- Overview: Albania
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Albania
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Albania Guide below will help you understand the nuances of labor legislation in the country.
Companies hire international workforce for various reasons but in most cases they are:
- entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
- hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.
Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.
If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Albania, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Albania and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.
We are experts in global workforce employment in Albania, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Albania.
Hiring and Firing Workforce in Albania
# Employment Contracts
A written contract is mandatory for the establishment of an employment relationship. A written contract shall include a concise information about the parties’ identities, workplace, job description, commencement date, duration (for fixed-term contract), normal hours of work, remuneration and payment, leave entitlements, notice of termination and applicable collective agreement. If for some justifiable reasons, a written contract is not provided at the outset of employment relationship, the employer shall be bound to provide and sign a written contract with the employee within the first seven days of employment, or otherwise be faced with heave fine of up to 30 times the applicable monthly minimum wage.
# Minimum statutory employment rights
# Hours of work
Normal working week in Albania is 40 hours. The working day shall be 8 hours, 5 days a week or 6.6 hours, 6 days a week. Employees are entitled to a minimum of 20 minutes break if their workday comprises more than 6 continuous hours or 40 minutes break if they work more than 9 continuous hours per day. Daily break must be taken at least after 3 hours of work and no later than 6 continuous working hours.
# Probation period
Probation period may last up to 3 months. The duration of a probation can be reduced or entirely removed by a written individual or collective agreement. Either of the employment parties may terminated the contract during the probation period with a prior notice of 5 days.
# Annual leave
The standard minimum limit of paid annual vacation is 20 days. Employees have the right to postpone their annual leave if a public holiday falls in their vacation period or in the event of accident of illness during the period. Monetary compensation in lieu of annual leave is not allowed, except during employment termination.
Workers who have been employed for less than one year shall be entitled to a period of annual leave proportionate to the time worked.
# Parental leave
Prior to maternity leave, pregnant employees have the right to a minimum of 30 mins break for every 3 hours of work per day. Female employees who have contributed to social security for at least 12 months period are entitled to 365 days (or 390 days for multiple births) of paid maternity leave, which may be taken as follows:
- at least 35 days prior to due date and at least 63 days after birth – for single birth
- at least 60 days prior to due date and at least 63 days after birth – for multiple births
A new mother has the right to request for a daily time off of 2 hours maximum to care for her new baby until the baby is one year old.
New fathers are entitled to 3 days of paid paternity leave.
# Sick leave
Sick employees are entitled to 14 days of sick leave, which is usually paid at 80 percent rate by the employers. Employees are entitled to unpaid sick leave of up to 30 days in the event of severe illness of their family members or direct descendant. Work-related injuries are covered by the Social Insurance.
Employees, excluding pregnant and breastfeeding workers are eligible to work overtime. The total overtime hours an employee may work per year cannot exceed 200 hours. However, employees may not be allowed to work overtime in a week if they have already worked for 50 hours in the week. Only in specific cases of force majeure that are permissible by law, employees may be allowed to work more than 50 hours (including overtime) a week.
Employees must be paid at minimum 25% premium for every overtime worked, work done during a national holiday must be paid at least at double of the usual rate.
# State minimum salary
Effective from the second quarter of 2017, the monthly minimum wage is 24000 ALL.
# Employment termination
Either of the employment parties may terminate the contract from the outset of employment relationship with an advance notice as follows:
- 5 days’ notice – during the period of probation
- 2 weeks’ notice – for up to 6 months of employment;
- 1-month notice – for over 6 months to up to 2 years of employment;
- 2 months’ notice – for over 2 years to up to 5 years of employment;
- 3 months’ notice – for over 5 years of employment.
During the notice period, employees shall be allowed to take at least 20 hours of paid leave each week to seek another employment.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Albania by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.