In Bulgaria, the termination of employment often involves
complex procedures and legal justification. However,
Article 331 of the Bulgarian Labour Code (LC)
offers an alternative: it allows employers to initiate a
termination by offering compensation, subject to the employee's
agreement. When used appropriately, this mechanism provides a
mutually beneficial way to part ways—ensuring fairness for
the employee and procedural ease for the employer.
The Legal Framework of Article 331 LC
Under Article 331 LC, an employer may propose termination of the
employment contract by offering compensation. This is not a
unilateral dismissal, but rather a voluntary
agreement initiated by the employer. If the employee
accepts the offer in writing, the employment relationship ends
under the agreed conditions, with compensation of no less
than four times the employee's last gross monthly
salary.
