19.11.2020

WHAT IS AN EMPLOYMENT CONTRACT IN FAVOR OF THE EMPLOYER?

One of the most common questions asked by labor law experts is "What does an employment contract mean for the benefit of the employer?"

People who are about to start their first job, change their current job or the position they hold, are surprised to see that their proposed new employment contract has a clause governing the employment contract to be concluded in favor of the employer.

What does an employment contract actually mean for the benefit of the employer, and should this agreement bother us when we sign such a contract?

In order for any employment contract to be negotiated in one's favor, it should be subject to a probationary period.

The very conclusion of an employment contract with a probationary period is a common practice when starting a new job. Its main feature is that during the probationary period, the party in whose favor the term has been agreed may terminate the contract without notice until the expiry of the agreed term. It is clear and unambiguous enough to express it in writing.

It is not necessary for the party entitled to terminate the contract to be motivated in any way. Termination is not subject to appeal and consideration in the order of labor disputes. During the probationary period, the employer may dismiss the employee even while he is on statutory leave, e.g. sick leave, in which case the permission of the Labor Inspectorate or another body is not required.

According to the legal provisions of the Labor Code in Bulgaria, the probationary period in the employment contract may be agreed in favor of:

- The employer - when the employer wants to check the ability of the employee to perform a certain job;

- The employee - when the employee wants to check whether the work is suitable for him, whether the working conditions, the atmosphere and the work team he likes;

- For the benefit of both parties. This means that during the probationary period, both the employer and the employee may terminate the contract at their discretion. The contract shall specify in whose favor the test period has been agreed. If this is not stated, the test period shall be deemed to have been agreed in favor of both parties.

It is important to know that the law does not allow for the same work with the same employee in the same company to re-enter into an employment contract with a probationary period. However, if the worker moves from one post to another, albeit in the same undertaking, it is permissible to conclude another employment contract between the same parties, with a different content and a test clause. For example, such a case occurs when a secretary in a company moves to the position of accountant. It is important to note that during the trial the parties have all the rights and obligations as in a final employment contract - the employee is entitled to a common basis for remuneration, agreed working hours, breaks and vacations, recognition of seniority and etc.

The test period may not exceed 6 months. It does not include the time during which the employee has been on statutory leave (paid, unpaid, study, due to illness, etc.) or for other valid reasons has not performed the work for which the contract was concluded.

The employment contract is considered final if it is not terminated by the party in whose favor the probationary contract was.

Reference:

Art. 70, para. 1 - 5 of the Labor Code

Art. 71, para. 1, para. 2 of the Labor Code