Employment Contracts

The relationships between workers and their employers are defined and regulated by obligatory employment contracts. There are many types of contracts; all of them have to specify the location and type of work and the salary. Usually, contracts are signed for an indefinite period of time, with the law allowing for a six-month probation period. The Labour Code also provides for fixed-term contracts, and for temporary, seasonal or other short-term work. By law, an employment contract should specify:

1.Working hours
2.Remuneration
3.Holidays
4.Measures taken for a safe and healthy working environment
5.Conditions for contract termination

Civil contracts are used instead of permanent ones when a worker is hired for the fulfilment of a specific task. Such contracts do not specify working times and absences like standard contracts. When signing a civil contract, the employer is obliged to pay the state a 20-per cent advance tax. In case of termination, the former employee cannot register as unemployed, as civil contracts do not include unemployment fund contribution payments.

A contract can be ended with a written notice given from 30 days to three months prior to departure. Failure to observe notice periods may result in compensation claims. When firing a worker, a specific and detailed explanation of the reasons is required as well as proof of the worker's incompetence. To prevent such problems, it is strongly advised to use the services of a good lawyer and always provide an exhaustive job description.

A worker's salary is calculated through a complicated system that takes into consideration the length of service, job class and industry category. The employer is also obliged to pay social security and health and pension insurance fees. Incentives include free medical service, mobile phone vouchers and transport cards. According to social security standards, the employer should register the worker at the local social security administration within a week of the conclusion of the contract.

The law permits a normal workweek of 40 hours maximum, or 46 hours in a six-day workweek with provisions for flexible shifts. Every employee is entitled to a minimum of 20 days annual paid leave. Women have the right to a two-year maternity leave during which their position remains guaranteed.

All foreigners with permanent residence in Bulgaria or those granted sanctuary or refugee status have the right to work in Bulgaria. They work under the same rules and practises valid for Bulgarian citizens. Temporary work permits are issued by the National Office of Employment of the Labour and Social Policy Ministry. These work permits are issued for a specified time, job and employer and can only be issued after an application is submitted by the employer. A permit is valid for the time of the employment contract but not more than one year. The permission may be extended.

However, this permission enables a foreigner to take the job only if no Bulgarian citizen has applied for the same position. Legal restrictions limit the number of foreign employees to 10 per cent of the total work force. If employment is unwillingly terminated for the employee, the employer is obliged to provide the worker with a ticket to his home country.

Work permits for foreigners will not be issued if the employer making the application has within the past eight months dismissed Bulgarian citizens suitable for the job for which the permit is being requested, or the offered work conditions and remuneration are less favourable than those usual for Bulgarian employees, or if the salary offered is insufficient to ensure the necessary means of existence, or the constitution or the law require Bulgarian citizenship for the job.