EMCC European Monitoring Centre on Change

Bulgaria: Severance pay/redundancy compensation

Bulgaria
Phase: Management
Type:
Severance pay/redundancy compensation
Last modified: 06 December, 2021
Оригинални назив:

Кодекс на труда

Енглески назив:

Labour Code

Article

Article 222

Description

While there is no general provision on statutory severance pay in place, workers are entitled to redundancy pay equal to one month's salary in the case of individual or collective dismissal on economic grounds. With a decision of the Council of Ministers, or on the basis of collective labour agreements or employment contracts, compensations for a longer period could be defined. If within this period the employee started the work with lower salary, he/she is entitled to receive the difference in remuneration for the affected time period.

 

Comments

The cases where such redundancy compensation must be paid are:

  • dismissal due to closure of the company or part of it,
  • staff cuts,
  • reducing the workload,
  • work stoppage for more than 15 working days,
  • failure of an employee to follow the company or its division in which he worked when the facility moved to another area or locality,
  • or when the position occupied by the employee should be released to restore an illegally fired employee who had previously occupied the same position.
Cost covered by
  • Employer
Involved actors other than national government
National goverment only
Thresholds
No, applicable in all circumstances
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