Bulgaria

In Bulgaria, there are various laws that both employers and employees must follow in the event of a termination. For example, if the parties mutually agree to terminate the employment contract, it is easily handled by communicating it in writing. If the employee is a member of a union, the employer must obtain permission from the union before terminating the employee.

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

Possible reasons for terminations include:

• Closing the enterprise in which the individual works, or reducing the number of working positions in a portion of the enterprise
• Workload reduction
• Work stoppage by the employing enterprise for more than 15 business days
• Employee's inability to perform his or her labor duties effectively
• insufficient professional qualifications or educational background required for effective performance of labor duties
• Refusal of the employee to relocate to a new location with the company for which the employee works
• change in the requirements for performing the labor duties inherent in the position, provided that if 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 a reduced retirement age under the Social Insurance Code
• If the employment relationship began after the employee obtained and used his right to an old-age pension
• if the employment relationship began after the employee was granted a reduced contributory service and retirement age pension under the Social Insurance Code
• objective impossibility of the employee's performance
• if the position must be vacated to accommodate an employee who was reinstated after being wrongfully dismissed
• execution of a management assignment agreement with the employing entity's registered directors (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)

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In Bulgaria, the standard notice period is 30 days. However, in some cases, the employer and employee can agree to a longer period (up to 90 days).

Probation periods in Bulgaria cannot exceed 6 months.

There is no statutory severance pay unless the following conditions are met:

• Termination of employment due to illness: In this case, an employee with at least 5 years of service must be paid 2 months' gross remuneration as severance.
• Termination after the employee becomes pensionable: In this case, two months' pay as severance (or) six months' pay for a job tenure of more than ten years.
• Termination due to downsizing or the company's closure: One month's severance pay is required.

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