Generally, employees who resign are not entitled to severance pay.

The law outlines specific grounds for disciplinary dismissal, which include:

• Arriving late to work or leaving early on three separate occasions within a month, with each instance lasting at least one hour

• Being absent from work without justification for two consecutive working days

• Repeated breaches of workplace rules

• Misuse of the employer’s trust

• Revealing confidential company information

• For employees in commerce or service roles, causing harm to customers by deceiving them about the price, weight, or quality of goods or services

• Engaging in online gambling using the employer’s telecommunications resources

Employees terminated with cause are not entitled to severance pay.

Employers may dismiss employees with prior notice for reasons such as:

• Business closure

• Workforce reductions or layoffs

• Decreased workload

• Work stoppage lasting more than 15 working days

• Unsatisfactory job performance

• Not meeting the educational criteria required for the position

• Refusal to work at a different location

• Reinstatement of an employee who was previously unlawfully dismissed from the same role

• Eligibility for retirement

• Situations where the employment began after the employee had already acquired and exercised their retirement rights

• Changes in job requirements that leave the employee unqualified

• Inability to maintain the employment relationship

Termination of an employment contract must be communicated in writing.

Employees terminated without cause are entitled to severance pay based on the reason for termination.

The employer must offer compensation of no less than four times the employee’s last gross monthly salary as severance pay or termination indemnity.

The exact amount and payment terms are subject to agreement but cannot be less than the minimum prescribed.

The contract automatically terminates at the agreed end date without need for notice.

No severance pay is generally due unless otherwise agreed or stipulated by collective agreements.

• The employer must pay compensation for any unused paid annual leave accrued during the contract.
• The employee is entitled to all earned wages and benefits up to the contract end date.

Early termination is only allowed for valid reasons specified in the Labour Code or the contract (e.g., serious breach of contract).

The employer must respect the notice period agreed upon or, if absent, the minimum notice period of 30 calendar days (which can be extended by agreement).

The employee may be entitled to severance pay if termination is without cause (usually equal to 1 month's gross salary).

The employer must pay for unused paid annual leave and all earned remuneration up to the termination date.

Upon termination of employment, Bulgarian labor law requires employers to make the final payment including any outstanding wages, unused paid leave, and compensation no later than the next regular payday, unless the employer and employee agree otherwise.

When termination takes effect immediately, such as through mutual agreement or dismissal, employers typically complete final payment within 30 days from the termination date.

Employers who miss the final payment deadline may face interest charges on delayed amounts, calculated at statutory interest rates. The General Labour Inspectorate may also impose administrative fines ranging from BGN 1,500 to BGN 15,000, depending on the severity and recurrence of the violation. In addition, employees may bring labor court claims, which can result in further penalties and legal costs for the employer.