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Understanding what is the termination notice in Bulgaria is essential for every employer operating in the country in 2026. Bulgaria’s Labour Code (Kodeks na truda) sets statutory minimum notice periods that vary depending on contract type, length of service and whether a probationary clause applies. Alongside the notice rules, employers must navigate severance entitlements, collective redundancy consultation thresholds and a growing list of protected employee categories whose dismissal requires prior regulatory approval. This guide consolidates the current statutory framework, practical compliance steps and worked examples that HR teams and in-house counsel need to manage employment termination in Bulgaria lawfully and efficiently.
TL;DR, Key takeaways for employers:
This article was produced by Global Law Experts. For specialist advice on this topic, contact Nina Tsifudina at Kinstellar, a member of the Global Law Experts network.
The primary legislation governing employment termination Bulgaria is the Labour Code (Kodeks na truda), as amended. The official English translation is published by the Ministry of Labour and Social Policy (MLSP) and remains the authoritative reference for international employers. Enforcement and practical guidance fall under the General Labour Inspectorate (GLI), which publishes inspection protocols and downloadable Labour Code resources.
Collective bargaining agreements (CBAs) negotiated at sector or enterprise level may extend, but never reduce, the statutory protections set out in the Labour Code. In practice, CBAs in heavily unionised sectors such as mining, transport and energy often stipulate longer notice periods and enhanced severance packages beyond the statutory floor.
At the EU level, Bulgaria transposes the Collective Redundancies Directive (98/59/EC) and the Transparent and Predictable Working Conditions Directive (2019/1152). Industry observers expect ongoing EU-level consultation on adequate minimum notice standards to continue influencing Bulgarian legislative discussions through 2026 and beyond, although no amending legislation has been adopted at the time of writing. Employers should monitor MLSP announcements and GLI guidance for any mid-year regulatory updates.
How many days of notice are required for termination? The answer depends on the contract type, any agreed contractual extension and whether the employee is still within a probationary period. The table below summarises the core rules under the Labour Code.
| Contract type | Statutory notice period | Maximum contractual extension | Key rule |
|---|---|---|---|
| Indefinite-term contract | 30 calendar days | Up to 3 months | Parties agree in writing; silence defaults to 30 days |
| Fixed-term contract | 3 months | Cannot exceed remaining contract term | If fewer than 3 months remain, notice equals remaining term |
| During probation | No notice required | N/A | Either party may terminate at will until probation expires |
Under the Labour Code, both employer and employee must give at least 30 calendar days’ written notice to terminate an indefinite-term employment contract. The parties may agree on a longer notice period of up to three months within the employment contract or a subsequent written amendment. If the contract is silent on notice, the 30-day statutory minimum applies automatically. Notice runs from the day after the written notice is delivered to the other party and is counted in calendar days, weekends and public holidays are included.
For fixed-term employment contracts, the notice period Bulgaria employers must observe is three months. Crucially, the notice period cannot extend beyond the remaining duration of the contract. If, for example, only six weeks remain on a fixed-term contract, the effective notice period is six weeks, not three months. This safeguard prevents employers from giving notice that would outlast the natural expiry of the contract, a point frequently misunderstood in cross-border employment arrangements.
Bulgarian law permits a probationary clause of up to six months. During the probation period, either party may terminate the contract without giving notice and without stating a reason. Once the probation period expires, or if no probationary clause was included, the standard notice periods for the relevant contract type apply in full. Employers should note that probation clauses must be expressly agreed in writing. An oral understanding or informal internal policy is not sufficient to invoke the no-notice termination right.
Contractual notice periods that exceed three months for indefinite-term contracts are unenforceable, courts will reduce them to the statutory maximum. Similarly, any clause that purports to waive the employee’s right to notice (outside probation) is void. Industry observers note that many international employers operating through Bulgarian subsidiaries attempt to mirror home-country notice periods of six months or longer; these clauses are regularly struck down by Bulgarian courts. The practical advice is to cap contractual notice at three months and address any transition concerns through garden-leave or non-compete provisions instead.
Bulgarian law recognises several routes to end an employment relationship. The procedure, documentation and risk profile differ significantly between them.
An employer may terminate an employment contract with notice only on grounds expressly listed in the Labour Code. These include closure of part of the enterprise, staff reduction, decline in the volume of work, lack of the necessary qualifications for the role, and long-term inability to perform the job. The termination notice must be in writing, must specify the legal ground relied upon, and must be served on the employee personally (with acknowledgement of receipt) or by registered mail. The notice period begins to run from the day after receipt. During the notice period the employment relationship continues in full, including salary, benefits and social-insurance contributions.
Disciplinary dismissal Bulgaria is the most procedurally demanding route. An employer may dismiss an employee without notice only for serious breaches of labour discipline, specifically, three late arrivals or early departures within a calendar month, absence from work for two consecutive working days without valid reason, appearance at work under the influence of alcohol or drugs, disclosure of trade secrets, or serious damage to employer property.
Before imposing a disciplinary dismissal, the employer must:
Failure to follow these steps renders the dismissal unlawful, regardless of the severity of the employee’s conduct. Courts routinely reinstate employees and award compensation of up to six months’ salary where the employer skipped the written-explanation step.
Employer and employee may agree to terminate the contract by mutual consent at any time, without notice and without the need to cite a statutory ground. The agreement must be in writing. In practice, mutual termination is the most common route used by employers seeking a clean exit, particularly where the statutory grounds for unilateral termination are weak or the employee falls within a protected category. Severance terms are freely negotiable, and industry observers note that settlements typically range from one to three months’ gross salary depending on seniority, role criticality and litigation risk.
Do employers have to pay severance on dismissal in Bulgaria? The answer depends on the reason for termination and, increasingly, on market practice rather than purely statutory requirements.
Statutory severance applies in two principal scenarios under the Labour Code:
Beyond statutory entitlements, severance pay Bulgaria employers offer is often enhanced by contractual clauses or CBA provisions. The table below illustrates a worked example.
| Component | Calculation basis | Amount (BGN) |
|---|---|---|
| Monthly gross salary | Per employment contract | 4,000 |
| Statutory redundancy severance (1 month) | Labour Code, 1 × gross monthly salary | 4,000 |
| Accrued but untaken annual leave (8 days) | Daily rate × unused days | 1,455 |
| Contractual ex-gratia payment (negotiated) | 2 × gross monthly salary (per mutual agreement) | 8,000 |
| Total final payment | 13,455 |
Employers must pay all outstanding remuneration, including accrued holiday, pro-rata bonuses and any contractual severance, on or before the last day of employment. Social-insurance contributions are due on the statutory severance components; the ex-gratia payment is subject to income tax and social contributions up to the applicable ceiling.
What are the redundancy laws in Bulgaria, and what is the threshold for collective redundancy? The Labour Code transposes the EU Collective Redundancies Directive and imposes specific employer obligations Bulgaria companies must follow when contemplating large-scale dismissals.
A collective redundancy is triggered when an employer proposes to dismiss, within a 30-day period, at least:
All forms of employer-initiated termination count toward the threshold, including termination with notice, termination without notice and terminations by mutual agreement initiated by the employer, provided the total reaches the numeric trigger within a rolling 30-day window.
| Threshold / trigger | Employer obligation | Timeline / action |
|---|---|---|
| Collective redundancy thresholds met (10 / 10 % / 30 rule) | Notify employee representatives or trade union; commence good-faith consultation; notify the Employment Agency | Consultation must begin at least 45 days before the first dismissals take effect; Employment Agency notified in writing at the same time |
| Voluntary / mutual-agreement exits (employer-initiated) | Count toward the threshold; record each agreement in writing with severance terms | Include in the 30-day rolling count; maintain documentation for GLI inspection |
| Dismissal for disciplinary reasons | Follow individual disciplinary procedure; hearing and written explanation required | Do not count toward collective redundancy threshold unless part of a wider restructuring pattern |
During the 45-day consultation period, the employer must provide employee representatives with written information on the reasons for the proposed redundancies, the number and categories of workers affected, the proposed selection criteria, the period over which dismissals will occur and the method for calculating severance. The employer must genuinely consider alternatives, redeployment, reduced working hours, retraining, and document the consultation process. The Employment Agency may intervene if it considers the consultation inadequate.
Early indications suggest that Bulgarian authorities are paying closer attention to consultation compliance in 2026, particularly in sectors undergoing digital transformation, and the GLI has signalled increased inspection activity around collective redundancy notifications.
Several categories of employees enjoy enhanced protection against dismissal. Terminating a protected employee without obtaining the required prior approval (typically from the Labour Inspectorate) renders the dismissal unlawful and exposes the employer to reinstatement orders plus compensation.
For employers undertaking redundancies that affect protected employees Bulgaria rules demand meticulous documentation. The practical approach is to identify all protected individuals during the planning phase, apply for the relevant GLI approvals before serving any notice, and maintain a detailed audit trail showing that selection criteria were objective and non-discriminatory.
The following step-by-step checklist helps HR teams manage termination notice Bulgaria processes from initiation to final payment.
The following is a simplified template. Employers should adapt it to the specific facts and take local legal advice before use.
NOTICE OF TERMINATION OF EMPLOYMENT CONTRACT
To: [Employee full name]
Position: [Job title]
Date: [DD/MM/YYYY]
In accordance with Article [XX] of the Labour Code, we hereby give you [30 days / 3 months] notice of termination of your employment contract, effective [termination date].
Reason for termination: [State the specific legal ground, e.g., staff reduction under Article 328(1)(2) of the Labour Code].
During the notice period, your terms and conditions of employment remain unchanged. Your final salary, accrued annual leave and any statutory severance will be paid on or before the last day of your employment.
Signed: [Employer representative name and position]
Getting the termination notice in Bulgaria right, from choosing the correct legal ground to serving a compliant written notice and processing final payments, is one of the highest-risk compliance tasks for employers in 2026. Procedural missteps, particularly around disciplinary dismissals and protected employees, routinely result in court-ordered reinstatement and compensation awards. Employers planning individual or collective redundancies should map every affected employee against the rules summarised above, prepare documentation in advance and seek specialist legal advice before serving notice. For guidance tailored to your situation, consult an employment lawyer in Bulgaria through the Global Law Experts directory.
Last reviewed: 19 June 2026
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