North Macedonia Employment Guide

North Macedonia Employment Guide

North Macedonia, located in the Balkans with a population of around 2 million, has an economy based on services, industry, and agriculture. Key sectors include manufacturing, IT, and trade. Employment in North Macedonia is governed by the Labor Law, covering employment contracts, working hours, minimum wage, and social security contributions. Employers must comply with these regulations to ensure proper labor practices. The labor market provides opportunities in IT, manufacturing, finance, and business services.

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Currency

Macedonian Denar (MKD)

Capital

Skopje

Official language

Macedonian

Salary Cycle

Monthly

Our Employment Guide in North Macedonia

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Navigating Employment Termination in North Macedonia

As an international HR professional, I understand that terminating an employment contract in a foreign jurisdiction requires meticulous attention to local laws. In North Macedonia, the process is governed by strict regulations designed to protect both employer and employee rights. A compliant termination cannot be arbitrary; it must be supported by valid grounds as stipulated by law.

Permissible Grounds for Termination

Employers must ensure that any termination action aligns with one of the legally recognized categories. These include:

  • Voluntary resignation initiated by the employee.
  • Mutual agreement to terminate the contract between both parties.
  • Unilateral termination by the employer, justified by specific reasons such as:
    • Dismissal during the probationary period.
    • Termination for objective reasons (e.g., economic redundancy).
    • Disciplinary dismissal due to employee misconduct.
    • Performance-related dismissal for consistent underperformance or incapability.
  • Natural expiration of a fixed-term contract.

For instance, a company like SailGlobal must carefully document any performance issues before proceeding with a dismissal for underperformance to avoid legal challenges.

Mandatory Notice Periods

A key procedural requirement is the notice period. The minimum statutory notice period in North Macedonia is 30 days. However, employment agreements can legally extend this period up to a maximum of 90 days. Adhering to this timeline is critical for a smooth transition.

Understanding Severance Pay Obligations

Severance pay is a mandatory financial compensation for employees made redundant. The calculation is based on the employee's length of service and net salary, structured on a progressive scale. This system rewards long-term service.

Years of ServiceSeverance Pay (in months of net salary)
Up to 5 years1 month per year
5 to 10 years2.5 months per year
10 to 15 years3.5 months per year
15 to 20 years4.5 months per year
20 to 25 years6 months per year
Over 25 years7 months per year

Consider a scenario: An employee with 12 years of service would be entitled to 12 x 3.5 months of their net salary. Properly calculating and disbursing this payment is non-negotiable for compliance.

Best Practices for a Compliant Offboarding Process

Beyond the legal minimums, a professional termination process involves clear communication, thorough documentation, and, where possible, outplacement support. Partnering with a specialized HR provider like SailGlobal can help multinational companies navigate these complexities efficiently, minimizing risk and maintaining positive employer branding.

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