EU Court to decide whether penalties for medical residents violate European law

A preliminary ruling request has been sent to the Court of Justice of the European Union, which will determine whether binding medical residents with financial penalties is compatible with European legal norms. The issue concerns the potential restriction of the free movement of personnel within the EU.

The case stems from a dispute before the Sofia District Court between a university hospital and a cardiology specialist. The doctor had signed a contract to work in the medical institution for five years after acquiring his specialty, but left only ten months later. The hospital is claiming reimbursement for his training costs, as well as a penalty amounting to two salaries.

The resident is contesting the claim, arguing that the penalty clause is unlawful and places him in unfair conditions. He maintains the position that he owes only his training costs and the corresponding interest.

Judge Maria Taneva is sending the inquiry to Luxembourg to clarify several fundamental questions:

• Whether medical residents are considered "workers" within the meaning of European law, which guarantees them the right to free movement?
• Whether the provisions of the Bulgarian Labor Code regarding specialty acquisition contracts violate the right to free movement?
• Whether the financial sanction (training costs plus a penalty) constitutes an obstacle to the free exercise of a profession and a risk of forced retention of personnel by a specific employer?

In Bulgaria, the legal status of these contracts is a subject of dispute, as they are not classic labor contracts but are regulated under the Labor Code, which often leads to discrepancies in judicial practice regarding their applicability under the Law on Obligations and Contracts.