Termination & Severance Rights Under the Labor Code of Albania
Employment terminations in the Republic of Albania are governed by the Labor Code of the Republic of Albania (Kodi i Punes i Republikes se Shqiperise):
- Mandatory Written Notice Period (Article 143):
- Service up to 6 months: 2 weeks notice.
- Service 6 months to 2 years: 1 month notice.
- Service 2 to 5 years: 2 months notice.
- Service over 5 years: 3 months notice.
- Seniority Severance Indemnity (Shperblimi i Vjetersise - Article 152):
- Payable when the employee has completed at least 3 continuous years of service with the employer.
- Statutory calculation: At least 15 days of salary per full year of service (equivalent to half a month salary per completed year).
- Unjustified Dismissal (Article 146): If dismissal is ruled without reasonable cause by a labor court, the employer may be ordered to pay up to 1 year of salary as additional compensation.
Statutory Regulatory Framework: Compliant with Law No. 29/2023 on Income Tax, Labor Code of the Republic of Albania, Law No. 7703 on Social Insurance (ISSH), and regulatory instructions issued by the General Directorate of Taxes (DPT) and Energy Regulatory Authority (ERE).