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Albania is a southern European country situated in the western Balkans, along the Strait of Otranto, which serves as the southern gateway to the Adriatic Sea. Its capital city is Tirana, and the official language spoken is Albanian.
Albania ranks among the least economically developed nations in Europe, with approximately 50% of its population engaged in primary sector activities and around 20% of its citizens living abroad.
– Employment Contract: Employment contracts can be established verbally or in writing. If the contract is initially agreed upon verbally, the employer must provide a written version within 30 days of the verbal agreement.
– Part-Time Employment Agreement: This contract involves the employee working on an hourly basis, either part-time or full-time, with hours that are shorter compared to those of full-time employees under similar conditions.
– Home-Based Work Agreement: This type of agreement allows the employee to perform their job from home or any location of their choice, based on options provided by the employer.
– Commercial Agent Agreement: A specific contract type for individuals representing commercial interests.
– Professional Training Agreement: This agreement is made between a mentor and a trainee aiming to acquire a particular profession.
– Service Agreement: Common in Albania, this contract is used for services provided by individuals registered for commercial purposes. It is a unique agreement governed by the Albanian Civil Code rather than the Labour Code.
Albanian Work Week and Break Regulations
In Albania, the standard work week consists of 40 hours, with each workday typically spanning 8 hours. Employees are entitled to a daily rest period of at least 11 consecutive hours, which may be extended to two consecutive days if necessary. Additionally, workers receive a weekly break of at least 36 hours, including an uninterrupted 24-hour rest period.
Overtime Regulations in Albania
In Albania, overtime work beyond the standard 40-hour workweek must be compensated at a minimum rate of 25% above the regular pay rate. For work performed on weekends or public holidays, the minimum rate increases to 50% more than the standard pay rate. Alternatively, employees may receive time off instead of additional pay for overtime.
Collective agreements and contracts often govern overtime specifics. According to the Albanian Labour Code, employees cannot exceed 200 hours of overtime per year. Furthermore, employees are not required to work overtime if they have already worked 48 hours in a week, except in exceptional cases.
Such exceptional circumstances are limited to a maximum of four months, and the employee’s average weekly working hours must not exceed 48. Additional restrictions apply to overtime, including considerations for night workers and specific groups such as pregnant employees and those under 18 years of age.
Paid Leave Regulations in Albania
Under the Albanian Labour Code, employees who have completed a full year of service are entitled to 28 calendar days (20 working days) of paid leave. This leave must be taken within the current working year or within the first three months of the following year. Employees with less than one year of service are eligible for prorated leave based on their length of service.
Leave requests should be submitted to the employer at least 30 days before the start date of the leave. Additional vacation days may be negotiated through the employment contract or collective agreements.
Sick Leave Entitlements in Albania
Employees are entitled to sick leave for the duration of their illness, up until a doctor confirms their fitness to return to work. During the initial 14 days of sick leave, the employer is required to pay 80% of the employee’s salary. From the 15th day onwards, social insurance provides compensation at 70% of the employee’s average salary over the previous 6 months.
Maternity and Parental Leave Regulations in Albania
In Albania, expectant mothers who have worked for 12 consecutive months are entitled to up to one year of paid maternity leave. This includes a minimum of 35 days of paid leave before childbirth and 63 days post-delivery. After the initial 63 days, mothers can choose to continue their leave or return to work. For multiple births, the maternity leave extends to 390 days.
During the first six months of maternity leave, the pay is 80% of the employee’s average monthly salary from the previous year. In the subsequent six months, the maternity pay is reduced to 50%, as specified in Article 104 of the Labour Code.
Parental Leave
Parental leave in Albania includes 12 days of paid leave for child care. Employees with children under three years old are eligible for an additional three days of paid leave. Additionally, employees can request up to 30 days of unpaid leave per year if needed to care for their child.
Social Security and Mandatory Healthcare in Albania
Social Security Contributions: In Albania, social security is funded through monthly salary deductions, with contributions from both the employer (16.70%) and the employee (11.20%). These contributions provide coverage for:
– Temporary or permanent disability
– Work-related accidents resulting in employee death
– Occupational diseases
Mandatory Healthcare: The healthcare system in Albania is often considered inadequate and is predominantly utilized by those who cannot afford private healthcare services. The quality of the public healthcare system may not meet higher standards, leading many to seek private alternatives.
Eligibility for Unemployment Benefits in Albania
To qualify for unemployment benefits in Albania, individuals must meet the following criteria:
Social Security Contributions: They must have contributed to the social security system for a minimum of 12 months.
Unemployment Certification: They need to provide certification from labour offices confirming their unemployment status.
Availability for Training: They must be willing and available for training or retraining programs and must not be receiving any other benefits under this law, except for partial invalidity payments.
Performance-Based Bonuses: Typically awarded annually following a work evaluation.
Voluntary Pension Funds: These funds cover pension contributions on behalf of the employee.
Foreign visitors to Albania must obtain a visa for entry and a residence permit to live there.
For foreigners planning to work in Albania, the type of employment permit required depends on their citizenship and the nature of their work. The primary permits include:
Work Registration Certificate: For specific activities lasting up to 60 or 90 days.
Employment Declarations.
Work Permit: Required for work and residence exceeding 90 days within a 180-day period.
Work permits are processed by the Directory of Migration at the National Employment Service and are typically issued within ten days of submission. The main categories of Albanian work permits are:
Type A: For economic activities involving both employers and employees.
Type B: For independent economic activities.
Type C: For special occasions.
Type D: For permanent work permits for eligible foreigners.
Residence permits for foreign nationals in Albania range from 3 months to 5 years and can be permanent. Special work permits are granted only after approval from the National Agency of Employment and Qualifications. EU and US citizens receive automatic 5-year permits.
Notice of employment termination must be provided in writing.
Termination by Employer: Before terminating an employee’s contract, the employer must give the employee an opportunity to respond. The employee must be notified in writing at least 72 hours prior to the meeting where the reasons for termination will be presented. The outcome of this meeting must be communicated to the employee within 48 hours to one week afterward. Written notifications can be sent via email.
Trade Union Representatives: If the employee is a trade union representative, the employer must obtain consent from the union before proceeding with termination.
Notice Periods in Albania:
– 2 weeks’ notice for employees with less than 6 months of service.
– 1 month’s notice for employees with 6 months to 2 years of service.
– 2 months’ notice for employees with 2 to 5 years of service.
– 3 months’ notice for employees with over 5 years of service.
– 5 days’ notice during the probation period.
These notice periods can be modified by written agreements or collective bargaining agreements.
Minimum Notice Requirements:
– 2 weeks notice if the employee has been employed for up to 6 months.
– 1 month notice if the employee has been employed for more than 6 months.
Termination Procedures:
– Employee Resignation: Employees must notify their employer and submit a resignation letter in writing, adhering to the notice period requirements.
– Immediate Termination for Justified Reasons: Immediate termination is allowed for severe circumstances that make continued employment untenable. The same procedures for notification apply.
– Defined-Term Contracts: When a fixed-term contract expires and is not renewed, the employment ends without further documentation.
– Unjustified Dismissal: Employees who believe they have been unjustly dismissed can file a lawsuit against the employer within 180 days.
Upon termination, workers are entitled to the following payouts:
Termination with Notice:
When termination occurs according to the notice period, the employer must provide:
– Salary for the Notice Period: Payment for the duration of the notice period.
– Seniority Bonus: If employed for more than 3 years, the seniority bonus is at least half a month’s salary for each full year of service, based on the salary at the end of employment. For variable salaries, the bonus is calculated on the average salary for the year.
– Unused Annual Leave: Payment for any untaken annual leave on a prorated basis.
– Annual Bonuses: Any accrued annual bonuses or other compensations on a prorated basis.
Immediate Termination with Justified Reasons:
If the termination is immediate and justified, the employer must provide:
– Salary Until the Last Working Day: Payment up to the last day of employment.
– Unused Annual Leave: Payment for any untaken annual leave on a prorated basis.
Unjustified Dismissal:
In cases of unjustified dismissal, the employer must pay:
– All Obligations Mentioned Above: Including salary for the notice period, seniority bonus, unused annual leave, and prorated bonuses.
– Additional Compensation: An extra amount equivalent to one year’s salary.
Probation Period:
In Albania, the standard probation period is three months. During this time:
– Notice for Termination: Either party can terminate employment with five days’ notice.
– Immediate and Unjustified Termination: If the employer terminates the contract immediately and unjustifiably, the court may award damages up to the equivalent of one year’s salary based on the circumstances.
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