Hiring employees in Albania requires proper legal registration and clear documentation to ensure full compliance with labor laws. Whether you’re a local business or a foreign-owned company, following the correct steps helps you avoid penalties and protects both the employer and the employee.
Pre-employment setup
Before hiring, the company must be fully registered with the National Business Center and have an active tax number. You must also be registered with the Social Insurance Institute and the Health Insurance Institute. These registrations are mandatory for all companies planning to hire staff.
It’s important to confirm that your company is authorized for the business activity and location in which the employee will work. All employment must be declared before the first working day.
Employment contract requirements
Every employee must have a written employment contract. The contract must include specific details such as job title, duties, working hours, salary, benefits, probation period (if any), and termination terms. Contracts can be for a fixed or indefinite period and must comply with the Albanian Labor Code.
The contract must be signed by both parties and registered with the Labor Inspectorate. This is a mandatory legal step. Failure to register a contract is considered undeclared work and is subject to fines.
Registration process
Once the contract is signed, the employer must register the employee with the tax authority, social insurance, and health insurance systems. This registration must be completed before the employee starts work.
Monthly contributions for each employee must be calculated and paid according to the salary declared in the contract. These include personal income tax, employer contributions, and employee social security deductions.
Internal rules and compliance
Companies are expected to keep proper employment records, including time sheets, leave records, and wage documentation. Employees are entitled to paid annual leave, sick leave, and maternity leave under Albanian law. Employers must also ensure workplace safety and comply with non-discrimination regulations.
Labor inspections may occur without notice. Companies must be ready to show employment contracts, registration proofs, and payment records at any time.
Hiring employees in Albania is a structured process that requires attention to legal detail. When done correctly, it builds a strong foundation for growth and avoids future disputes or penalties.