Employ Candidates Compliantly in Albania

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  1. Overview: Albania
  2. Global HR Compliance
  3. Global PEO and Payroll
  4. Work Permit for Hiring Expats via PEO
  5. Contractor vs. Employee: Which Is Better?
  6. Expand without a Company Set Up in Albania
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Global HR Compliance in Albania via PEO & EOR

PEO and EOR in Albania – Expert Guidance on Employment Law and HR Compliance in Albania

As the leading global expert on employment operations, Acumen can be a one-stop solution to meet your international employment needs. Headquartered in the United Kingdom and operating across 190 countries, we offer a full spectrum of employment expertise and services — from work visa, work permit, and immigration support in Albania and compliance advice to comprehensive PEO and EOR global to cost-effective overseas employment solutions.

Flexible, transparent, and efficient, Acumen International is the global PEO and EOR service provider that can help you manage your multinational workforce wherever you operate in Albania. We have extensive expertise in Albanian workforce law and zero tolerance for labour law non-compliance.

Our employment and HR compliance solutions in Albania are designed with companies like yours in mind, to help you meet your hiring needs while remaining compliant with different laws. So whether you’re expanding your business into new countries or simply looking to streamline your hiring process, we can help.

PEO & EOR in Albania: Rapid and Compliant Employment

1. Access and Engage the Best Global Talent Pool Faster. Payroll Smarter

Companies hire an international workforce for various reasons, but in most cases, they are:

  • entering 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 are unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.

Before entering an Albanian 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 the challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.

2. Compliant Employment and Streamlined Payroll Management in Albania

If you intend to hire and pay your foreign workforce in full compliance with labour 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 and EOR company and we specialize in global employment, meaning we can employ your pre-selected 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 legal entities there.

3. Faster and Hassle-free Market Entry and Exit

If you’re looking for a hassle-free way to manage your HR, look no further than Acumen’s Country Employer of Record solution. We take care of hiring, payroll, benefits, and firing on your behalf, so you can focus on running your business. Our EOR solution allows you to quickly hire and dismiss local and expatriate workers in Albania without first setting up a legal business entity.

With Acumen International you will reduce your costs and risks of liability, you can test the Albanian market, or you can supplement your workforce with local experts while still complying with the Albanian employment regulations.

4. Substantial Global Employment Cost Prediction in Albania

As your company expands its operations globally, it is essential to understand your worldwide workforce expenses comprehensively. The Global Payroll Calculator can provide you with detailed instant insights on global employment costs, employer and employee tax analysis, and more. With this information at your fingertips, you can stay ahead of the competition and better manage your international workforce.

5. No Entity Set-Up Needed in Albania

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.

PEO and EOR Partner Is Your Single Point of Contact in Albania

Hire an international workforce or plan to hire. The Hiring and Firing Workforce in Albania Guide below will help you understand the nuances of labor legislation in the country.

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 it, regardless of time zones. We offer tailored global employment solutions for you that are managed legally and in full compliance with Albanian 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 of Albania’s local tax, social security, and immigration requirements.

A Global PEO Can Help You Replace Multiple Service Providers in Albania 

If you’re looking to streamline your company’s operations and get a handle on global workforce management, partnering with a professional employer organization (PEO) can be a great solution. PEOs can provide a full suite of services to help you replace the following numerous vendors.

  1. PEO and payroll company
  2. Employee benefit broker
  3. HR Consultants
  4. Background checks vendors
  5. IP Attorney
  6. Tax Advisor
  7. Translation Service
  8. Legal Advisor
  9. Immigration Advisor
  10. HR Compliance Advisor

Types of Employment Agreements in Albania

  • Permanent employment contracts
  • Casual employment contracts
  • Fixed-term contracts

The Labour Code provides for the following types of engagement; the parties entering into such engagements are also subject to the conditions of the Albanian Labour Code:

Part-time employment agreement (the employee agrees to work on an hourly basis, either half or complete working day for the standard duration of a week or month, which is shorter than that of full-time employees working under the same conditions). The part-time employee enjoys the same proportional rights as the full-time employee.

Home-based Work Agreement in Albania

Home-based work agreement means that the employee is obliged to carry out his job at his home or any other location chosen by him/ her based on the alternatives offered by the employer. The employee working at his/her home enjoys the same rights as the employee working at the enterprise. When the employee does not work at his/her home, he/she may ask for additional funds to cover the facility-related expenses.

Commercial Agent Agreement in Albania

Commercial agent agreement. Through the contract of employment of the commercial agent, the employee (the commercial agent), in return for payment, is obliged to enter into negotiations or conclude agreements about whatever activities outside the enterprise, in compliance with the orders of his/her employer and on the latter’s behalf. The person independently exercising this activity will not be considered a commercial agent. The provisions of this Code are applicable even in the case of the commercial agent being an employee

Fixed-Term vs. Indefinite Contracts in Albania

An employment contract may last for an indefinite or a fixed period, although the employer must provide justification if the term is fixed (i.e., the job is only temporary). Unless otherwise agreed in writing, the first 3 (three) months of the employment will be deemed a probationary period, regardless of whether the contract is for a fixed or indefinite term. During the probationary period, either party may terminate relations with five days’ notice.

Fixed Term Employment Contracts in Albania

A contract of employment can be concluded for a certain period. The fixed-term contract must be justified by objective reasons related to the temporary nature of the task/work in which the employee is engaged. The contract of defined duration expires at the end of the envisaged time without preliminary termination. If a worker keeps working on the expiration of a fixed-term contract, it is considered a contract of indefinite duration. Fixed-term contracts are prohibited for permanent tasks however there is no explicit provision on the length of a single fixed-term and its renewals.

Employment Termination and Severance Pay (Dismissal) in Albania

A fixed-term employment contract is terminated upon the expiry of its term without the need for any prior notice. An open-term employment contract is terminated when one party decides to do so and the prior notice period has been observed. The Labour Code provides that an employment contract can be terminated with or without cause. Although a notice period must be provided in normal circumstances, there are circumstances where the law justifies immediate termination for reasonable cause.

The termination of an employment contract by the employer prior to its expiry date, without reasonable cause, can result in the employer being liable to compensate the employee with up to 12 months’ salary; the specific obligations of the employer will be decided upon by the courts.

If an employee is dismissed without any reasonable cause, he has the right to bring a claim against the employer to court within 180 days, beginning from the day on which the notice of termination expires. In the event that an employer is found to have had an unjustifiable motive discovered after the expiration of this deadline, the employee has the right to start legal actions within 30 days, beginning from the day on which the particular unreasonable cause was discovered.

Severance payments in Albania

Workers are entitled to a seniority-related reward if the employer terminates the contract and the labor relations have lasted at least three years. The employee loses the right to the seniority-related reward if his/her dismissal from work is of immediate effect and based on reasonable causes. The compensation is equivalent to at least 15 days’ wages for each completed year (based on average wages at the end of employment). Similar benefits are applicable in the termination of a fixed-term contract that has lasted for at least three years.

Employee Benefits and Contributions in Albania

General benefits that an employer offers on the market in addition to the benefits required by law According to the provisions of Albanian legislation, the following mandatory payments are not considered salary:

  • compensation the employee receives for expenses incurred as a result of his professional activity;
  • payment of expenses when the employee works outside his workplace;
  • contribution in kind (e.g. accommodation, food and travel expenses);
  • difference between the damage and the benefit the employee receives from social insurance, in the event that a work-related accident or occupational illness has occurred as a result of a serious fault of the employer.

Probationary Period in Albania

The first 3 months of work are considered a probation period, except for the cases where the parties have entered into a contract to carry out the same work. The probation period may be reduced or removed using a written agreement or a collective contract. During the probation period, each party may terminate the contract by informing the other party about its decision 5 days in advance.

A reasonable probation period must allow a worker to learn new skills. A newly hired employee may be fired during the probation period without any negative consequences. If an employee is hired on a fixed-term basis, the parties envisage writing a probation period, which lasts no longer than three months. The standard duration of the weekly working time is no longer than 40 hours. It is defined by the decision of the Council of Ministers in the collective or individual employment contract.

Work Hours in Albania

The daily duration of work means the adequate daily work time from 0 o’clock until 24 o’clock of the same day, breaks excluded. The standard daily duration of work is no longer than 8 hours. It is defined by the decision of the Council of Ministers in the collective or individual contract of employment, within the limits of the maximum weakly working time. For employees under 18 years of age, the daily duration of work is no longer than 6 hours a day. The daily break is at least 11 hours a day without interruption within the same day or, in case of need, two consecutive days.

Parental Leave in Albania

Generally, maternity leave is 365 calendar days, including a compulsory leave of a minimum of 35 days prior to and 63 days after childbirth. If a woman is pregnant with more than one baby, the antenatal period becomes 60 days making maternity leave a total of 390 days. After 63 days following delivery, the woman decides whether she wants to work or benefit from social security. In case the pregnant woman decides to start work after 63 days after childbirth until the child reaches the age of one, she may choose between the two options:

  • a paid leave of two hours during the typical work duration; or
  • reduced work duration, for two hours, with the same salary as if she had worked full time.

At the end of maternity leave, an employee is entitled to resume her position at the workplace or an equivalent position is provided on terms that are no less favourable than she enjoyed earlier. She is also entitled to the benefits and every other improvement in conditions of employment that occurred during her absence.

Important Note

Acumen International is not an immigration service. We do not work with individuals who want to work overseas but serve companies that need to send their ex-pats abroad. We do not provide any immigration support separate from our ex-pat post-immigration employment and payroll solution, in any country. Our work permit and subsequent employment through a Global PEO solution are designed for employer companies who want to transfer selected ex-pats overseas.

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