Mass Dismissal

When is a dismissal considered mass?

According to Art. 130a LC, a mass dismissal exists when the employer plans to release within 30 days a certain number of employees for reasons not related to the individual worker (i.e. for economic, technological, or structural reasons):

Mass dismissal thresholds

• 20 to 100 employees — mass dismissal when releasing 10 or more workers
• 100 to 300 employees — mass dismissal when releasing 10% or more of the total number
• Over 300 employees — mass dismissal when releasing 30 or more workers

What is included in the count?

The count of dismissals for mass dismissal purposes includes terminations at the employer's initiative on all grounds not related to the specific employee's conduct — staff redundancy, reduced volume, closure of the enterprise, etc.

What is not included?

• Disciplinary dismissals — they relate to the specific employee's conduct
• Termination by mutual consent — if the initiative is the employee's
• Expiry of a fixed-term contract — unless the employer deliberately does not renew
• Termination during probation by the employee

The three phases of the procedure

The mass dismissal procedure is strictly regulated and goes through three mandatory phases. The total duration is a minimum of 45 days.

Phase 1: Consultations (no less than 45 days before the dismissals)

The employer is obliged to hold consultations with workers' representatives/trade unions (Art. 130a, para. 2 LC). The consultations aim to reach an agreement on avoiding or reducing the dismissals.

The employer provides written information on:

• The reasons for the planned mass dismissal
• The number and categories of affected workers
• The total number of employees in the enterprise
• The envisaged period of the dismissals
• The criteria for selecting those to be dismissed
• The compensation related to the dismissals

Phase 2: Notification of institutions (no less than 30 days before the dismissals)

The employer is obliged to notify the following institutions in writing:

• Employment Agency — the relevant Labour Bureau at the enterprise's registered office
• Labour Inspectorate — a copy of the notification
• NRA and NSSI — for information regarding social security implications

A copy of the notification to the EA is also provided to workers' representatives, who have the right to send their opinions to the Employment Agency.

Phase 3: Execution of the dismissals

The dismissals may be carried out no earlier than 30 days after notifying the Employment Agency. During this period, the EA may propose measures to mitigate the consequences — requalification, referral to vacant positions, etc.

When executing the dismissals, the employer observes the general rules for each individual termination — selection under Art. 329, protection under Art. 333, notice, compensation.

Penalties for non-compliance

Non-compliance with the mass dismissal procedure leads to administrative penalties for the employer:

• Fine of BGN 1,500 to 5,000 for an employer — natural person
• Property sanction of BGN 1,500 to 5,000 for a legal entity
• Upon repeated violation — doubling of the sanction

Important: consequences for individual dismissals

According to established case law, procedural violations of mass dismissal rules (failure to notify the EA, failure to hold consultations) do not render individual dismissals unlawful. They only lead to administrative penalties. An individual dismissal may be challenged only on general grounds — absence of genuine redundancy, failure to carry out selection, violated protection under Art. 333, etc.

This distinction is of essential practical importance — an employee dismissed as part of a mass dismissal cannot challenge their dismissal solely on the grounds that the employer failed to follow the procedure under Art. 130a LC.

Frequently asked questions