Albania

Capital: Tirana

Currency: - ALL

ALL

Albania: Overview of Labor Law and Employment Policies

Key Laws and Regulations:
- Albanian Labor Code
- Social Security Law
- Health Insurance Law
Legal Characteristics:
- Aims to protect employee rights and promote fair employment practices.
- Sets standards for minimum wage, working hours, vacation time, and severance pay.

Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
Contractual Provisions:
- Must include terms such as job description, compensation, working hours, vacation time, and termination conditions.
Language and Currency:
- Contracts must be in Albanian and denominated in Albanian Lek.

Standard Working Hours: 40 hours per week, 8 hours per day.
Rest Days and Breaks: Minimum of 24 hours of rest per week, and at least 12 hours of rest after each workday.

Annual Leave: Minimum of 28 days of paid annual leave per year.
Public Holidays: 15 national public holidays.
Special Leaves:
- Sick Leave: Unlimited leave based on medical condition, with 80% salary paid by employer for first 14 days, and 70% by social insurance thereafter.
- Maternity Leave: Up to one year of leave, with at least 35 days before and 63 days after childbirth, 80% salary paid for first 6 months, 50% for next 6 months.
- Paternity Leave: Fathers are entitled to 3 days of paid paternity leave.
- Parental Leave: 12 days of paid parental leave, with additional 3 days for parents of children under 3 years old, and up to 30 days of unpaid parental leave per year.

Notice Period:
- Less than 6 years of service: 2 weeks
- 6 months to 2 years of service: 1 month
- 2 to 5 years of service: 2 months
- 5 years or more of service: 3 months
Severance Pay:
- Dismissal with notice: Salary during notice period + seniority bonus + unused vacation pay + annual bonus
- Immediate dismissal with just cause: Salary up to last day of work + unused vacation pay
- Dismissal without just cause by employer: Above payments + 1 year's salary

Personal Income Tax:
- Salary Range (ALL) Tax Rate
  0 - 30,000 0%
  30,000 - 150,000 13%
  150,000 and above 23%
Social Security Contributions:
- Employer: 15%
- Employee: 11.2%

Insurance Policy:
- All employees must participate in the state-funded healthcare scheme.
Insurance Coverage:
- Basic medical services, hospitalization, and prescription drugs.

Permit Requirements:
- Non-Albanian citizens require a work permit or visa.
Application Process:
- Employer applies for work permit on behalf of employee to the Ministry of Labor and Social Affairs.

Enforceability:
- Confidentiality and non-compete clauses are enforceable in Albania.
Common Provisions:
- Restrict employees from using or disclosing employer's confidential information after termination of employment.
- Restrict employees from working for competitors after termination of employment.

Legal Requirements:
- Employers must provide safety training and skills development training to employees.
Government Support:
- Government provides funding and incentives to encourage corporate training.

Legal Requirements:
- Prohibits discrimination based on race, gender, religion, or disability.
Enforcement Measures:
- Employers must develop and implement anti-discrimination policies.

Legal Framework:
- No specific legal framework supporting or restricting remote work.
Tax and Insurance Implications:
- Tax and social insurance implications of remote work depend on specific circumstances.