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Unfair Dismissal Compensation in Bulgaria: Statute of Limitations and New SCC Decision

📌 New Interpretative Decision of the SCC: When does the statute of limitations start for unfair dismissal compensation?

With Interpretative Decision No. 3/2024, the General Assembly of the Civil Chamber of the Supreme Court of Cassation (SCC) provided a definitive answer to a controversial question in labor law:

👉 From which moment does the statute of limitations begin to run for claims under Art. 225, Para. 1 and 2 of the Labor Code—from the date of dismissal or from the date the court decision declaring it illegal and overturning it becomes final?

🔎 The SCC’s Answer:

The starting point of the statute of limitations for the claim for compensation due to unemployment is the day of termination of the employment relationship, and not the date the court decision overturning the dismissal becomes final.

💡 Practical Implications:

This decision has serious consequences for both employees and employers:

  • The statute of limitations may expire while the dispute over the legality of the dismissal is still ongoing.

  • One should not rely on the assumption that the period only starts running after the final court decision.

  • Careful procedural planning is necessary when filing claims under Art. 344 of the Labor Code.

⚖️ Our Experience: For the AS Legal team, this decision confirms the correctness of our approach to date. In our long-standing practice in labor disputes, we have always applied the law exactly this way. To eliminate any procedural risk for our clients, we have strictly calculated the limitation periods from the moment of the dismissal itself. This allows us to guarantee secure and timely protection, without surprises during the course of the case.

📄 You can read the full decision on our website: https://as-legal.eu/wp-content/uploads/2026/02/vks-osgk-tdelo-2024-3-reshenie.pdf