Navigating employment termination in North Macedonia requires careful attention to local labor laws. Employers must understand the specific regulations regarding notice periods, severance pay, permissible grounds for termination, and procedural requirements to ensure compliance and avoid potential legal challenges. Terminating an employee without adhering to these regulations can lead to costly disputes and damage a company's reputation.
This guide provides an overview of the key aspects of employment termination and severance in North Macedonia as of 2025. It covers the legal requirements for notice periods, severance pay calculations, grounds for termination, procedural steps, and employee protections against wrongful dismissal. Understanding these rules is crucial for employers operating in North Macedonia.
Notice Period Requirements
The length of the notice period in North Macedonia depends on the employee's tenure with the company. The minimum notice periods are as follows:
| Length of Service | Notice Period |
|---|---|
| Up to 1 year | 15 days |
| 1 to 5 years | 30 days |
| 5 to 10 years | 45 days |
| Over 10 years | 60 days |
These are the minimum requirements, and employers can provide longer notice periods if they choose. The notice period begins on the day following the day the notice is served.
Severance Pay Calculations and Entitlements
In North Macedonia, severance pay is mandatory when an employee is terminated due to business reasons or redundancy (layoff). The severance pay calculation is based on the employee's years of service and their average monthly salary.
The minimum severance pay is calculated as follows:
Severance Pay = (Average Monthly Salary) x (Years of Service) x (Factor)
The "Factor" is determined by law and typically ranges from 1/4 to 1/3. The specific factor may depend on collective agreements or company policy, but it cannot be lower than the legal minimum.
For example, if an employee has worked for 10 years and their average monthly salary is EUR 1,000, with a factor of 1/4, the severance pay would be:
EUR 1,000 x 10 x 1/4 = EUR 2,500
Grounds for Termination
Termination of employment in North Macedonia can occur with or without cause.
Termination With Cause (Justified Termination):
- Serious violation of work duties
- Failure to meet performance standards
- Disciplinary offenses
- Unlawful behavior
Termination Without Cause (Unjustified Termination):
- Business reasons (e.g., restructuring, downsizing)
- Redundancy (layoff)
When terminating an employee without cause, the employer must provide the required notice period and severance pay. Terminating with cause requires documented evidence of the employee's misconduct or poor performance.
Procedural Requirements for Lawful Termination
To ensure a lawful termination in North Macedonia, employers must follow specific procedural requirements:
- Written Notice: Provide the employee with a written termination notice stating the reason for termination and the effective date.
- Documentation: Maintain thorough documentation supporting the reason for termination, especially in cases of termination with cause.
- Consultation (if applicable): In cases of collective redundancies (layoffs affecting a larger number of employees), consult with the labor union or employee representatives.
- Severance Pay (if applicable): Calculate and pay the severance pay to the employee according to the legal requirements.
- Final Paycheck: Provide the employee with their final paycheck, including all outstanding wages, vacation pay, and other entitlements.
- Record Keeping: Keep records of the termination process, including the termination notice, supporting documentation, and proof of payment.
Employee Protections Against Wrongful Dismissal
Employees in North Macedonia have legal protections against wrongful dismissal. If an employee believes they have been unfairly terminated, they can file a lawsuit with the labor court.
Grounds for Wrongful Dismissal Claims:
- Termination without a valid reason
- Failure to follow the required termination procedures
- Discrimination
- Violation of labor laws
If the court finds that the termination was wrongful, the employer may be required to reinstate the employee, pay compensation for lost wages, and cover legal costs.
To minimize the risk of wrongful dismissal claims, employers should:
- Have clear and objective criteria for termination decisions.
- Follow the required termination procedures meticulously.
- Document all steps taken during the termination process.
- Seek legal advice when in doubt.
