Agreements in North Macedonia

Establishing compliant employment relationships in North Macedonia requires a thorough understanding of the local Labour Law and its requirements for employment agreements. A well-drafted contract serves as the foundation of the employer-employee relationship, clearly defining the rights, obligations, and terms of employment for both parties. Ensuring that these agreements meet all legal standards is crucial for smooth operations and avoiding potential disputes or non-compliance issues.

Employment contracts in North Macedonia must adhere to specific formal and substantive requirements set forth by the law. These requirements cover everything from the type of contract used to the inclusion of essential clauses and the procedures for modification or termination. Navigating these regulations is key for businesses looking to hire legally and effectively within the country.

Types of Employment Agreements

North Macedonia's Labour Law primarily recognizes two main types of employment agreements: indefinite-term and fixed-term. The law favors indefinite-term contracts as the standard form of employment, providing greater stability for employees.

Contract Type	Description	Typical Duration Limit	Purpose
Indefinite-Term	Standard form of employment with no specified end date.	None (continues until terminated by law)	Permanent roles, ongoing business needs.
Fixed-Term	Used for specific projects, temporary increases in workload, or seasonal work.	Generally limited to a maximum of 5 years.	Temporary needs, project-based work, seasonal employment.

Fixed-term contracts can only be concluded under specific conditions defined by law and for a limited duration. While the general limit is 5 years, certain exceptions or specific circumstances may allow for different durations, but the principle is that they should not be used for permanent roles to circumvent the rights associated with indefinite employment.

Essential Clauses in Employment Contracts

North Macedonian law mandates the inclusion of several key clauses in every employment contract to ensure clarity and legal compliance. These clauses define the fundamental terms of the employment relationship.

Mandatory clauses typically include:

• Identification of the contracting parties (employer and employee).
• Place of work.
• Job title, nature of work, or a description of the tasks.
• Start date of employment.
• Duration of the contract (if fixed-term).
• Details regarding salary, including base pay, allowances, and payment frequency.
• Working hours and schedule.
• Duration of annual leave and other types of leave.
• Notice periods for termination.
• Reference to the applicable collective agreement (if any).

These elements must be clearly stipulated in writing within the employment agreement to be legally valid and enforceable.

Probationary Period

Employment contracts in North Macedonia may include a probationary period, although it is not mandatory. This period allows both the employer and the employee to assess the suitability of the employment relationship.

• Maximum Duration: The maximum legal duration for a probationary period is typically six months.
• Purpose: It allows the employer to evaluate the employee's performance and suitability for the role, and the employee to assess the work environment and role.
• Termination during Probation: During the probationary period, either party can usually terminate the employment relationship with a shorter notice period than required after the probation ends. The specific notice period during probation is often defined in the contract or collective agreement but is generally brief.

If the employment continues after the probationary period without termination, the employee is considered to have successfully completed probation, and the contract continues under its standard terms.

Confidentiality and Non-Compete Clauses

Confidentiality and non-compete clauses are common additions to employment agreements, particularly for roles involving sensitive information or specialized knowledge.

• Confidentiality: Clauses protecting the employer's confidential information and trade secrets are generally enforceable in North Macedonia, provided they are reasonable in scope and duration.
• Non-Compete: Non-compete clauses restrict an employee from working for a competitor or starting a competing business. Their enforceability depends heavily on their reasonableness, considering factors such as the geographical area, duration, and the scope of restricted activities. Post-termination non-compete clauses are particularly scrutinized and are generally only enforceable if the employer provides adequate compensation to the employee for the duration of the restriction period. The law sets limits on the maximum duration for such restrictions.

Contract Modification and Termination

Any modification to an existing employment contract in North Macedonia generally requires the mutual written agreement of both the employer and the employee. Unilateral changes by the employer are typically not permitted unless specifically allowed by law or a collective agreement under defined circumstances.

Termination of an employment contract must follow specific legal procedures outlined in the Labour Law. These procedures vary depending on the type of contract (indefinite or fixed-term) and the grounds for termination.

• Termination Grounds: Legal grounds for termination include reasons related to the employee's conduct or performance, operational requirements of the employer (redundancy), or mutual agreement.
• Notice Periods: The law prescribes minimum notice periods that must be given by the party initiating the termination, unless termination is for serious misconduct or during probation. These periods vary based on the length of service.
• Severance Pay: Employees terminated for certain reasons (e.g., redundancy) may be entitled to severance pay based on their length of service.

Strict adherence to legal procedures for both modification and termination is essential to avoid legal challenges and ensure compliance.