Labour law in Bulgaria: what you need to know

Labour law in Bulgaria: what you need to know

Historical background

Like in many European countries, workers were fighting for fair and regulated working conditions in Bulgaria in the late 1800s. These movements were the main reason for the creation of Bulgarian labour law. 

Given the complex historical circumstances of the time, the Balkan country was a bit late in introducing an employment law. Its first version emerged at the beginning of the 20th century. Bulgaria has been a member of the International Labour Organization since 1920.

After Bulgaria joined the European Union in 2007, the country’s labour legislation had to also be adapted to the EU norms and requirements. Since then, Bulgarian labour law regulates employment of Bulgarian citizens in their role as European citizens and allows Bulgarian employers to hire employees from other EU countries. 

Thanks to this arrangement, citizens from EU member states have the right to legally work in Bulgaria without significant obstacles in their way. Similarly, Bulgarian citizens can easily secure employment in other EU countries.

Do you need legal advice and assistance? Contact our experienced lawyers.

 

Bulgarian labour law basics

Essentially, labour law arranges and regulates the relationship between the employer and the employee. The responsible institution for it is the Ministry of Labour and Social Policy.

Bulgarian labour legislation includes quite a few statutes but there are several that stand out. The Labour Code, the Code on social security, the Non-discrimination Protection Act, the Law on health and safety at work and the Law on Collective labour disputes are commonly mentioned and applied. (The latter concerns collective agreements, collective bargaining, and trade unions).

 

The Bulgarian Labour Code

The Labour code regulates the main aspects of each employer-employee relationship. This makes it the most commonly used and applied statute. Here are the most important points covered by the Bulgarian Labour code:

1. The two main types of contracts: employment and civil contracts.

2. The process of hiring an employee and signing an individual employment contract. The contract must include:

  • A workplace. Even when the employee will be working remotely, an address must be included in the document.
  • The title of the position and the nature of the work to be done.
  • The date of the contract and a starting date for the employee.
  • The duration of the employment contract. It could refer to a fixed term employment or indefinite-term employment.
  • The length of basic and extended paid annual leave and additional paid leave.
  • An equal notice period for both parties for termination of the employment contract.
  • The size of basic and additional remuneration, as well as when it is to be paid;
  • The length of the working day or week and the working hours.

 

3. Working time and paid annual leave:

  • The standard working week has 5 working days, of up to 8 working hours per day, summing up to 40 hours per week. If the employee works between 22 h and 6 h, this is considered night work and costs more.
  • If the employee’s working hours exceed the ones specified in the employment contract, the remuneration for the overtime hours should be higher than the regular wage per hour. If the employee worked on a holiday or a public holiday, the wage for the overtime work is even higher. 
  • The minimum paid annual leave is 20 days, no matter if the employee works part time or full time.

 

4. Termination of employment:

  • Every employee has the right to terminate the employment contract with a written notice. The standard notice period is 1 month but it can be determined by the employer. The easiest way to cancel an employment contract is with mutual agreement.
  • The employer has the right to cancel the contract and dismiss the employee if:
    • the position is no longer needed or is a financial burden. The employer is then obliged to financially compensate the terminated worker.
    • the employee is not performing well and is not fulfilling the tasks specified in the employment contract.
    • the employee is late, does not report to work, or does not follow the internal disciplinary rules of the enterprise. These cases are considered a disciplinary dismissal

 

5. Protection against unlawful dismissal and in cases of work-related incidents and injuries

  • Employers have the right to dismiss employees in the above mentioned situations. If the employee is unlawfully dismissed (for example based on discrimination or without notice), they have the right to appeal this decision in court.
  • If an employee gets injured while doing their job, they are entitled to financial compensation. The employer is obliged to assure that the workplace is safe and healthy.

 

6. Remuneration:

  • The minimum wage is determined by the Council of Ministers in Bulgaria and is currently, as of August 2024, fixed to 933 BGN (477 EUR). Bulgaria is the EU member state with the lowest minimum wage. A prognosis for January 2025 predicts an increase to about 1100 BGN (562 EUR) but this has not been officially confirmed yet.
  • The agreed upon salary can be increased by the employer without the agreement of the employee. However, there must be mutual consent for a salary decrease.

 

7. Social security, maternity and sick leave:

  • When you have an employment contract in Bulgaria taxes, social security, health, and pension insurance are automatically deducted from your salary. If you are a foreigner who is not registered in the Bulgarian social security and health system, you only pay income taxes.
  • Female employees are entitled to 410 days of paid maternity leave, starting 45 days before the official due date.
  • Paid sick leave usually amounts to 70-80% of the regular salary, depending on the circumstances and the length of the absence.

Do you need legal advice and assistance? Contact our experienced lawyers.

 

Labour lawyers

Foreigners in Bulgaria can always count on a good labour lawyer for help with administrative procedures, document preparation and even workplace conflicts. Having someone to guide you through your hiring process, assist with your paperwork, or defend your rights in court could save you time, stress, and money. 

The specialists at “Danailova, Todorov and Partners” are prepared for any scenarios in the labour law area. They can draft employment documents if you start your own company in Bulgaria, help you with relocation papers if you get hired as a foreign citizen, mediate and resolve employment disputes. Our team will provide you with essential legal support in any labour law related situation. 

If you have any questions about Bulgarian labour law or need help with your employment relationship, feel free to contact us. Our experienced team of lawyers will assist you with any issues and provide professional legal advice. 

Whether you are employed by a Bulgarian company or have a business in the country, we are here to help. If you are a third country national (such as the United Kingdom or the United States for example), you are also welcome with any queries about Bulgarian labour law. Our expert labour lawyers can consult you not only in English, but also in French, German, and Russian. You can send your inquiries through our contact form or at This email address is being protected from spambots. You need JavaScript enabled to view it. .


“Danailova, Todorov and Partners” Law Firm provides top-quality legal services on all aspects of trade law, contractual law, employment law, administrative law and tax law. We are a partner you can rely on.

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