31.07.2024

NOTE THE DETAILS IN THE EMPLOYMENT AGREEMENT

In light of the dynamic circumstances of today's labor market, the conclusion of an employment contract is of critical importance to both workers and employees. This document, which regulates the rights and responsibilities of the parties, provides a legal framework and security in the employment relationship. In the following lines, we consider why it is so important to conclude an employment contract and how failure to comply with this stage can affect workers and employees.

Why is the employment contract important for employees?

1. Legal certainty and protection:

When the worker enters into an employment contract, he ensures legal security and protection. This document is a tool to protect the basic labor rights of the worker, including the right to salary, working hours and holidays. In case of misunderstandings or disputes, the employment contract serves as the main evidentiary material.

2. Certain working conditions:

The employment contract specifies the specific working conditions, including working hours, salary, holidays and other important aspects of the work activity. This document is a kind of "agreement" that establishes the framework and expectations of both the employee and the employer.

3. Health and social insurance:

The conclusion of an employment contract allows the worker to be included in the health and social insurance systems. This provides the necessary protection and support in case of illness, accident or other unforeseen circumstances.

4. Continuing professional development:

Training and development clauses can also be included in the employment contract. Such clauses are important for workers as they contribute to their professional development and increase their qualifications.

It is essential for employers to enter into employment contracts that are fully compliant with legal requirements. This provides them with legal stability and prevents possible legal consequences. Through clearly defined terms in the employment contract, employers create a basis for managing expectations and avoiding misunderstandings. This helps build a healthy work environment and relationships.

With properly structured employment contracts, employers become attractive employers who can easily attract and retain talent. Good working conditions and clear rules are an incentive for commitment and loyalty. At the same time, complex legal processes related to employment rights require employers to be careful and apply the legal requirements correctly. Proper drafting and compliance with employment contracts protects employers from legal problems and frees them from potential lawsuits.

We remind you that the employment contract must be concluded in writing, with the employee and the employer each receiving one copy of it. The law has specified which are the mandatory clauses in it, and all other stipulations there are rebuttable in favor of the worker according to the current legislation in Bulgaria.

The minimum requisites that must be regulated by the employment contract are:

1. Employment contract number
2. Date of conclusion of the employment contract
3. Grounds for concluding the contract (Art. 67 - Art. 70, Art. 230 or Art. 235 of the Labor Code)
4. Name of the company, headquarters and address of management
5. Identification code of the company (according to BULSTAT or according to VAT)
6. The three names of the manager of the company, permanent address and social security number
7. The three names of the worker, permanent address and social security number (it is not mandatory and correct to write other information from the worker's identity card)
8. Type and degree of education of the worker (if required for the position)
9. Name of the position (from those listed in the National Classification of Professions and Positions)
10. Code according to the national classification of economic activities
11. Place of work (the city where the work will be performed)
12. Length of working day or week
13. Duration of the contract (unless otherwise agreed, it is considered to be concluded for an indefinite period, it is invalid to conclude a fixed-term employment contract for more than 3 years, unless otherwise provided in a regulatory act).
14. Amount of basic and extended paid annual leave and of additional paid annual leave (minimum paid annual leave is 20 working days).
15. The basic and additional wages of a permanent nature (the basic labor remuneration cannot be less than the minimum wage for full-time work 8 hours a day; according to the Labor Code, for each full year of work experience in a similar position, minimum 0.6% seniority allowance to the basic salary, unless otherwise agreed, the additional salary is considered to be 0.6% for each full year of service in a similar position; additional remuneration for night and overtime work must be paid according to the regulation on the structure and organization of the salary).
16. Periodicity of payment of labor remuneration (unless otherwise agreed according to the Labor Code, the remuneration of the worker is paid every month twice – in advance and final).
17. Obligations of the parties (Chapter six of the Labor Code lists the standard obligations of the parties, the specific obligations of the worker are indicated in the job description, which is an appendix to the contract and is handed to him compulsorily upon starting work).
18. The same period of notice for both parties when terminating the employment contract (not more than 3 months, any other contracts are invalid; if not agreed, it is considered to be 30 days; if it is a fixed-term employment contract, not more than the remainder until the end of the contract).
19. Start of execution of the employment contract - (up to 3 days after the conclusion of the employment contract, it must be registered with the National Revenue Agency according to Ordinance No. 5 of December 29, 2002 on the content and order of sending the notification under Article 62, paragraph 4 of the Labor Code; the worker cannot start work before receiving a copy of the contract registration documents, otherwise the employer will be fined, and the worker cannot be sure that he has actually been assigned to work and must not start work).
20. Signatures of both parties to the contract

The employment contract may also stipulate other conditions, which cannot be less favorable for the worker than those established by law or by a collective labor agreement.

In conclusion, entering into an employment contract not only provides a legal framework and protection, but also creates a positive working environment and establishes clear expectations for the parties. Moreover, in light of the growing legal requirements and the competitive struggle for personnel, the conclusion of an employment contract becomes a key element for the successful management of human resources and the maintenance of stable working relations.