Labor Law Consultation

17.04.2024

COMPENSATION FOR BEING UNEMPLOYED WHILE SICK

Bulgarian legislation provides that in the event of illegal dismissal, the worker or employee has the right to compensation from the employer in the amount of his gross remuneration for the time during which he was out of work due to this dismissal, but for no more than 6 months. When during that time he worked in a lower paid job, he is entitled to the difference in wages. The worker or employee who was illegally transferred to another lower paid job also has this right.

When an illegally dismissed worker or employee is reinstated and, after appearing at the enterprise to take up the job to which he was reinstated, is not allowed to perform it, the employer and the guilty officials shall be jointly and severally liable to the worker or employee in the amount of his gross labor remuneration from the day of his appearance until his actual admission to work.

It is not uncommon for a person to become temporarily incapacitated in a situation of unemployment. This situation actually means that the person is in hospital, as it is popularly and colloquially accepted to be called.

Is unemployment benefit payable during sick leave?

Unemployment compensation is not due for the period in which the employee was temporarily unable to work. This is so, because for the time for which he received compensation for temporary incapacity for work, the worker or employee could not also receive labor remuneration, since he was not able to work.

In reality, the nature of the compensation in the case of illegal dismissal and in the case of non-admission to work of a reinstated worker or employee is arranged to compensate the worker for a certain type of property damage - lost benefits for realizing income from the work that the same worker would have put in if the fact of illegal dismissal. When there is no causal connection between this fact and the lost benefits, unemployment compensation is not due.

This is also the case when the employee has started another, better-paid job with another employer under an open-ended employment contract and this contract is terminated within the six-month period. In this case, the employer, who committed an illegal dismissal, does not owe unemployment compensation, since the causal link between the illegal dismissal and the missed benefits to realize income from labor under the contract, which was illegally terminated, is broken.

The case in which the worker falls into a state of temporary incapacity for work within the six-month period after dismissal is similar. During this leave, the worker does not miss an opportunity to realize income from his work, since he is initially in such a state that does not allow him to work. The causal link between the illegal dismissal and the damages is broken. For this period in which he is temporarily unable to work, the worker is entitled to compensation for temporary incapacity to work, and not to remuneration. Accordingly, in cases where he received such compensation and was illegally dismissed, the worker is not entitled to benefits in case of illegal dismissal and in case of non-admission to work of a reinstated worker or employee for the period of temporary incapacity.

 

Reference:

Art. 225 of the Labor Code