In North Macedonia, employer-employee relationships are primarily governed by two types of agreements: Employment Contracts and Author's Contracts.

Employment Contracts

An employment contract is a formal agreement that outlines the rights and obligations of both the employer and the employee. These contracts must be written and signed by both parties. There are two main variations of employment contracts based on duration:

• Indefinite-Term Contracts: Also known as permanent contracts, these are the most common and are used for positions intended to be filled on an ongoing basis. They do not have a set expiry date.
• Fixed-Term Contracts: These contracts are used for temporary positions or projects with a predetermined end date. The maximum term for a fixed-term contract is five years under Macedonian law. However, the contract can be converted into an indefinite-term contract if the employment continues beyond the specified period.

Author's Contracts

In addition to employment contracts, North Macedonia also recognizes author's contracts. These are agreements signed between a creator and a commissioner for the creation of a literary, scientific, or artistic work. The specific terms of author's contracts will vary depending on the nature of the work being commissioned.

Collective bargaining agreements (CBA) can also play a role in employment relationships in North Macedonia. These agreements are negotiated between employers and trade unions and set out general terms and conditions of employment, such as wages, working hours, and benefits, that apply to all employees covered by the agreement.

Employment agreements in Macedonia should clearly outline the rights and obligations of both employers and employees. To ensure a comprehensive and legally sound agreement, several essential clauses must be included.

Identification and Commencement

The agreement should identify the employer (company name and registration details) and the employee (full name, ID number). It should also specify the official start date of the employment relationship.

Job Description and Duties

The agreement should clearly define the employee's job title and position within the company. It should also provide a detailed description of the employee's primary responsibilities and tasks to ensure clarity and avoid potential disputes.

Remuneration and Benefits

The agreement should specify the employee's base salary or wages, including the amount, currency, and payment frequency. It should also clearly outline any additional benefits offered by the employer, such as health insurance, paid time off, or bonuses.

Working Hours and Leave

The agreement should define the standard working hours per day/week, including any overtime regulations and compensation. It should also outline the details regarding vacation leave, sick leave, and other forms of paid or unpaid leave.

Termination

The agreement should detail the grounds for termination by either party, including notice periods and severance pay requirements as mandated by Macedonian law.

Additional Considerations

The agreement may include a clause requiring employees to maintain the confidentiality of sensitive company information. It may also address ownership rights regarding any intellectual property created by the employee during their employment. Finally, the agreement may specify a preferred method for resolving any disputes arising from the employment relationship.

In Macedonian employment law, a probationary period is recognized, allowing employers to assess a new employee's suitability for the role before full confirmation.

Duration and Exceptions

The legal maximum duration for a probationary period in Macedonia is four months from the start of employment. For seasonal workers, the probationary period is significantly shorter, lasting a maximum of three working days.

Purpose and Evaluation

The probationary period serves as a trial period for both the employer and the employee. Employers can evaluate the employee's skills, work ethic, and fit within the company culture. On the other hand, employees can assess whether the job aligns with their expectations and if the company environment is suitable.

Termination During Probation

Both employers and employees have the right to terminate the employment contract during the probationary period. The notice period for termination during probation is significantly shorter compared to the standard notice period. Employees typically only need to provide three working days' notice.

Legal Implications

If the employment contract is terminated during the probationary period, the agreement becomes legally null and void from the date of termination.

Inclusions in the Agreement

Though not mandatory, it's advisable to include a probationary period clause within the employment agreement. This clause should clearly outline the specific duration of the probationary period (within the legal limit), how the employee's performance will be evaluated during the probation period, and the specific notice period required for termination during probation.

In Macedonian employment agreements, two key areas can be addressed to safeguard an employer's legitimate business interests: confidentiality and non-competition. However, each clause has its own legal nuances.

Confidentiality Clauses

Employers have a legitimate interest in safeguarding sensitive company information, such as trade secrets, customer lists, or proprietary data. To achieve this, confidentiality clauses can be incorporated into employment agreements.

• Employee Obligation: The clause delineates the employee's obligation to keep such information confidential during and after their employment.
• Scope of Confidentiality: The specific types of information deemed confidential should be clearly defined.
• Permitted Use: The clause can specify authorized uses of confidential information, such as for the performance of job duties.

Legal Considerations:

Macedonian law generally supports the enforceability of reasonable confidentiality clauses. However, the Law on Labor Relations does not explicitly address confidentiality clauses. Therefore, it's crucial for the clauses to be:

• Clearly Defined: The scope of confidential information and permissible use should be unambiguous to avoid disputes.
• Proportionate: The restrictions imposed on employees should be balanced and not excessively limit their ability to find future employment.

Non-Compete Clauses

Restricted Application: Unlike confidentiality clauses, Macedonian law strictly regulates non-compete clauses in employment agreements.

• General Prohibition: Non-compete clauses that completely prevent an employee from taking up similar employment after termination are generally prohibited.

• Limited Exceptions:

There is a narrow exception for management positions. In such cases, a non-compete clause may be permissible under specific conditions:

• Legitimate Business Interest: The employer must demonstrate a legitimate business interest justifying the restriction, such as protecting trade secrets or client relationships.
• Time-Bound Restriction: The non-compete period cannot exceed two years following the termination of employment.
• Compensation Required: The employer is required to provide the employee with financial compensation during the non-compete period.