What you will learn in this article
- What types of employment contracts exist and when each is used
- What the employment contract must contain under Art. 66 of the Labour Code
- How the conclusion procedure works step by step — from documents to NRA registration
- What the notice periods are for different types of contracts
- What changed in 2025–2026 — the electronic employment record, new minimum wage, and the Pay Transparency Directive
What is an employment contract?
An employment contract is a bilateral agreement under which the employee commits to providing their labour under the direction and control of the employer, and the employer commits to providing conditions for the performance of the work and paying the agreed remuneration.
The legal framework is contained in Chapter V, Sections I and II of the Labour Code — Art. 61–76 LC. Concluding a written employment contract is mandatory for every employment relationship. Oral agreements have no legal validity in the context of employment law.
Several key characteristics distinguish an employment contract from a civil (service) contract under the Obligations and Contracts Act (ZZD):
Subordination. The employee works under the direction and control of the employer, follows established working hours, and complies with internal labour rules. Under a civil contract, the contractor is independent in organising their work.
Personal performance. The employment contract is performed personally by the employee — they cannot delegate the work to third parties. Under a civil contract, subcontracting may be permissible.
Social protection. An employment contract provides full protection — paid annual leave (minimum 20 working days), termination compensation, protection in case of occupational accident, maternity, and sick leave. A civil contract provides none of these rights.
Mandatory social security contributions. Under an employment contract, the employer remits social security contributions on behalf of both parties. The total social security burden for 2026 is approximately 32.4–33.4% of gross remuneration.
If the Labour Inspectorate determines that a civil contract conceals an employment relationship, it has the authority to reclassify it as an employment contract under Art. 405a LC. The employer faces sanctions.
Types of employment contracts
The Labour Code provides for different types of employment contracts depending on the term, the nature of the work, and the manner of performance. The table below summarises the main types:
| Type of contract | Article LC | Characteristics | Restrictions and specifics |
|---|---|---|---|
| Indefinite-term | Art. 67 | Concluded for an indefinite period. If no term is specified, it is deemed indefinite-term. | No restrictions. The most common type. |
| Fixed-term — for a definite period | Art. 68(1)(1) | Concluded for a specific period, but no more than 3 years. | Permissible for work of a temporary nature. Upon repeated conclusion for permanent work — only if the employee requests it in writing. |
| Fixed-term — until completion of work | Art. 68(1)(2) | Continues until a specific defined task is completed. | The task must be clearly and specifically defined in the contract. |
| Fixed-term — for substitution | Art. 68(1)(3) | Concluded to substitute an absent employee. | Continues until the return of the incumbent. |
| Fixed-term — for a competitive position | Art. 68(1)(4) | For a position to be filled through a competitive procedure. | Continues until the position is filled through competition. |
| Fixed-term — for a mandate position | Art. 68(1)(5) | For a position with a defined mandate. | Continues for the duration of the mandate. |
| With a probation clause | Art. 70–71 | May be concluded in favour of one or both parties for up to 6 months. | If not specified, the probation is in favour of the employer. During the probation period, the favoured party may terminate without notice. |
| Additional work — same employer | Art. 110 | Internal moonlighting — second contract with the same employer. | Performed outside the working hours of the primary contract. Must be for a different position. |
| Additional work — another employer | Art. 111 | External moonlighting — second contract with a different employer. | Working time may not exceed 40 hours per week. The primary contract must not contain a prohibition. |
| Home-based work | Art. 107b–107zh | Work performed at the employee’s home. | The employee produces goods or provides services from home. |
| Remote work | Art. 107z–107p | Remote work through IT, outside the employer’s premises. | Voluntary. A specific workplace must be agreed. New employer obligations from 29.03.2024 (health and safety, equipment). |
| Part-time | Art. 138 | Working day or week shorter than normal. | May be agreed at conclusion or by supplementary agreement. |
| Short-term seasonal agricultural work | Art. 114a | One-day employment contract for agricultural activities. | Registered with the NRA. Duration of up to 1 working day. |
Indefinite-term vs. fixed-term — what you need to know
As a rule, an employment contract is concluded for an indefinite period (Art. 67(1) LC). A fixed-term contract is concluded only when there is a basis for it — temporary nature of the work, substitution of an absent employee, seasonal activity, etc.
The legislator restricts the abuse of fixed-term contracts. Under Art. 68(3) LC, a fixed-term contract for a definite period may be concluded for the performance of permanent work only as an exception. Upon repeated conclusion, an express written request from the employee is required — otherwise, the contract is deemed indefinite-term.
Contract with a probation clause — practical points
The probation clause under Art. 70 LC is not a standalone type of contract but an additional condition included in the employment contract. The maximum probation period is 6 months.
If the contract does not specify in whose favour the probation is agreed, under Art. 70(5) LC it is deemed to be in favour of the employer.
Time during which the employee was on statutory leave or was not performing work for other justified reasons is not counted towards the probation period (Art. 70(4) LC).
Remote work — current rules from 2024
Remote work is regulated in Art. 107z–107p LC. With the amendments that entered into force on 29.03.2024, the following new rules were introduced:
- The employee must specify a specific workplace for performing remote work; more than one workplace is permitted.
- The employer is obligated to provide at their expense equipment, consumables, and technical support for remote work (Art. 107i(3) LC).
- The employer covers electricity and internet costs under the terms set out in a CBA or internal rules.
- Occupational health and safety rules apply to the remote workplace — the employer must provide a risk assessment and instruction.
Remote work is voluntary and cannot be imposed unilaterally by the employer (with the exception of emergencies under Art. 120b LC).
Mandatory content of the employment contract under Art. 66 LC
Every employment contract must contain a minimum of ten mandatory elements listed in Art. 66(1) LC:
- Identification of the parties. Names, personal identification number (EGN) or personal number for foreign nationals (LNCh), addresses of the employee, and the employer’s details (name, UIC, registered address).
- Place of work. The town or city in which the employee will perform their duties. For remote work, the specific address of the workplace outside the employer’s premises is specified.
- Job title. Specified in accordance with the National Classification of Professions and Positions (NKPD).
- Nature of the work. A brief description of the main job functions and duties.
- Date of conclusion and commencement of performance. If a starting date is not expressly agreed, the employee must report for work within one week of receiving the documents (Art. 63(4) LC).
- Duration of the contract. Whether indefinite-term or fixed-term must be specified.
- Amount of basic and extended paid annual leave and additional leave. The minimum paid annual leave is 20 working days (Art. 155(4) LC).
- Equal notice period for both parties upon termination. The notice period must be equal for the employee and for the employer (Art. 66(1)(8) LC).
- Basic and supplementary remuneration of a permanent nature, and frequency of payment. The basic salary may not be lower than the national minimum wage — EUR 620.20 (BGN 1,213) per month for 2026.
- Duration of the working day or working week. The standard duration is 8 hours per day and 40 hours per week (Art. 136 LC).
Beyond the mandatory elements, the parties may agree on additional conditions (training, confidentiality, additional benefits), provided they do not contradict the law or place the employee in a less favourable position (Art. 66(2) LC).
Conclusion procedure — step by step
Concluding an employment contract follows a clearly defined sequence of steps. Failure to comply with any step may result in fines for the employer.
Step 1: Documents from the candidate
- Identity document — ID card or passport (for reference only)
- Educational qualification document — if the position requires specific qualifications
- Medical fitness certificate — confirming the employee’s fitness to perform the relevant work
- Criminal record certificate — when required by legislation for the position
- Work permit — for third-country nationals (outside the EU/EEA)
- Employment record book — for entering the data (until 01.06.2026)
Step 2: Signing the employment contract
The employment contract is concluded in written form (Art. 62(1) LC). Two copies must be prepared — one for each party. Together with the contract, the employee receives a job description.
Step 3: Filing the notification with the NRA
The employer must file a notification with the NRA within 3 days of concluding the contract. Failure to file results in a fine of EUR 7,500 to EUR 15,000 per case.
Step 4: Providing the contract and notification to the employee
Before starting work, the employer must provide the employee with a copy of the signed contract, a copy of the certified NRA notification, and the job description. The employee may not start work before receiving these documents (Art. 63(2) LC).
Step 5: Starting work
The employee starts work on the agreed date. If no date is specified — within one week of receiving the documents. If the employee does not start work, the employment relationship is deemed not to have arisen (Art. 63(3) LC).
Step 6: Entry in the electronic employment record
From 01.06.2025, the employer must enter the data in the electronic employment record within 3 days of concluding the contract.
Notice periods for termination
| Type of contract | Notice period | Legal basis |
|---|---|---|
| Indefinite-term | 30 days — minimum; may be extended up to 3 months by mutual agreement | Art. 326(2) LC |
| Fixed-term | 3 months, but no more than the remaining term | Art. 326(2) LC |
| During probation period | No notice — from the party in whose favour it is agreed | Art. 71 LC |
| For additional work (Art. 110, 111) | 15 days — upon termination by employer under Art. 334 LC | Art. 334 LC |
Notice is given in written form and the period starts from the day following receipt. If either party fails to observe the notice period, they owe compensation under Art. 220 LC.
Important: under Art. 66(1)(8) LC, the notice period must be equal for both parties. A clause providing for different notice periods is void.
What is new for 2025–2026
Electronic employment record (from 01.06.2025)
As of 1 June 2025, the paper employment record book has been replaced by an electronic employment record maintained by the NRA.
- Employers no longer issue or maintain paper employment record books for new employees
- Data is submitted electronically to the NRA system
- Employees can check their record using a personal identification code (PIC) or a qualified electronic signature (QES)
Finalisation of paper employment record books (deadline: 01.06.2026)
Employers must finalise and return all paper employment record books by 1 June 2026. Failure to comply may give rise to employer liability under Art. 226 LC.
Pay Transparency Directive (EU) 2023/970 — from 07.06.2026
- Prohibition of salary confidentiality clauses — employers will not be able to prohibit employees from disclosing their remuneration
- Obligation to state the starting salary or salary range in job postings
- New reporting obligations — employers with more than 100 employees must prepare reports on pay gaps
Minimum wage 2026
- EUR 620.20 (BGN 1,213) per month
- EUR 3.74 (BGN 7.31) per hour for an 8-hour day and 5-day week
- An increase of 12.6% compared to 2025
Frequently asked questions
Conclusion
Properly concluding an employment contract is the foundation of every lawful employment relationship. Whether you are an employer hiring staff or an employee starting a new job, knowing the mandatory content under Art. 66 LC, the NRA registration procedure, and the current changes for 2025–2026 is essential.
If you have questions about a specific employment contract, need a contract drafted or reviewed, or want to bring your internal documents into compliance with the new requirements, contact the Innovires Legal team for a consultation.
Legal notice: This article has been prepared for informational purposes and reflects current Bulgarian legislation as of the date of publication (23.03.2026). The content does not constitute legal advice on a specific matter. For questions related to your specific situation, we recommend consulting a lawyer. Innovires Legal assumes no liability for actions taken solely on the basis of the information in this publication.
Need assistance?
The Innovires team can assist you with drafting and reviewing employment contracts, employment law consultations, and compliance with the new requirements.