Ivanova Legal Solutions

Terminating Employment in Bulgaria: Assessing Risk Before the Dismissal Order

3 November 2026

A practical legal guide for employers and HR teams. The assessment depends on the relevant facts, documents and legal ground.

Before a dismissal order is issued, an employer can check whether the ground, evidence, deadlines and employee protection align.

A practical legal guide for employers and HR teams

Ending an employment agreement is rarely only a matter of issuing one order. It is a process in which the ground, facts, prior documentation, protection of specific employee categories and deadlines need to align. A single gap can lead to litigation over unlawful dismissal, reinstatement and compensation.

Before choosing a legal ground, an employer should answer a simpler question: what is the real organisational or conduct issue, and which documents can prove it?

1. Facts first, legal ground second

A termination ground should not be chosen because it appears easier. It must follow the actual situation. Redundancy presupposes a genuine organisational change. Reduction in workload requires verifiable evidence. Disciplinary dismissal requires a specific breach and compliance with a special procedure. Lack of qualifications or performance involves a different evidential logic from redundancy.

Where the factual record does not match the selected ground, a longer dismissal order will not cure the risk.

2. Documentation before the decision

Depending on the case, the employer may need an up-to-date job description, staffing schedule, decision or order documenting the organisational change, evidence of workload, performance assessments, internal correspondence, previous warnings, minutes and other records. If a selection between employees is required, the criteria, the decision maker and the documented assessment should be clear in advance.

Documents created only after litigation has begun rarely appear persuasive.

3. Special protection and prior approvals

Before termination, assess whether the employee belongs to a protected category. This may be linked to health status, pregnancy, leave, a union role or another applicable situation. In some cases the law requires prior approval or an opinion. Missing that check is a separate risk even where the employer has genuine organisational reasons.

4. Disciplinary procedure: deadlines and defence rights

For a disciplinary ground, the employer should establish the facts, request explanations under the applicable procedure, assess all circumstances and comply with short statutory deadlines. The order needs to identify the alleged breach with sufficient detail. General phrases such as “poor discipline” or “failure to perform duties” without particulars are vulnerable.

5. Notice, service and evidence

What matters is not only what the document says, but also how it is delivered. The employer needs a reliable record of service or a properly documented delivery attempt. When notice is used, the period must be calculated correctly; when compensation is paid instead of notice, the ground and amount must be checked. Electronic service has its own evidential issues and should not automatically be assumed sufficient in every case.

6. Agreement does not mean no risk

Termination by mutual agreement can be an effective and calm outcome when it is genuinely voluntary and the terms are clear. It should not be pursued through pressure or unclear communication. For an offer under Article 331 of the Bulgarian Labour Code, the acceptance deadline, wording of the proposal and payment of the agreed compensation within the statutory period are critical.

7. A short employer checklist

Before a final decision, check:

  • the real ground and evidence supporting it;
  • applicable special protection;
  • whether selection, approval, an opinion or a hearing is required;
  • correct deadlines and order of actions;
  • the contents of the dismissal order or agreement;
  • service and proof of service; and
  • all outstanding remuneration, unused leave, compensation and exit documentation.

Practical conclusion

An early risk review is not an extra formality. It gives an employer the opportunity to choose the correct route before creating a document that later has to be defended in a dispute.

The website offers a fixed-scope written opinion on termination of employment. It covers review of the stated grounds and supplied materials, key risks and written practical recommendations. It does not include negotiations, full employment documentation, representation or litigation; broader support is agreed separately where needed.

This material is for general information and is not individual legal advice. The assessment depends on the specific ground, documents, employee category and facts.

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