What are an employee's rights if dismissed unlawfully in Bulgaria?

The employee may file three claims before the court: to have the dismissal declared unlawful and annulled, to be reinstated to the previous position, and to receive compensation under Art. 225 of the Labour Code amounting to up to 6 months' gross salary. These proceedings are exempt from court fees.

What is the time limit for challenging a dismissal in court in Bulgaria?

The time limit for challenging a dismissal before the court is 2 months from the date of termination of the employment relationship (Art. 358(1)(2) of the Labour Code). This is a preclusive deadline — once it expires, the right to challenge is extinguished.

What is the procedure for disciplinary dismissal in Bulgaria?

The employer must: (1) establish and document the infringement, (2) request written explanations from the employee — this step is mandatory, (3) if the employee is in a protected category, obtain authorisation from the Labour Inspectorate, (4) issue a reasoned written order within 2 months of discovering the infringement but no later than 1 year from its commission, and (5) serve the order on the employee.

Must an employer request explanations from the employee before disciplinary dismissal?

Yes, this is mandatory. Under Art. 193(1) of the Labour Code, the employer must hear the employee or accept their written explanations before imposing a disciplinary penalty. If this step is omitted, the court will annul the dismissal on procedural grounds alone, without examining the substance of the case.

What is the notice period for open-ended and fixed-term employment contracts in Bulgaria?

For open-ended contracts, the notice period is 30 days unless the parties have agreed on a longer period, up to a maximum of 3 months. For fixed-term contracts, the notice period is 3 months but may not exceed the remaining term of the contract.

Can a pregnant employee be dismissed in Bulgaria?

A pregnant employee or one undergoing an advanced stage of IVF treatment enjoys special protection under Art. 333(5) of the Labour Code. She may be dismissed only with prior authorisation from the Labour Inspectorate and only on specific grounds. In practice, the Inspectorate rarely grants such authorisation.

What compensation is owed upon redundancy in Bulgaria?

Upon redundancy, the employer owes: compensation for any unserved notice period under Art. 220 of the Labour Code, compensation for remaining unemployed under Art. 222(1) (one month's gross salary if the employee remains without work), and compensation for unused paid annual leave under Art. 224.

Dismissal in Bulgaria 2026 | Employee Rights, Employer Procedure

Q: On what grounds can an employer dismiss an employee with notice in Bulgaria?

The grounds for dismissal with notice are exhaustively listed in Art. 328(1) of the Labour Code. They include closure of the enterprise or a part thereof, staff redundancy, reduction in the volume of work, lack of qualities for effective performance, lack of required education or qualifications, change in the requirements for the position, eligibility for a state retirement pension, and others.

Q: Which categories of employees are protected against dismissal in Bulgaria?

Under Art. 333 of the Labour Code, the following are protected against dismissal: a mother of a child under 3 years of age, a pregnant employee, an employee with a reassigned position due to health reasons, an employee suffering from a disease listed in Ordinance No. 5, an employee on leave, a workers' representative in company management, an occupational health and safety representative, and a member of a trade union leadership body. Dismissal requires prior authorisation from the Labour Inspectorate.

Q: What is the time limit for imposing a disciplinary penalty in Bulgaria?

A disciplinary penalty, including dismissal, must be imposed no later than 2 months from discovering the infringement and no later than 1 year from its commission (Art. 194 of the Labour Code). These two periods run concurrently — once either expires, the penalty can no longer be imposed.

In this article you will learn

All grounds for termination of an employment contract and how they differ
When the employer may dismiss with notice and when without notice
The steps required for disciplinary dismissal and the strict statutory deadlines
Which categories of workers are protected against dismissal and the procedure for obtaining authorisation from the Labour Inspectorate
Your rights as an employee and how to challenge an unlawful dismissal
A checklist for employers to follow in order to avoid court claims

Grounds for Termination — General Classification

The Labour Code distinguishes several groups of grounds for termination. Correctly identifying the applicable ground matters both for the employee and for the employer.

By mutual consent (Art. 325(1)(1) LC). Either party may make a written proposal. The receiving party must respond within 7 days. If there is no response, the proposal is deemed rejected.

At the employee’s initiative — with notice (Art. 326 LC). The employee may terminate by giving written notice without stating a reason. For open-ended contracts: 30 days (up to 3 months). For fixed-term: 3 months, not exceeding the remaining term.

At the employee’s initiative — without notice (Art. 327 LC). The employee may terminate without notice where the employer has delayed salary payment, unilaterally changed working conditions, or in other cases specified by law.

At the employer’s initiative — with notice (Art. 328 LC). The most extensive group of grounds, examined in detail in the next section.

At the employer’s initiative — without notice (Art. 330 LC). Including detention for a sentence, deprivation of the right to practise, and disciplinary dismissal.

Other general grounds (Art. 325 LC). Expiry of term, completion of work, return of incumbent, incapacity, death, placement under guardianship, or expiry of probation.

Dismissal by the Employer With Notice (Art. 328 LC)

The grounds under Art. 328(1) LC are the only situations in which the employer may terminate with notice. The employer may not combine multiple grounds in a single order.

No.	Ground	Protection under Art. 333 LC
1	Closure of the enterprise	No
2	Closure of a part of the enterprise or staff redundancy	Yes
3	Reduction in the volume of work	Yes
4	Stoppage of work for more than 15 working days	No
5	Lack of qualities for effective performance	Yes
6	Employee lacks required education or qualification	No
7	Reinstatement of an unlawfully dismissed employee	No
8	Position held under contract when subject to competitive appointment	No
10	Eligibility for a state retirement pension	No
10a	Reaching 65 years of age (professors, etc.)	No
11	Change in requirements for the position	Yes
12	Objective impossibility of performing the contract	No

Notice period. For open-ended contracts: 30 days (up to 3 months by agreement). For fixed-term: 3 months, not exceeding the remaining term. If the employer fails to serve notice, compensation is owed under Art. 220(1) LC.

Selection process (Art. 329 LC). In cases of redundancy or reduction in work volume where not all identical positions are eliminated, the employer must carry out a selection process — evaluating qualifications and performance. The absence of a selection process is among the most common grounds for annulment.

Disciplinary Dismissal (Art. 330(2)(6) LC)

Disciplinary dismissal is the most severe disciplinary penalty. It is imposed for serious breaches of labour discipline as specified in Art. 190 LC: three late arrivals or early departures within a month (each of at least 1 hour), absence for two consecutive working days, systematic breaches, abuse of trust, disclosure of confidential information, and others.

The Procedure Step by Step

Step	Action	Deadline / Requirement
1	Establish and document the infringement	Internal report, record, witness statements
2	Request written explanations from the employee	Mandatory (Art. 193(1) LC). Reasonable period for response
3	Receive and assess the explanations	If the employee refuses — protocol of refusal
4	For a protected employee — request authorisation from the Labour Inspectorate	Decision within 7 days
5	Issue a reasoned written order	Describing the infringement, when and how committed, the penalty, and the legal basis
6	Serve the order on the employee in person against signature	If refused — in the presence of witnesses

Strict Deadlines (Art. 194 LC)

2 months from discovery of the infringement
1 year from commission of the infringement

It is sufficient for one of these periods to have expired for the penalty to be time-barred. These are preclusive deadlines.

The Mandatory Request for Explanations

Under Art. 193(1) LC, the employer must hear the employee or accept their written explanations before imposing any disciplinary penalty. If this step is omitted, the court will annul the dismissal on procedural grounds alone, without examining the merits.

If the employee deliberately refuses to provide explanations, the procedure is considered observed (Art. 193(3) LC), but the refusal must be documented with a protocol signed by witnesses.

Protected Categories of Employees (Art. 333 LC)

Certain categories enjoy special protection against dismissal. The employer may not dismiss them without first obtaining prior authorisation from the Labour Inspectorate (or prior consent from a trade union body). The protection applies only to dismissal on specific grounds — Art. 328(1)(2), (3), (5), and (11) and Art. 330(2)(6).

Protected Category	Authorisation From	Legal Basis
Mother of a child under 3 years	Labour Inspectorate	Art. 333(1)(1)
Employee reassigned due to health reasons	Labour Inspectorate + TELK opinion	Art. 333(1)(2)
Employee with a disease listed in Ordinance No. 5	Labour Inspectorate + TELK opinion	Art. 333(1)(3)
Employee on leave	Labour Inspectorate	Art. 333(1)(4)
Workers’ representative in management	Labour Inspectorate	Art. 333(1)(5)
OHS representative	Labour Inspectorate	Art. 333(1)(6)
Pregnant employee or advanced IVF treatment	Labour Inspectorate	Art. 333(5)
Member of trade union leadership	Prior consent of trade union body	Art. 333(3)

Procedure for Obtaining Authorisation

The employer files a written request with the territorial Labour Inspectorate directorate.
Supporting documents must be attached to establish the ground for dismissal.
Documents evidencing the employee’s membership in a protected category are also attached.
The Labour Inspectorate issues its decision within 7 days.
No state fee is payable.
The decision is not subject to judicial appeal.
The authorisation must be obtained before serving notice or issuing the dismissal order.

Protection upon closure of the enterprise. In the event of full closure (Art. 328(1)(1) LC), Art. 333 protection does not apply.

Employee Rights Upon Dismissal

1. Right to Receive a Reasoned Order

The order must be in writing and must contain the legal basis, the date of termination, and — for disciplinary dismissal — a description of the infringement.

2. Right to Challenge the Dismissal

Under Art. 344 LC, you may file three claims before the district court: to have the dismissal annulled, to be reinstated, and to receive compensation of up to 6 months’ gross salary (Art. 225(1) LC).

3. No Court Fees

Employment cases are exempt from court fees for the employee (Art. 359 LC).

4. Time Limit for Challenge — 2 Months

The claim must be filed within 2 months from the date of termination (Art. 358(1)(2) LC). This deadline is preclusive.

5. The Burden of Proof Lies With the Employer

It is the employer who must prove that the dismissal was lawful and procedurally compliant.

6. Compensation Owed by the Employer

Type of Compensation	Amount	Legal Basis
For unserved notice period	Gross salary for the unserved period	Art. 220(1) LC
For remaining unemployed	1 month’s gross salary	Art. 222(1) LC
For unused paid annual leave	Average daily gross pay for each unused day	Art. 224 LC
For unlawful dismissal (court judgment)	Up to 6 months’ gross salary	Art. 225(1) LC

With the minimum salary at BGN 1,213 (EUR 620) for 2026, unlawful dismissal compensation can reach up to BGN 7,278 (EUR 3,721) for minimum-wage employees.

Payment deadline. Compensation must be paid no later than the last day of the month following the month of termination (Art. 228(3) LC).

7. What to Do Immediately After Dismissal

Check the order — does it contain a specific legal basis, is it reasoned, is it signed by an authorised person.
Keep all documents — the order, your employment record, payslips, correspondence.
Do not sign anything under pressure.
Register with the Employment Agency within the prescribed period.
Seek legal advice within the first few days — the 2-month time limit runs from the date of termination.

Employer Procedure — Checklist for a Lawful Dismissal

Step 1: Identify the Legal Ground

Determine which specific ground under Art. 328 or Art. 330 LC will serve as the basis. Do not combine grounds — specify exactly one.

Step 2: Check Whether the Employee Is Protected

If the employee falls within a protected category, obtain prior authorisation from the Labour Inspectorate.

Step 3: For Redundancy — Carry Out a Selection Process

Document the selection criteria, prepare minutes, and provide reasons for the decision.

Step 4: For Disciplinary Dismissal — Request Explanations

You must request written explanations from the employee. Allow a reasonable period. Document any refusal.

Step 5: Issue a Reasoned Written Order

The order must contain: the employee’s name, position, specific legal basis, factual grounds, and the date of termination.

Step 6: Serve the Order

Serve in person against signature. If refused, have it witnessed by two witnesses.

Step 7: Complete Documentation and Pay Compensation

Record data in the electronic employment record
Issue required certificates upon request
File NRA notification regarding termination
Pay all compensation by the last day of the month following termination

Most Common Employer Mistakes

Failure to request explanations in disciplinary dismissal. The most common reason for annulment.
Missing the deadlines for disciplinary penalties. The order must be issued within 2 months of discovery and no later than 1 year from commission.
Absence of a selection process in redundancy.
Dismissal of a protected employee without authorisation.
Incorrect citation of the legal basis.
Order without adequate reasoning.
Backdating the order.
Forcing the employee to sign a resignation letter.

Frequently Asked Questions

On what grounds can an employer dismiss an employee with notice?

The grounds are exhaustively listed in Art. 328(1) LC: closure of the enterprise, staff redundancy, reduction in work volume, stoppage of work, lack of qualities, lack of education, reinstatement of unlawfully dismissed employee, change in position requirements, eligibility for retirement pension, and objective impossibility. The employer may not cite a ground not provided for in the law.

Which categories of employees are protected against dismissal?

Protected under Art. 333 LC: mother of a child under 3, pregnant employee, employee reassigned due to health, employee with a disease under Ordinance No. 5, employee on leave, workers’ representative, OHS representative, and trade union leadership member. Dismissal requires prior authorisation from the Labour Inspectorate.

What are an employee’s rights if dismissed unlawfully?

The employee may file three claims: for annulment, for reinstatement, and for compensation of up to 6 months’ gross salary (Art. 225 LC). Proceedings are exempt from court fees. The burden of proof lies with the employer.

What is the time limit for challenging a dismissal?

The time limit is 2 months from the date of termination (Art. 358(1)(2) LC). It is preclusive — once it expires, the right to challenge is extinguished.

What is the procedure for disciplinary dismissal?

Establish the infringement, request explanations from the employee (mandatory), obtain authorisation from the Labour Inspectorate if the employee is protected, issue a reasoned order within 2 months of discovery (no later than 1 year from commission), and serve the order. Omitting explanations results in automatic annulment.

Must the employer request explanations before dismissal?

For disciplinary dismissal — yes, without exception (Art. 193(1) LC). The court will annul the dismissal without this step. For other grounds (Art. 328 LC), it is not mandatory but recommended.

What is the notice period for open-ended and fixed-term contracts?

For open-ended: 30 days (up to 3 months). For fixed-term: 3 months, not exceeding the remaining term. If the employer fails to serve notice, compensation is owed under Art. 220(1) LC.

Can a pregnant employee be dismissed?

A pregnant employee enjoys protection under Art. 333(5) LC. She may be dismissed only on specified grounds and only with prior authorisation from the Labour Inspectorate. In practice, authorisation is rarely granted. Upon full closure of the enterprise, the protection does not apply.

What compensation is owed upon redundancy?

The employer owes: compensation for the unserved notice period (Art. 220 LC), compensation for remaining unemployed (Art. 222(1) LC — one month’s gross salary), and compensation for unused paid leave (Art. 224 LC).

What is the time limit for imposing a disciplinary penalty?

Two concurrent time limits under Art. 194 LC: no later than 2 months from discovery and no later than 1 year from commission. It is sufficient for one to have expired. The periods do not run while the employee is on statutory leave.

Conclusion

Dismissal is a legal act with consequences for both parties. For the employee, it is important to know their rights — the time limit for challenging, the possibility of compensation, the exemption from court fees. For the employer, it is critical to comply with every procedural step, because a lapse leads to annulment regardless of merit.

If you are an employee and believe your dismissal was unlawful — act quickly. The 2-month time limit is short and preclusive.

If you are an employer planning a dismissal — consult a lawyer before taking any steps. The cost of legal advice is far lower than the compensation payable upon annulment.

This article is for informational purposes only and does not constitute legal advice. The information presented is current as of the date of publication (23.03.2026) and reflects Bulgarian legislation in force. For specific legal questions, we recommend consulting a qualified lawyer. Innovires Legal accepts no liability for actions taken solely on the basis of this article.

Dismissal in Bulgaria — Employee Rights & Employer Procedure (2026)