Labour law regulates the legal relationship in Bulgaria between individual workers and employees (individual labour law) as well as between coalitions and representative bodies.
Sources of labour law Bulgarian labour law is characterized by a multi-stage normative regulation. In addition to the Labour Code (Bulg: Кодекс на труда) from 1986 numerous detailed primary and secondary rules and regulations are applicable (Regulation for minors below the age of 15 (1986) Bulg: Наредба за работата на лицата, ненашършили 15-годишна възраст; Regulation No. 4 of 1993 on the necessary documents which must accompany an employment contract Наредба №4 за документите, които са необходими за сключване на трудов договор; Regulation No. 5 on the procedure for the registration of employment under Article 62, para.4 of the Labour Code Наредба №5 за съдържанието и реда за изпращане на уведомление по чл. 62, ал. 4 от Кодекса на труда etc.)
Employment relationship The employment relationship is a legal relationship between an employer and an employee which regulates the rights and obligations of the parties respectively. On the one hand, the employee must perform work and comply with the established disciplinary rules in the company and the employer must, on the other hand, provide the working conditions and pay an appropriate remuneration to the employees. An employment relationship can arise only on the grounds listed in the Labour Code: employment contract, application procedure, election or administrative act.
Parties to the employment relationship Those employees qualified as blue-collar workers perform physical labour, whereas the so-called white-collar workers perform intellectual work. A person must have reached a minimum age to be eligible to conclude a labour contract. Generally, the minimum required age in Bulgaria pursuant to Article 301(1) of the Labour Code is 16 years. However, due to the risk of injuries inherent in some types of work this minimum could be increased. The Bulgarian legislation provides that in certain cases the minimum age may be lower as well (for example work in the circus or arts). An identity card or birth certificate serves as proof for the age of the employee. The employer may be natural or legal person. He has the so-called advisory and disciplinary power and has the right to give instructions to the employee. His duties are principally to ensure suitable working conditions and to pay remuneration.
Employment contract The employment contract is a written agreement between an employee who provides a service and another person, being an employer who provides the working conditions and compensation for the fulfillment of the employee's obligations. The legal requirements regarding the content of the employment contract are listed in Art. 66 of the Labour Code. The contract must contain:
Personal details of the parties; Place of work; Type of employment and description of the work activity; Duration of the contract; Duration of paid annual leave; Notice period for both parties; Completion date of the contract and the date of actual commencement of employment of the employee; Regular daily or weekly working hours of the employee; Basic wage.
The contract must include also a description of the type of work to be performed, which is drawn up together with the employment contract. Under Art. 67(2) of the Labour Code the employment contract is usually concluded for an unlimited period. There is also a possibility for a fixed-term contracts as well. An explicit agreement between the parties is necessary in any case. The Bulgarian Labour Code provides for different types of employment agreements, including probationary period agreement (Articles 70, 71 of the Labour Code), internship agreement, bargaining agreement and training contract, employment agreement for additional work with the same employer or with another employer (Article 230-233 of the Labour Code). In order for the employment contract to be valid, it must be concluded in a written form.
Remuneration The payment of remuneration is one of the main obligations of the employer and part of the obligatory content of the employment contract. The right of the employee to be paid for his wor is proclaimed in the Bulgarian Constitution of 1991. When calculating the salary of the employee, the duration of working time, intensity and quality of the work at hand must be considered. The remuneration may be calculated by two methods:
Remuneration based on the time spent in performing the employment obligations, Performance-related remuneration—depending on the results of the work performed. For the low-skilled employment, a minimum wage is set by the Council of Ministers. The Labour Code determines various types of additional payments (pay for overtime, for work during official holidays, for night work, etc.)
Working hours Bulgarian legislation provides for the possibility for different duration of working time—normal working hours, longer working hours, shorter working hours and part-time work. The normal working hours is determined in Art. 136 of the Labour Code: the standard working day is eight hours long and the work week—40 hours. This is also the maximum period allowed under the applicable law. In accordance with Art. 136a of the Labour Code extended working hours shifts can be established in the company given that the production process requires it and provided that the legal limitations are met. The peculiarity here is that the implementation of this prolonged working shift is done by a written instruction with a legally prescribed content. The shorter working hours in accordance with Articles 137, 305, 309, 317 of the Labour Code have a duration that is shorter than the normal working hours shift. These exist due to special or hazardous working conditions on the working site or due to the age or other characteristics of the employee.
The part-time work shall be performed only for part of the duration of the statutory working hours (Article 138 of the Labour Code).
On the other hand, the working time can be defined also as regular working time or overtime. Normal working time coincides with the stipulated working hours in the agreement between the parties—being it either normal 8-hour working day, or reduced working time according to Art. 137 of the Labour Code. Overtime is present when the hours worked exceed those agreed in the contract. The overtime shall be reimbursed in accordance with Art. 262 of the Labour Code with an increase in the remuneration due. In Bulgaria, work during the night can also be performed. Night work covers the period from 22:00 until 6:00, for minor employees—from 20:00 to 6:00. Article 261 of the Labour Code regulates the reward for performance of night work.
The working time can also be divided in actual working time (working hours, during which the worker should immediately fulfill its obligations) and being on disposal (working hours will be paid in reduced amount. Should the employee be called to perform actual work, this time is paid as overtime).
Remuneration in case of overtime Overtime is regulated by Art. 143-150 of the Labour Code. This work shall be performed when instructed by the employer or with his knowledge and without his objection (Art. 143(1) Labour Code). Unless otherwise agreed, in Bulgaria an employee is not obliged to perform overtime. The overtime shall be understood as work in addition to the normal working hours (e.g. before the start or end of the workday and during lunch breaks). A regulation issued by the employer is necessary for overtime work to be conducted legally. Nevertheless, this may not be needed if the employer is aware about the fact that the employee works overtime and does not object to this fact. Important: in Bulgaria if the worker performs work outside the official working hours without the knowledge or the explicit instruction of the employer, this overtime is not regarded as overtime and no additional remuneration is due. According to the Bulgarian law overtime is permitted only in the cases provided for by the Labour code (Article 144 of the LC), namely: 1. Work performed in relation to the public security (e.g. work related to the protection of the State, crisis prevention and overcoming of its consequences or in response to urgency that serves the interests of society and the common good); 2. Work relating to emergency repair works or in ensuring safety at work; when a job needs to be completed, which cannot be carried out during working hours and thus a danger arises; when executing necessary seasonal work).
In accordance with Article 146 paragraph 1 of the LC the duration of overtime in a calendar year must not exceed 150 hours within a working week—6 hours' daily work and 4 hours' night work; within a month—30 hours' daily work and 20 hours' night work as overtime. The compensation of overtime with additional holiday is forbidden. The overtime shall be paid at correspondingly higher rates that have been agreed between the parties to the employment contract (Art. 150 in conjunction with Art. 262 of the LC). Nonetheless the minimum additional payment must be as follows:
50% for work on weekdays; 75% for work on holidays; 100% for work on public holidays; 50% for work in case of summed calculation of working time.
Rest During the rest period the employee is not required to perform with his work. This is a consequence of the characteristics of the rest as a time for rest, which is to serve the restoration of the work force.
The lunch time is a break during the workday (Art. 151 of the LC RF). It shall not be shorter than 30 minutes. The rest period after the end of the working day (Art. 152 of the LC RF) shall not be less than 12 hours. Weekly rest periods (Art. 153 of the LC RF) constitute 2 consecutive days (48 hours) in a 5-day working week. When calculated, the rest shall amount to at least 36 hours between the weekly working period. If the accumulated calculation of working time refers to shift work, the rest must not be shorter than 24 hours. Holidays (Art. 154 of the LC) The wage during the holidays, however, must not be less than twice the usual remuneration for the particular work on these days (Art. 264 of the LC RF). Overtime on holidays shall be paid with an increased by 100% (Art. 262 para. 1 of the LC RF).
Leave This is a period in which the employee may be absent from work with the consent of his employer. The leave is a legally recognized individual right of the worker. The leave is measured in working days and working hours. The Bulgarian Labour Code regulates different types of leave. First, the leave can be paid—it is an individual right of the employee and is also regarded as part of the length of service/work experience. Secondly, the leave may be unpaid—for the usage of which the express consent of the employer is required. Peculiarity is that the unpaid leave is added to the work experience only when expressly provided for by law. Art. 160, para. 3 of the LC recognizes as work experience a period of up to 30 days a year. A further add-back takes place only in the cases provided by law. No specific work experience is required in order to claim these types of leave. Depending on the social purpose of the leaves, they vary as follows:
Regular paid annual leave, which is regulated in Art 155-156a Labour Code—a prerequisite for its use is a work experience of at least 8 months. The statutory minimum entitlement to a paid leave is 20 working days. The types of this holiday are: standard holiday (every worker has the right to it and it may not be shorter than 20 working days); extended annual leave (on a claim, for certain categories of workers and officials; its duration can be up to 30–48 days); additional leave under Article 156 LC—only in specific cases.