generally, the legislation dictates that statutory rights apply to all employees equally. However, since the working conditions for the first and second categories of work employees are more harmful to their physical and mental state and working ability, those employees enjoy some additional employment and social security rights (such as an entitlement to early retirement).

The maximum allowed is six months. As per the law, there’s no minimum probationary period. It should be noted, however, that an extension of the initial probation period is not permissible.

The standard working day is eight hours long and the work week equals 40 hours. This is also the maximum period allowed under the applicable law.

Overtime is only permitted in some particular cases provided by law, and for the employee to work overtime means to exceed the contractually agreed working time.

The employee is not obligated to work overtime (unless otherwise agreed). If instructed, overtime must be performed outside the regular working time (e.g., before the beginning/after the end of the working day or during the lunch break). The instruction to work overtime is made by the employer’s declaration of will and may be issued in writing.

If necessary, for operational reasons, the instruction may be issued after the performance of the overtime work.

It’s not possible to include provision for the salary to include overtime in the employment contract as it’s in addition to the contractually agreed remuneration. Overtime is governed by the labour legislation of Bulgaria.

The employer may terminate the employment contract by giving the employee notice only on certain grounds specified by statute. The grounds on which an employer is permitted to dismiss an employee with notice include redundancy.

Special rules apply to collective redundancies and selection for redundancy.

An employer is entitled to terminate an employment contract without notice in certain circumstances defined by statute, including where the employee has committed gross misconduct (such as disciplinary offences or imprisonment).

Employees receive special protection against dismissal in certain situations and at certain times. This applies, for example, to employees who are pregnant or on maternity leave, or who act as trade union officials or employee representatives.

An employee may resign at any time by giving the employer notice and is entitled to terminate the employment contract without notice in certain circumstances. Generally, the notice period for termination initiated by the employee is 30 days for an indefinite employment contract, unless the parties have agreed on a longer period, but not more than three months.