Albania
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Fixed-term contracts are permitted under the Albanian Labour Code, but must be justified by objective reasons related to the temporary nature of the task in which the worker will be employed. If no justification is given, or the role is essentially permanent, the contract may be considered indefinite by default. The term of the agreement with definite term cannot be longer than 3 years. If a fixed-term contract is renewed more than once without objective reason, it is considered an indefinite-term contract by law. Fixed-term contracts between the same parties will be considered as consecutive even in those cases when there is a short interruption, no more than three months, between the end of one contract and the conclusion of another contract.
Albania has 13 official public holidays: New Year's Days, Summer Day, Nevruz Day, Eid al-Fitr, Easter, Labour Day, Eid al-Adha, Saint Teresa Sanctification Day, Alphabet Day, Independence Day, Liberation Day, National Youth Day, and Christmas Day. If the public holiday falls on the day or days of the weekend (Saturday and/or Sunday), the holiday shall be observed on the following working day or days (Monday and Tuesday). Public holidays are paid days off. Work is generally prohibited on official holidays except in cases where it is determined and approved by a decision of the Council of Ministers or in the collective agreement. If a worker works on a public holiday, they are entitled to additional compensation at a premium rate of at least 50% in supplement of their normal rate of pay for hours worked, or adequate compensatory time off.
In Albania, employees are entitled to at least 22 working days of paid annual leave. This right usually begins after 6 months of continuous employment, but in some cases, leave may be granted earlier if provided by contract or mutual agreement. Albanian law does not explicitly set a maximum limit on the amount of accrued paid annual leave. Rules on carry-over duration and limits are not strictly defined by law and may be set by company policies or collective agreements. Unused vacation leave should be paid out to a worker upon termination of employment.
Albania recognizes distinct types of employment contracts that influence rights and entitlements. These distinct classifications consist of full-time workers, part-time workers, home-based workers, workers on commercial agent agreements, and those on internship and profession-acquisition contracts.
The maximum and typical duration of a probationary period in Albania is considered the first 3 months of work. The probationary period may be reduced or waived by written agreement or collective agreement. During probation, either party can terminate the contract with at least 5 days’ notice.
The employer has the obligation to pay at least 80% of the regular salary for the first 14 days of sickness. All employees are eligible for this compensation. The worker certifies his inability to work through medical report issued by the doctor. If the worker is unable to work for more than 14 days due to sickness, then from day 15 the worker is compensated from the Social Security Institution.
A standard workweek is 8 hours per day, 40 hours per week. The Council of Ministers determines reduced weekly working hours for jobs that present difficulties or are harmful to health. Night work must be paid at a premium not less than the amounts determined by the Council of Ministers. Alternative working hours are permitted for minors and others in specific working conditions.
Work above the standard workweek is considered overtime. Additional hours may not exceed the limit of 48 hours per week and 200 hours per year. Overtime pay must be at least 125% of the regular rate of pay. Any overtime work performed must be authorized and recorded. Young workers and pregnant workers are exempt from overtime.
In Albania, termination of employment is only allowed for valid reasons, such as by mutual agreement, redundancy, illness, poor performance, and during a probationary period. Severance in Albania must be paid to a Worker who is terminated without just cause after 3 years of continuous work. Severance payment must be equal to at least 15 days' salary for each completed year of service after 3 years. This amount is calculated based on the last base monthly wage of the worker. The business must provide written notice to the Worker and adhere to the following notice periods based on a worker's tenure, or provide adequate payment to the worker in lieu of notice:
• <3 months — 5 days
• 3 months–2 years — 2 weeks
• 2–5 years — 1 month
• 5 years — 2 months
Workers must observe the same notice periods for resignation as Termination of Worker and provide written notice.
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