Background Checks

Employers must obtain explicit consent from candidates before conducting any background checks. Checks must be relevant to the job role. Types of background Checks:

• Employers can request criminal record checks if the job necessitates a clean record.
• Credit checks can be conducted to mitigate risks associated with financial mismanagement.
• Verification of educational qualifications and previous employment is standard.
• Medical Records: Medical history checks may be required for specific roles.

Verification and New Hire Reporting

Notification to Labor Inspectorate: Employers are required to notify the Labor Inspectorate about the new hire. This helps ensure that the employment conditions meet legal standards

• Form Submission: Employers must submit a notification form to the Labor Inspectorate. This form includes details about the new hire, such as personal information, job title, and start date

• Deadline: The notification must be submitted within a specific timeframe, usually before the employee starts working

• Online Portal: Notifications can often be submitted through an online portal provided by the Labor Inspectorate

Onboarding Process & Documentation

• Copies of personal identification, such as a passport or national ID.
• Work Permits: Necessary for non-EU nationals.
• Social Security Registration: Employees must be registered with the National Revenue Agency for social security purposes.

Healthcare

Mandatory Benefits Social Security Contributions: Employers must register employees for social security and make regular contributions to fund social insurance accounts. These contributions cover healthcare, sickness cash benefits, maternity and paternity benefits, and invalidity benefits.

Supplementary Benefits

• Supplementary Medical Insurance: This is highly valued among employees and includes consultations with medical professionals, specialized tests, pregnancy care, dental and vision coverage, and medication.
• Group Life Insurance: Many employers offer group life insurance as part of their benefits package.
• Voluntary Pension Schemes: These schemes are gaining popularity and are often included in benefits packages.
• Additional Perks: Employers may also offer food vouchers, gym memberships, mobile phones, transportation benefits, and employee assistance programs.

Retirement

To qualify for a state pension, individuals must meet certain age and contribution requirements. The standard retirement age is 64 years for men and 61 years for women, with plans to gradually equalize the retirement age for both genders.

• The amount of the pension is calculated based on the individual’s average monthly earnings and the number of years they have contributed to the social security system. The minimum monthly pension is set to ensure retirees have sufficient financial support.
• Retirees may also be eligible for additional benefits such as healthcare coverage, social services, and discounts on public transportation.

Social Security

Employers must ensure compliance with social security contributions and employee benefits:

• Social Security Registration: Employees must be registered for social security from the first day of employment.
• Mandatory Contributions: Both employer and employee must contribute to social security, covering pensions, health insurance, and unemployment.
• Additional Benefits: Consider offering additional benefits like health insurance or meal vouchers to enhance employee retention.

Employment Contract Details

Employment contracts must be in written form. This not only solidifies the agreement between employer and employee but also ensures clarity and legal enforceability. A written employment contract shall be concluded before beginning of work and registered with the National Revenue Agency.

Type of Contract: Employment contracts can be fixed-term or indefinite. The choice depends on the nature of the employment relationship.

Mandatory Clauses: Contracts must include key information such as:

• the place of work;
• the position title and the nature of work;
• the date of its conclusion and the starting date of its performance;
• the duration of the employment contract;
• the amount of basic and extended paid annual leave and of additional paid annual leaves;
• equal length of the period of notice to be observed by both parties upon termination of the employment contract;
• the basic and supplementary labor remunerations of a permanent nature, as well as the frequency of their payment; and the duration of the working day or week.

Probation Period

A probationary period can be included in the contract, typically up to six months, to assess the employee’s fit for the position.

Visas

Visa Types for Bulgaria

• Short-Stay Visa (Type C)
  • Purpose: For stays up to 90 days within any 180-day period, suitable for business meetings, conferences, and short-term assignments.
  • Supporting Documents: Invitation letter from the Bulgarian partner company, proof of financial means, travel itinerary.
• Long-Stay Visa (Type D)
  • Purpose: For stays exceeding 90 days, suitable for longer-term business projects, work assignments, and relocation.
  • Categories: Employment or business visa, student visa, family reunion.
  • Supporting Documents: Employment contract or proof of business registration, proof of accommodation, medical insurance covering the period of stay.
• Transit Visa
  • Purpose: For travelers passing through Bulgaria en route to another destination.

General Visa Requirements and Documentation

• Completed Application Form: Ensure the form is filled out accurately with personal and business-related information.
• Valid Passport: Must be valid for at least three months beyond your intended departure date from Bulgaria and have at least two blank pages.
• Recent Photographs: Two passport-sized photos adhering to specified biometric standards.
• Proof of Financial Means: Bank statements to prove financial support during your stay.
• Health Insurance: Valid insurance coverage meeting Bulgaria’s mandatory requirements.
• Letter of Invitation: For business visas, a letter from the inviting Bulgarian company detailing the purpose and duration of the visit.

Independent Contractors

Independent contractors operate under civil contracts, which outline the scope of work, payment terms, and other conditions. These contracts are distinct from employment contracts and do not provide the same benefits as employment contracts.

• Contractors must register their business with the Commercial Register if they operate as sole traders or freelancers.
• Independent contractors are responsible for their own tax payments and social security contributions. They must comply with local tax laws and regulations.

Paid Time Off

Paid leave is set in the employment contract as a minimum of 20 days paid leave a year, following the completion of 4 months of employment.

Public Holidays

• New Year’s Day
• Liberation Day
• Liberation Day Holiday (Day Off in Lieu)
• Labor Day
• Good Friday
• Easter Monday, St. George’s Day
• Culture and Literacy Day
• Unification Day
• Independence Day
• Independence Day Holiday (Day Off in Lieu)
• Christmas Eve
• Christmas Day
• Second Day of Christmas

Bereavement

Employees are also entitled to two days of leave to attend the funeral of a family member.

Maternity Leave

All female employees are eligible for paid maternity leave of 410 days. Typically, 45 days must be taken before the due date with the remaining days used after the birth. After the sixth month of leave, the mother can choose to transfer the remaining leave days over to the father to use instead.

• At least 12 months of insurance contributions will be paid for maternity leave (temporary incapacity for work) by the National Social Insurance Institution at the rate of 90% of the average daily gross wage.
• Certificates must be provided the first certificate is to be issued 45 days before the due date by her doctor and a second certificate is to be issued 42 days after the birth. A third note is issued for the leave period up to the 135th day by the child’s or mother’s GP.
• For the remaining leave , the worker must request this leave from the employer.
• After each sickness certificate/request for leave has been submitted, the employer must submit it to the National Social Insurance Institute. Following the end of the 410 days maternity leave, additional paid leave can be taken by the mother, or can be transferred to the father, until the child reaches the age of 2 years old.
• Can be utilized for the parents first, second and third child only.
• Paid at a rate of 780 BGN ($453.07 USD) per month providing the child is not in childcare such as nursery and the mother has not consented to the transfer her maternity entitlement to another eligible family member. If the child goes to a nursery during any of the Parental Leave period, the cash benefit will not be paid.

Paternity Leave

Fathers are entitled to Paternity Leave of 15 calendar days, fixed to be taken from the day the baby is discharged from the hospital (if this day is a non-working day, vacation or public holiday, paternity leave still applies and no additional day off in lieu is given).

• Paid at a rate of 90% of the average daily gross remuneration or the average daily insurance income, on which insurance contributions have been paid or due for the period of 24 calendar months preceding the month of the start of the leave upon the birth of a child. Fathers are eligible for this Paternity Leave once they have completed at least 1 year of employment and they must submit a declaration form to the employer with a copy of the hospital discharge certificate. A further 2 months of leave, paid by the National Social Security Institute, to raise a child under the age of 8 is available to the father providing he has not already taken leave to raise a child younger than two and has not used maternity leave transferred from the mother. To use this leave, the employer must be notified at least 10 days in advance.

Parental Leave

Once the child has reached the age of 2 years old, unpaid Parental Leave of up to 6 months is available to be used by each parent until the child reaches the age of 8 years old, providing the child is not in a state-maintained institution.

• Each parent may take up to 5 months of the other parent’s leave with his/her consent.
• Leave can be taken all at once or in installments of not less than 5 working days per leave period.
• Must notify their employer at least 10 working days in advance of taking this leave.

Sick Leave

The first two days of sickness are paid for by the employer at a rate of 70% of the regular salary. From the third day of sickness, The National Social Security Fund takes over the payment at 80% of the regular salary rate or 90% for work-related sick leave or injury (providing the employee has completed at least six months of service or Social Security payments). All employees are entitled to claim up to 18 months of paid sick leave. Employees must provide a medical certificate within 48 hours of the first day of sickness.

Termination Requirements

Protection Against Unfair Dismissal: Employees have the right to legal protection against unjust or unwarranted dismissal, with specific procedures to address grievances:

• unless an employer can provide sufficient cause for dismissal without notice (i.e. due to misconduct).
• Specific justified causes for termination with prior notice by the employer include the closure of the employer’s enterprise, staff reduction due to change in the employment grid, a decrease in the volume of work, the employee’s lack of ability to effectively perform the required work, and changes in a job position’s requirements which the existing worker’s skills are not aligned with.

Notice Period

Notice Period is 30 days’ notice; however, it is common practice to use a notice period of 90 days. Employer must notify the territorial direction of the National Revenue Agency within seven days of the effective termination date.

Severance Pay

Severance is 1 to 7 month’s pay depending on termination grounds e.g. office closure, redundancy or staff reductions.

Unemployment Insurance

These benefits can be accessed by individuals who have contributed to the unemployment fund of the General State Insurance Fund for a minimum of 12 months within the 18 months preceding their unemployment. The maximum benefit that can be availed under this scheme was set at BGN 85.71($50.36 USD)per day.

Anti-Discrimination Practices

There are strict regulations against workplace discrimination; it’s pivotal to adhere to these to foster an inclusive work environment:

• Non-Discrimination: Discrimination based on race, gender, age, religion, or any other protected characteristic is prohibited.
• Reporting Mechanisms: Establish clear procedures for reporting discrimination or harassment and ensure these are communicated to all employees.

Workplace Safety Standards

Right to Safe Work Environment: Employers are obligated to ensure a safe and healthy workplace, complying with occupational health and safety regulations.

Workers’ Compensation

• Employees are entitled to various benefits, including medical expenses coverage, temporary disability benefits, and permanent disability benefits. In the event of a work related death, dependents may receive survivor benefits.

• Employers are required to implement safety measures and provide training to prevent workplace accidents. They must also report and investigate any work-related injuries or illnesses.

• Employees must report work-related injuries or illnesses to their employer immediately.

The employer then files a claim with the National Social Security Institute (NSSI), which administers the worker’s compensation benefits.

Labor Law Sanctions

Disciplinary Reprimand: A formal written warning issued to an employee for minor breaches of work discipline, such as tardiness or failure to follow instructions.

Warning of Dismissal: A more serious sanction indicating that further violations may lead to termination. It serves as a final notice before dismissal.

Disciplinary Dismissal: The most severe sanction, allowing an employer to terminate an employee without notice for serious misconduct (e.g. theft, repeated violations, or insubordination).

Administrative Fines for Employers: Employers who violate labor laws—such as failing to register employment contracts, underpaying wages, or engaging in undeclared work— can face fines ranging from BGN 1,500 to BGN 30,000, depending on the severity and recurrence of the offense.

Sanctions for Undeclared Work: Repeat offenses involving undeclared labor can result in increased penalties, including property sanctions and disqualification from public procurement contracts.

Failure to Provide Employment Documents: Not issuing proper contracts, pay slips, or failing to notify the National Revenue Agency can lead to administrative penalties and inspections.

Violation of Working Time Regulations: Breaches related to overtime, rest periods, or working hours may result in fines and corrective orders from labor inspectors.