In North Macedonia, the Law on Labor Relations outlines the legal requirements for notice periods during employment termination. These requirements vary depending on who initiates the termination and under what circumstances.

Notice Period for Employer-Initiated Termination

The minimum notice period an employer must provide to an employee upon termination of an employment contract is one month. This applies to situations where the employer terminates the contract for personal reasons, or reasons not constituting a severe breach of work order and discipline by the employee.

However, the notice period can be extended in certain circumstances:

• If an employer terminates the employment of more than 150 employees or 5% of the total workforce, the minimum notice period is extended to two months.

It is important to note that:

• A longer notice period can be stipulated in the employment contract or a collective agreement, but it cannot exceed three months.
• The employer must provide the written notice of termination to the employee in person at the employer's premises or the employee's residence.
• The notice period starts on the day following the day the employee receives the termination notice.

Notice Period for Employee-Initiated Termination

An employee who wishes to terminate their employment contract is required to provide the employer with one month's notice. Similar to employer-initiated termination, a longer notice period can be agreed upon in the employment contract or a collective agreement, with a maximum limit of three months.

Exceptions: Summary Dismissal

There are situations where an employer can terminate an employee's contract without following the standard notice period. This is known as summary dismissal. Summary dismissal is only permitted in cases of severe misconduct by the employee, such as:

• Unjustified absence from work for three consecutive days or five days within a year.
• Misuse of sick leave.
• Failure to comply with health and safety regulations.

In North Macedonia, labor law mandates severance pay for employees whose employment is terminated due to business reasons.

When is Severance Pay Required?

Severance pay is required when an employer terminates an employment contract due to business reasons or technological, economic, or structural changes. This could be due to company downsizing, restructuring, or the employee's position becoming redundant.

How is Severance Pay Calculated?

The amount of severance pay increases based on the length of an employee's service with the company. It is based on the average monthly salary received by the employee in the last six months prior to termination. However, severance pay cannot be lower than 50% of the average net salary paid per employee in North Macedonia in the month prior to the termination.

Severance Pay Scale Based on Tenure

The severance pay scale as mandated by the Law on Labor Relations is as follows:

• Up to 5 years of employment: 1 net salary
• 5 to 10 years of employment: 2.5 net salaries
• 10 to 15 years of employment: 3.5 net salaries
• 15 to 20 years of employment: 4.5 net salaries
• 20 to 25 years of employment: 6 net salaries
• Over 25 years of employment: 7 net salaries

Important Considerations

Severance pay must be paid by the employer on the day the employment is terminated. Any attempt by the employer or employee to waive the right to severance pay is considered null and void under the law.

Terminating employment in North Macedonia requires adherence to the procedures outlined in the Law on Labor Relations to ensure legal compliance.

Types of Termination

There are three main types of termination:

• Termination with Notice: This is the most common form, occurring when either the employer or employee ends the contract.
• Summary Dismissal: This is immediate termination without notice due to severe misconduct by the employee, as outlined by the Law on Labor Relations.
• Termination by Mutual Agreement: The employer and employee may mutually agree to terminate the contract under specific terms and conditions.

Termination by Employer

The employer must have a valid reason to terminate an employment contract. Legally justifiable reasons may include personal reasons, business reasons, or disciplinary reasons. The employer must provide a written notice of termination stating the reasons for the termination and the date on which the employment relationship will end. This notice must be delivered in person.

Termination by Employee

The employee must submit a written notice of resignation to the employer outlining their intention to terminate the employment contract.

Rights and Obligations During Notice Period

Both employee and employer are expected to respect their obligations during the notice period. The employee must continue to perform their duties, and the employer must provide proper working conditions and pay the regular salary. The Law on Labor Relations allows the employee to take a certain amount of time off during the notice period to search for new employment.

Additional Considerations

Employers may be required to consult with workers' representatives or labor unions before making termination decisions, especially in cases of mass redundancies. North Macedonian law provides additional protection against termination for specific categories of employees like pregnant women and those on parental leave. It's important for both employers and employees to thoroughly understand the legal requirements and procedures related to employment termination in North Macedonia to ensure the process is carried out in compliance with the law.