Under the legislation of the Republic of North Macedonia, the following categories of employment status exist:

• Employees: Employees are considered individuals who have concluded an Employment Agreement with a legal entity for which they perform their work tasks and responsibilities.
• Self-employed persons: natural persons who carry out an independent economic activity or provide professional or other intellectual services from which they generate income. They may be engaged through a legal entity they have established themselves or operate as freelancers engaged under civil law contracts.
• Agency Workers: The Law on Private Employment Agencies recognises the category of Agency Workers. In principle, upon the request of a Beneficiary Employer, the Agency employs individuals for specific positions and assigns them to temporarily perform work and work duties for the Beneficiary Employer. In practice, the Agency Worker performs work under the supervision and for the benefit of the Beneficiary Employer, while formally remaining employed by the Agency.
• Managers: Managers may either:
  • establish an employment relationship under an Employment Agreement with an executive personnel; or 
  • perform their function based on a Management Agreement under Law on Trade Companies, without establishing an employment relationship.

According to Macedonian legislation, an Employment Agreement may be concluded for either:

• an indefinite period; or
• a fixed term. 

In addition, an Employment Agreement may be established on a full-time basis (40 hours per week) or on a part-time basis, comprising any number of working hours less than the standard full-time schedule of 40 hours per week.

Additionally, the Labor Relations Law regulates the Employment Agreement with work performed at home, which is a special type of Employment Agreement where the place of performance of work tasks is the employee's home or premises of the employee's choice that are outside the employer's business premises.

The employment agreement must be concluded in writing and duly executed by both the employer and the employee.

An employment agreement shall contain, in particular, the following elements:

• details of the contracting parties, including their place of residence or registered seat; 
• the date of commencement of employment; 
• the job title or a description of the type of work for which the employee is engaged, including a brief description of the duties to be performed by the employee; 
• provisions regarding the employer’s obligation to inform the employee of any hazardous work conditions, required special professional qualifications or knowledge, or the need for specific medical supervision, in accordance with applicable law, including identification of any risks associated with the position; 
• the place of work. If the place of work is not specified, it shall be deemed to be the employer’s registered seat; 
• the duration of the employment relationship, where the agreement is concluded for a fixed term; 
• an indication of whether the employment is on a full-time or part-time basis; 
• provisions on the regular daily or weekly working hours and their distribution; 
• the amount of the basic salary, expressed in monetary terms, to which the employee is entitled for the performance of work, in accordance with the law, applicable collective agreement, and this employment agreement; 
• provisions on other forms of remuneration or compensation to which the employee is entitled in accordance with the law and applicable collective agreement; 
• provisions on annual leave, or the method for determining the employee’s entitlement to annual leave; and 
• a reference to the employer’s general acts governing the employee’s working conditions.

An employee engaged under a part-time Еmployment Аgreement shall have the same contractual and other rights and obligations arising from the employment relationship as a full-time employee. Such rights and obligations shall be exercised proportionally to the working time agreed, except where otherwise provided by law.

As a general rule, employment agreements are non-transferable, meaning they are concluded with a specific employer and are to be performed at that same employer.

An exception to this principle exists in the context of private employment agencies, as regulated by the Law on Private Employment Agencies. In such cases, the employee enters into an Employment Agreement with the private employment agency, while performing work for another legal entity, acting as a Beneficiary Employer.

According to the legislation of the Republic of North Macedonia, there is no automatic transfer of employment relationships when a company or part of a company is transferred as a going concern to another legal entity. Employment Agreements are generally concluded with a specific employer and cannot be transferred without the employee’s consent.

As a result, employees do not have a specific statutory right to object to the transfer itself, because the transfer of the employer does not automatically transfer the Employment Agreements to the new entity. In practice, the existing employment relationship with the current employer must first be terminated, after which the employee may conclude a new Employment Agreement with the acquiring employer.

Employees are therefore not entitled to statutory severance solely due to the transfer of the business as a going concern, unless the termination of employment occurs on grounds that under the Law on Labor Relations give rise to severance rights (for example, business-related dismissal/redundancy under the conditions prescribed by law).

Yes. North Macedonian legislation provides statutory protection for employees in the event of a transfer of undertaking/business or other status changes resulting in a change of employer/control.

The relevant statute is the Labour Relations Law, according to which the following is regulated:

• In the event of a transfer of all or part of a business, merger, acquisition, division or other status change resulting in a new employer, all rights and obligations arising from employment relationships automatically transfer to the new employer; 
• the new employer must maintain the employees’ rights and working conditions for at least one year (or until expiry of the applicable employment agreement/collective agreement).

An employer may regulate certain elements of the employment relationship through internal Rulebooks and, in such manner, influence the conditions agreed upon in a specific Employment Agreement. For example, a Rulebook may prescribe a disciplinary procedure for termination of employment, details regarding annual leave, conditions for remote work, and other particulars related to the employment relationship. However, in the majority of cases, where the Employment Agreement contains a specific provision regulating a particular right which the Employer now intends to amend through a Rulebook, the employee’s consent will be required for such amendments to have effect on the Employment Agreement, i.e. an Annex to the Employment Agreement must be concluded.

If this is not the case, i.e. if a particular right is not specifically regulated in the Employment Agreement, this leaves room for the Employer to regulate and amend such right through internal acts.

Should the Employee consider that the Employer is not providing the rights arising from the employment relationship or is violating any of the Employee’s employment rights, the Employee has the right to submit a written request to the Employer requesting that the violation be remedied, i.e. that the Employer fulfils its obligation. If the Employee is dissatisfied with the Employer’s decision or conduct, or does not receive any response from the Employer at all, the Employee further has the right to seek judicial protection.

The Employer also has the right to reassign an employee to another position; however, even in such cases, the conclusion of an Annex to the Employment Agreement is required, except in situations where such reassignment is made for the purpose of eliminating or preventing consequences arising from a natural disaster or other emergency circumstances.

No, the employment legislation of the Republic of North Macedonia does not recognize employment-at-will employment relationships.

The termination procedure is formal and regulated by the Labour Relations Law.

An Employment Agreement may terminate in the following cases:

• upon expiry of the period for which it was concluded; 
• upon the death of the employee or the employer (if the employer is a natural person); 
• upon termination of the employer in accordance with the law; 
• by mutual agreement; 
• by termination notice; 
• by court judgment; and 
• in other cases determined by law. 

The Employer may terminate the Employment Agreement of an employee in the following cases provided under the Labour Relations Law:

• where, due to the employee’s conduct, lack of knowledge or capabilities, or failure to fulfil specific conditions prescribed by law, the employee is unable to perform the contractual or other obligations arising from the employment relationship (personal reason); or 
• where the employee breaches contractual obligations or other obligations arising from the employment relationship (fault-based reason); and 
• where the need for performing certain work under the conditions specified in the Employment Agreement ceases due to economic, organizational, technological, structural, or similar reasons on the employer’s side (business-related reasons).

Against the decision on termination of the employment agreement with a notice period, the employee has the right to file an appeal with the management body, i.e., the employer, within eight days from the date of receipt of the termination decision. The appeal suspends the execution of the termination decision until a final decision on the appeal is issued, which must be adopted within eight days from the date of submission of the appeal. If no decision on the appeal is adopted within this period, or if the employee is not satisfied with the decision issued on the appeal, the employee has the right to initiate a dispute before the competent court.

If, in court proceedings, it is established that the termination was unfounded and unlawful, the employee shall have the right to be reinstated at work. In addition, the employee shall be entitled to claim payment of lost wages from the date of termination until the date of reinstatement and re-registration of the employment relationship.

Yes, the protection of whistleblowers is regulated by the Law on Whistleblower Protection. 

Yes, according to the Labor Relations Law, the Employer is obliged to take care of and protect the privacy of the Employee. If the Employer does not protect the privacy of the Employee, this constitutes a misdemeanor and a competent court may impose a fine on the Employer, which can be in the amount of EUR 500 to 3,000, depending on the size of the legal entity.

Yes, the prohibition of discrimination is provided in the Labor Relations Law, as well as in the Law on the Protection and Prevention of Discrimination.

Yes, the Labor Relations Law prescribes statutory rights to vacation leave, medical leave and parental leave.

Concerning vacation leave, the employees are entitled to a minimum of 20 working days of vacation and a maximum of 26 working days of vacation in accordance with what is agreed in the Employment Agreement.

The employee is entitled to sick leave (medical leave) when there are justified medical reasons for such absence. The employer is obligated to pay salary compensation in cases where the employee is temporarily unable to work due to illness or injury, for a period of up to 30 days. After the expiry of this period, the salary compensation is covered by the Health Insurance Fund.

As an exception, where the employee’s incapacity for work results from injuries caused by the employer’s failure to implement the prescribed occupational safety and health measures, the employer shall be obliged to pay salary compensation even beyond the 30-day period. Such liability is determined on the basis of a report issued by the competent state authority responsible for labour inspection.

Also, in accordance with the Labor Relations Law, leave in case of pregnancy, childbirth and parenting is also provided. A female employee is entitled to paid leave during pregnancy, childbirth, and parenthood for a continuous period of 9 months, or 15 months in the case of the birth of multiple children at once (twins, triplets, or more). If the mother does not use the right to parental leave, it may be exercised by the child’s father or adoptive parent. After the completion of the paid leave for pregnancy, childbirth, and parenthood, the employee is also entitled to unpaid parental leave for the purpose of childcare for a duration of up to three months, which may be used in up to three separate periods, until the child reaches the age of three.

There have been no changes regarding the leave benefits in the past 12 months. In addition, there is no proposed legislation that Employers should be aware of that will impact leave benefits.

Yes, the legislation of the Republic of North Macedonia regulates both a non-compete prohibition (which applies during the employment relationship) and a non-compete clause (which applies after termination of employment).

In general, the non-compete prohibition restricts the employee, for the duration of the employment relationship, from performing or concluding, without the employer’s consent and for their own or a third party’s account, activities that fall within the employer’s business scope and that constitute or could constitute competition to the employer.

The non-compete clause must be agreed in writing and form an integral part of the Employment Agreement in order to produce legal effect. Such a clause may be agreed where the employee, in the course of their work or in connection with it, acquires technical, production, or business know-how, as well as business connections.

There is no statutory limitation regarding the geographical scope of the clause; however, it is generally understood to cover the territories in which the employer carries out its business activities.

With regard to duration, the non-compete clause may be agreed for a maximum period of two years following the termination of the employment relationship.

No. The employee cannot be terminated for refusing to sign a restrictive covenant. As said, the Non-compete clause has to be agreed upon with the Employment Agreement, so Employers cannot force employees to accept new contractual restrictions mid-employment and signing the same to be a condition for the continuation of the employment relationship.

Yes, in the Republic of North Macedonia, the Law on Mandatory Social Insurance Contributions is in force and is applied accordingly. Under this law, the employer, upon payment of salary, is also obliged to pay the mandatory social security contributions, including pension and disability insurance contributions.

In this regard, the pension system is based on three pillars:

• Mandatory pension and disability insurance based on generational solidarity (hereinafter: the first pillar); 
• Mandatory fully funded pension insurance (hereinafter: the second pillar); and 
• Voluntary fully funded pension insurance (hereinafter: the third pillar). 

Yes, in the Republic of North Macedonia, the Law on Mandatory Social Insurance Contributions is in force and is duly applied. In accordance with this law, the employer is obliged, upon payment of salary, to also pay the mandatory social security contributions, including contributions for:

• pension and disability insurance based on generational solidarity (pay-as-you-go system); 
• mandatory fully funded pension insurance; 
• insurance period counted with increased duration; 
• health insurance; and 
• unemployment insurance.

Yes, there is a mandatory retirement age according to the jurisdiction of the Republic of North Macedonia, and it is 64 years of age. In particular cases prescribed in the Law on Labor Relations, the Employee can work until 67 years of age if he/she requires it.

If a pension beneficiary re-enters employment. the pension is suspended during the period of re-employment and recalculated upon cessation of employment, in accordance with the law.

If a pensioner enters into a new Employment Agreement, all mandatory social security contributions are paid in the same manner as for any other employee.

If such a right of the employee is expressly provided for in the Employment Agreement, the employer may not unilaterally require the employee to cease working remotely and to work exclusively from the employer’s business premises, unless the Employment Agreement specifically provides the employer with the right, under certain circumstances, to require the employee to work solely from the employer’s premises.

Accordingly, in order to amend such a right of the employee, the employer and the employee would need to conclude an Addendum to the Employment Agreement, by means of which the relevant contractual provision would be amended.

On the other hand, if the right to work remotely is not regulated by the Employment Agreement, but instead is governed by an internal rulebook or policy of the employer, then the employer may amend the conditions and circumstances under which remote work is permitted, including the right to require a specific employee to work exclusively from the employer’s business premises.