On offsetting the compensation for unused annual paid leave against other types of compensation upon termination of an employment relationship

Abstract

According to the Bulgarian labour law doctrine and the administrative and judicial practice, it has long been understood that, upon termination of an employment relationship, an employer does not have the right to offset the compensation for unused annual paid leave under Art. 224, para. 1 of the Labour Code against counter compensations due by a worker or an employee (for instance, the compensation under Art. 221, para. 2 of the Labour Code in case of disciplinary dismissal or the compensation for non-respect of the prior notice obligation where such is due by a worker or an employee). The study aims at refuting this view and substantiating the applicability of out-of-court offset as a mode of redemption of counter liabilities on the hypotheses under consideration.