Bulgaria

In Bulgaria, there are various laws to be followed by both employers and employees in the case of a termination. For example, if there is a mutual agreement between the parties to terminate the employment contract, it is easily dealt with, by communicating it in writing. However, if the employee is part of a union, then the employer will have to take permission from the union before terminating the employee.

Employers face significant complexity managing any form of termination, as there are so many specific types of terminations specifically outlined in the labour code and other employment laws.

Potential reasons for terminations:

• closing the enterprise, in which the individual is employed, or of a part of the enterprise

• reduction of the number of working positions

• decrease of workload

• discontinuation of work by the employing enterprise for more than 15 business days

• lack of capacity of the employee for effective performance of his/her labour duties

• lack of professional qualification or required educational background, necessary for effective performance of the labour duties

• refusal of the employee to relocate to another town or location together with the enterprise, in which the employee works

• change of the requirements for performance of the labour duties inherent to the position, provided that the employee fails to meet these requirements

• the employee has become entitled to retire on old age pension; or upon attainment of the age of 65 in the case of professors, associate professors or persons holding a doctoral degree (with some exceptions)

• if the employee has been granted a pension for contributory service and retirement age in a reduced amount in accordance with the Social Insurance Code

• if the employment relationship has arisen after the employee has acquired and exercised his right to old age pension

• if the employment relationship has arisen after the employee has been granted a contributory service and retirement age pension in a reduced amount in accordance with the Social Insurance Code

• objective impossibility for performance by the employee

• if the position has to be vacated for an employee who was reinstated in the position after having been unlawfully dismissed

• execution of an agreement for assignment of management with registered directors of the employing entity (in the latter case an employer is entitled to terminate employment agreements only with managerial personnel; this right lapses upon the expiry of nine months from the commencement of the agreement for assignment of management).

In Bulgaria, the length of the notice period depends on whether it’s an open ended (permanent) contract or a fixed term contract.

• Notice period for an open ended contract: a minimum of one (1) month of notice period

• Fixed term contract: A minimum of three (3) months of notice period

Severance pay for unilateral termination

There is no statutory severance pay unless in the following scenarios:

• Termination of employment due to an illness: In this case, for an employee with at least 5 years of service, 2 months' gross remuneration must be paid as severance

• Termination after the employee is eligible for a pension: In this case, 2 months of pay as severance (or) 6 months of pay for a job tenure of >= 10 years

• Termination because of downsizing or closing down the company: One month of severance must be paid

Severance pay for termination by mutual agreement

When the employer wants to terminate through a mutual agreement (both parties agree to terminate the contract), there is a minimum requirement of four (4months) of severance (bonus) to be paid to the employee. However, the parties can agree on a higher amount of the compensation.

In Bulgaria, the probation period cannot exceed 6 months.