In this article we will discuss the legal regulation related to the conclusion of an employment contract in Bulgaria and its mandatory content.

The relevant legal regulations are the Bulgarian Labor Code, the Act on the Safety and Health Protection of Employees (SGBG), the Regulation on the Work Book (the Regulation is valid until 01.06.2025) and the Work Experience Act. From 01.06.2025, the new regulations related to the electronic work book will come into force) and work experience.

The employment relationship between the employee and the employer begins with the signing of the employment contract in accordance with Bulgarian labor law. As a rule, an employment contract is concluded for an indefinite period. Fixed-term employment contracts are an exception, whereby the legal requirements for the conclusion of a fixed-term employment contract must be observed. Fixed-term employment contracts are dealt with in a separate article.

The written form is a mandatory requirement for the validity of any employment contract, regardless of its term or other modalities. The employee must complete an application for employment and submit it to the employer. The contract is then drawn up. According to Art. 66 of the Bulgarian Labor Code, the following mandatory information must be filled in every employment contract:

1. the identity of the parties (names, addresses, etc.);
2. the place of work, i.e. an exact address where the employee will perform his or her work duties - in the case of employment contracts in which the place of work is the employee's address, special statutory regulations should also be observed. The topic of "home office work" is dealt with in detail in a separate article.
3. the type of employment or work position and the description of the work activity. Here it is necessary to choose a work position. The work positions in Bulgaria are listed in a catalog with their corresponding code number. Unfortunately, the catalog has not been changed since 2008 and does not correspond to the new economic and labor law situation. For this reason, employers should choose from the available job positions the one that is most similar to the actual position according to its tasks. For this purpose, a job description is also drawn up - a more detailed definition of the employee's rights and obligations for the relevant position. This is a separate document that is part of the employment contract.
4. the duration of the contract, if applicable the duration of the probationary period - the probationary period may be between 1 and 6 months. During the probationary period, the employment contract can be terminated without notice - there is no notice period. The probationary period can also be regulated in favor of both parties or only one of them. The party in whose favor the probationary period has been agreed is entitled to terminate the contract without notice.
5. the duration of paid annual leave and additional paid leave must also be included. In Bulgaria, there is no difference between contractual and statutory leave. According to the Labor Code, paid leave must be at least 20 days. However, it can be longer if the parties wish - this is regulated in the employment contract. If the longer paid leave entitlement has been agreed in the contract, this replaces the statutory regulations. You can find more information about vacation in Bulgarian employment law in a separate article.
6. the notice period for both parties is also agreed in the contract - the notice periods can be between 30 days and 3 months. The notice periods run from the time the termination request is submitted until the end of the agreed periods. There is no extension to the end of the month in Bulgaria.
7. the conclusion date and the date on which the employee actually commences employment must also be stated. The conclusion date is the date on which the parties sign the contract. The start date is the first working day. Employment contracts are registered after conclusion and before commencement of work.
8. The employee's regular daily or weekly working hours,
9. as well as the basic remuneration and possible salary supplements (bonuses, monthly salary, household allowance, etc.) must also be agreed. Social security contributions are to be paid by both parties - employer 60% and employee 40% of the total amount. There is also a minimum wage in Bulgaria, which is amended by the law on the budget.

The employment contract must be in duplicate, with each party receiving one copy. The employment relationship is established when the employment contract is signed by both parties.

Registration with the National Revenue Agency

From the moment the employment contract is signed, there is a 3-day deadline for registering the contract with the Bulgarian National Revenue Agency. Only after the employee has received confirmation from the NRA that the contract has been registered may he or she be admitted to the workplace and start work. The employee cannot start work earlier. The employee is obliged to fulfill his duties and services in accordance with the employment contract from the time he starts work.

The employee has the right to start work within one week of receiving the documents listed above. If he fails to do so, the employment relationship shall be deemed not to have arisen.

Further obligations of the employer

• Employment labor book - the completion of the employment labor book is a statutory obligation of the employer. The labor book is an official document certifying the circumstances of the employee's employment relationship as recorded therein. Among the circumstances to be included in the labor book are education, job position, remuneration, commencement of employment, termination of employment, etc. The employee must present his/her labor book to the employer when starting work. The employer must purchase and hand over a work book within 5 days of the employee's first employment. The first employment must be confirmed by the employee in a written declaration. The labor book must be kept by the employee, who must present it to the employer upon request in order to record any new circumstances. From 01.06.2025, new regulations will come into force in connection with the electronic labor book, which concern the single electronic employment record. The single electronic employment record is an electronic document containing data and circumstances related to the employment of an employee and is thus an official certificate and is kept by the tax office.
• Ensuring occupational safety and health protection of employees - the employer should conclude a contract with an occupational health service.