All About Terminating Employees in Bulgaria

Terminating an Employee in Bulgaria

Bulgaria’s Employment Act requires that terminations be fair. This means employers must provide valid grounds, follow proper notice, and adhere to disciplinary process guidelines to avoid wrongful dismissal claims.

Termination with Cause

Employment termination in Bulgaria is highly regulated. Unlike at-will systems, employers must rely on legally defined grounds and follow formal procedures. Failure to meet these requirements may result in reinstatement orders or compensation claims.

Termination with Notice

Employers can terminate employees with notice on specific grounds set out in the Labor Code, for example:

• Redundancy or reduction in workforce

• Closure of the enterprise or part of the business

• Lack of qualifications or inability to perform job duties

• Changes in job requirements that the employee cannot meet

The standard statutory notice period is 30 days, unless a longer period is agreed in the employment contract. Notice periods may not exceed three months.

Termination Without Notice

Termination without notice is permitted only in limited circumstances, such as serious misconduct or other grounds expressly listed in the Labor Code. These cases generally require careful documentation and, in many situations, a disciplinary process.

Special Employee Protections

Certain categories of employees, such as pregnant employees or mothers of young children, employees on approved leave, employees with disabilities or medical conditions, or trade union members, are more strongly protected against dismissal. These protections apply to termination with or without notice.

Severance Payments

Severance pay may be required in specific termination scenarios, such as redundancy or business closure. Terminated employees typically receive:

• Salary through the last working day

• Compensation for unused accrued annual leave

• Statutory severance, if applicable

Statutory severance is typically at least one month’s gross salary, though higher amounts may apply based on contract terms or collective agreements.

Employment Disputes

Employees may challenge terminations before the Bulgarian courts. If a dismissal is found unlawful, employers may need to reinstate the former employee, provide back pay, or offer additional compensation. Clear documentation, adherence to statutory procedures, and consistent application of policies help reduce the risk of disputes.