Hiring a New Employee

Hiring procedure — three steps

According to the Labour Code (LC), hiring a new employee goes through three mandatory stages, each with specific legal requirements and deadlines.

Step 1: Signing the employment contract

The employment contract must be concluded in written form (Art. 62, para. 1 LC). The contract must be signed by both parties before the employee starts work. The employer is obliged to provide the employee with a copy of the signed contract and a copy of the NRA notification within three days.

Step 2: Notification to the NRA

Within 3 business days of signing the employment contract, the employer is obliged to send a notification to the relevant territorial directorate of the NRA (Art. 62, para. 3 LC). The notification is submitted electronically via a qualified electronic signature or on paper. Failure to meet this deadline results in an administrative penalty.

Step 3: Starting work

The employee is obliged to start work within the period specified in the employment contract. If they fail to start within the agreed period without valid reasons, the employment relationship is deemed not to have arisen (Art. 63, para. 3 LC). The employer issues an appointment order and registers the employee in the payroll.

Required documents from the employee

When starting work, the employee must present the following documents according to Art. 1 of Ordinance No. 4 on the documents required for concluding an employment contract:

• Identity document — ID card or passport, returned immediately after verification
• Education and qualification certificate — diploma, certificate, or attestation, when the position requires specific education
• Medical examination certificate — upon initial employment and when employment has been interrupted for more than 3 months
• Criminal record certificate — when a law or regulation requires verification of criminal history (e.g. for security guards, accountants, teachers)
• Work permit — for foreign nationals outside the EU/EEA (Art. 70 et seq. of the Labour Migration Act)
• Employment record book — if the employee has one; upon initial employment, the employer issues a new one within 5 days

Types of employment contracts

The Labour Code provides for several main types of employment contracts, with the choice depending on the specific needs of the employer and the nature of the work:

Open-ended employment contract (Art. 67, para. 1, item 1 LC)

This is the primary and most widely used form of employment contract. It is concluded for an indefinite period and provides the employee with the greatest degree of protection. In the absence of an express term agreement, the contract is deemed open-ended.

Fixed-term employment contract (Art. 68 LC)

Concluded for a definite period — up to 3 years. May only be concluded on grounds expressly provided for in Art. 68, para. 1 LC: for a definite period (no shorter than 1 year, unless at the employee's express written request), until completion of specific work, for substitution of an absent employee, or for a competitive position until it is filled.

Contract with probationary period (Art. 70 LC)

The probationary period may be up to 6 months and must expressly specify in whose favour it is agreed. During this period, the party in whose favour it is agreed may terminate the contract without notice and without stating reasons. After its expiry, the contract is deemed definitively concluded.

Additional employment contract (Art. 110-111 LC)

The employee may conclude an employment contract for additional work — with the same or a different employer. Work under an additional contract is performed outside the established working hours of the main employment contract.

Mandatory content of the employment contract

According to Art. 66, para. 1 LC, the employment contract must contain the following clauses:

1. Place of work — the enterprise's registered office, specific address, or indication for remote work
2. Job title — according to the National Classification of Professions and Positions (NCPP)
3. Nature of work — brief description of the main job functions
4. Date of conclusion and start of performance
5. Duration of the employment contract — open-ended or fixed-term
6. Amount of basic and supplementary remuneration
7. Duration of the working day or week — standard 8 hours/day, 40 hours/week
8. Amount of basic and extended annual leave — minimum 20 working days
9. Equal notice period for both parties upon termination — minimum 30 days

A job description must be attached to the contract, a copy of which is provided to the employee against signature (Art. 127, para. 1, item 4 LC). The job description details the duties, responsibilities, reporting structure, and requirements for the position.

Changes 2025–2026

Labour legislation in Bulgaria is undergoing significant reforms that directly affect the process of hiring new employees:

Electronic employment record — June 2025

From 1 June 2025, an electronic employment record maintained by the NRA is being introduced. Employers will be required to submit data electronically for every new appointment, change, or termination of employment. The paper employment record book will gradually be replaced, with data from existing books being migrated into the system.

Euro adoption — January 2026

With the planned euro adoption from 1 January 2026, all employment contracts, payrolls, and financial documents related to employment will need to be recalculated and redenominated in euros. Employers should prepare their payroll systems in advance and update internal documents.

Minimum wage 2025

From 1 January 2025, the minimum monthly wage is BGN 1,077. All new employment contracts must provide for remuneration no lower than this amount. The minimum wage amount is also important for calculating minimum social security thresholds by economic activity.

Frequently asked questions