BULGARIA Law and Practice Contributed by: Diana Milkova and Victoria Penkova, Penkova & Partners Law Firm
being downsized in order to retain those with higher qualifications or superior performance. Termination by the Employer Without Notice An employer may terminate an employment contract without notice if the employee has been detained for the execution of a sentence. The employer must also terminate the contract without notice in the following situations. • The employee has been disqualified, either by a sentence or through an administrative procedure, from practising the profession or occupying the position. • The employee refuses to accept suitable work offered as part of occupational rehabilitation. • The employee is dismissed due to a breach of discipline. • The employee fails to notify the employer of any incompatibility with the position they hold. • Incompatibility exists with the position as defined by the Labour Code. • Other specific conditions as outlined in the Labour Code. Procedure in Case of a Disciplinary Dismissal A disciplinary dismissal may be imposed if any of the following occur. • The employee reports for work late or leaves early on three occasions, each lasting at least one hour, within a single calendar month. • The employee is absent from work for two con - secutive working days. • There are repeated breaches of work discipline. • The employee abuses the employer’s trust or dis - closes confidential information. • The employee causes harm to citizens in the trade or services sector. • The employee participates in gambling activities using the company’s telecommunication facilities. • Other serious breaches of work discipline. A disciplinary dismissal shall be imposed in compli - ance with the criteria for determining the discipli - nary sanction, namely the gravity of the breach, the respective circumstances, as well as the conduct of the employee.
Before any disciplinary sanction, including dismissal, is imposed, the employer must request an explanation from the employee and gather evidence. Disciplinary sanctions, including dismissal, must be implemented through a reasoned written order. These sanctions must be imposed within two months after detecting the breach and no later than one year after it was committed. Upon disciplinary dismissal, the employee shall owe the employer compensation amounting to the employ - ee’s gross labour remuneration for the notice period in case of an indefinite employment contract; and amounting to the actual detriment in case of a fixed- term employment contract. 7.4 Termination Agreements The termination of the employment contract must be made in writing. A termination agreement may be signed in the case of termination by mutual consent or when the employer initiates termination, accompanied by agreed compensation. In all other cases, the employer shall issue a termi - nation order or order of dismissal, specifying the grounds for termination and any compensation owed to the employee, such as compensation for unused paid leave or a non-observed notice period. 7.5 Protected Categories of Employee In the event of the closure of part of an enterprise, downsizing of personnel, reduction in the volume of work, where the employee lacks the capacity to per - form the work efficiently, or when there is a change in the requirements for the position that the employee fails to meet, or in cases of disciplinary dismissal, the employer must obtain advance permission from the Labour Inspectorate for each specific case in order to dismiss the following categories of employees: • female employees who are the mother of a child under three years old; • employees undergoing occupational rehabilita - tion or those suffering from specific diseases, after obtaining an opinion from the territorial Medical Expert Board; • employees who have commenced the use of per - mitted leave;
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