Payroll and Benefits Guide Albania

Termination Process

Employment termination in Albania may occur through employee resignation, employer termination, immediate dismissal for justified reasons, or the expiration of a fixed-term contract. Procedures and notice requirements are regulated by the Albanian Labour Code.

• Termination from the Employee Undefined employment Agreement: the employee has the obligation to communicate the event and submit in written form the resignation letter to the employer, respecting the notification terms.
• Termination from the Employer Undefined Employment Agreement: in this case, the procedure to be followed by the employer is as follows:
  • Send a written notification for the organization of a meeting with the employee at least 72 hours before the meeting and negotiate with him/her the reasons for the contract termination.
  • The written notification can be sent by e-mail.
  • The negotiation can take place at least 72 hours from the delivery of the notification. There is no specific provision in the Labor Code about the possibility to organize the meeting through online communication, but it is not prohibited. The only important thing is to prove it has taken place.
  • During this conversation, the employer submits to the employee the reasons for his future decision and gives him/her the possibility to express his/her opinions.
  • It is possible that the employee fails to be present. In this case, it is important to prove (because you have the burden of proof) that he/she has received the written notification.
  • After the negotiation, another written notification is sent to the employee in which he/she is notified of the termination of the contract. This new notification is sent within 48 hours up to one week, after the meeting.
• Immediate termination with justified reasons: justified reasons are considered as severe circumstances which do not allow—according to the principle of good faith—to the one who has asked for the termination to continue the employment relationship. Same procedure as above to be followed.
• Termination of Defined Employment Agreement: when such an agreement reaches the end of the agreed period and the employer/employee doesn’t wish to renew the contract, the employment is terminated without any further documentation.
• Unjustified dismissal from employer: the employee has the right to sue the employer within a period of 180 days.

Notice Period

Notice periods within Albania are as follows:

• 2 weeks’ notice is required for employees leaving within the first six months of employment
• 1 month’s notice is required for employees leaving between six months and two years of employment
• 2 months’ notice is required for employees leaving within the second and fifth years of employment
• 3 months’ notice is required for employees leaving after the first five years of employment
• During the probation period, 5 days notice is required

Severance Pay

Workers are entitled to the following payout upon termination:

1. In case of termination from the employer according to notification terms, the employer has to pay:

• Salary during the notification period
• Seniority bonus when the employment lasted for more than 3 years. The seniority bonus is at least as much as a half-month salary over each full year of work calculated on the basis of the salary that exists at the end of the employment relationship. When the salary is variable, the remuneration is calculated above the average salary of the year
• Untaken annual leave on prorate basis
• Annual bonuses or other compensations on prorate basis

2. In case of immediate termination with justified reasons, the employer has to pay:

• Salary until the last working day
• Untaken annual leave on prorate basis

3. In cases of unjustified dismissal from the employer, the employer has to pay all obligations as per point 1 as above + 1-year salary.

Probation Period

Probation periods in Albania are generally three months.

During the probation period, the employment can be terminated by either the employer or employee with five days of notice.