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Dismissal rules in Bulgaria: grounds and procedure

In Bulgaria an employment contract can only be terminated on a ground the Labour Code lists — there is no at-will dismissal. Procedure matters as much as substance: a valid ground applied through the wrong process can still make the dismissal unlawful.

Working life · Last reviewed: 2026-08-16

Three routes out of a contract

  • Mutual agreement: the parties end the contract in writing. It is the fastest route, but the wording you sign may also close off later claims.
  • Termination with notice: used for closure of the business, redundancy, a reduction in workload, or lack of the qualities needed to perform the job.
  • Summary (disciplinary) dismissal: reserved for serious breaches and bound to a specific procedure, including a written explanation from the employee.

Procedural defects can void a dismissal

The termination order is written and must state the legal ground relied upon; that ground cannot be changed afterwards. In disciplinary cases the employer must request an explanation, act within the statutory window and choose a sanction proportionate to the breach. In redundancy cases a documented selection is expected. Skipping a step can lead to annulment even where the underlying reason was genuine.

Some categories require prior authorisation

Pregnant employees, those on maternity leave, workers with certain illnesses, trade-union representatives and employees on leave enjoy additional protection. In those cases the employer may need prior permission from the labour inspectorate before dismissing.

Documents to collect on the way out

  1. Written termination order

    It must state the legal ground and the effective date.
  2. Insurance and service records

    These underpin later claims with the National Social Security Institute.
  3. Compensation for untaken leave

    Untaken paid annual leave is compensated on termination; request the calculation.
  4. Final payslip and payment proof

    They evidence what was and was not paid.

Challenging the dismissal

Two channels run in parallel: administrative supervision by the General Labour Inspectorate, and a court claim for annulment and reinstatement. Limitation periods are short and strict, so establish them on the day you receive the order. Unemployment benefit is a separate matter handled by the National Social Security Institute and the Employment Agency, and the ground stated in your termination order can affect both entitlement and duration.

No periods or amounts are stated here

Notice periods, compensation formulas and limitation periods are set by statute and change. Check the Labour Code in force and consult an employment lawyer; nothing here is legal advice.

This is not legal or financial advice

This page explains the process in general terms and points to the official sources of the competent authorities. For decisions specific to your own situation, consult a lawyer, an accountant or the relevant institution. Rules and amounts change over time.

Frequently asked questions

Can I be dismissed during probation without a reason?

The party in whose favour the probation clause was agreed may terminate without notice while it runs. Whether the clause was validly agreed, in whose favour, and whether the period had expired are all points that can be disputed on the wording.

I signed the termination order — have I accepted it?

Signing evidences receipt, not agreement with the ground. The limitation period for a challenge normally runs from that receipt, which makes the date on the document important.

Does redundancy require the employer to justify the selection?

A documented selection is expected where several comparable posts exist. Absence of any traceable criteria is one of the points commonly raised when a redundancy dismissal is challenged.

Sources

The information on this page is based on the official sources listed below. Legislation changes — open the links and verify the current position.

  1. Кодекс на труда — официален текст (lex.bg)https://lex.bg/ · 2026-08-16
  2. ИА Главна инспекция по трудаhttps://www.gli.government.bg/ · 2026-08-16
  3. Национален осигурителен институт (НОИ)https://www.noi.bg/ · 2026-08-16
  4. Агенция по заетосттаhttps://www.az.government.bg/ · 2026-08-16

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