Employers have the authority to conduct background checks, typically involving the submission of various documents by the applicant. Before entering into an employment contract, the applicant is required to furnish the following to the employer:

• A medical certificate validating the applicant’s overall health status.
• A document attesting to a specific professional qualification or capacity.
• Limited personal data necessary solely for the identification of the employee.
• A criminal record certificate for certain positions (explicitly mandated by legislation).

The employer is responsible for coordinating the obligatory pre-employment health examination for all employees, with the associated costs covered by the employer.

The probationary period cannot exceed six months.

The employment contract must explicitly state in whose favor the probation is established. If the contract fails to include this specification, it is presumed that the probationary period benefits both parties. Within the probationary period, the party for whom the probation is established has the right to terminate the contract without the obligation to provide notice.

For fixed-term contracts lasting less than one year, a probationary period of up to one month may be incorporated.

Full-time employees are subject to a maximum legal work week of 40 hours, equivalent to eight hours per day in a standard five-day work week.

For a six-day work week, the duration of the working day preceding the weekend should not exceed five hours.

Minors in Bulgaria are restricted to a working time of 35 hours per week, corresponding to seven hours per day.

Extended working time is allowed up to 48 hours per week, not exceeding 60 working days annually, with a maximum of 20 consecutive days.

The annual limits for overtime are as follows:

• 150 hours annually
• 30 hours monthly (or 20 night hours)
• Six hours daily (or four night hours)

Overtime compensation is calculated at the following premium rates compared to regular wages:
 

• 150% on working days
• 175% on holidays
• 200% on public holidays

In Bulgaria, bonuses, often referred to as a 13th-month payment, can be granted to employees. This additional compensation is considered a gratuity and is not specifically mandated or regulated by labor laws.

The termination of employment in Bulgaria is rigorously governed by the Labor Code and can be initiated through:

• Mutual agreement
• Limited objective reasons, such as the fulfillment of work or expiration of time (applicable to temporary contracts)
• Unilateral termination by either party, as explicitly outlined in the Labor Code.

The necessity of prior notice in cases of unilateral termination is determined by the grounds specified. Termination without notice may occur due to an employee’s refusal to undergo a prescribed medical examination, breach of contract, or retraction of academic rank or degree. The dismissal must be communicated in writing by the employer, executed within two months of its discovery.

Employment contracts in Bulgaria may be terminated by the employer with notice only on grounds specifically prescribed by law. These include company closure, reduction of work volume, inefficient employee performance, and changes in job requirements. The notice of employment termination must be provided in writing with a standard 30-day notice period, unless an alternative agreement is reached.

An employee in Bulgaria may terminate an employment contract without notice for the following reasons:

• Inability to perform the work due to illness, and the employer’s refusal to offer an alternative suitable job.
• Delay of remuneration payment.
• Illegal modification of the employment contract by the employer.
• Substantial deterioration of working conditions.

Upon termination, the employee receives essential documents, including their labor book, income tax certificates, and social security payments.

The National Revenue Agency must be notified of the termination within seven days, using a standard form that details the termination.

Certain groups of employees are protected and can only be terminated with prior approval from the labor inspectorate.

Certain groups of employees in Bulgaria are protected and can only be terminated with prior approval from the labor inspectorate. These groups include:

• Mothers of children under the age of 3.
• Spouses of military servicemen.
• Employees 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.

It’s important to note that 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 received compensation for the obligation, any compensation paid should be returned by the employee as ‘paid without cause.’

The termination of the employment contract by the employee requires providing the employer with the appropriate written notice. Notice periods differ for fixed-term and indefinite period employment contracts.

For indefinite period employment contracts, the standard notice period is 30 days, with the possibility of extending it up to a maximum of three months, as specified in the employment contract.

In the case of fixed-term contracts, the statutory notice period is three months, and it cannot exceed the remaining period of the contract.

The employee holds the right to terminate the employment contract without notice if the employer breaches its legal or contractual obligations. In such instances, the termination must be communicated in writing, including the reason for termination.

On the other hand, an employer is required to furnish an employee with a written notice of termination, providing at least one month’s notice. This notice period can be extended up to three months if stipulated in the employment contract.

In the event of termination, the employer is obligated to provide compensation to the employee for all outstanding payments stipulated in the employment agreement. This encompasses salary disbursements and remuneration for accrued but unused annual vacation during the period of employment.

As per statutory requirements, termination on specific grounds such as redundancy or economic conditions necessitates a one-month salary compensation. In the case of termination due to illness for employees with a minimum of five years of service or those reaching retirement age, the severance amounts to two months’ salary.

Upon termination of the employment contract for any reason, the employer must remunerate the employee for any outstanding annual leave, calculated at the prevailing wage rate on the termination date.

Permissible circumstances for fixed-term contracts include:

• A specific period, not exceeding three years, suitable for seasonal or short-term projects.
• For non-seasonal or short-term activities, the employment contract may be established for a minimum of one year.
• Contracts related to the acquisition or enhancement of qualifications, such as retraining.

The duration of fixed-term contracts can range from one day to several years, with termination occurring upon the specified term’s expiration.

Renewal of a fixed-term contract with a single employee for a singular position is allowed only once, and the renewed contract must last for at least one year.

If an employee continues working for the employer for five or more days after the fixed-term contract completion without written objection, the fixed-term contract becomes indefinite.

Employees under fixed-term contracts enjoy equivalent rights and benefits as permanent employees, making termination neither easier nor cheaper before the contract’s term expires. However, employers have a special ground for termination once the fixed-term concludes.

An employee can propose 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.

Issuing digital payslips is legally acceptable in Bulgaria. However, employees are required to acknowledge the receipt of the payslip. Traditionally, payslips are distributed in a printed format, and employees sign them upon receiving the document.

The employment record book serves as an official document with a certification function, and it must be provided to the employee at the start of their employment. The entries in the employment record book can be made by designated individuals such as the employer, accountants, or, in cases of contract termination, by the employment office.

All payroll-related documents are required to be retained for a period of 50 years. In the event of a company undergoing liquidation, it is mandatory to archive all payroll reports with the National Social Security Institute.

Every employee is entitled to a minimum of 20 working days of paid annual leave. Once an employee completes at least 8 months of service, they gain the right to the full entitlement of annual leave. The duration of paid annual leave can be extended, but it cannot be reduced.

Employees working in hazardous or specialized conditions have the right to additional annual paid leave, amounting to at least five working days per year.

Upon termination of employment, any unused paid leave days are eligible for compensation.

Paid annual leave days should be utilized within the calendar year they are earned. In some instances, any remaining unused paid leave days can be carried over to the next calendar year, but they must be utilized by the middle of the following year.

During the initial two days of sick leave, the employer is accountable for 70% of the employee’s wages upon presentation of a medical certificate. The remaining portion of sick leave expenses is the responsibility of the National Social Security Institute, contingent upon the submission of required documentation by the employee.

Starting from the fourth day onwards, the government will disburse sickness benefits, covering 80% of the regular cases. This percentage increases to 90% in instances where the illness or injury is attributed to the employee’s occupation.

To qualify for these benefits, an employee must have a minimum tenure of six months with the company.

Maternity Leave

Expectant employees in Bulgaria have the right to avail themselves of 45 days of paid leave preceding their child’s due date and up to 410 days following childbirth. If the baby is born within the initial 45 days, the unused days can be deferred and utilized after the birth.

Maternity leave pay is funded by the government, contingent upon the employee having a minimum one-year work history and having contributed to social security. The payment is calculated at 90% of the average salary earned over the preceding 24 months.

Paternity Leave

A father, including adoptive fathers, is eligible for 15 days of paid paternity leave following the birth of a child. Upon the child reaching a minimum of six months, the father can utilize any remaining unused maternity leave, provided the mother gives consent.

Furthermore, the father has the option to take up to two months of leave for the care of a child under the age of 8, with social insurance covering the payment. To qualify, the father must not have previously taken leave for a child under two years old and should not have used leave transferred from the mother. Notification to the employer must be given at least 10 days in advance for the father to avail himself of this leave.

Childcare Leave

Following the conclusion of pregnancy and childbirth leave, female employees have the entitlement to additional childcare leave until the child attains two years of age, provided the child has not been enrolled in a childcare facility. Subject to the mother’s agreement, this leave can also be extended to the father or one of the child’s grandparents.

In the event that an employee has a sick or disabled child or family member, they are eligible for sick leave as if it were their own disability or illness.

The duration of this leave is linked to the length of the employee’s service.

Employees are provided with a two-day paid leave in the unfortunate event of the passing of a first-level relative, which encompasses the father, mother, spouse, child, or sibling.

Employees receive a two-day allowance upon getting married. Similarly, individuals who donate blood are granted two days of leave, encompassing the day of donation and the subsequent day.

Bulgaria observes a total of 12 paid public holidays.