BULGARIA Law and Practice Contributed by: Diana Milkova and Victoria Penkova, Penkova & Partners Law Firm
• at least 30 dismissals in companies employing 300 employees or more. When the employer plans to carry out collective redundancies, it must begin consultations with the employees’ representatives and trade union organi - sations in a timely manner, but no later than 45 days before the redundancies are to be carried out. The employer must provide full information about the upcoming redundancies in accordance with the Labour Code, and the aim is to reach an agreement with the employees’ representatives to avoid or limit the collective redundancies and mitigate their impact. After providing the necessary information to the rep - resentatives, the employer is required to send a copy of it to the relevant division of the employment agency within three working days. The collective dismissals may only take place no earlier than 30 days after the notification to the employment agency, irrespective of the notice periods. 7.2 Notice Periods The notice period for the termination of an indefinite employment contract is 30 days, unless the parties have agreed on a longer period, not exceeding three months. For a fixed-term employment contract, the notice period is three months, but it shall not exceed the remaining term of the contract. The termination notice may be withdrawn if the employee communicates this intention before or at the same time as the notice is received. Additionally, with the employer’s consent, the notice may be with - drawn before the notice period expires. Either party – whether the one giving the notice or the one receiving it – may terminate the employment before the end of the notice period. In such cases, the terminating party must compensate the other party with the compensation amounting to the employee’s gross remuneration for the unfulfilled notice period. 7.3 Dismissal for (Serious) Cause Termination by the Employer With Notice The employer may terminate the employment contract by giving the employee written notice, observing the notice period in the following cases:
• the closure of the enterprise; • the closure of part of the enterprise or downsizing of personnel; • a reduction in the volume of work; • employee idling for more than 15 working days; • the employee’s inability to perform the work effi - ciently; • the employee does not possess the necessary educational qualifications or professional skills for the work; • the employee refuses to follow the enterprise or division of it in the event of relocation outside of the current work location; • the position held by the employee must be vacated for the reinstatement of a wrongfully dismissed employee; • the employee becomes entitled to a pension or if the employment began after the employee has acquired and exercised the right to a pension; • there is a change in the requirements for perform - ing the position, and the employee does not meet these new requirements; or • the performance of the employment contract becomes objectively impossible. Compensation Due by the Employer In cases of dismissal due to the closure of the enter - prise or part of it, downsizing of personnel, reduction in the volume of work, idling for more than 15 working days, refusal by the employee to follow the enterprise or a division thereof in case of relocation, or when the position occupied by the employee must be vacat - ed for the reinstatement of a wrongfully dismissed employee, the employee is entitled to compensation. This compensation is equivalent to the employee’s gross remuneration for the period of unemployment, but it shall not exceed one month’s salary. If the employee begins new work at a lower remuneration during this period, they shall be entitled to the differ - ence in pay for up to one month as of termination. Selection Process In the event of the closure of part of an enterprise, as well as during downsizing of personnel or a reduction in the volume of work, the employer has the right to select which employees to retain. Acting in the best interests of the production or service, the employer may dismiss employees whose positions are not
74 CHAMBERS.COM
Powered by FlippingBook