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Offered termination by mutual consent in Bulgaria? What to check

Signing can change the termination ground and its financial consequences. Review the complete package before deciding.

Kalchev Law FirmA law firm publication
2 min readLegal review pending

The essentials

  • An offer of mutual termination is not automatically a dismissal.
  • Different termination grounds have different compensation rules.
  • Check the effect on unemployment benefit as well.

First identify the document

A proposal for mutual termination, notice and a dismissal order are different documents. If you receive a draft, ask for a copy and read the stated legal ground. An oral explanation that this is the standard procedure is not enough.

Under Article 325(1)(1) of the Bulgarian Labour Code, mutual consent must be in writing. The law provides seven days to respond to the received proposal; silence means it has not been accepted. This is not a general cooling-off period automatically undoing consent already given.

Do not confuse mutual consent with Article 331

Ordinary termination by mutual consent does not by itself create an entitlement to four salaries. Article 331 provides a separate employer-initiated termination mechanism in exchange for compensation, with its own conditions and a statutory minimum.

Check the precise ground, agreed amount and payment deadline. Do not assume an oral promise appears in the document. Distinguish agreed compensation from outstanding salary and compensation for unused leave.

What are you receiving and signing in return?

List the final salary, unused leave, additional agreed payments, due dates and deductions. Review any declarations that all matters have been settled and any other accompanying documents.

Illustrative example: the employee hears an offer of several months’ pay, but the draft records only the termination date. The amount, legal basis and payment deadline need to be clarified before signing.

Check unemployment benefit consequences too

The National Social Security Institute describes special rules on minimum benefit and duration for certain termination grounds involving the employee’s wishes or consent, and for other situations. Entitlement, amount and duration also depend on insurance history. Do not assess them solely by the employer’s offered payment.

Prepare the employment contract, amendments, proposal and information about the agreed sums. If a termination document has already been served, seek advice promptly: employment disputes have special time limits. The answer depends on the ground and the documents.

Practical guidance

What to do, step by step

01 / 05

Identify the document being proposed

First distinguish a draft agreement, notice and a termination act that has already been issued.

  • Ask for a copy and read the stated legal ground.
  • Do not rely only on an oral description of the document.
  • Check whether your consent is being requested or a unilateral act has already occurred.
02 / 05

Check the ground and the promised payments

Different legal grounds have different consequences and should not be mixed together.

  • Compare the stated ground with the proposed terms.
  • Check which amounts are agreed and when they are due.
  • Separate salary, unused leave and any additional agreed payments.
03 / 05

Review what you are declaring by signing

Accompanying declarations can matter as much as the main agreement.

  • Read any wording that says all matters are finally settled.
  • Make sure orally promised terms actually appear in the document.
  • Do not leave payment amounts or due dates unclear.
04 / 05

Assess consequences beyond the employer's payment

The decision is not only about the amount offered.

  • Check how the termination ground affects your other rights.
  • Consider the effect on unemployment benefit for your circumstances.
  • Compare those consequences with the complete financial package.
05 / 05

If termination has already occurred, organise the file promptly

Once a termination act has been served, timely review becomes important.

  • Gather the contract, amendments and all termination documents.
  • Arrange them by date and record when each was served.
  • Check the applicable time limits before delaying the next step.

Review of a termination proposal

Discuss your circumstances with a lawyer. Leave a phone number or email, or call us directly.

This article is for general information only. It does not constitute or replace individual legal advice.