Globalization Partners provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Albania. Your candidate is hired via Globalization Partners’ Albania PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our solution enables clients to run payroll in Albania while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Albania.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
When negotiating terms of an employment contract and offer letter with an employee in Albania, it may be useful to keep the following in mind:
Employment Contracts in Albania
In Albania, employment contracts can be oral or written, but it’s best practice to put a strong, written contract in place, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Albania should always state the salary and any compensation amounts in Albanian Lek rather than a foreign currency.
Working Hours in Albania
The Albanian work week is 40 hours, with a standard workday of 8 hours. Workers are entitled to 11 hours between work days and they are not allowed to work on Sundays.
If employees must work on Sunday or paid holiday, they are entitled to 125% of their regular wages, unless the collective bargaining agreement or employment contract states differently.
Work hours should not exceed more than 50 per week. If employers request extra hours, they must pay 125% of the employee’s regular wages. Work performed on holidays should be compensated at 150% of the employee’s regular wage. Employers may provide compensation in time off rather than wages.
Holidays in Albania
- New Year’s Day
- Summer Day
- Nevruz Day
- Easter Sunday
- Labour Day/May Day
- End of Ramadan
- Feast of the Sacrifice
- Mother Teresa Beautification Day
- Independence Day
- Liberation Day
- National Youth Day
- Christmas Day
Vacation Days in Albania
Employees are entitled to a minimum of 20 days of paid vacation leave, which may not be taken in amounts of less than one week. Additional vacation may be agreed to in the employment contract or collective bargaining agreement.
Albania Sick Leave
Employees are generally entitled to 14 days of sick leave, paid at an 80% rate by the employer.
Employees who are injured at work can receive compensation from social insurance.
Maternity/Paternity Leave in Albania
Employees are entitled to 365 days of paid maternity leave. 35 days should be taken before the expected due date and a minimum of 42 days must be taken after. After 42 days the employee can remain on leave or return to work.
Women are paid 80% of their average daily wage for leave prior to the birth and up to 150 days after the birth. For the remaining leave, pay is given at 50% of her average wage.
There is no statutory paternity leave.
Employees of either gender with dependent children are eligible for up to 12 days of paid leave to tend to a child. Those with children under the age of three are entitled to an additional three days. Unpaid leave of up to 30 days per year may also be taken to care for a child.
Health Insurance in Albania
Albania has compulsory universal healthcare which is funded through payroll taxes and the general budget. Private healthcare is also available.
Albania Supplementary Benefits
Some companies offer voluntary pension funds.
Performance-based bonuses are common in Albania.
Termination/Severance in Albania
Generally, an employee is considered to be on probation for the first three months of work. During this time s/he may be terminated with five days notice.
Required notice after the probation period is as follows:
- First year of work: one month
- Two to 5 years: two months
- 5+ years: three months.
The employment contract or collective agreement may stipulate different notice periods, but not shorter than two weeks if the employee has worked for six months, and not shorter than one month if the employee has worked for more than six months.
Employees are generally eligible for a severance payment of at least 15 days if they have worked for three or more years.
Paying Taxes in Albania
Social security and health insurance contributions are paid by the employer at the rate of 16.7%.
Employees pay social security contributions at a rate of 11.2%.
Why Globalization Partners
Establishing a branch office or subsidiary in Albania to engage a small team is time-consuming, expensive and complex. Albanian labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Albania. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Albania PEO and Global Employer of Record provides you peace of mind so that you can focus on running your company.
If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Albania, please contact us here.