Employer of Record Guide in 

Albania

Vacation Leave

Note: Please verify the exact vacation entitlement, as sources indicate either 20 or 22 working days minimum.

• Accrual: Pro-rata basis for employees with less than one year of service
• Vacation Pay: Calculated at normal salary rate
• Payout: Unused leave must be compensated upon termination

Sick Leave

Note: Please verify sick leave provisions, as sources show conflicting information between unlimited duration versus 14-day limits.

Payment Structure (based on available information):

• First 14 days: Employer pays 80% of salary
• Day 15 onwards: Social Insurance pays 70% (80% for employees with 10+ years of contributions)
• Medical certificate required to justify absence
• Coverage available up to 6 months

Maternity Leave

• Duration: 365 calendar days (390 days for multiple births)
• Mandatory Periods: Minimum 35 days before birth, 63 days after birth
• Eligibility: 12 consecutive months of social insurance contributions required
• Payment Structure:
  • 80% of average salary for pre-birth period and first 150 days after birth
  • 50% for remainder of leave period
• Job Protection: Termination prohibited during maternity leave
• Funding: Paid by Social Insurance Institute, not the employer

Parental Leave

• Paternity Leave: 3 days paid leave for fathers (employer-funded)
• Childcare Leave: Up to 12 days paid per year (15 days for children under 3)
• Additional Leave: 30 days unpaid leave available annually for childcare

Bereavement Leave

• Duration: 5 working days of paid leave
• Qualifying Events: Death of spouse/partner, parent, child, or sibling
• Funding: Paid by employer

Personal & Family Leave

• Marriage Leave: 5 working days paid for employee's own marriage
• Family Emergency: Up to 30 days unpaid for serious family illness
• Family Responsibilities: Up to 12 days paid leave annually

Summary

*Please verify exact entitlements due to conflicting source information.

Termination Types

Termination With Cause (Immediate):

• Serious violation of work discipline
• Repeated minor violations after warnings
• Actions causing significant damage to the company
• Gross negligence in duties

Termination Without Cause:

• Performance-related issues
• Inability to perform duties
• Operational/business reasons
• Requires proper procedural compliance

Notice Period Requirements

Notice periods vary based on length of service:

Pay in Lieu: Available by mutual agreement. Employers remain liable for salary if proper notice is not given.

Severance Pay

• Eligibility: Mandatory for terminations without cause with at least 3 years of service
• Calculation: 15 days' salary for each full year of service

Note: Please verify severance calculation, as some sources indicate half-month salary per year.

• No Statutory Cap: No maximum limit on total severance amount

Probationary Periods

• Maximum Length: 3 months
• Termination Rights: Either party can terminate with 5 days' notice, no reason required
• Employee Protections: Full labour rights retained during probation

Final Pay Requirements

Timeline: Best practice to settle on last working day or within final payroll cycle.

Required Payments:

• Final period salary
• Notice period payment (if not worked)
• Accrued unused annual leave
• Pro-rata bonuses (if acquired rights)
• Applicable severance pay

Termination Process

Required Procedure for Termination Without Cause:

1. Written meeting notification (72 hours advance notice)
2. Conduct meeting to discuss termination reasons
3. Final decision communicated in writing (minimum 48 hours after meeting)
4. Maintain clear documentation including meeting records and delivery proof

Anti-Discrimination & Retaliation Laws

Prohibited Termination Reasons:

• Making genuine employment complaints
• Exercising constitutional rights
• Trade union participation
• Being on protected leave
• Any reason based on protected characteristics (gender, race, religion, disability, etc.)

National Public Holidays (2025)

*Dates may vary based on religious calendar

Regional Variations

Albania observes holidays nationwide with no major regional variations.

Holiday Pay Eligibility

• Universal Entitlement: All employees entitled to paid time off for public holidays
• Pay Rate: Equal to normal daily wage
• Weekend Substitution: If holiday falls on weekend, moved to following working day

Working on a Statutory Holiday

Employees working on public holidays must receive:

• Minimum 150% of normal rate, or
• Equivalent time off in lieu

Required Documents for Employment

• Employment Contract: Written contract required in Albanian or mutually understood language
• Tax Registration: Employer must register new hire at least one day before start date
• Personal Status Declaration: Employee must sign for tax deduction purposes
• Work Authorisation: Foreign nationals require appropriate work permits
• Medical Check: Required within first three months of employment

Language Requirements

• Official Language: Albanian
• Contract Language: Legal documents should be in Albanian or with certified translation
• Business Languages: English and Italian commonly spoken in business contexts

Background Checks & References

• Permitted Checks: Criminal record, employment history, education verification
• Consent Requirement: Explicit written consent mandatory before conducting any checks
• Relevance Standard: All checks must be job-relevant and proportionate

Data Protection & Privacy

Albania's data protection framework is influenced by GDPR principles under Law No. 9887 on Protection of Personal Data.

Employer Obligations:

• Lawful data collection with legitimate employment purposes
• Secure storage and authorised access only
• Employee consent for data processing
• Clear data retention and deletion policies

IP Assignment & Confidentiality

• Default Ownership: Intellectual property is not automatically assigned to employers without explicit contract clauses
• Required Provisions:
  • Confidentiality clauses (standard and enforceable)
  • Explicit IP assignment to company (highly recommended)
• Non-Compete Restrictions:
  • Maximum 1 year duration
  • Must be in writing with reasonable scope
  • Employer must pay 75% of previous salary during restriction period

Probation Period Setup

Probation periods (up to 3 months maximum) must be clearly stated in the employment contract to be legally enforceable.

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Compliant employment contracts in Albanian
• Tax registration and compliance
• Payroll setup and processing
• Local legal documentation
• Data protection compliance

Worker Classification: Employee vs. Contractor

Albanian authorities evaluate several factors to determine proper classification:

Employee Indicators:

• Company control over work methods, timing, and location
• Integration into company operations
• Exclusivity requirements
• Company-provided tools and equipment
• Indefinite relationship duration

Misclassification Penalties: Back taxes, social contributions, fines, and liability for statutory benefits.

Unionisation & Collective Agreements

• Constitutional Right: Right to form and join trade unions is protected
• Collective Bargaining: Collective bargaining agreements can provide terms more favourable than statutory minimums
• Union Presence: Historically strong in state industries; varies in private sector
• Main Confederations: KSSh (Confederation of Trade Unions) and BSPSh (Independent Trade Unions)

Cultural Norms & DEI Expectations

Workplace Culture:

• 40-hour standard work week with family-centred culture
• Direct and expressive communication style
• Relationship-building is crucial for business success
• Hierarchical workplaces with respect for authority

Diversity & Inclusion:

• Growing awareness of gender equality initiatives
• Strong anti-discrimination legal framework
• Reasonable accommodation required for disabilities

Anti-Discrimination Laws

Protected Characteristics include:

• Gender, race, colour, ethnicity, language
• Gender identity, sexual orientation
• Political or religious beliefs
• Economic or social status, age
• Family/marital status, pregnancy, parental responsibility
• Health status, genetic predisposition, disability
• Trade union affiliation

Remote Work Considerations

Albania's Labour Code recognises "telework" and "work-from-home" arrangements.

Legal Framework:

• Remote workers must have conditions not less favourable than office workers
• Employers must provide clear contract definitions
• Equipment provision and health and safety standards apply
• Digital Nomad Visa: Available for foreigners working for companies abroad, with potential 12-month tax exemption

Employer Responsibilities:

• Define remote work arrangements in contracts
• Provide necessary equipment and technology
• Maintain health and safety standards for home offices
• Ensure equal treatment with office-based employees