Top tips for employing people in Bulgaria

The recruitment process is not formalized, so the employer generally has discretion in determining the recruitment criteria and the required documents, as long as there are no prohibited discriminative requirements.
There are some specific data protection rules for recruitment, such as certain limitations on the period of processing of job candidate’s data.
Detailed background checks, including the option to collect information on criminal past, are generally not permitted except in very limited cases.

Employment is formalized and requires the conclusion of a written employment contract with certain minimum mandatory content. The employment contract can be signed digitally, however there are numerous legal requirements for the creation, storage and exchange of e-employment documents which must be observed.
Employment contracts can be concluded for an indefinite period or as fixed-term contracts, however the latter are only admissible in limited cases. There are various options for flexible work, such as home office, part-time work, shift work, work during specific days of the month etc.
The parties generally have freedom to agree on the terms of employment but only as far as these terms are in line with or are more favourable to the employee than the mandatory provisions of the Bulgarian employment legislation.
The terms of employment can be changed unilaterally in very limited cases and most changes require the conclusion of a written annex to the contract.
Post termination non-compete clauses are invalid as contradicting the freedom to choose profession and other basic employment law principles.

The employer cannot unilaterally terminate the employment without cause and must be able to demonstrate the presence of one of the legal grounds for termination if intending to terminate the employment. The employee, on the other hand, can always terminate the employment without cause by submitting a written termination notice.
The employment contract can be terminated only in writing and the procedure for termination is very formalistic, requiring the completion of specific steps, procedures and documents.
Certain categories of employees benefit from special protection from dismissal and/or in case of redundancies. Such employees can only be dismissed on limited grounds and/or with the prior permission of the local authorities.

Employers are required by law to prepare and keep numerous internal rules, acts and policies. Before adopting and/or amending some of those internal acts, the employer may be required to provide information and conduct consultations with employees’ representatives.
Certain categories of employees are subject to special protection, for example, employees under 18, mothers of young children, pregnant employees, employees in advanced stages of in-vitro fertilization procedures, employees with disabilities. The protection limits the freedom of the employer to assign certain work to the employees or sets additional requirements, for example there are such special terms for overtime, nighttime work, secondment, etc.
Court proceedings may be initiated by (former) employees free of charge, i.e. no state fee is due for filing a claim against the (former) employer, so employment lawsuits are not uncommon.
There is a strong move on legislative level for greater flexibility and digitalization of the employment relationship. The implementation, however, oftentimes proves difficult due to the additional requirements posed for this.

Bulgarian employment law is very formalistic and compliance requires strict adherence to the legal procedures and deadlines and careful drafting of the required employment documentation.
Bulgarian employment law is very protective to employees and contains numerous provisions that aim to safeguard the employees’ rights and interests, especially certain categories of vulnerable employees.
Although challenging, it is perfectly possible to successfully navigate the Bulgarian employment regulations by having clear processes and responsibilities within the organization, as well as by seeking appropriate legal support for preparation of documentation and handling more complicated cases, such as dismissals, labour disputes, redundancies.

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