Annual Leave in Bulgaria: A Guide for Employers and Employees

Every employee in Bulgaria is entitled to paid annual leave, but the rules around how much, when, and how it can be used can sometimes confuse both newcomers and long-established businesses. This guide covers the essential points from the Bulgarian Labour Code to help you stay compliant and keep your team well rested.

The Minimum Annual Leave

Under the Labour Code, all employees who work a full five-day week are entitled to at least 20 working days of paid annual leave per calendar year. Part-time employees are entitled to the same number of days, but their pay for each day is calculated based on their part-time hours. Employees who work a six-day week do not automatically receive more days, but a collective agreement may provide for additional leave.

Who Gets Extra Days?

Certain groups of employees are entitled to more than the basic 20 days. Workers under the age of 18 must receive at least 26 working days per year. Employees with a permanently reduced working capacity of 50% or more also get a minimum of 26 days. Additional days may be granted to employees working in specific conditions, such as night work or hazardous environments, as defined by law or collective agreements.

When Can Employees Take Leave?

An employee gains the right to use annual leave after completing at least eight months of work experience, which need not be with the same employer. In the first year of employment with a particular company, leave is calculated on a pro-rata basis: for each month of service, the employee earns one-twelfth of the annual entitlement. From the second year onwards, the full annual leave is available from the start of the calendar year.

Scheduling Annual Leave

Employers must approve a leave schedule for the entire year by 31 December of the previous year, after consulting with employees or their representatives. The schedule should balance the employee's preferences with the operational needs of the business. While the employer has the final say, employees should normally be allowed to take at least one block of two consecutive weeks (10 working days) to ensure proper rest. Unplanned leave outside the schedule can be granted by agreement, but the employer is not obliged to approve it.

Carrying Over Unused Leave

If an employee does not use all their annual leave within the calendar year, the unused days can be carried over to the next year. However, they must be used by the end of that following year; otherwise, they are generally lost. Employers are responsible for ensuring that employees take their leave, and failure to do so can lead to administrative penalties. It is a good practice to remind employees about unused leave before the end of each year.

Pay for Unused Leave on Termination

When an employment relationship ends, the employee is entitled to receive compensation for any unused annual leave, including leave carried over from previous years. The compensation is calculated based on the employee's average daily wage and the number of unused days. This payment is due on the final day of employment and cannot be waived by agreement.

Practical Tips for Employers

• Keep accurate records of each employee's leave entitlement, days taken, and remaining balance.
• Set a clear internal process for requesting and approving leave to avoid disputes.
• Encourage employees to take at least one longer break during the year, not just scattered days.
• Review the leave schedule regularly and adjust it if business needs change, but always communicate changes in writing.

By understanding these core rules, businesses can manage annual leave smoothly and maintain a positive work environment. For specific cases, always refer to the latest version of the Labour Code or consult a local HR or legal expert.