петък, 12 януари 2018 г.

Employment Contract in Bulgaria - Labor Contract


In Bulgaria the Contract of Employment contains:

      Commencement Date and Term
      Job Title And Description
      Place of work
      Time of Work
      Employee Wage Rate (Salary) 
      Employee Benefits
      Vacation
      Conflict of Interest And/Or Confidentiality Clauses
      Termination of Employment
      Remedies
      Modification of Agreement

The Labour Code permits two types of employment contracts:

Temporary Employment Contract - fixed-term contract. Suitable for seasonal, temporary or short term activities. Also could be applicable for work upon a project or upon a contract with external partner.
There is no minimum period for this type of contract, but it cannot last for more than 3 years.
A fixed-term contract becomes indefinite if the Employee continues working for five days after the date originally set as 'the Termination Date of the Agreement' and where there aren't any objections by the Employer in writing.
The legal notice period for terminating this type of contract is 3 months, or as of the last day set as 'the Termination Date of the Agreement' when less than 3 months left.
No Unemployment Compensation in case of Mutual Agreement in writing for terminating before the originally set Termination Date.
In the event that the Employer will fail to comply with the legal notice, the Employee will receive Unemployment Compensation for the unemployed period, but for no longer than for the period of the legal notice.
If the Employee wishes to terminate the employment and will fail to comply with the legal notice period, Employee will provide the Employer with Compensation for the period of the legal notice.

Permanent Employment Contract - with no end-date. Usually such employment begins with a trial period contract, which cannot be longer than 6 months. Throughout the trial period the Employer can terminate the employment at any time even without legal notice.
After the trial period, the legal notice in writing for a permanent employment contract termination is 30 days.
No Unemployment Compensation in case of written mutual agreement for termination.
In the event of termination due to discontinuance of business, Employer will compensate the Employee for the jobless period, but with no more than 1-month gross salary Unemployment Compensation.
In case of disease and minimum 5 years of general service (labor length), the Employee will get Unemployment Compensation of 2-month gross salary.
If the Employee has become entitled to a pension gets 2-month gross salary Unemployment Compensation.
If the Employee has become entitled to a pension and has been working in Company longer than 10 years gets 6-month gross salary Unemployment Compensation.

Where there is just cause for termination, the Employer may terminate the Employee's employment without notice, as permitted by law.

The Employee agrees to devote full-time efforts with 'Normal Hours of Work' (8 hours in a day, 40 hours weekly), or part-time employment duties as described in the Agreement.

If the Employee is traveling for business he/she must be compensated for travel time and will be paid at his/her normal wage rate.

If the Employee has to work more than 40 hours in a work week, the Employee is entitled to overtime, as well as if the Employee works extra on Saturdays, Sundays and holidays.

There are minimum thresholds for the basic gross wage rate (salary).

Except additional payments like bonuses for achievements, the Employee benefits could be for example:
Life assurance for 60 BGN monthly - no income tax, but Social Security Contributions;
Car - income tax over the social expenses for personal needs and Social Security Contributions;
Food vouchers for 60 BGN monthly - no income tax, no Social Security Contributions.

The Employee will be entitled to minimum 20 days paid vacation per year or more, as permitted by law.


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