- Overview: Bulgaria
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global HR Compliance in Bulgaria
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Bulgaria Guide below will help you understand the nuances of labor legislation in the country.
There are two main reasons for companies hiring foreign workforce:
- Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
- Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.
After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.
If you need to hire foreign workforce in Bulgaria so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.
With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.
We are experts in global workforce employment in Bulgaria, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Bulgaria.
Hiring and Firing Workforce in Bulgaria Guide
# Employment contracts
Parties of employment may start an employment relationship by drawing up and signing a written contract either on a fixed-term basis or on a definite term basis. When drawing up a contract of employment, an employer must include the information about the parties’ identity, nature of work, employee’s position, rights and obligations, place of work, working time, length of probation, remuneration, paid holidays, rights and obligations, and terms of contract termination.
#2 – Minimum statutory employment rights
# Hour of work
The normal working hours for any employee is fixed at 8 hours a day and 40 hours a night. According to the Labor law, an employee’s normal working time may be extended or reduced by certain hours. Employees are entitled to be compensated at overtime rate if they work more than the agreed work time or work between the hours of 10 and 6 am or 8 and 6 am (for minors).
# Probation period
Probation period may be given ones for any given employment. The period of probation must not be more than 6 months. An employee may be put on probation either in favor of the employer (employee) or both. During a probation period, the individual(s) who benefits from the probation has the right to end the contract with no prior notification.
# Annual leave
Employees are entitled to a minimum of 20 workdays of paid annual leave after they have worked for at least 8 months with their employers. Employees are expected to use up their annual leave within the year it is given, and may not be compensated if they don’t. An employee may be compensated in cash for any unfinished leave only at the termination of an employment contract.
# Parental leave
Women employees are entitled to 410 days of maternity leave, of which 45 days should be used during pregnancy. Employees are eligible for maternity benefit, which is equal to 90 percent of the average gross pay from the National Health Insurance Fund if they have worked a minimum of 12 months in the company and have made the necessary contributions to the system. Men employees are entitled to 15 days of paid paternity leave when they welcome a new baby. Men employees may have their partner’s maternity leave transferred to them, but not until the new baby has gotten to 6 months old.
In case of adoption, an adoptive parent is entitled to 365 days of paid leave if the adopted child is between 2 and 5 years old.
# Sick leave
In case of severe illness, an employee is entitled to up to 18 months of paid sick leave. Employees who have worked a minimum of 6 months in the company is eligible to receive 70 percent of their average daily gross earnings from their employers for the first three days of sick leave and the remaining benefits form the NSSI.
Working overtime in Bulgaria is usually not permitted. In certain occasions, however, certain employees may be allowed to work overtime. The standard overtime rate in Bulgaria is 50 percent for regular workday work, 75 percent for holiday work and 100 percent for work performed during the official holidays. Student employees, pregnant women, under 18 employees, mothers with under 6 years old babies, disabled employed (unless with their permission) and employees who work lesser hours are not eligible to work overtime.
# State minimum salary
Effective since 1 January 2018, the minimum salary is 510 Bulgarian lev ($311) per month, 3.07 lev ($1.8) per hour.
# Employment termination
While an employer can terminate an employee’s contract because of any of the causes specified in the labor law, an employee can end an employment contract without a cause. An employer may dismiss an employee summarily by reason of serious misconduct. Except for summary dismissal or termination by mutual consent, either of the party terminating a contract must provide from 30 days to 3 months’ prior notice to other party. In the absence of notice of termination, the party initiating a termination must pay compensation in lieu. Upon dismissal, an employee is entitled to a severance pay of at least 1 month gross earnings.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Bulgaria by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.