Dismissal in Bulgaria — a complete guide (2026)
The lawful grounds for terminating an employment contract, the severance you are owed, and the two-month window to challenge an unlawful dismissal.
In short: The employer may only terminate an employment contract on grounds listed in the Bulgarian Labor Code (LC). For most of these grounds, the employer owes both notice and severance. The deadline to challenge a dismissal in court is 2 months from service of the order (Art. 358 LC). Pregnant women, mothers of children under 3 and workers on sick leave are protected under Art. 333 LC.
What "dismissal" means in Bulgarian law
In everyday Bulgarian, the word "уволнение" (uvolnenie) covers any termination of an employment contract. Legally, the Labor Code distinguishes very different scenarios — and the chapter you fall under decides both your severance and your route to challenge it.
There are three main families of termination:
- Termination by the employer — Art. 328 and Art. 330 LC (including disciplinary dismissal).
- Termination by the employee — Art. 326 LC (with notice) and Art. 327 LC (without notice, if the employer is at fault).
- Automatic termination — Art. 325 LC (mutual consent, expiry of fixed term, death, retirement, etc.).
The severance owed depends both on the grounds and on your length of service with the same employer. Below we go through each family in turn.
Termination by the employer (Art. 328 LC)
Article 328 of the Labor Code provides an exhaustive list of grounds on which the employer may terminate an open-ended contract. The employer cannot do it "just because" — the ground must be one of those listed and must be stated in the termination order.
Grounds that trigger severance
- Art. 328(1)(1) — closure of the enterprise;
- (2) — closure of part of the enterprise or redundancy;
- (3) — reduction of the volume of work;
- (4) — work stoppage longer than 15 working days;
- (5) — lack of skills to perform the work;
- (6) — lack of required qualifications or education;
- (10) — acquisition of the right to a retirement pension;
- (11) — changes in the position's requirements that the employee no longer meets.
On these grounds the employer owes: (a) observance of the notice period, or compensation in lieu under Art. 220 LC, and (b) severance under Art. 222(1) LC for the period of unemployment.
Disciplinary dismissal (Art. 330 LC)
Disciplinary dismissal is the most serious labor sanction and is imposed only for a gross breach of work discipline. Article 190 LC lists the typical cases: three lates or early departures by more than 1 hour in one month; two consecutive unexcused absences; systematic non-performance; abuse of trust; arriving at work intoxicated.
The procedure under Art. 193 LC is strict and often overlooked by employers — which makes it the soft spot in many cases that get challenged in court:
- Before imposing the sanction, the employer must request a written explanation from the employee.
- The employee is given a deadline (usually 2–3 working days) to respond in writing.
- The employer must then act within 2 months of discovering the breach, and in any case no later than 1 year from when it was committed (Art. 194 LC).
- The order is served against signature; if the employee refuses to sign, service is witnessed.
On disciplinary dismissal the employer owes neither notice nor severance under Art. 222. It still owes compensation for unused paid annual leave (Art. 224 LC) and pay for days worked.
Practice note. In a challenge to a disciplinary dismissal, the court reviews the procedure first (was an explanation requested? was the 2-month deadline observed?) and the substance second. The settled position of the Supreme Court of Cassation is that a procedural breach under Art. 193 LC is itself a ground for declaring the dismissal unlawful, even if the misconduct actually occurred.
The Art. 333 LC protection
Article 333 is the employee's "shield" in the most vulnerable situations. It requires prior permission from the General Labor Inspectorate (ИА ГИТ) before a termination order may be issued for certain protected categories:
- A working mother of a child under 3;
- Workers on reduced-capacity status or with an occupational disease;
- Workers on lawful leave (paid annual, sick, maternity, etc.);
- Elected trade-union representatives;
- Pregnant women and workers in an advanced stage of IVF treatment (Art. 333(5)).
The protection applies to terminations under Art. 328(1)(2), (3), (5), (11) and Art. 330(2)(6) LC. A dismissal without prior permission is unlawful, even if the factual grounds exist.
Common employer mistake: assuming that the Art. 333 protection lapses for disciplinary dismissal. It does not — for mothers with a child under 3, pregnant women and employees on sick leave, the protection still applies, and Inspectorate permission is required.
Severance at dismissal — what is owed
Depending on the grounds and the circumstances, you may be entitled to several severance items at once. They are commonly confused and miscalculated, so make sure you can tell them apart:
| Article | Covers | Amount |
|---|---|---|
| Art. 220 LC | Notice not served | Gross for the unobserved period |
| Art. 222(1) | Period of unemployment | Up to 1 month gross (up to 6 by agreement) |
| Art. 222(3) | Retirement | Up to 6 months gross |
| Art. 224 | Unused paid annual leave | Daily rate × days |
| Art. 225 | Unlawful dismissal (by court order) | Up to 6 months gross |
Worked example: redundancy after 4 years' service
Ivan has worked 4 years at the same company on a gross salary of BGN 2,400; daily rate ≈ BGN 109.09 (2,400 ÷ 22 working days). Termination is under Art. 328(1)(2) LC (redundancy) with 30 days' notice, which is observed. He has 8 days of unused paid annual leave.
- Notice — 30 days, observed → no compensation under Art. 220.
- Severance under Art. 222(1) LC → 1 gross = BGN 2,400 (for the first month of unemployment; with a longer-period clause in the contract, up to 6 × 2,400 = BGN 14,400).
- Compensation under Art. 224 for unused leave → 8 × 109.09 = BGN 872.72.
- Total gross: BGN 3,272.72 (before 10% income tax).
Use the severance calculator for your numbers.
Challenging an unlawful dismissal
If you believe your dismissal was unlawful, you have two months from the day the order is served to file a claim in the district court of the employer's registered seat or your place of residence (Art. 358(1)(2) LC). The deadline is preclusive — missing it generally bars the claim.
Available claims (Art. 344(1) LC):
- Declaration that the dismissal is unlawful and its annulment.
- Reinstatement to the previous position.
- Compensation for the period of unemployment caused by the dismissal — up to 6 months under Art. 225 LC.
- Correction of the grounds entered in the employment book and the NSSI/NRA records.
Typical grounds the court identifies for unlawfulness:
- No legal ground stated in the order;
- Mismatch between the facts cited and the legal text invoked;
- Procedural breach under Art. 193 LC (disciplinary dismissals);
- Breach of the Art. 333 protection (no Inspectorate permission);
- "Sham" redundancy where the position effectively continues under a new label.
The court fee for a dismissal claim is 4% of the claim value, but not less than BGN 50. If the claim succeeds, costs are borne by the employer.
What to do in the first 14 days
- Preserve the order. Make 2–3 copies and photographs. Make sure the date of service is clearly recorded — the 2-month clock starts there.
- Request a written breakdown of the compensation owed. The employer must provide it. Cross-check with the calculator.
- Register at the Labor Office within 7 days of termination if you want to claim unemployment benefit under the SIC.
- Check the employment book — make sure the grounds, date and total insurance length are correctly entered.
- If you suspect unlawfulness, consult a lawyer in the first 4 weeks. Two months go quickly and preparing a claim takes time.
Frequently asked questions
When does the employer owe severance on dismissal?
When the dismissal is for grounds that are not the employee's fault — closure of the enterprise, redundancy, reduction of work, work stoppage longer than 15 days, lack of qualifications or skills (Art. 328(1)(1)-(6) Labor Code). The amount under Art. 222(1) LC is up to 1 gross monthly salary (up to 6 months if so provided in a collective or individual contract).
What is the deadline to challenge a dismissal?
Two months from the day the termination order is served (Art. 358(1)(2) LC). The deadline is preclusive — missing it usually forfeits the right to sue. If the court rules the dismissal unlawful, it may order reinstatement and award compensation for unemployment up to 6 months (Art. 225 LC).
Can I be dismissed while on sick leave or holiday?
As a rule, no. Art. 333 LC requires prior permission from the General Labor Inspectorate for dismissal of protected categories (pregnant women, mothers with a child under 3, persons on temporary incapacity, etc.). A dismissal without that permission is unlawful. The exception is disciplinary dismissal for gross misconduct.
How long is the notice period under Art. 328 LC?
For an open-ended contract: 30 days, unless a longer period (up to 3 months) is agreed in the contract (Art. 326(2) LC). For a fixed-term contract: 3 months, but not more than the remainder of the term. If the employer fails to observe the notice period, it owes compensation under Art. 220(1) LC equal to the gross salary for the unobserved period.
Am I entitled to severance if I resign?
When you resign under Art. 326 LC, no severance is normally owed. Exception: resignation without notice under Art. 327 LC (due to fault of the employer — delayed wages, unsafe conditions, etc.) entitles you to compensation under Art. 221(1) LC equal to the gross salary for the notice period.
What should I do first after receiving a termination order?
Keep the original of the order and make copies. Check the date of service — the 2-month deadline under Art. 358 LC starts from that date. Collect your employment book and ask for a calculation of the compensation owed under Art. 222 (unemployment), Art. 224 (unused leave) and possibly Art. 220 (unobserved notice). If you have any doubt about the legality of the dismissal, consult a lawyer in the first 4–6 weeks.
Run the numbers for your case
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K. Todorov · Editor & founder
Editor and founder of Bulgarian Labor Law. I am not a lawyer — I built this site because I wanted to understand for myself what an employer owes during sick leave and how a freelancer contract actually nets out. Every text is based on primary sources (Labor Code, Social Insurance Code, Personal Income Tax Act) and is kept up to date when legislation changes.
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Disclaimer: This article is informational and does not constitute legal or accounting advice. Calculator results are indicative. For a specific legal or accounting situation, please consult a qualified lawyer or accountant.