BULGARIA Law and Practice Contributed by: Diana Milkova and Victoria Penkova, Penkova & Partners Law Firm
7. Termination 7.1 Grounds for Termination Termination During the Probation Period
• if the employer’s actions result in a substan - tial deterioration of working conditions due to a change of employer, the employee is entitled to compensation equivalent to the gross salary for the notice period in the case of an indefinite contract, or to the actual detriment incurred in the case of a fixed-term contract; • if the employee is unable to perform the work due to illness and the employer fails to provide suitable alternative work in line with the health authorities’ prescriptions; and • in other specific cases provided for in the Labour Code. Termination by the Employee With Notice The employee may terminate the employment con - tract by giving the employer written notice without a reason. See 7.3 Dismissal for (Serious) Cause regarding ter - minations by the employer with notice in specific cas - es, and termination by the employer without notice. Termination at Employer’s Initiative in Exchange for Compensation The employer, at its own initiative, may offer the employee termination of the employment contract in exchange for compensation. If the employee accepts the offer, the employer is obliged to provide compensation amounting to at least four times the gross monthly labour remunera - tion last received, unless the parties have agreed to a higher compensation amount. Collective Dismissals Under the Labour Code, collective dismissals are those carried out by the employer for one or more rea - sons not related to the individual employee, where the number of dismissals within a 30-day period meets the following criteria: • at least ten dismissals in companies employing more than 20 but fewer than 100 employees; • at least 10% of the total workforce in companies employing at least 100 but fewer than 300 employ - ees; and
During the probation period, the party for whose ben - efit it has been agreed may terminate the employ - ment contract without notice and without providing any reasons. Termination by Both Parties Without Notice An employment contract shall be terminated without either party being obligated to give notice to the other party: • by mutual consent in writing between the parties – the party receiving the offer must respond within seven days of receiving it; • upon expiry of the agreed term; • upon completion of the specified work; • upon the return of the employee who was replaced; • if the employee is unable to perform the assigned work due to illness, resulting in permanently reduced working capacity, or due to health con - traindications as confirmed by a medical expert board’s conclusion – in such cases, termination is not permissible if the employer can offer alternative work suitable for the employee’s health condition and the employee agrees to take it; • if the dismissal of an employee is declared wrong - ful, or if the employee is reinstated to their previ - ous position by the court but fails to report to work within the specified timeframe; and • in other specific cases provided for in the Labour Code. Termination by the Employee Without Notice An employee may terminate the employment contract in writing without notice, where: • if the employer discontinues its operations, or places the employee on unpaid leave without their consent; • if the employer delays payment of wages or ben - efits under the Labour Code or social insurance, or unlawfully changes the nature or place of work or the agreed remuneration, or fails to fulfil other obligations set out in the employment contract, collective agreement, or by law;
73 CHAMBERS.COM
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