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If you are considering hiring in Albania, keep a few things in mind. Employment contracts must first and foremost be agreed upon and signed by both the employer and the employee. The employment duties, salary, benefits, and schedule are all components of an employment contract.
Albania has implemented a minimum wage. This is the minimum an employer must pay their workers, though most do so much more. Businesses can gain a lot by hiring new staff from Albania thanks to the country’s highly skilled workforce and relatively low wages, as well as its central location. However, before beginning the hiring process in a foreign country, you should familiarise yourself with the local laws and customs.
Albania is a good option for staffing your remote operations for many reasons. Work ethic and commitment to the job are two qualities that Albanian workers are known for.
There is a sizable population of highly educated and skilled people in the country; many speak English and have prior experience in international businesses. They are also very friendly and easy to work with.
Furthermore, Albania’s developed infrastructure makes it simple for remote workers to stay connected and productive. Last but not least, the Albanian government actively welcomes and promotes international investment.
Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Albania. We handle everything from legal employment to ensuring your team is paid and managed compliantly and with care, without any third parties involved.
Hire your first Albanian employee with Native Teams.
The following are the most important legal requirements for hiring employees in Albania:
Employment in Albania is primarily governed by the Albanian Constitution and the Labour Code. Article 49(1) of the Constitution establishes employment as a fundamental right, while the Labour Code provides the main framework for individual and collective employment relationships.
Employment contracts are generally formalised in writing and cover key terms such as wages, working hours, duties, and leave. The standard working week is 40 hours, with additional rules covering overtime, rest periods, night work, and employee protections.
Employees are also entitled to annual leave, sick leave, maternity leave, and public holidays under the legal framework.
Employment contracts in Albania are divided into collective and individual employment contracts. Collective contracts are agreed between employers and employee unions and can establish conditions such as wages, working hours, benefits, and dispute resolution for groups of employees.
Individual employment contracts are concluded directly between an employer and an employee. The main forms include:
Under Article 21 of the Albanian Labour Code, employment contracts must be concluded in writing and clearly document the main terms of the employment relationship. Any changes can also be made in writing by mutual agreement.
An employment contract must include:
Download a free employment contract for Albania through Native Teams.
Employment contracts in Albania may be concluded orally, in writing, or electronically, subject to the requirements of the Albanian Labour Code.
Written contracts are the most common form and must include essential employment terms, such as the parties’ identities, workplace, job position, start date, salary, working hours, and paid leave.
Oral contracts are permitted only for periodic work lasting no more than one week. After seven days, the employment relationship must be formalised through a written contract.
Electronic contracts are also legally recognised. They must contain the same essential elements as written contracts and comply with applicable electronic document and electronic signature requirements.
The standard working time in Albania is 8 hours per day and 40 hours per week, typically spread across five days.
Employees working more than six continuous hours are entitled to an unpaid break of at least 20 minutes. For shifts of nine hours or more, an additional 20-minute break applies. Pregnant employees are entitled to a 30-minute rest every three hours.
Overtime includes work beyond the standard daily or weekly hours. Key rules include:
Additional overtime may be permitted in exceptional circumstances with authorisation from the Labour Inspectorate.
In Albania, night work is defined as work performed between 10:00 PM and 6:00 AM and is regulated by the Labour Code.
Employees performing night work are subject to specific rules:
Employees in Albania are entitled to minimum rest periods and several types of statutory leave. Rest periods include:
Employees in Albania are entitled to a minimum of 22 working days of paid annual leave per year. Key rules include:
Under the Albanian Labour Code, salary includes an employee’s basic pay and any permanent increments, while compensation for professional expenses is excluded.
Salary is determined through the applicable individual or collective employment contract and may be calculated based on time worked, the nature and quantity of work performed, or enterprise performance. It cannot be lower than the minimum wage established by the Council of Ministers.
Employees may also receive commissions, which become due once the client fulfils their obligations, as well as year-end bonuses based on individual performance and company results. If a bonus is paid for three consecutive years without reservation, it may become a binding obligation for the employer.
Albanian law also requires equal pay for equal work, regardless of gender or other grounds of discrimination. Salaries are generally paid monthly unless otherwise agreed, while deductions must either be legally required or explicitly authorised by the employee.
To calculate the salary and taxes in Albania, click here.
Employees who are unable to work due to illness are entitled to 80% of their regular salary for up to 14 days, where this period is not covered by social insurance benefits.
To receive this compensation, the employee must provide a medical certificate issued by a licensed doctor. If the employer questions the certificate, they may request an additional examination by a doctor of their choice. Where the two medical assessments conflict, a third opinion may be obtained from a medical expert appointed by the Labour Inspectorate.
An employee who refuses additional verification may lose their right to compensation from the employer. Sick leave entitlements may also be reduced or removed if the illness results from the employee’s gross negligence, provided this has been agreed in advance or determined by a court.
Employees who have worked for the same employer for at least one consecutive year are entitled to a minimum of four months of unpaid parental leave to care for a child until the age of six.
The entitlement applies separately to each parent and generally cannot be transferred between them, except if one parent dies. Parental leave can also be divided into separate periods, with a minimum of one week per year, based on a written agreement between the employer and employee.
For adopted children, parental leave is available from the date of adoption for up to six years, but cannot extend beyond the child’s 12th birthday.
Employees must notify their employer in writing at least two weeks before the intended start of the leave. Employers may postpone parental leave for up to six months where operational needs require it, but must provide the employee with written reasons for the postponement within two weeks.
Female employees in Albania are entitled to up to 365 calendar days of maternity leave, including a compulsory minimum of 35 days before childbirth and 63 days after childbirth. For multiple births, the total entitlement increases to 390 calendar days. Maternity income benefits are provided through the social insurance system.
After the compulsory 63-day post-natal period, the mother may use the remaining maternity leave or return to work. If she returns, she can either take a two-hour paid break during the working day or work two fewer hours per day at full pay until the child turns one.
After maternity leave, the employee has the right to return to her previous position or a similar role under no less favourable conditions, including any employment benefits or advancements that occurred during her absence.
Employers generally cannot require a pregnancy test as a condition of employment, except where the work could pose a risk to pregnancy. Employees are also protected against dismissal related to pregnancy or childbirth.
Adoptive parents are entitled to adoption leave, which may be taken by either the mother or father. Upon return, they are entitled to a similar or equivalent position without less favourable employment conditions.
Employment contracts in Albania may be terminated through normal termination, immediate termination for cause, or mutual agreement, depending on the circumstances and type of contract.
For indefinite-term contracts, employers may terminate employment for valid reasons related to the employee’s performance, behaviour, or business needs. The employer must follow the required procedure, including the applicable notice period and a consultation process where the reasons for dismissal and any employee objections can be addressed.
Employment may also be terminated immediately without notice for good cause, including serious contractual breaches, repeated minor violations despite warnings, or other circumstances that make continuing the employment relationship untenable.
Fixed-term contracts generally end when the agreed term expires. They may also be terminated immediately for good cause or ended early by following the applicable notice requirements and providing valid grounds.
For an indefinite-term employment contract, an employer may terminate employment by providing notice based on the employee’s length of service:
Ordinary dismissal must be based on a valid reason related to the employee’s professional capability, conduct, or the employer’s operational requirements.
Before dismissal, the employer must notify the employee in writing of a meeting at least 72 hours in advance. During the meeting, the employer must explain the reasons for the proposed dismissal and give the employee an opportunity to respond. If the employer proceeds, written notice stating the reason for termination must be issued within 48 hours to one week after the meeting.
Failure to follow the required procedure may result in compensation equal to two months’ salary, in addition to other damages owed.
Immediate dismissal without notice is possible for serious breaches or repeated non-compliance following prior warnings. If an immediate dismissal is unjustified or procedurally flawed, the employee may claim damages of up to 12 months’ salary, in addition to other entitlements.
These procedures apply to individual dismissals. Collective dismissals are subject to separate requirements.
After the probation period, indefinite-term employment contracts are subject to statutory notice periods based on the employee’s length of service:
If the required notice period is not respected, the termination is treated as an immediate termination, which may trigger compensation and other legal consequences. During an employer-initiated notice period, employees are also entitled to at least 20 hours of paid leave per week to search for new employment.
Employees may challenge a dismissal where the employer has not provided valid grounds, followed the required notice period, or complied with the dismissal procedure. Valid grounds must relate to the employee’s capability, conduct, or the company’s operational needs and must be properly documented and justified.
The employee must also be given an opportunity to respond during the required pre-dismissal process. Immediate dismissals for severe misconduct may be challenged if they are not substantively justified or if the required procedure has not been followed.
Unemployed individuals in Albania have access to financial assistance, healthcare, and employment support, alongside certain obligations related to finding new employment.
Unemployment benefits provide temporary financial support under the Law on Social Insurance of 1993, while unemployed individuals retain access to healthcare services through the social insurance system.
Employment promotion programmes are also available, including training, skills development, and job placement services. Participation in these programmes may be required as a condition for receiving unemployment benefits.
Unemployed individuals are expected to actively seek employment, provide regular updates on their job-search activities, and engage with state employment agencies.
In Albania, severance pay may apply to employees whose employment is terminated for reasons unrelated to their conduct, such as redundancy or company restructuring.
The amount of severance pay generally depends on the employee’s length of service, although individual or collective employment agreements may provide higher entitlements.
Employers must provide severance pay to eligible employees following termination. Failure to meet this obligation may result in legal penalties.
Severance pay is generally not required for dismissals based on employee misconduct. Employees whose fixed-term contracts expire on the agreed end date may also be excluded unless their contract provides otherwise.
In Albania, the probationary period can last up to three months and cannot be extended beyond this limit. The employer and employee may agree to a shorter period or waive probation entirely through a written agreement or collective contract.
During probation, either party may terminate the employment contract with five days’ notice. Neither the employer nor the employee is required to provide a reason for the termination.
In Albania, intellectual property created by employees during their employment is governed by the Labour Code, including rules for inventions, industrial designs, models, and computer programs.
Inventions created within an employee’s contractual duties generally belong to the employer. If an invention falls outside those duties, the employer may claim rights to it through a written agreement.
Employees must notify the employer in writing when they create an invention. The employer then has six months to decide whether to claim it. Where the employer retains ownership, the employee is entitled to fair compensation based on factors such as the invention’s economic value, employer resources used, and costs incurred by the employee.
For industrial drawings, models, and computer programs created as part of contractual duties, the employer has the right to use them as necessary to fulfil the objectives of the employment contract.
Employee data privacy in Albania is governed by the Labour Code and Law No. 124/2024 on Personal Data Protection, which is aligned with the GDPR.
Employers may collect only employee data relevant to their professional abilities or necessary for the employment relationship. They must protect this information against unauthorised access, misuse, or disclosure and maintain its confidentiality during and after employment.
Employers must also comply with applicable data protection obligations, including maintaining processing records and meeting notification requirements for high-risk processing or personal data breaches.
Employee data should only be retained for as long as necessary or legally required. Special categories of data, such as health information or union membership, require additional safeguards.
Employees have rights over their personal data, including the right to information, access, correction, and deletion, in accordance with applicable law.
Post-termination non-compete clauses in Albania are subject to specific requirements under the Labour Code.
A non-compete agreement must be in writing, and the employee must be over 18. It is enforceable where the employee had access to confidential business information or professional secrets that could cause significant damage to the employer if used competitively.
The agreement must clearly define the restricted activities, geographical scope, and duration. The restriction can last for a maximum of one year after employment ends.
During the non-compete period, the employer must compensate the former employee with at least 75% of the salary they would have earned if they had remained employed. For variable compensation, this is based on the employee’s average salary from the previous year.
Albanian law recognises both work-from-home and teleworking arrangements, with the conditions agreed between the employer and employee and included in the employment contract.
Work-from-home employees perform their duties from home or another agreed location, while teleworking specifically involves the use of information technology.
Remote workers generally receive the same legal protections as employees working on the employer’s premises. However, certain Labour Code provisions, including rules on working hours, rest periods, overtime, holiday work, night work, and compensation for difficult working conditions, do not apply to remote workers.
For teleworking, employers are responsible for providing, installing, and maintaining the necessary equipment, unless employees choose to use their own.
Employers should also support the social integration of remote employees and ensure they are not disadvantaged compared with employees working on-site.
Under Albania’s Labour Code, remote work can take the form of work-from-home or teleworking contracts, with the agreed location, conditions, and responsibilities documented in writing.
Remote employees generally have the same protections as in-office employees, although certain rules on working hours, rest periods, overtime, holiday work, night work, and compensation for difficult working conditions do not apply.
Employers are responsible for providing, installing, and maintaining the necessary remote-working equipment, unless the employee chooses to use their own. They are also expected to support social interaction and help prevent employee isolation.
Employees must follow the duties and work location specified in their contract. Changes to the agreed location or responsibilities require the employer’s consent.
Hiring employees from Albania offers international companies many strategic advantages, through cost-efficiency, access to an educated and skilled workforce, and operational flexibility.
Compared to those in Western European countries, Albanian wages are significantly lower, which allows businesses to reduce labour costs without compromising quality.
Albania is also home to a young and educated workforce with strong proficiency in languages like English and Italian, as well as specialised skills in technology, business, and engineering. In addition to this, Albania’s growing freelance and remote work scene provides a large pool of digitally skilled talent, which is perfect for businesses that want to hire remote workers.
Lastly, the Albanian government further encourages foreign companies to hire locally by simplifying the employment process, making Albania a very attractive choice for global talent acquisition.
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