Albania
Entering the Albanian market? Our EOR services simplify your business expansion into Albania. We help manage every aspect of local employment—from payroll and benefits to compliance with Albanian labor regulations.
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. A fixed-term contract ends at the end of the stipulated period, without prior termination. When, after the end of the fixed period, the contract is tacitly extended beyond this period, it is considered a contract of indefinite duration.
The right to paid annual leave 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.
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.
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 preganant 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 pay 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:
Workers must observe the same notice periods for resignation as Termination of Worker and provide written notice.
TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.
When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.