When a company hires a new employee in Albania, a period of mutual assessment comes first, which is known as probation. The employer and the new employee can evaluate the suitability before committing to a long-term relationship together.

In Probation, employers can gauge the employee’s skills, work ethic, and fit within the company’s culture. While an employee can assess the job responsibilities and compatibility with the company. It is to reduce the risk of costly hiring mistakes for employers and provide supportive roles for employees.

In this guide, we will look into probation periods in Albania to examine how it is regulated by the country’s labor laws and the full compliance of employers and employees.

Definition of a Probation Period in Albania

In Albania, the probation period, or periudha e provës, is an initial phase of an employment relationship to match the suitability of the working arrangement. It is a practical test where an employer evaluates the new employee’s professional capabilities, performance, and integration into the team. The employee uses this time to check if the job aligns with their expectations, if the work environment is conducive, and if they can effectively perform the duties assigned. 

These probationary periods commence on the first day of employment. They can conclude in one of three ways: either through termination by either party, a formal confirmation of permanent employment by the employer, or by reaching their maximum duration. If no one chooses to terminate the contract by the end of the probationary period, the employment automatically continues as a permanent, indefinite-term contract.

Lengths of Probationary Periods in Albania

In Albania, probationary periods are not strictly mandatory, but are a commonly utilized practice. If a probation period is to be applied, it must be agreed upon in writing within the individual employment contract. The maximum length of a probation period is clearly defined by the Albanian Labour Code (Law No. 7961, dated 12.07.1995, as amended).

Article 14 of the Labour Code states maximum length for a probationary period is three months.

Permanent or Indefinite Contracts

In Albania, the general rule is that employment contracts are for an indefinite term unless a fixed term is stated and justified to align with a broader international trend. The maximum probationary length is consistently set at three months for indefinite contracts.

The three-month period applies as the standard maximum for all types of roles under indefinite contracts, from entry-level positions to highly specialized or managerial roles. There are no legally mandated differentiations in probation length for indefinite contracts.

If the employment contract is not terminated by either party during the probationary period, it automatically converts into a full, permanent, indefinite-term employment contract.

Fixed-Term or Definite Contracts

Fixed-term contracts have a probationary period that cannot exceed the three-month maximum. If the fixed-term contract itself is for a shorter duration, the probation period should be reasonable and proportionate to the contract’s length. The inclusion and length of the probation period must be stated in the written employment contract signed by both the employer and the employee. 

If not specified in writing, it is generally assumed that no probation period applies. The Labour Code also allows for the probation period to be reduced or even removed entirely by a mutual written agreement. This flexibility can be useful when hiring highly specialized talent for your company.

If an employee is absent during the probationary period for a justified reason, those days are generally not counted towards the length of the probation. The probationary period effectively pauses and is extended by the duration of the absence.

Legal Considerations for Probation Periods in Albania

The legal framework governing probation periods in Albania is established by the Labour Code. This code outlines the rights of both employers and employees during this initial phase of employment to balance the employer’s need for assessment with the employee’s fundamental protections.

During the probationary period, both the employer and the employee are expected to act in good faith and in a manner that would lead to the continuation of the employment contract if the assessment proves positive. Major legal considerations include the following:

Pay and Working Conditions

All fundamental employment rights and conditions are equal for probationary workers in Albania as they are for permanent employees. It is to ensure that probationary employees are not exploited and receive fair treatment from their first day of work.

All employees, including those on probation, must be paid at least the minimum wage. The gross monthly minimum wage in Albania is ALL 50,000 for a full-time work schedule, 40 hours per week. 

The standard working week in Albania is 40 hours, spread over five days, typically eight hours per day. Employees cannot work more than 48 hours in a week, including overtime. For overtime on regular working days, the minimum premium rate is 25% above the standard hourly wage. For work on public holidays or weekly rest days, the premium increases to 50% Night work.

Termination and Notice

The Albanian Labour Code provides simplified rules for terminating an employment contract during the probationary period, granting both parties more flexibility than after the probation has concluded.

During the initial phase of the probationary period, the employer or the employee can terminate the agreement without requiring any justification or notice.

However, a five-day notice period is required for termination by either party during the probation period. This notice period applies from the moment either the employer or the employee decides to terminate. Neither party is obliged to share the reasons for such termination during probation.

Vacation / Holidays

Albanian workers are entitled to 15 paid public holidays each year. If any of these public holidays fall during a worker’s probationary period, the worker is entitled to the day off with pay. If an employee works on a public holiday, they must receive 50% above the normal rate.

New employees in Albania have at least 20 working days of paid annual leave per year, based on the length of service. For a new employee to be eligible to use their annual leave, they must have worked for a continuous period. Any unused leave during probation would be compensated.

Benefits of Probation Periods in Albania

Probationary periods have many advantages in Albania. Some of these advantages are as follows:

  • For Employees

Employees can experience their new work environment, daily tasks, and understand the company culture before making a long-term commitment.

Employees can resign with five days’ notice if the role is not a good fit.

New hires demonstrate skills, dedication, and adaptability in the probation period, and their strong performance can lead to permanent employment.

  • For Employers

Employers can assess a worker’s reliability and cultural fit in a working environment.

If a new hire proves unsuitable, employers can terminate the employment contract more easily and with a shorter notice period without requiring just cause or any legal trouble.

Probation helps employers avoid costly and legal disputes that can arise from terminating a permanent employee without proper justification.

Conclusion

Albania is an economy with increasing opportunities for businesses. If your company is looking to expand into Albania, you must understand the local labor laws and probation periods for compliant hiring. The probation period is regulated by the Albanian Labour Code, which offers a structured mechanism for both employers and employees before entering into a long-term commitment.

The maximum three-month probation period is coupled with the termination rules during this phase. It provides employers with flexibility to basic protections for new hires. However, all these complex procedures require careful attention to detail, which we’ve provided in the article above.

With RemotePeople as your partner, you can bypass the complexities of local employment and probation period regulations to expand your business into Albania.

Frequently Asked Questions

No, probation periods are not strictly mandatory in Albania. If an employer implements one, it must be in a written agreement between the employer and the employee.

The employer or employee can terminate the employment agreement with a short notice period without needing to provide a specific justification.

The standard and maximum length for a probationary period in Albania is three months.

If an employee is absent due to illness during their probation period, those days are generally not counted towards the length of the probation. The probation period is effectively paused and extended by the duration of the justified absence.