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Published on Dec 19, 2014 by LPG

Termination of labour contract and notice period in Bulgaria

In the context of a breach of employment contract in Bulgaria , whether from the employer during dismissal or employee upon resignation, notice period is sometimes required.

Termination of labour contract without notice by the employee or the employer

  • In the case of labour contract termination with mutual agreement: the proposed agreement must be accepted by the concerned party within 7 days upon receipt. If the person did not sign the proposed agreement within the time limit then it is considered that the proposal was not accepted;

  • Where an employee has undergone a wrongful or unjustified dismissal and he is entitled to resume his activity in the company, but he refuses to return to his post;

  • At the end of a fixed term contract  or an interim mission;

  • The return of the person being replaced;

  • During an internal reclassification due to illness or disability of the employee, the termination of the labour contract is not permitted on the condition that the employer proposes a suitable position to the illness or disability of the employee and the employee agrees. In the opposite case, that is to say, if the employee does not accept the proposed position, then the employer is entitled to dismiss the employee without notice;

  • Upon the death of either the employer or the employee.

Termination of the labour contract  by the employee with a notice period (resignation with notice)

The employee may decide to terminate his labour contract by formulating his wish in writing to his employer. In this case, a notice period is required.

The period of notice of a labour contract with indefinite period is 30 days unless both parties have reached an agreement regarding the notice period which in any case may not exceed three months.

The period of notice of a labour contract with a definite period is 3 months but can not exceed the intervening period between the request for resignation and termination.

The period of notice shall enter into force on the day following the  receipt of the written request for resignation. The notice may be terminated at any time with the agreement of the employer.

Termination of labour contract by the employee without notice (resignation without notice)

In the following cases, the employee may terminate the employment contract without making any notice period :

  • When an employee cannot perform the work assigned to him because of illness or disability and the employer cannot offer him a suitable position;

  • When the employer fails to make payment of the remuneration to its employees in the time indicated in the Bulgarian Labour Code;

  • When the employer changes the location, nature of work or remuneration agreed in the labour contract of an employee without his consent;

  • If the employee wishes to continue his studies in a university or prepare a full-time PhD;

  • When the employee is hired on a temporary contract and has an opportunity to permanent hiring;

  • When the employer stops its activity.

Termination of labour contract by the employer with notice (dismissal with notice period)

In the following cases of dismissal, the notice period is required:

  • When the company closes  all or part of its business;

  • In case of redundancy : reduced volume of work resulting in a decrease in the number of employees;

  • When the work is interrupted for more than 15 days;

  • If the employee refuses to integrate to the new location when the company changes address;

  • When the position held must be made vacant  the employee who has suffered unfair dismissal and wants to return to the same position;

  • In the case of 65 year-old employees (for certain occupations such as university professors);

  • When the job description has changed and that the employee no longer meets the requirements of the position.

Termination of the labour contract by the employer without notice ( dismissal without notice period)

An employer may dismiss an employee without notice in the following cases :

  • When an employee has been arrested for an offense and is sentenced;

  • When the employee no longer has the right to practice his profession (eg removed from the Medical Register of doctors, pharmacists and dentists);

  • When an employee refuses the proposed working position in the case of an internal reclassification due to illness or disability position;

  • When an employee acts against the interests of the company.

Termination of labour contract by the employer with compensation

In cases where the employer decides to dismiss an employee, he can do against compensation. The employee must then accept the proposal and notify in writing within 7 days after receipt of the offer of compensation. Beyond this period, it is considered that the proposal was not accepted.

If the employee accepts the proposal, the employer owes compensation at least equal to 4 times the gross monthly salary, unless the parties have agreed on a higher amount.

If the compensation is not paid within one month from the date of termination of the contract, then it is considered that the labour contract is not broken.

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