Employment contracts Bulgaria

What should an employment contract in Bulgaria include?

Each employment contract following the Bulgarian employment law should involve the following elements:

• Personal information – the employer’s and employee’s names, addresses, and telephone numbers.
• Description of the job, including the rights and duties of the employee.
• Details regarding salaries, wages, and benefits to which the employee is entitled.
• Work time, including the days and hours when the employee is expected to work.
• Policies regarding termination of employment, including notice periods and other relevant clauses.
• Confidentiality and non-disclosure policies to protect the employer’s interest.

Before signing the contract, both parties should ensure a thorough understanding of each term, clause, and policy within the agreement.

What types of employment contracts exist in Bulgaria?

Employment contracts in Bulgaria can be divided into a few categories:

1. Employee contracts

There are 2 major types of employee contracts:

• Permanent employment contracts: As their name implies, permanent employment contracts have an indefinite duration and continue until either the employer or the employee terminates it. Permanent employment contracts can be terminated by giving notice, which is stipulated within the contract or mandated by the country’s labor law. Besides notice period clauses, permanent contracts should also outline other important conditions such as wages, benefits, working hours, and others.
• Fixed-term employment contracts: Fixed-term employment contracts have fixed start and end dates and are terminated automatically upon their expiration. Fixed-term contracts typically grant the same rights and benefits as permanent contracts, but they can not exceed a specific duration limit set by labor laws to protect employees from unfair practices.

2. Additional employment contracts

Employees in Bulgaria have the option to conclude an additional employment contract with the same or other employers beyond their principal work. Such agreements are made to cover work outside of the employee’s work scope and feature limited working hours. Additional employment contracts may be prohibited under principal employment contracts to protect the principal employer’s interests and proprietary rights.

3. Project-based employment contracts

Project-based employment contracts are used to regulate employment relationships between freelancers, independent contractors, or self-employed individuals and companies or clients who use their services. Under this type of contract, the individual is obligated to deliver a clearly-defined task or a project in exchange for a certain remuneration, also defined within the agreement. 

How to hire employees in Bulgaria?

In Bulgaria, employers must adhere to local employment laws regarding minimum wages, benefits, and working hours. Before hiring workers, companies must also fulfill a set of legal obligations, such as having a business establishment, tax identification number, and local bank accounts.

Global recruitment companies such as Native Teams can help navigate through complex legal systems with ease. We will take care of your global payroll, tax submission, and HR administration compliantly while you focus on your business operations.