In North Macedonia, employment agreements fall into two main categories: Individual Employment Agreements and Collective Agreements.

Individual Employment Agreements

Individual Employment Agreements are contracts between an employer and an employee that outline the specific terms and conditions of their working relationship.

• Fixed-Term Employment Contracts: These contracts specify a defined period of employment, with a maximum duration of five years. They are commonly used for project-based work or temporary positions.

• Unlimited Employment Contracts: These are open-ended contracts with no predetermined termination date, providing greater job security for the employee.

• Part-Time Employment Contracts: These agreements establish a work schedule with fewer hours than a full-time position.

Collective Agreements

Collective agreements are negotiated between employers or employer organizations and trade unions representing employee interests. These agreements set out general working conditions for a particular sector or company, often including wages and salaries, working hours and overtime pay, benefits such as vacation time and sick leave, and health and safety standards. These agreements are legally binding for all employers and employees covered by the agreement.

Additional Considerations

• Author's Contracts: Separate agreements exist for authors of literary, scientific, or artistic works.

• Non-Standard Forms of Employment: North Macedonia also recognizes temporary agency work and seasonal work contracts, falling under the umbrella of non-standard employment.

It's important to note that any provision within an individual employment agreement that contradicts the Labour Law or a relevant collective agreement will be considered null and void.

In North Macedonia, employment agreements, whether individual or collective, should include specific clauses to ensure clarity and legal compliance.

Identification of Parties

The full names, addresses, and registration details (for companies) of both the employer and the employee should be included.

Job Details

The specific job title and a brief description of the employee's duties and responsibilities should be clearly defined. The primary workplace location where the employee is expected to perform their duties should also be specified.

Employment Terms

The type of employment should be indicated, whether it's full-time, part-time, fixed-term (with duration), or unlimited. The standard working hours per day and week, including any overtime regulations and compensation details, should be outlined.

Compensation and Benefits

The employee's base salary or wage, including the currency and payment frequency, should be clearly stated. Any benefits offered, such as vacation time, sick leave, health insurance, and any allowances (e.g., transportation), should be enumerated.

Termination

The required notice period for termination by either party, adhering to legal minimums as outlined in the Labour Law, should be defined. The valid reasons for termination as stipulated by law, including those related to employee performance, misconduct, or business reasons, should be listed.

Additional Clauses

Consider including a clause regarding the protection of confidential company information by the employee. If applicable, establish ownership rights over any intellectual property created by the employee during their employment. The process for resolving any disagreements arising from the employment agreement should be outlined.

The Labour Law of North Macedonia serves as the primary legal foundation for employment agreements. Collective agreements may supersede or supplement individual agreements in certain circumstances.

North Macedonian employment law permits employers to include a probationary period in employment contracts to assess an employee's suitability for the role.

Legality and Duration

The Labour Law of North Macedonia explicitly allows for probationary periods within employment agreements. The maximum duration for a probationary period is six months, with exceptions for justified absences like illness.

Notice Period During Probation

During the probationary period, both the employer and the employee have a shorter notice period for termination compared to the standard contract. The employee typically needs to provide three working days' notice to terminate the contract during probation.

Evaluation and Termination

The probationary period serves as a trial phase for both parties to evaluate suitability. If either party decides to terminate during the probationary period, a detailed reason is not required by law.

Probationary Period Not Mandatory

The inclusion of a probationary period is not mandatory and needs to be explicitly agreed upon within the employment contract. Employers can opt for a different approach, such as a comprehensive training period during the initial stages of employment.

Considerations for Employers

Employers should clearly define the objectives and expectations for the employee during the probationary period within the contract. Regular performance feedback should be provided to the employee throughout the probationary period. It's also important to ensure adherence to all legal requirements regarding the probationary period as outlined in the Labour Law.

In North Macedonia, employment agreements may include provisions for the protection of confidential business information and restrictions on employee competition post-termination. However, these clauses must be carefully crafted to be legally enforceable.

Confidentiality Clauses

Employers have a legitimate interest in protecting confidential business information. Confidentiality clauses in employment agreements can specify the information deemed confidential and the employee's obligations to safeguard it. The scope of information classified as confidential should be clearly defined and reasonable, so as not to impede the employee's ability to perform their duties or utilize their general skills and knowledge.

Non-Compete Clauses

North Macedonian law prohibits non-compete clauses that entirely restrict an employee's ability to seek similar employment after termination. Exceptions are made for specific situations where the protection of an employer's legitimate business interests, such as trade secrets or highly specialized knowledge, is at stake.

For a non-compete clause to be enforceable, it must:

• Be limited in duration, typically up to two years post-termination.
• Not prevent the employee from finding new employment altogether.
• Provide financial compensation to the employee during the restricted period.

Importance of Legal Expertise

Given the complexities of non-compete clauses, it is advisable to consult with an employment lawyer familiar with North Macedonian labor law. They can provide guidance on the legality and proper drafting of such clauses to ensure enforceability and compliance with legal requirements.