Dismissal of employees in Bulgaria

Dismissal of Employees in Bulgaria

Updated on Monday 18th April 2016

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dismissal_of_employees_bulgaria.jpgAn employee in Bulgaria can be dismissed by the employer only if the reason of dismissal has a legal valid cause. The Employment Law specifies a group of reasons that cover dismissals of employees. There can be either personal reasons, when the employee proves to have a lack of qualification, or economic reasons affecting the company, such us redundancy or closing down the company.

In case of an employee dismissal in Bulgaria, specific items have to be mentioned, such as if the management is changed, or if termination of the contract implies an agreed compensation that should amount not less than four months’ salary. In addition, there are special groups of employees under protection, and in this case, the dismissal requires consent from the labor inspectorate. Pregnant women, mothers having children of the age up to 6, trade union leaders and disables persons are part of this special group. The minimum period of notice that an employer has to give to an employee is 30 days, if it has not been agreed otherwise, but it cannot be longer than 3 months.

Collective dismissals

As for collective dismissals, the Employment Promotion Act in Bulgaria stipulates a specific procedure that the employers must follow. The employer must send a written notification to the Employment Agency, if a collective dismissal is planned, but no later than 30 days prior to the dismissal date, as they are considered not be in relation to the individual worker. As the number of employees varies from one company to another, there is no legal definition of the number of employees considered for the collective dismissal. If the specific procedure is not correctly applied, then the employers may suffer sanctions according to the law.

If the company goes through a merger or acquisition or if there is the case of a transfer of business, then the employment contracts are not subject to termination.

Compensations for employees

According to the Bulgarian legislation, there are compensations that must be paid in case of dismissals, such as compensations for terminating the employment contract without notice. If the employer does not keep the term of the notice, then he owes the compensation equivalent of the gross labor remuneration for the notice period, if it is an undefined contract period. For the fixed term contract, the remuneration applies to the amount of the suffered damages.

If the dismissal is made because of the closure of the company, downsizing of personnel or reduction of the volume of work, as well as idling for more than 15 working days, the employer must pay compensation to the employee for remaining unemployed and the compensation is worth approximately 1-month salary.

For any details related to the dismissal of employees of your company in Bulgaria, you may contact our local lawyers.