Learn about the legal processes for employee termination and severance in Macedonia
In North Macedonia, the Labor Law outlines the legal requirements for notice periods during employment termination. The duration of these periods varies depending on who initiates the termination and the type of employment contract.
An employee intending to terminate their employment contract must provide a minimum of one month's notice. However, a collective agreement or the individual employment contract can stipulate a longer notice period, which cannot exceed three months.
The notice period for termination initiated by the employer is more complex. Here's a breakdown:
The notice period always starts on the day following the employee receiving written notification of termination.
In North Macedonia, severance pay is a legal requirement when an employer ends an employment contract due to business-related reasons such as economic difficulties, redundancy, or restructuring. The severance pay amount is determined by the employee's tenure with the company.
Severance pay is calculated based on the employee's average monthly salary for the six months prior to termination. According to the Law on Labour Relations, the breakdown is as follows:
Regardless of their salary, an employee is entitled to a minimum severance amount. This amount must be at least 50% of the average net salary paid per employee in North Macedonia in the month preceding the termination date.
Severance pay must be paid out on the date of employment termination.
Terminating an employee's contract in North Macedonia must adhere to specific legal guidelines outlined in the Law on Labor Relations.
An employer in North Macedonia can terminate an employment contract only for reasons prescribed by law, collective agreement, or the employer's internal acts. Valid reasons generally fall into the following categories:
Termination must always be communicated through a formal written decision. The decision must include the following:
If the company has a Workers' Council, the employer may be obligated to consult with it before issuing a termination notice, depending on the circumstances and number of employees affected.
The written termination decision must be delivered to the employee in person, either at the employer's premises or the employee's residence.
We're here to help you on your global hiring journey.