Bulgarian Labour Law & Policy Update — 2025 Practical Guide for Employers

This article summarizes the most relevant developments and practical steps HR teams must take in 2025 to remain compliant with Bulgaria's labour regulations. It highlights likely policy changes, interpretations, and operational checklists. Use this as an actionable roadmap, and consult local counsel for case-specific advice.

Context & key trends in 2025

Throughout 2024–2025, Bulgaria continued aligning national rules with EU directives (notably on transparent working conditions, platform workers, and work–life balance). The result: clearer definitions of employment status, expanded rights for remote and platform workers, and stronger obligations on employers for information, health & safety, and record-keeping.

Other practical trends employers are seeing: gradual increases in statutory minimum wages, more frequent labour-inspectorate checks, and growing emphasis on data-driven documentation in dismissal and restructuring processes.

Major policy points and interpretations to watch

• Employment status and platform workers: Administrative guidance has clarified tests used to distinguish employees from independent contractors. Indicators include the level of control, exclusivity, payment structure, and integration into the employer’s operations.
• Remote and hybrid work: Employers must set written agreements that specify equipment, liability for costs, work hours, and occupational safety measures for home-based work.
• Transparent working conditions: Employers are required to provide more detailed written terms promptly — including probation terms, pay structure, and notice periods — in line with EU requirements.
• Collective redundancies and consultations: Thresholds triggering consultation remain enforced; authorities expect documented social plans and demonstrable consultation with employee representatives.
• Occupational health and safety (OHS): Inspections are increasingly focused on psychosocial risk assessments, remote-work ergonomics, and COVID-19 residual measures where still applicable.
• Payroll and social contributions: Real-time or monthly reporting requirements are being tightened. Employers should anticipate audits of contribution bases and employment classifications.

Concrete operational steps (step-by-step)

1. Conduct a compliance audit: Review all employment contracts, independent contractor agreements, job descriptions, and policies against 2025 requirements. Flag platform-type roles and remote workers for special review.
2. Classify workers correctly: Use a documented assessment framework to decide whether a person is an employee or contractor. Keep decision memos for each borderline case.
3. Update written terms: Issue updated employment information to all staff — probation, working hours, pay elements, notice periods, remote work arrangements, and data-processing clauses.
4. Revise payroll and benefits systems: Ensure payroll calculates updated minimum wages, overtime, and social/security contributions. Reconcile past 12–24 months for potential underpayments.
5. Implement remote-work agreements: Create standard addenda that cover equipment, cybersecurity, OHS responsibilities, working time recording, and cost reimbursement.
6. Strengthen documentation for dismissals: For dismissals and redundancies, assemble objective performance records, warnings, selection criteria, and consultation minutes to withstand inspectorate review.
7. Run manager training: Train line managers on lawful performance management, non-discriminatory selection for redundancy, and handling employee grievances.
8. Engage employee representatives early: When planning reorganisations or collective dismissals, start formal consultations early and keep minutes. Provide financial and social mitigation details where required.
9. Prepare for inspections: Keep a clear file structure (contracts, payslips, social contribution reports, OHS assessments) ready for labour inspections. Assign a single contact person internally.
10. Use expert support: For complex restructurings, misclassification risk, or cross-border employment, engage Bulgarian labour counsel and payroll specialists.

Checklist table for immediate action

Notes (Practical precautions)

• Do not rely on verbal agreements: Bulgarian labour practice heavily favors written evidence. Obtain written consents for changes and keep dated copies.
• Avoid recharacterising an employment relationship without analysis: Retroactive reclassification carries back-pay, contribution, and penalty risks.
• Respect time limits: Statutes of limitation and short assessment windows exist for wage claims and unfair dismissal complaints.
• Be careful with probation clauses: Ensure probation is lawful for the role and documented; extensions and misuse attract scrutiny.
• Protect personal data: When collecting health or remote-work data, comply with GDPR — limit collection and document legal basis.
• Run collective consultation properly: Starting consultations late or without meaningful information increases the chance of fines and injunctive relief.
• Document cost-sharing arrangements: Any reimbursement or employer-provided equipment must be clearly described to avoid tax and benefit reclassification.

Illustrative cases

Case A — Misclassified courier

A delivery-platform courier was treated as a contractor. After an inspection, the employer faced a demand for back social contributions and penalties because scheduling and performance standards showed employee-like control. Lesson: document autonomy and limit control if genuine contractor status is intended.

Case B — Collective redundancy

A Bulgarian factory planned to reduce 40 employees. The employer began consultations early, presented a social mitigation package, and agreed on voluntary redundancy terms. This reduced litigation risk and allowed a phased implementation accepted by the labour office.

Where to get help

For cross-border HR, payroll, and compliance support, consider specialist providers. SailGlobal offers tailored support for employers operating across borders and can assist with contract templates, payroll set-up, and local-inspectorate liaison.

Finally, keep legal counsel in the loop for significant operational changes. Laws and administrative practices evolve; a short legal review can prevent costly retroactive liabilities.