Certain changes to the Bulgarian Labour Code (LC) were enacted on 5.8.2022 and entered into force retroactively as of 1.8.2022. The changes aim at addressing different issues concerning employees and were among the last legal acts enacted by the 47th National Assembly. The changes concern the following:
- The right of the employees to enter into a second employment agreement with a different employer
- New obligations of the employer to inform its employees of certain issues concerning their employment agreements
- Introduction of a new maximum duration of 1 month of the trial period for short term employees
- Explicit regulation of the right of the employees to propose certain changes to their agreements and a new obligation for employers to motivate their rejection, if any
- Training time shall be considered working time
- New leave for fathers of children under the age of 8.
In the following paragraphs we have summarized the changes:
- Broadening the possibility for signing a second employment contract with a different employer
With the new change of Art. 111 of the LC, the prohibition of additional work with another employer may be imposed by the employer only for the purpose to protect trade secrets and/or the prevent conflicts of interest. With this in mind, it seems that employers should be ready to provide sufficient proof of their reasoning in case they impose such restrictions.
We note, however, that the signing of a second employment contract with a competitor, even in the absence of an explicit prohibition, is regarded by the existing case-law as a breach of the employee's obligation of loyalty to the employer. In general, employees are advised to carefully assess each case before entering into a second employment relationship irrespective of whether their employment agreement includes a limitation or not.
- Prior notification on changes of employment relationships
According to the amended para.5 of Art. 66 LC, the employer should notify the employee of changes in the employment contract in advance of their entry into force. This is different from the old provision which allowed the employer to inform the employee of changes in the contract within one month after the entry into force of such changes (naturally this does not concern changes that have to be agreed between the parties but only those that may be introduced by the employer unilaterally).
- Shorter maximum trial period for fixed-term employment contracts with a duration less than one year
Pursuant to para.1 Art. 70 LC the maximum duration of the trial period for fixed-term employment contracts signed for a period of less than one year, shall be one month (whereby the duration until the new changes was 6 months). The provision aims at creating a sort of fair proportionality of the ratio between the trial period and the duration of the employment contract, by giving certainty to short-term employees at an earlier stage in respect of their agreements having become final.
- Statutory right of a fixed-term or part-time employees to propose certain changes to his employment contract
The new para. 2 of Art. 119 states that fixed-term employees and part-time employees have the right to unilaterally offer to the employer to switch to permanent employment contracts or, accordingly, to full-time ones. To the extent that the law does not provide for a limitation of the right of employees to propose any changes to their employment agreements, neither does it introduce an obligation of the employer to accept such proposals, the new provision is of limited practical significance. However, in case the employer chooses to reject such proposal, it shall from now on motivate it.
Failing to provide justification can lead to certain negative consequences for the employer and even administrative penalties. However, the employee has not been given any opportunity to enforce a change in his/her employment relationship due to a lack of a motivated rejection from the employer. It should be noted that the possibility of making proposals as set out above arises only after the expiry of the trial period. The practical significance of this restriction is that until the expiry of the probationary period, employees can still make any suggestions at their discretion, but employers can refuse them without justifying their decision.
- Obligation to inform employees about the terms and conditions for termination of employment contracts under the LC
The new requirements in Art. 127 LC provide for an obligation of employers to inform the employees about the terms and conditions for termination of employment contracts under the Labour Code. Thus, the employers are advised to draw up documents with the relevant information or to approve amendments to existing internal documents (e.g. the Internal Labour Regulations) describing the possibilities for termination promptly in order to be compliant with the new requirement.
- Obligation to provide information about the trainings offered to employees
Pursuant to point 1 from para. 7 of Art. 127 LC the employer should provide its employees with information about employer-provided professional trainings.
- Mandatory trainings are considered part of the working time
Pursuant to Art. 228a LC, where, by virtue of a regulatory act or contract, the employer shall ensure professional trainings of its employees, the time spent on such trainings shall be considered as working time. Where possible, trainings should take place within the employee's established working hours. All costs related to trainings shall be borne by the employer.
It seems that the question whether trainings, which are not prescribed by law or agreed between the parties as mandatory, should be treated as part of the working hours and be carried out during such time, remains to be resolved in practise.
Further to the above, as long as mandatory trainings take place outside working hours, it seems that such trainings should be considered as overtime and therefore comply with the requirements for daily and weekly rest periods and be paid with an increase in accordance with the law.
The treatment and most of all compensation of non-mandatory trainings and whether the time employees spend there should be treated as working hours, is also yet to be resolved.
- Special rights for the benefit of parents and adoptive parents of children up to 8 years and for employees taking care of close relatives
Each of the above persons is entitled to make a proposal for a specific time to change the duration and distribution of his or her working time, to switch to remote work, as well as to propose other amendments to the employment relationship in order to facilitate the balance of employment and family obligations.
Such amendments should be agreed in writing between the parties.
In this case as well, if the employer rejects the proposal, such rejection shall also be motivated in writing.
- Leave due to quarantine of children under the age of 12, due to quarantine in the educational establishment, class or group
Effective as of 1.1.2023 employees are entitled to an additional leave in the event of a quarantine imposed on a school, a kindergarten, a group or a class in respect of children of up to 12 years old.
It is apparent that the new provision aims at regulating cases, which have increased in the past years, in relation to the quarantine imposed due to COVID19 on whole schools and kindergartens. However, this possibility was regulated already in the past and required the presentation of a sick leave certificate by the employee to the employer.
According to the Social Security Code (SSC), employees are are entitled to monetary compensation by the state for the duration of such quarantine. It remains to be seen whether in practice the new changes will allow employees to benefit from the option based on the respective official order imposing a quarantine or a sick leave certificate will still be required.
- A new type of two-month paid leave for fathers of children up to the age of 8 years – Art. 164c LC
The changes introduce a new right of a father (or adoptive parent) to benefit from two months leave to raise a child until the age of 8. The right to this leave may be granted if the father has not taken any of the following leaves: parental leave for pregnancy and childbirth, transferred from the mother/adoptive mother; parental leave for a child under the age of 2; leave for the adoption of a child up to the age of 5; nor has he taken leave in the event of death or serious illness of a parent or adoptive parent (para.10 art.163, para.3 art.164, para.2 and 5 art.164b, para.1 art.167 LC). The leave may be used in whole at once or in parts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
