Hiring guide in North Macedonia

Legal framework

Types of employment contracts

There are two types of employment contracts — fixed-term contracts and indefinite contracts, with most contracts initially set up without a specified end date. Indefinite-term contracts are the most common ones, providing long-term job security and stability for employees.

On the other hand, fixed-term contracts are based on specific criteria such as a set date, the completion of certain tasks, or the occurrence of predefined events for their termination.

Content of an employment contract

The employment contract must be in written form and contain specific elements. It should include information about the contracting parties, such as their residence or registered office and the date of commencement of work. The contract must also state the title of the position, provide details about the type of work, and provide a brief description of the tasks to be performed.

The location where the work will be carried out must be specified. If not stated, it’s assumed that the work will be performed at the employer’s head office. For fixed-term contracts, the duration of employment must be mentioned. Additionally, the contract should specify whether the employment is full-time or part-time and outline the daily or weekly working hours and the work schedule.

The base salary, expressed as monetary remuneration for the work done in accordance with the law, collective agreements, and the employment contract, must be included. Other benefits to which the employee is entitled under the law and collective agreements should also be listed. The contract should describe the provisions for annual leave and how it is determined.

 Download a free employment contract for North Macedonia through Native Teams.

Oral, written or electronic employment contracts

In North Macedonia, employment contracts are usually aligned with a standardised format governed by labour laws and practices. These contracts are legally binding agreements between employers and employees, specifying the terms and conditions of employment. The contract must be concluded in written form.

Probationary period

Both the employee and employer have the option to agree on a probationary (trial) period. The contract must specify the length of this probationary period, which cannot exceed 4 months. In cases of legitimate work absences, such as illness, the probationary period can be extended. 

Working hours

The typical workweek in North Macedonia is 5 days long, with each day comprising 8 hours.

Full-time employees work 40 hours per week. However, a company’s policy may allow for shorter full-time hours as long as they exceed 36 hours per week. There’s also part-time employment with schedules less than the standard full-time workload.

Night work

Night work is defined as any work performed between 22:00 and 06:00 the next day. Employers who regularly schedule employees for night shifts must notify the labour inspection authorities. This notification ensures that labour regulations governing nighttime work are followed and allows for oversight and protection of employees working these shifts.

Types of leaves and breaks

Employees in North Macedonia are entitled to various types of leaves, including rest periods as well as different types of leave, including annual leave, paid leave, unpaid leave, and sick leave.

For employees working 6 hours or more, a 30-minute daily break is mandated during working hours. There are also 12 consecutive hours of rest within any 24-hour period and a weekly rest of at least 24 consecutive hours off.

Employees are entitled to annual leave each calendar year, which must be at least 20 workdays. Paid leave is also available to employees for personal or family-related reasons. Unpaid leave can be taken for a maximum of 3 months within a calendar year.

Employees have the right to take sick leave with salary compensation in cases of temporary incapacity for work due to illness or injury, as outlined in health insurance regulations.

Annual leave

Employees have the right to an annual vacation lasting at least 20 working days per calendar year. This annual leave can be extended up to 26 working days through either a collective agreement or an individual employment agreement. The determination of the length of annual leave will depend on factors like years of service, working conditions, and other criteria outlined in the collective agreement.

Public holidays

The Law on Holidays of the Republic of North Macedonia governs public holidays in North Macedonia. Certain holidays are designated as non-working days, including May 24 (St. Cyril and Methodius—Day of the Slavic Enlighteners), August 2 (Republic Day), September 8 (Independence Day), and more.

Additionally, there are other holidays that are non-working for specific religious or community groups. For Orthodox Christians, some of them include Badnik (Christmas Eve), Bogojavlenie (Vodici) Epiphany, and Good Friday (Friday before Orthodox Easter). 

Muslims observe non-working days for Eid al-Adha, as well as November 22 (Day of the Albanian Alphabet) and December 21 (Day of Turkish Language Education). For Jewish individuals, Yom Kippur (the first day of Yom Kippur) is recognised.

Salary

Each full-time worker is guaranteed a minimum monthly NET compensation of MKD 22,567 and a corresponding minimum monthly GROSS salary of MKD 33,353 (net salary + personal income tax + social contributions).

To calculate the salary in North Macedonia, click here.

Sick leave

If an employee is unable to work due to illness or injury, the employer is responsible for providing salary compensation for up to 30 days. If the absence extends beyond 30 days, the salary compensation will be covered by health insurance.

Parental leave

In North Macedonia, parental leave allows for unpaid time off to care for a child for a duration of up to 3 months until the child reaches the age of 3.

Paternity and maternity leave

Maternity leave spans 9 months and can be extended to 15 months if the employee gives birth to more than one child. Fathers are entitled to paternity leave, which includes paid time off. Additional leave may be granted to fathers if the mother doesn’t utilise her full maternity leave.

Methods of employment termination

The Labour Relations Law outlines various circumstances under which an employment contract may be terminated. These include the contract’s expiration, the death of either the employee or employer (if a natural person), the employer’s dissolution according to legal proceedings, consensual cancellation, dismissal with notice, termination via court judgment, and other situations as defined by law.

Termination of employment can also occur through mutual agreement. Employees have the right to resign at any time, while employers may only terminate an employment contract if there are valid reasons related to the employee’s conduct.

Ordinary dismissal by employer

There are three primary types of ordinary terminations. Firstly, termination may result from the conduct of the employee. Secondly, termination may occur due to a breach of workplace discipline or duties, commonly referred to as a fault cause. Lastly, termination may be based on the operational needs of the employer, known as a business cause.

Rights and obligations of unemployed individuals

Unemployment insurance rights encompass several benefits.

This includes financial compensation, assistance in employment preparation such as training or requalification, access to healthcare as per healthcare regulations, and entitlement to pension and disability insurance. 

Unemployed individuals who have maintained employment for a minimum of 9 continuous months or 12 months with an interruption within the last 18 months can receive monetary compensation. However, this only applies specifically to periods of employment during which mandatory social insurance contributions were made.

Severance pay

Severance pay serves as a statutory provision granted to employees upon the termination of their employment. The amount of severance pay allotted to an employee depends on the duration of their service with the employer.

Employees with up to 5 years of employment are entitled to a severance payment equivalent to 1 net salary. As the length of employment increases, so does the severance payment. Between 5 and 10 years of employment, the severance payment rises to 2 net salaries. 

For those with 10 to 15 years of service, the severance payment equals 3 net salaries, while between 15 and 20 years, it escalates to 4 net salaries. Employees with 20 to 25 years of employment are entitled to severance payment equivalent to 5 net salaries. Beyond 25 years of service, the highest level of severance pay, totalling 6 net salaries, is provided.

Prohibition of competition

The Labour Relations Law recognises two types of non-compete clauses: statutory and contractual. Statutory ban states that during employment, employees aren’t allowed to work or make deals that compete with their employer’s business.

According to the contractual ban, if employees gain knowledge or connections at work, the employer and employee can agree in the contract that the employee won’t compete with the employer after leaving.

Remote working policy

The labour laws in North Macedonia don’t specifically cover remote work; instead, they mainly focus on arrangements for “work from home.”

Responsibilities within a remote work arrangement

The employer and the employee have the freedom to agree on the rights, responsibilities, and terms related to the nature of remote work in the employment contract.

Health and safety at home

Under Macedonian law, employers are accountable for protecting the safety and welfare of employees, even in remote work setups. Macedonian labour authorities have the power to intervene and limit remote work if it jeopardises employee well-being or environmental safety.

Intellectual property rights

North Macedonia adheres to international copyright treaties such as the Berne Convention for the Protection of Literary and Artistic Works. 

This means that copyright ownership for work created within the scope of employment may automatically transfer to the employer for 5 years. However, this default ownership arrangement can be superseded by Collective Bargaining Agreements (CBAs) in the workplace, which might grant copyright ownership to the employee instead.

Employee data privacy

The matters of personal data protection are governed through the Law on Personal Data Protection (DP Law), which aligns with the General Data Protection Regulation (GDPR) of the European Union (EU).

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

Hiring employees from North Macedonia presents several advantages that can be particularly appealing to businesses looking to expand or diversify their workforce. One of the most significant benefits is the cost-effectiveness of hiring in North Macedonia. The country offers a relatively low cost of living compared to Western European nations and the United States. 

Cultural adaptability and a strong work ethic are other notable advantages of hiring from North Macedonia. Macedonian employees are known for their resilience, adaptability, and willingness to take on new challenges.

The strategic location of North Macedonia in Southeastern Europe provides logistical benefits for businesses looking to establish a presence in the region. It’s an ideal location for companies that need to coordinate operations across multiple European markets.

Why use Native Teams for hiring in North Macedonia?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• 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.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.