Hiring guide in Kosovo

What should I know about hiring in Kosovo?

Hiring in Kosovo involves understanding a developing labour market with relatively new employment regulations that are progressively aligning with EU standards. A written employment contract is mandatory, and it must clearly outline key terms such as job responsibilities, salary, work hours, and the duration of employment. Kosovo’s labour laws offer basic employee protections, including health insurance, pension contributions, and paid leave.

Kosovo’s laws regulate work hours at a maximum of 40 hours per week for full-time employees, and overtime must be compensated. Employers must also ensure that the workplace meets safety and health standards. Workers are entitled to 20 days of paid annual leave, sick leave, and maternity or paternity leave. There are also provisions for unemployment benefits, though they are limited compared to more developed countries.

Workplace practices in Kosovo are influenced by the emerging presence of international businesses and the gradual implementation of stronger employee protections. Employers seeking to hire in Kosovo should familiarise themselves with both the legal framework and the evolving labour landscape.

Why is Kosovo a good choice for finding remote employees?

Kosovo presents a promising opportunity for businesses seeking to hire remote employees due to its young, educated, and multilingual workforce. The country boasts a high number of professionals in fields such as IT, customer service, engineering, and design. Many workers are fluent in English, and the growing proficiency in other European languages enhances communication with international teams.

Kosovo’s digital infrastructure is also rapidly improving, with widespread internet access and increasing support for remote work. Many professionals are open to flexible working arrangements, and remote work has gained popularity among those seeking a better work-life balance. The cost of living in Kosovo is significantly lower than in Western Europe, which makes it an attractive destination for companies seeking to access affordable talent.

How can Native Teams help you hire in Kosovo?

Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Kosovo. 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 Kosovo-based employee with Native Teams.

Legal requirements for hiring in Kosovo

Employers must comply with specific legal requirements when hiring in Kosovo to ensure they are operating in line with the country’s labour laws. Kosovo’s Labour Law defines the relationship between employers and employees, detailing workers’ rights and obligations. The law ensures that employment contracts are written and stipulates the essential information to be included.

Legal framework

Kosovo’s labour law framework was first established under the United Nations Interim Administration Mission in Kosovo (UNMIK) through Regulation No. 2001/27. 

This regulation set out the foundational rules governing labour relations, including the conditions under which work is performed and services are provided. However, it excluded labour relations within the public service, as well as those involving UNMIK, KFOR, foreign offices and international governmental organisations.

The regulation remained in force from 2001 until 2011, when the Kosovo Assembly adopted the Labour Law. Unlike the earlier UNMIK regulation, which was introduced without public consultation, the Labour Law followed an extensive consultation process involving employer associations, trade unions, civil society organisations and the relevant assembly commission. 

Types of employment contracts

Kosovo recognises three main types of employment contracts: indefinite-term, fixed-term and part-time contracts. 

An indefinite-term contract has no specified end date and continues without a predetermined end to the employment relationship. If a contract does not explicitly state its duration, it is presumed to be indefinite. Employees working under these contracts are entitled to the rights and subject to the obligations established by the Labour Law.

A fixed-term contract is concluded for a specific period or until a particular task is completed or a specified event occurs. Employees on fixed-term contracts generally have the same rights and obligations as those on indefinite-term contracts, unless the law provides otherwise.

If a fixed-term contract is concluded improperly or the employee continues working after the contract expires, the employment relationship is presumed to be indefinite.

A part-time contract covers employment with fewer working hours than a full-time position. It may be concluded for either a fixed or an indefinite term. Part-time employees are entitled to the same rights and subject to the same obligations as full-time employees, with adjustments made in proportion to the hours worked.

Content of an employment contract

An employment contract in Kosovo must set out the essential terms of the employment relationship, including the details of both contracting parties, their residence or registered office, and the date on which the employee is due to start work.

The contract must specify the employee’s job title or type of work and provide a brief description of the duties they are expected to perform. It must also identify the workplace. If the workplace is not expressly stated, it is presumed to be the employer’s registered office.

For fixed-term contracts, the agreement must specify the duration of employment. It must also set out the employee’s working hours and how they are distributed, including any applicable standards for work inputs.

The contract must clearly state the employee’s basic salary in euros, any additional payments and other salary components. It must also specify the payment interval, payment date and method of payment.

In addition, the contract must address annual leave, either by stating the entitlement or explaining how it will be determined, and specify the applicable notice periods. It must also refer to any collective agreements binding on the employer and any general acts governing the employee’s working conditions.

The contract may include other rights and obligations established by law to ensure that the terms of the employment relationship are clearly documented.

Download a free employment contract for Kosovo through Native Teams.

Oral, written or electronic employment contracts

In Kosovo, an employer must provide the employee with a proposed written employment contract, generally three days before the expected signing date. Once the contract has been concluded, the employer must give the employee a written copy.

An employment contract is not necessarily invalid simply because it has not been made in writing or because some legally specified terms have not been documented in writing. 

Employment agreements may initially be informal or verbal, particularly during preliminary discussions, although a written contract is required in specific circumstances to ensure compliance with the applicable legal requirements. Where a written contract is required, it must include the relevant details of the employment relationship.

In January 2022, Kosovo enacted Law No. 08/L-022 on Electronic Identification and Trusted Services in Electronic Transactions. Under this law, an electronic signature cannot be rejected or considered legally insignificant solely because it is in electronic form.

Working hours

In Kosovo, full-time working hours are generally limited to 40 hours per week, unless the law provides otherwise. For young workers, full-time working hours are reduced to a maximum of 30 hours per week.

The law also provides for reduced working hours for employees performing tasks that expose them to harmful effects on their health, even when protective measures are in place. The reduction depends on the level of hazard and the employee’s capacity to perform the work. 

Where the risk is particularly high, working hours may be reduced to as little as 20 hours per week. Employees working reduced hours under these conditions retain the same rights as full-time employees.

Employers must display working hours in a clearly visible place and inform employees of any changes at least seven days in advance. Any adjustments to working hours must also take employees’ health and safety requirements into account.

Night work

The working time of a night worker may not exceed an average of eight hours per day over four months. For those performing heavy physical or strenuous intellectual work, or work that could threaten life or health, the daily working hours are strictly capped at eight hours within 24 hours. 

Employers organising work in shifts must ensure that employees are not assigned consecutive night shifts for more than one week without a day off. 

Breaks and types of leaves

In Kosovo, employees working at least six consecutive hours per shift are entitled to a break of at least 30 minutes. This break cannot be taken at the beginning or end of the working day.

Employees working between four and six consecutive hours are entitled to a 15-minute break. For young employees under 18 who work at least four hours and 30 minutes per shift, the minimum break is 30 minutes. These breaks count as part of the employee’s working time.

Annual leave

Employees in Kosovo are entitled to a minimum of four weeks of paid annual leave per calendar year, regardless of whether they work full-time or part-time. Annual leave increases with length of service, with one additional day for every five years of service.

Employees performing work that remains harmful to their health despite the application of protective measures are entitled to at least 30 working days of annual leave per calendar year.

Certain employees are also entitled to additional leave. Mothers with children under three years of age, single parents and employees with disabilities are each entitled to two additional working days off.

Salary

In Kosovo, salaries must be paid by bank transfer, and the official currency for salary payments is the euro (€). The payment schedule is generally established by collective agreements or employment contracts, with salaries paid at least once a month. Employers may also provide salary advances on agreed dates.

With each salary payment, employers must provide employees with a detailed salary statement showing the components of the payment and any deductions.

Employers must pay at least the statutory minimum wage. The Government of Kosovo determines the minimum wage annually, based on proposals from the Social-Economic Council. The minimum wage is set in euros and applies to both hourly and monthly wages.

To calculate the salary and taxes in Kosovo, click here.

Sick leave

In Kosovo, employees are entitled to full salary compensation for up to 20 working days per calendar year during ordinary sick leave. This allows employees to recover while maintaining their full salary for the eligible period.

For sick leave resulting from an occupational illness or a work-related accident, employees are entitled to compensation equal to 70% of their salary. This compensation begins after 10 days of absence and may continue for up to a maximum of 90 working days.

Parental leave

In Kosovo, parental leave may be taken until a child reaches two years of age. Both mothers and fathers have an equal right to parental leave, with each parent entitled to a minimum of four months. Parents may take their leave simultaneously if they wish. If one parent dies during the parental leave period, the surviving parent may use the remaining leave to which the deceased parent was entitled.

For parents of twins or multiple children, each parent is entitled to at least eight months of parental leave, which may be taken until the child reaches three years of age.

Where a child requires special care because of a long-term illness or permanent disability, each parent is entitled to six months of parental leave, which may be taken until the child reaches five years of age.

Paternity and maternity leave

In Kosovo, employed women are entitled to 12 months of maternity leave, with provisions intended to support them financially and protect their employment during this period.

A woman may begin maternity leave up to 45 days before the expected date of childbirth, provided she submits a medical certificate. If the employer believes she will be unable to perform her duties from 28 days before the expected date of childbirth, the employer may, with her consent, request that she begin maternity leave at that point.

If the mother dies or abandons the child before her maternity leave ends, the father may assume her maternity leave rights. The mother may also transfer the final three months of unpaid maternity leave to the father, provided both parents agree.

Fathers are entitled to 10 days of paid leave following the birth or adoption of a child. To take this leave, they must inform their employer at least 10 days in advance, allowing the employer to make the necessary arrangements.

These rights also extend to adoptive parents and individuals who assume responsibility for a child following the death or abandonment of both parents.

Methods of employment termination

In Kosovo, employment contracts may be terminated under specific circumstances established by law. These include the following:

• Death of the employee or employer: An employment contract ends upon the employee’s death. If the employer dies, the contract also ends when the work is of a personal nature and cannot be continued by the employer’s successors.
• Expiry of a fixed-term contract: Employment ends when the agreed duration expires, unless the law provides otherwise.
• Retirement age: Employment generally ends when the employee reaches 65 years of age, unless the employer and employee agree to continue the employment relationship.
• Incapacity for work: A contract may be terminated if the employee is declared unfit for work on the basis of the required authorised evidence.
• Prison sentence: Employment may be terminated if the employee is sentenced to imprisonment for more than six months.
• Court decision: Employment may end following a decision by a competent court.
• Liquidation of the employer: If the employer’s business entity is liquidated without a legal successor, the employment contracts are terminated.

Employment may also be terminated by mutual agreement between the employer and the employee. This agreement must be made in writing. In such cases, the employer must pay the employee for all work performed up to and including the termination date.

Ordinary dismissal by the employer

In Kosovo, an employer may terminate an employment contract only for valid reasons recognised by law. These grounds must be clearly established and justified under the applicable legal framework.

An employer may terminate a contract in the following circumstances:

• Relocation of the workplace: If the employer or part of the business relocates and the employee does not agree to work at the new location, the employer may terminate the contract.
• Redundancy: An employee may be made redundant because of changes to job duties, technological developments or organisational restructuring intended to improve efficiency.
• Health-related incapacity: Termination may be justified if a medical statement confirms that the employee’s health condition prevents them from performing their previous work or that continuing the work poses a risk due to an occupational illness or work-related accident.
• Failure to meet job requirements: If an employee fails to perform their duties on time, professionally or to the expected standard, the employer may terminate the contract if a written warning was issued within the preceding six months and the employee has not improved.
• Repeated minor misconduct or breaches of duty: Less serious misconduct or breaches of employment obligations may also lead to termination if the employer has issued a written warning and the employee continues the behaviour.

Notice period and challenging the dismissal

When an employment contract is terminated in Kosovo, it generally remains in effect until the applicable notice period expires. Notice periods vary depending on which party initiates the termination, the type of contract and, in some cases, the employee’s length of service.

When an employer terminates an indefinite-term employment contract in accordance with Article 70 of the applicable law, the statutory notice period depends on the employee’s continuous service with the employer:

• Six months to two years of service: 30 calendar days.
• More than two years and up to ten years of service: 45 calendar days.
• More than ten years of service: 60 calendar days.

When an employee initiates termination, the applicable notice period is:

• Fixed-term employment contract: 15 calendar days.
• Indefinite-term employment contract: 30 calendar days.

During the probationary period, which may last up to six months, either party may terminate the employment contract by giving seven days’ notice.

Rights and obligations of unemployed persons

To register with the Employment Office in Kosovo, an individual must meet specific eligibility requirements. They must not:

• Own or co-own a business entity.
• Be registered as a farmer.
• Be retired or in early retirement.
• Be a regular student.
• Lack active job-seeking status.

Applicants must also be Kosovo citizens or, if they are foreign nationals or stateless persons, hold a valid residence permit in Kosovo. Individuals who are not already registered with the Employment Office may apply for registration if they meet these requirements.

Registered unemployed individuals can access a range of services provided by the Employment Office, including labour market information, professional counselling, employment mediation, job-search assistance, career guidance and the preparation of an Individual Employment Plan.

Severance pay

In Kosovo, employees may be entitled to severance pay upon termination of employment, depending on their length of service. The amount is calculated based on the employee’s most recent monthly salary, with longer-serving employees receiving proportionally higher payments.

Severance pay is made on the date of termination and provides financial support as employees transition out of their roles. The payment structure reflects the employee’s length of service and contribution to the organisation.

Prohibition of competition

In Kosovo, a non-compete agreement may restrict an employee from engaging in competing activities for up to one year. Such agreements are typically used when an employee has access to confidential information or specialised knowledge during their employment that could harm the employer if used in a competing business.

To compensate the employee for this restriction, the employer must provide monetary compensation of at least 50% of the employee’s average monthly earnings for each month the non-compete obligation remains in effect. This compensation is generally paid on the employer’s regular payday, unless the parties agree otherwise.

If the employee breaches the non-compete agreement, they may be required to pay the employer a pre-agreed amount of compensation. However, this amount cannot exceed the total compensation the employer agreed to pay the employee for complying with the restriction. 

The compensation may be reduced if the employee has only partially complied with the obligation. Once the agreed compensation is paid, the employee’s obligations under the non-compete agreement end.

Probationary period

In Kosovo, an employment contract may include a probationary period of up to six months. This limit cannot be exceeded unless the law specifically provides otherwise. If an employee is absent from work during the probationary period, the period may be extended to account for the time missed.

The probationary period must be agreed in writing; otherwise, it is considered invalid. A new probationary period cannot be agreed when a fixed-term employment contract is renewed.

Intellectual property rights

Ownership of copyright in works created by employees depends on the distinction between the author of a work and the holder of its copyright.

Under Article 13 of Kosovo’s Law on Copyright and Related Rights No. 04/L-065, an author is the natural person who creates a work. A company cannot be recognised as the author of a work.

However, copyright may be transferred from the author to another natural or legal person through an agreement or in other circumstances provided for by law. When the economic rights to a work are transferred under a contract or applicable copyright legislation, the person or legal entity receiving those rights becomes the copyright holder.

Employee data privacy

Kosovo’s primary legal framework for data protection is the Law on the Protection of Personal Data, which sets out employers’ obligations when handling employee information.

Employers may collect, process and store employee data only for specific, legitimate purposes related to employment. The information must be relevant to those purposes, accurate and kept up to date.

Employers must obtain employees’ explicit consent before collecting their personal information, except where processing is necessary to meet legal obligations or fulfil contractual requirements.

Remote working policy

Although remote working offers flexibility, certain general labour law provisions do not apply to remote employees. These exclusions include regulations governing changes to weekly working hours, daily rest periods and weekly rest periods.

Remote employees are also not entitled to compensation for absences from work, except in the event of the death of a close family member. In addition, they are not eligible for certain allowances specified in the relevant articles of the law.

Responsibilities within a remote work arrangement

Employees working remotely must perform their duties responsibly and follow the employer’s instructions, provided these comply with applicable legal requirements. Although they do not work physically in the office, they remain responsible for carrying out their duties diligently and following lawful directions.

Remote employees must also adhere to their agreed working schedule and use their working hours to fulfil their job responsibilities.

Employers must assign tasks that are consistent with the terms of the employment contract, ensuring that the work required from remote employees aligns with the duties agreed upon at the start of employment.

Employers are also responsible for ensuring data protection, particularly in relation to software used for remote work. They must inform employees of any restrictions on the use of the equipment provided for their work, including the penalties that may apply if those restrictions are breached.

Health and safety at home

Employers are legally required to provide safe and healthy working conditions for all employees, including those working remotely. This responsibility includes providing the resources and information needed to reduce potential risks associated with remote work.

Employers must ensure that employees’ home offices or other remote workspaces are safe and do not pose risks to their health. This includes assessing the workspace for potential hazards and providing guidance on how to create a safe working environment.

Employees also have responsibilities for health and safety when working remotely. They must take reasonable care of their own health and safety, as well as that of others who may be affected by their work activities. 

This includes arranging their home workspace to minimise risks, using ergonomically suitable furniture and keeping the area free of clutter to help prevent accidents. Employees should remain aware of potential hazards in their working environment, even when working from home.

What are the advantages of hiring employees from Kosovo vs other countries?

Hiring employees from Kosovo offers numerous advantages that make the country an attractive destination for businesses. The workforce in Kosovo is predominantly young, educated, and highly skilled, with a strong emphasis on acquiring knowledge and technical expertise. Many professionals in Kosovo are multilingual, with fluency in multiple languages, making them well-suited for roles that require international communication. Labour costs in Kosovo are considerably lower than in many other European countries, enabling businesses to optimise their budgets without compromising the quality of work.

In addition to cost-effectiveness, Kosovo’s strategic location in the Balkans provides logistical benefits and cultural alignment with European business standards, ensuring smoother collaboration and integration into diverse teams. The country’s growing expertise in sectors such as information technology, customer service, and manufacturing highlights its potential to meet the needs of businesses across a wide range of industries. 

Furthermore, Kosovo’s workforce is known for its strong work ethic and adaptability, offering companies the reliability and commitment necessary to thrive in a competitive global market. These factors collectively position Kosovo as a compelling choice for businesses looking to expand their operations or enhance their talent acquisition strategies.

Why use Native Teams for hiring in Kosovo?

Native Teams helps you employ and pay your team in Kosovo directly through owned entities and infrastructure. 

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company setup: You can expand your business using our company entities.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Local expertise: We can help you navigate local regulatory environments and ensure you meet all relevant requirements.
• Dedicated support: We make sure your employees feel supported and cared for through the entire process.