Albania is a developing country which has transitioned from a centralized economy to a modern open-market economy. Key sectors that are driving Albania’s economy are service, agriculture and industrial sectors. Albania still experiences spillover effects of possible debt crises and weak growth in the euro zone due to close trade, remittance, and banking sector ties with Greece and Italy. Nonetheless, foreign direct investment has increased significantly in recent years as the Albanian government embarked on ambitious programmes to improve the business climate through fiscal and legislative reforms.
Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in Albania. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.
Global payroll solutions make it easy to find and hire top talent in Albania. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.
Albania’s worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.
The primary law governing employment relationships in Albania is law no. 7961, “On the Labor Code of the Republic of Albania”, as amended (hereinafter referred as the “Albanian Labor Code”), and other normative acts issued by the Albanian government.
The Albanian Labor Code has restrictions on the kinds of tasks that may be performed at night, by minors (those under 18) and by pregnant women.
Globelise will be able to help you navigate through the employment process and so that you will be able to offer a competitive and compliance offer to attract and retain your employees in Albania.
There has never been a real union movement in Albania. Since the Albanian Party of Labour (APL) was defeated in 1991, two trade unions that have been around are the United Independent Albanian Trade Unions (BSPSh) and the Confederation of Trade Unions (KSSh). However, due to high unemployment rates and poverty, trade unions have limited power in ameliorating the workers’ conditions in Albania.
The maximum probation period in Albania is 3 months.
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