BULGARIA Law and Practice Contributed by: Marin Sarafov, Petya Norova, Iva Georgieva and Eduard Milchev, G&P Law
regulation. The parties may agree on terms that are more favourable to the employee than those pre - scribed by law, but contractual provisions that reduce the statutory level of protection are generally unen - forceable (even null and void). Although judicial decisions do not constitute a formal and generally binding source of law, the case law of the Bulgarian Supreme Court of Cassation and the Bulgarian Supreme Administrative Court plays an important role in ensuring the consistent interpreta - tion and application of employment and social secu - rity legislation. Employment relationships are established through individual written employment contracts, which must comply with the mandatory requirements of the Labour Code. Collective bargaining agreements may also apply where concluded at enterprise, sectoral, industry or municipal level. Such agreements regulate matters including remuneration, working conditions and benefits, and bind employers that are parties to the agreement or otherwise become bound under the applicable statutory rules. Internal workplace rules and employer internal policies may further regulate the organisation of work, provided they comply with mandatory legislation and any applicable collective bargaining agreement. 4.2 Characteristics of Employment Contracts Specific Requirements Employment contracts must be concluded in writing before the employee commences work. The written form is mandatory under the Bulgarian Labour Code and cannot be replaced by an oral agreement. Before the employee starts work, the employer must provide the employee with a signed copy of the employment contract and a copy of the notification submitted to the Bulgarian National Revenue Agency (NRA) as evi - dence that the employment agreement was registered with the NRA. Failure to comply with these require - ments may expose the employer to administrative sanctions. The Bulgarian Labour Code prescribes the manda - tory minimum content of an employment contract. The contract must specify, among other things:
• the parties; • the place of work; • the job position and nature of the work; • the date of signing the employment agreement and the date of commencement of work; • the duration of the contract (indefinite period or fixed-term employment); and • the paid annual leave and additional paid annual leave (if any) entitlement. Employment contracts may be concluded for either an indefinite or a fixed term (permitted only in the expressly provided circumstances). Probation The parties may also agree on a probationary period of up to six months for the benefit of the employer, the employee or both. Amendments Employment contracts may generally only be amend - ed by mutual written agreement between the employ - er and the employee. Unilateral amendments by the employer are permitted only in the limited circum - stances expressly provided for by Bulgarian labour legislation. Restrictive covenants Post-termination restrictive covenants are recognised only to a limited extent under Bulgarian law. While confidentiality obligations and, in appropriate circum - stances, carefully drafted non-solicitation clauses may remain enforceable after the termination of employ - ment, non-compete obligations are considered unen - forceable (even null and void). Restrictive covenants are generally permissible during employment. 4.3 Working Time Standard Terms Bulgarian employment law prescribes both normal and maximum working time. The standard working week is 40 hours, organised as an eight-hour working day over a five-day working week. Part-time employ - ment arrangements are also recognised and may be agreed by the parties. Depending on the nature and organisation of the work, Bulgarian legislation also permits shift work, flexible working hours, aggregated calculation of working time, open-end working time
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