European Employment Law Cases

Case Reports

2017/23 Suspension of a recovery plan is not a transfer-triggering event (BU)

Keywords Transfer of undertaking, Employees who transfer/refuse to transfer
Authors Kalina Tchakarova
Author's information

307747 Kalina Tchakarova
Kalina Tchakarova is a partner at Djingov, Gouginski, Kyutchukov and Velichkov, Sofia, www.dgkv.com.
  • Abstract

      The Bulgarian Supreme Court ruled to the effect that the Bulgarian Labour Code (‘BLC’) provides for the automatic transfer of employees only in the circumstances set out in the BLC. The employment protection given by the BLC cannot either be broadened or narrowed. The suspension of a recovery plan which leads to the restoration of insolvency proceedings (and therefore the return of the company from the transferee that had been executing the failed recovery plan back into the hands of the transferor) did not lead to the automatic transfer of employment.

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