Under Remote’s operating model in Bulgaria, we are only able to offer fixed-term contracts at the moment. We can hire employees under one of two types of fixed-term employment agreements:
- Completion of a specific work for a fixed term
- For substitution of an absent employee
This article will cover the following:
- How fixed-term contracts work in Bulgaria
- Is it possible to renew a fixed term contract in Bulgaria?
How fixed-term contracts work in Bulgaria
When is comes to fixed-term contracts for the completion of specific work in Bulgaria, it is not limited to a specific end date. Instead, the effective term for such an agreement is determined by the time needed to complete the specific work (e.g. it may be 6 months, 1 year, 3 years, 5 years, etc.).
Thus, an employee hired under a fixed-term agreement for completion of specific work may work for the client until they complete the relevant work defined under the agreement and for as long as needed for this purpose. This does not exactly equal an open-ended agreement, as the fixed-term agreement should contain some definition of the specific work to be completed. There is also no specific legal limit for the contract duration.
Once the specific work (e.g. project) defined under the fixed-term agreement for completion of specific work is done, the agreement terminates. After this, we can conclude another consecutive agreement with the same employee with based on different work (e.g. project) defined in the agreement.
Is it possible to renew a fixed term contract in Bulgaria?
Rather than renewing a fixed term agreement (as an annex or an amendment letter to the existing agreement) in Bulgaria, the execution of new employment agreement would be more appropriate. To execute this, both parties will have to sign the new agreements.