In Bulgaria’s dynamic labor market, dismissals from work are a common reality affecting both employees and employers. Understanding the various types of dismissals from work and the associated rights is crucial to protecting your interests. This article explores seven main types of dismissals, governed by the Bulgarian Labor Code (LC), and provides insights into employees’ rights for each, including compensation, notice periods, and other employer obligations. Additionally, we will address specific cases, such as dismissals in the Ministry of Interior, which have garnered public attention in recent years.

1. Dismissal for Economic Reasons

Dismissals for economic reasons often occur when an employer faces financial difficulties, reduced workloads, or organizational restructuring. According to Art. 328, para. 1, item 2 of the LC, this includes staff reductions or the closure of part of the business. To be lawful, the dismissal must be justified by genuine economic reasons sustained over a prolonged period, not short-term downturns.

Employee Rights:

- Notice Period: The employer must provide a 30-day notice period unless a longer period is stipulated in the contract (Art. 326, para. 2, LC). If the notice is not observed, the employee is entitled to compensation equivalent to their salary for that period.

- Compensation: Under Art. 328, para. 1, item 2, employees are entitled to compensation equal to one gross salary if they remain without work within one month of dismissal (Art. 222, para. 1, LC).

- Labor Book and Leave: The employer must provide the labor book with the correct dismissal grounds recorded and compensation for unused paid leave.

Employees can use this period to prepare an updated CV and get ready for an interview for new work. Notably, in cases of collective dismissals (over 10 employees in large enterprises), the employer is obliged to notify competent authorities and consult with trade unions to minimize the impact on employees.

2. Dismissal Due to Professional Incompatibility

Dismissal due to professional incompatibility is based on a lack of necessary skills, qualifications, or efficiency to perform job duties (Art. 328, para. 1, item 5, LC). This is a sensitive issue, as it requires an objective evaluation of the employee’s performance, often documented through a reference from their direct supervisor.

Employee Rights:

- Notice Period: 30 days, unless a longer period is specified in the contract.

- Compensation: If the employee does not find new work within one month, they are entitled to one gross salary as compensation.

- Right to Defense: The employee can challenge the dismissal in court if they believe the assessment of professional incompatibility is unfounded.

This type of dismissal can be challenging, as it may affect the employee’s confidence. It’s advisable to request a detailed reference from the employer to use when applying for new positions and to prepare a strong CV highlighting your strengths.

3. Dismissal for Disciplinary Reasons

Disciplinary dismissal is applied for serious breaches of labor discipline, such as repeated tardiness, non-compliance with company rules, or intentional damage (Art. 330, LC). This is the strictest type of dismissal and requires the employer to strictly follow the procedure, including written notification and an opportunity for the employee to defend themselves.

Employee Rights:

- Right to Explanation: Before dismissal, the employer must request a written explanation from the employee.

- Leave Compensation: The employee receives compensation for unused paid leave but no other compensation, as the dismissal is due to their fault.

- Labor Book: The dismissal grounds are recorded in the labor book, which may impact future interviews for work.

Disciplinary dismissals are often contentious, so consulting a lawyer is advisable if you believe the dismissal is unfair. Additionally, prepare for interviews by professionally addressing the situation without disparaging the former employer.

4. Dismissal Due to Incapacity to Work

Dismissal due to incapacity to work (Art. 325, para. 1, item 9, LC) applies when an employee is unable to perform their duties due to permanent or prolonged illness, as determined by a medical commission. This is a delicate situation requiring humane treatment from the employer.

Employee Rights:

- Notice Period: 30 days, unless a longer period is agreed upon.

- Compensation: The employee is entitled to one gross salary if they do not find new work within one month.

- Social Rights: Depending on their health condition, the employee may apply for a disability pension or other social benefits.

In this case, focus on your health and use the time for rehabilitation. If possible, prepare a CV emphasizing skills not dependent on your physical condition and seek work suitable for your situation.

5. Dismissal by Mutual Consent

Dismissal by mutual consent (Art. 325, para. 1, item 1, LC) is the most flexible and often the most advantageous way to terminate a labor contract, as it allows both parties to negotiate terms. This may include additional compensation or other arrangements.

Employee Rights:

- Flexibility: There is no mandatory notice period unless agreed upon.

- Compensation: Depends on the agreement—employers often offer additional compensation to facilitate the process.

- Labor Book: The grounds are recorded as “by mutual consent,” which is neutral and does not harm your reputation in future interviews.

This type of dismissal is ideal if you wish to leave without conflict and maintain good relations with the employer. You can request a reference to support your CV when seeking new work.

6. Dismissal Due to Retirement

Dismissal due to retirement occurs when an employee becomes eligible for a pension based on years of service and age (Art. 328, para. 1, item 10, LC). This is common in the public sector, including dismissals in the Ministry of Interior, where employees eligible for pensions may be dismissed to make room for younger staff.

Employee Rights:

- Notice Period: 30 days, unless a longer period is specified.

- Compensation: Typically, no additional compensation is provided beyond unused leave, as the employee receives a pension.

- Labor Book: The grounds are recorded as “retirement,” which is standard and does not negatively affect reputation.

Dismissals in the Ministry of Interior: In recent years, dismissals in the Ministry of Interior have drawn significant public attention, particularly regarding employees who continue working after becoming eligible for retirement. For instance, in 2021 and 2022, reforms in the Ministry of Interior aimed at optimizing staff led to dismissals in the Ministry of Interior of pension-eligible employees. These measures sought to create opportunities for younger, qualified personnel but often faced resistance from trade unions advocating for fair conditions and employee rights protection.

7. Dismissal at the Employer’s Initiative

Dismissal at the employer’s initiative covers various grounds, such as the closure of the enterprise, an employee’s refusal to relocate with the company, or a lack of qualities for effective job performance (Art. 328, LC). This is a broad category requiring strict adherence to legal procedures.

Employee Rights:

- Notice Period: 30 days, with the possibility of a longer period by contract.

- Compensation: If the employee remains without work within one month, they receive one gross salary (Art. 222, LC).

- Right to Appeal: The employee can challenge the dismissal in court if they believe it is unlawful.

This type of dismissal is often linked to reorganizations or strategic changes. It’s recommended to request a reference from the employer and update your CV to prepare for future interviews.

Conclusion

Understanding the different types of dismissals from work and their associated rights is key to protecting your interests. Whether it’s due to economic reasons, disciplinary issues, or dismissals in the Ministry of Interior, the Labor Code provides clear frameworks to safeguard employees. If you face dismissal, ensure the employer complies with legal requirements and consider seeking legal advice if you suspect wrongful termination. Prepare for the next step in your career by updating your CV and getting ready for interviews to find new work that matches your skills and ambitions.

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