Navigating Bulgarian Labor Law for a German Automotive Manufacturer

Client Background

Company: Munich-based automotive parts supplier.
Employees: 15 remote staff in Bulgaria (pre-project).
Industry: Manufacturing.
Challenge Duration: 6 months (2023).

The Challenge

Company planned to scale its Bulgarian remote team but faced:

Legal Risks: Misclassifying 10 contractors as employees, violating Bulgaria’s Labour law.
Benefits Confusion: Unclear obligations for sick leave, maternal leave, and overtime pay.
Cultural Friction: German managers criticized Bulgarian employees for “lack of initiative,” while staff felt micromanaged.

Our Methodology

Compliance Audit: Reviewed contracts, payroll, and GDPR adherence.
Cultural Assessment: Conducted focus groups with Bulgarian employees and German managers.

Implementation

Step 1: Legal Overhaul

Redrafted employment contracts to comply with Bulgarian regulations, including:
- Probation Periods: Reduced from 9 to 6 months (max allowed by law).
- Overtime: Capped at 48 hours/month, with 150% pay for excess.
Designed a remote work policy aligned with Bulgaria’s 2021 Remote Work Act.

Step 2: Cross-Cultural Training

Workshops for German managers:
- “Understanding Bulgarian Work Culture” (e.g., preference for collaborative decision-making).
- “Giving Feedback in a High-Context Culture.”
Bulgarian employees trained on German communication styles (directness, deadlines).

Step 3: Streamlined Onboarding

Created a bilingual (BG/DE) onboarding portal with:
- Tax forms.
- Benefits explainer videos.
- GDPR guidelines for handling customer data.

Results

100% Compliance: Passed an audit by the General Labour Inspectorate.
Scaled Successfully: Grew Bulgarian team to 50 employees with zero disputes.
Employee Satisfaction: 90% rated the onboarding process “clear and efficient.”