What you will learn in this article
- What a probation period is and its legal basis under Art. 70–71 LC
- In whose favour it can be agreed and what this means in practice
- Maximum duration and extension rules
- How employment may be terminated during probation
- What happens when the probation period expires
- Common employer mistakes and how to avoid them
- Answers to 8 frequently asked questions
What is a probation period (Art. 70 LC)?
The probation period is a legal option regulated in Art. 70–71 of the Bulgarian Labour Code. It is an initial period of the employment relationship during which one or both parties verify whether the working conditions, qualifications, and mutual expectations meet their needs.
Key characteristics
- Contractual clause — does not arise by default; must be expressly agreed in the employment contract
- Maximum 6 months — if a longer period is agreed, it automatically reduces to 6 months by operation of law
- One-time only — for the same job with the same employer, a probation period may be agreed only once (Art. 70(5) LC)
- Full employment rights — during probation, the employee enjoys all rights under the employment relationship: salary, leave, insurance, safe working conditions
When can it be agreed?
A probation period may be agreed for new employment contracts, when changing positions within the same company, and for fixed-term contracts (provided the probation does not exceed the contract term).
In whose favour
Determining in whose favour the probation period is agreed is critically important, as only the favoured party may terminate without notice.
In favour of the employer
The most common practice. The employer may terminate without notice if they determine the employee does not meet position requirements. The employee, however, cannot terminate under Art. 71 LC and must give notice under the general rules.
In favour of the employee
Less common but fully lawful. The employee may leave immediately if they find the work unsuitable. The employer cannot dismiss without notice under Art. 71 LC.
In favour of both parties
Both have equal termination rights during the period. This is the most balanced option and is recommended as best practice.
If not specified
If the contract provides a probation period but does not specify in whose favour, the law presumes it is in favour of the employer (Art. 70(2) LC). Employees should be aware of this presumption when signing contracts.
Maximum duration and extension
Maximum — 6 months
Under Art. 70(1) LC, the maximum probation period is 6 months. Parties may agree on a shorter period (e.g., 3 months) but not a longer one.
Extension is not permitted
A probation period cannot be extended by supplementary agreement. If agreed at 3 months, the employer cannot request an “extension” to 6 months.
Suspension of the period
Under Art. 70(4) LC, the probation period does not run during periods when the employee is on statutory leave or for other justified reasons not performing the agreed work. This includes sick leave, maternity leave, unpaid leave, and downtime not attributable to the employee.
Prohibition on repeat agreement
For the same job with the same employer, a probation period may be agreed only once (Art. 70(5) LC). Violating this prohibition renders the probation clause null and void.
Termination during the probation period
Procedure (Art. 71 LC)
Before the probation period expires, the favoured party may terminate the contract without notice. No reason needs to be stated.
Form
Termination requires a written notification (employer’s order or employee’s statement). Oral termination is invalid. The order must contain: the legal basis (Art. 71(1) LC), the termination date, and the issuer’s signature.
No compensation for notice period
Neither party owes compensation for unserved notice when terminating under Art. 71 LC.
Other entitlements
Despite no notice compensation, the employee retains the right to compensation for unused paid leave (Art. 224 LC) and unemployment benefits from the NSSI (if eligible — minimum 12 months of insurable service in the last 18 months).
Art. 333 LC protection does not apply
When terminating under Art. 71 LC, the dismissal protection under Art. 333 LC does not apply. The employer may terminate even with pregnant employees, employees with reduced capacity, or trade union officials — provided the termination occurs within the probation period and is in the employer’s favour.
What happens after the probation period expires
If the probation period expires and neither party terminates, the employment relationship is deemed definitively established (Art. 71(2) LC). This means:
- The contract continues indefinitely (or until the fixed term expires)
- Future termination requires general LC procedures (notice, legal grounds)
- The employee enjoys full protection under Art. 333 LC
- The probation period counts as employment and insurable service
Common employer mistakes
- No express clause — probation does not arise automatically; without a written clause, there is no probation period
- Not specifying in whose favour — while the legal presumption favours the employer, explicit specification avoids disputes
- Attempting to extend — extending a 3-month probation to 6 months by addendum is unlawful
- Repeat agreement for the same job — a second probation for the same position renders the clause null
- Late termination — terminating on the basis of Art. 71 LC after the probation has expired is unlawful and subject to court annulment
- Termination by the wrong party — if the probation is in the employer’s favour, the employee cannot terminate under Art. 71 LC
- Abuse of rights — courts may annul termination under Art. 71 LC if it constitutes abuse of rights under Art. 8(1) LC
Frequently asked questions
Conclusion
The probation period is a valuable tool for both employers and employees, but it must be properly agreed and correctly applied. Key rules: maximum 6 months, expressly agreed in writing, only once for the same job, and termination only by the favoured party before expiry.
If you need assistance with drafting employment contracts or have questions about termination during probation, the team at Innovires Legal can help. Contact us for a consultation.
This article is prepared for informational purposes and does not constitute legal advice. For specific legal advice tailored to your situation, please consult a lawyer.
Need assistance?
The Innovires team can help you with employment contracts, probation clauses, and termination disputes.