The sudden loss of a job is one of life's most stressful events. The emotion of having an employment contract terminated often leads employees to accept the situation passively or to sign documents that harm their interests. The truth, however, is that the Bulgarian Labour Code (КТ) is strongly socially oriented and provides employees with substantial protection.
A large share of dismissals in Bulgaria are declared unlawful by the courts, simply because employers make procedural or substantive mistakes when carrying them out. In this comprehensive guide we look at your rights in the event of unlawful dismissal, the compensation you can obtain and why a quick response is critical.
When is a dismissal unlawful?
For an employment relationship to be terminated lawfully, the employer must have a ground expressly provided for by law (for example: redundancy, liquidation, a disciplinary offence, lack of the required qualities, etc.) and must strictly follow the procedure laid down in the Labour Code.
Most often the court declares a dismissal unlawful because of the following omissions by the employer:
- Breach of procedure in a disciplinary dismissal: Under Art. 193 of the Labour Code, before imposing a disciplinary sanction the employer is obliged to hear the employee or accept their written explanations. If this has not been done, the dismissal fails in court on this ground alone, without the court even examining whether the employee committed the offence.
- Sham redundancy: When a position is made redundant, it must actually be removed from the staff schedule. If the next day the employer opens the same position under a different name, the redundancy is unlawful.
- Failure to carry out a selection: In the case of redundancy or a reduction in the volume of work, where only some of several identical positions are cut, the employer is required by law (Art. 329 of the Labour Code) to carry out a selection based on the criteria of "qualifications" and "level of job performance". If there is no selection, or it was carried out only formally, the dismissal is unlawful.
- Breach of prior protection: Dismissal of an employee who enjoys statutory protection without prior permission from the Labour Inspectorate.
The employee's four main claims (Art. 344(1) of the Labour Code)
If you believe you have been dismissed unlawfully, you have the right to seek protection through the courts. The law entitles you to bring four separate claims before the court, which are usually combined in a single case:
1. A declaration that the dismissal is unlawful and its annulment
This is the main claim. If the court upholds it, the other claims are automatically examined.
2. Reinstatement in your previous job
If you wish to return to the position from which you were unlawfully removed, the court will order your reinstatement. After winning the case, you have a 14-day period in which to report for work.
3. Compensation for the time you were out of work
This is the most important financial aspect. Under Art. 225(1) of the Labour Code, in the event of unlawful dismissal you are entitled to compensation equal to your gross salary for the time you were unemployed because of the dismissal, but for no more than 6 months.
Example: If your gross salary was BGN 2,000 and the case lasts longer than 6 months (during which you have not started a new job), the employer will be ordered to pay you compensation of up to BGN 12,000, together with statutory interest. If during this period you started a lower-paid job, you are entitled to the difference in salary for the same 6-month period.
4. Correction of the ground for dismissal in your employment record book
Once the court annuls the dismissal, the unlawful ground (for example, "disciplinary dismissal") is deleted from your employment record book (or electronic employment record) and an entry is made that the dismissal has been annulled as unlawful. This is extremely important for your future professional career and reputation.
Special protection against dismissal (Art. 333 of the Labour Code) – Who is protected?
Bulgarian legislation grants certain categories of employees "immunity" from dismissal. For certain grounds of termination (for example, redundancy or disciplinary dismissal), the employer must obtain prior permission from the Labour Inspectorate before serving the order.
The following enjoy such protection: * Pregnant women and employees at an early stage of IVF treatment. * Mothers of children under 3 years of age. * Employees suffering from certain illnesses (ischaemic heart disease, diabetes mellitus, oncological diseases, etc. – set out in Ordinance No. 5). * Employees who have started a period of authorised leave (paid, unpaid, or for temporary incapacity/sick leave). * Members of trade union leadership bodies.
If the employer dismisses you without having requested and obtained this permission, the dismissal is declared unlawful on this ground alone, without the court examining the merits of the case.
Strict deadlines: Why time is your enemy
In employment disputes the deadlines are extremely short, and missing them means losing your right to sue the employer. Under Art. 358 of the Labour Code, the deadlines for bringing claims are as follows:
| Type of claim/action | Deadline | When does the period start? |
|---|---|---|
| Claim for annulment of an unlawful dismissal (Art. 344) | 2 months | From the day the employment ends (usually the day the dismissal order is served) |
| Claim for monetary receivables (salaries, unused leave) | 3 years | From the day the receivable became due |
The two-month deadline for challenging a dismissal is preclusive – this means that if you are even one day late in filing the statement of claim with the court, the case will be discontinued and the dismissal will stand, however serious the employer's breaches.
How much does an employment case cost the employee?
One of the greatest advantages for employees is laid down in Art. 359 of the Labour Code. The law expressly states that employment proceedings are completely free of charge for workers and employees.
- You do not pay a state fee for filing the case with the court.
- You do not pay for court-ordered expert reports (for example, experts who calculate the amount of compensation due).
- If you win the case, the employer must also reimburse you for the lawyer's fee you paid.
Frequently Asked Questions (FAQ)
Can I be dismissed while on sick leave?
By law, taking authorised leave for temporary incapacity (sick leave) gives special protection. The employer cannot dismiss you on grounds such as redundancy or a reduction in the volume of work while you are on sick leave, unless prior permission has been obtained from the Labour Inspectorate. Bear in mind, however, that the protection does not apply if the contract terminates because the agreed term has expired or by mutual consent.
What should I do if my employer pressures me to sign a termination by "mutual consent"?
Never sign documents under pressure. Signing a termination by mutual consent (Art. 325(1)(1) of the Labour Code) or at the employer's initiative against compensation (Art. 331 of the Labour Code) in practice blocks your ability to challenge the dismissal as unlawful in court. Moreover, with a mutual-consent termination you are only entitled to the minimum unemployment benefit from the Employment Office (for just 4 months).
What is dismissal during a probationary period?
If your contract contains a probationary period clause (Art. 70 of the Labour Code) in favour of the employer, the employer may terminate it at any time before the period expires, without notice and without having to give reasons. In this specific case the dismissal is very difficult to challenge, unless abuse of rights or discrimination is proven.
Why is professional help from an employment lawyer key?
Employment cases are exceptionally fast-moving and formalistic. Employers usually have legal departments or external advisers who prepare their defence. To have a real chance of success, your statement of claim must be drafted precisely, with correctly formulated requests and evidence identified in good time. If you are still looking for a representative, see how to choose a good lawyer.
Mechkova & Dimitrova Law Firm will help you protect your employment rights, providing you with security and professional representation before your employer and the court, with complete discretion.
Do not let your rights be violated through lack of information or delay. Contact us for an initial consultation so that we can analyse your dismissal order and build a winning strategy for your defence.