Under the Bulgarian Labor Code the employment relations are established through the conclusion of an employment contract, through election or through competitive examination.

Employment Contract

The Bulgarian law codifies two types of employment contracts: individual and collective ones, but only the former are capable of establishing employment relations. The individual employment contracts are concluded in writing between the employee and the employer before the commencement of the job. They are subject to registration within three days as of their signing with the respective division of the National Revenue Agency.

The contract shall contain certain mandatory provisions, explicitly listed in the Labor Code, in order to be valid, such as: place, position occupied and nature of work; duration of the employment contract; date of execution and commencement of performance, labor remunerations; the duration of the working day or week, etc.

The employment contract may be concluded for an indefinite period or for a fixed term. Fixed term employment contracts are concluded either for a time period no longer than 3 years, or for a fixed term, which expires under explicitly listed in the Labor Code reasons: completion of some specified work; returning of an employee who has been substituted, etc.

A fixed-term employment contract shall be concluded for execution of casual, seasonal or short-term work and activities, as well as with newly hired workers or employees in enterprises that have been adjudicated bankrupt or in liquidation. As an exception, a fixed-term employment contract may be concluded for a period of not less than one year and for work and activities that are not of a casual, seasonal or short-term nature. Such an employment contract may also be concluded for a shorter period upon request in writing by the worker or employee.

Any employment contract, concluded in violation of the above listed principles, shall be considered as a contact of indefinite duration.

The Bulgarian labor legislation provides for the institute of employment contract for a trial period. It could be concluded in the event that either the work requires the ability of the employee to be tested or the employee wants to make sure the job is suitable for him. During the trial period, which is up to 6 months, the party to whose benefit it has been agreed may terminate the contract without notice.

As with the signing of employment contracts, termination of employment contracts is done in writing. The termination procedures and grounds for termination of employment contracts are specified in detail in the Bulgarian labor law.

There are several basic groups of the types of termination of employment contracts:

• Termination by mutual consent or unilateral termination of the contract;
• Termination procedures via advance notice or termination procedures where no advance notice is required;
• Termination procedures of the contract upon a motion of the employer and termination procedures upon a motion of the employee.

Within seven days after the termination of the employment contract, the employer or a person authorized thereby is obligated to send a notification of this to the relevant territorial directorate of the National Revenue Agency.

Election

The offices which are held on the basis of an election are specified by a law, an act of the Council of Ministers or by-laws (e.g. company's articles of association). The term for which a person is elected shall not be longer than 5 years. The candidates for an elective office are nominated by bodies or persons and are elected by an electoral body. The employment relation is established with the candidate who has won the greatest number of votes. They shall start work within 2 weeks after receiving the notification of the election result.

Competitive examination

A competitive examination may be held for any job with the exception of a job which shall be held on the basis of an election. The jobs requiring a competitive examination shall be specified by a law, an act of the Council of Ministers, a Minister or the head of another institution, or by the employer. The competitive examination shall be announced by the employer through the national or the local press or in another appropriate way. Only admitted by a special commission candidates can participate in the competitive examination. The competitive examination is conducted by a commission composed of relevant experts and appointed by the employer. The employment relationship shall be created with the person who has been ranked first and they shall start work within 2 weeks after receiving the notification.