The employment contract is an agreement between the employee and the employer, which regulates the employment relationship and contains the rights and obligations of the parties. In the employment contract, the employee undertakes to offer his work or service for a specified or indefinite period of time, within the organization and orders of another person, called the employer, who undertakes to pay a remuneration. When the relationship between the two parties is not clearly defined, the competent court or the Temporary Employment Agency, at the request of the parties, must determine the true nature of the relationship between them, based on the provisions of this Code, as well as the facts related to the ability in work and remuneration of the employee.

 

What is considered an employment document according to the International Labor Organization (ILO)?

 

According to the International Employment Organization (ILO), a document is considered an employment contract when 3 conditions are met simultaneously:

Firstly, is an agreement of free will between two parties, the one who wants to be part of a work process and the one who offers a work process

Second, this work process must include a reward, which comes in the form of a cash payment.

Thirdly, the process takes place under the supervision of one party, which is the employer.

 

The form of an employment contract according to the “Labor Code” in Albania:

 

According to the Labor Code in Albania, the agreement between the employer and the employee is made in writing and, mainly, contains:

1. a) the duration of the employment;
2. b) place of employment;
3. c) general job description;
4. d) service fee.

 

When does an employment contract is considered concluded?

 

The employment contract is considered concluded when the employee agrees to perform a job or service, for a specified or indefinite period of time, within the framework of the organization and according to the orders of the employer and which, based on these circumstances, is performed only against payment

 

The employment contract must contain especially:

1. a) the identity of the parties;
2. b) workplace;
3. c) general job description;
4. d) date of commencement of work;
5. e) the duration, when the parties enter into a fixed-term contract;
6. f) the duration of paid holidays;
7. g) the notice period for termination of the contract;
8. h) the constituent elements of the salary and the date of its award;
9. i) normal weekly working time;
10. j) reference to the collective agreement in force;
11. k) trial period;
12. l) types and procedures of disciplinary measures, if there is no collective agreement.

 

In the employment contract, the parties expressly provide that the contract is concluded for temporary or permanent work purposes of the Agency/company.

 

Before starting work in the host enterprise, the employer informs the employee, in writing, about: a) the name, address of the headquarters and the place of work;

1. b) the name of the employer or representative of the host enterprise;
2. c) rules for normal work progress, working time and rest time;
3. d) any other important employment condition for the given job.

 

There are two types of employment contracts:

Fixed-term employment contracts – The fixed-term contract ends at the end of the stipulated time, without prior resolution.

 

Employment contracts with an indefinite term – The contract with an indefinite duration ends when it is chosen by one party and the notice period has ended.

 

Trial period:

According to the Labor Code, the employer and the employee, in the employment contract (with fixed or indefinite term), can foresee a trial period, during or at the end of which, they decide on the continuation or not of the employment relationship.

Some characteristics of the trial period:

• The trial period is applied to both fixed-term contracts and indefinite-term contracts, articles 142 and 150 of the Labor Code.
• If the contract is not terminated during the trial period, this is included in the duration of the fixed-term contract.
• The probationary period cannot be stipulated more than once and for the performance of the same work, when a work contract has been concluded between the parties.
• The trial period cannot be longer than 3 months. It can be shortened or removed by agreement between the parties or in the collective agreement.
• The length of the probationary period is known as seniority.
• Each of the parties can terminate the contract during the trial period with a 5 (five) day prior notice. Please note that this period is different from the notice periods that apply to termination of employment after the end of the trial period..

Term of termination of employment relationship

After the probationary period, in order to terminate the contract with an indefinite period, the parties must comply with a notice period of:

• one month, during the first year of work,
• two months for two to five years of work,
• three months for more than five years of work.

These deadlines can be changed by written agreement or in the collective labor contract. When the employee has completed up to six months of work, the notice period cannot be less than two weeks. The notice period is no less than 1 month when the employee has worked for more than six months. The notice period for the termination of the contract is extended, as the case may be, until the end of the week or until the end of the month. The same rule applies when the notice period is suspended during the period of incapacity for work, pregnancy or holidays granted by the employer. When one of the parties terminates the contract without respecting the notice period, the termination is treated as termination of the contract with immediate effect.