The Labor Code applies to every employment relationship within the territory of Albania, even when there is no written contract. The basic law is No. 7961, dated July 12, 1995, most recently amended by Law No. 91/2024. The Labor Code has four principles that apply equally to every employer, regardless of the form of business or the number of employees.
Here you will find which relationships are subject to the Code and which are governed by other law, how a relationship arises even without a document, and which rule applies when the contract and the law say different things. Below are the four principles, the rights and obligations of each party, who oversees enforcement, and the five legal changes that have affected the Code since 2015.
Read also: The employment contract and the twelve mandatory elements.
The form of the business does not matter. A sole proprietorship, a limited liability company, a branch of a foreign company, or a nonprofit organization have the same obligations to employees.
Individual and collective relationships are covered, as well as full-time and part-time work, seasonal work, work at home, and telework. For telework, the Code requires that the conditions be no less favorable than those for work at the employer's premises, and that the equipment be provided by the employer.
The foreign employee is entitled to the minimum wage, vacation, social security and health insurance, as well as protection against unjustified dismissal. The only difference is the single work and residence permit, which the employer applies for before the employee starts work.
Read also: Employment of foreign nationals, single permit and fees.
Civil servants, military personnel, and diplomatic staff are governed by a different law. For them, the Labor Code applies only to the extent that the special law does not provide otherwise.
The contract of enterprise, governed by the Civil Code, has three distinguishing features. The contractor works with his own tools, bears the economic risk, and promises a result, not his time.
The line is easily crossed. When a person comes every day at a set time, uses the employer's tools, and follows his instructions, the relationship is one of employment regardless of the contract's title. In that case, obligations for contributions and penalties arise, which are borne by the payer.
Read also: Service contract or employment contract: how they differ.
The contract is considered binding from the moment the employee agrees to perform work within the employer's organization and instructions, in exchange for payment. The absence of a written document does not invalidate the relationship or deprive the employee of any rights.
The contract is considered binding when the employee agrees to perform work within the employer's organization and orders, in exchange for payment.Labor Code, Article 21, paragraph 2
Beware of a widespread misunderstanding.
It is often said that work without a contract is not protected by law. The opposite is true. The relationship exists and the employee has all the rights, while the employer remains unprotected, because there is no way to prove what was agreed upon.
What the employer loses without documentation is not the obligation, but the proof. The salary, schedule, and start date are then proven by any other means, including witness testimony from colleagues and bank transfers.
For special and justified cases, the Code allows the contract to be drawn up in writing within seven days from the date of employment. The tax declaration cannot wait. It must be filed at least one calendar day before the employee begins work, using form ESIG027.
In an employment relationship, the law, the collective bargaining agreement if one exists, the individual employment contract, and the internal regulations all apply simultaneously. When they say different things, the provision most favorable to the employee is applied.
A clause that falls below the legal minimum becomes void, while the rest of the contract remains in effect. The opposite is equally true. When the contract grants more than the law requires, the contract prevails.
The contract specifies 15 days of annual leave. The law requires at least 22 working days. Employees are entitled to 22 days; the contract clause does not apply and the rest of the contract remains valid.
When the employment relationship ends with 10 unused days, they are paid based on 22 days, not 15 days. With a monthly salary of 80,000 LEK, the difference between the two bases exceeds 12,000 LEK for a single employee. Example from our practice.
Any form of discrimination in employment and profession is prohibited. Protection extends to recruitment, working conditions, pay, training, and the termination of the employment relationship. The burden of proof shifts to the accused party, so the employer must prove that they did not discriminate.
Read also: Discrimination and harassment at work.
Sexual and moral harassment are expressly prohibited. The employer acts upon becoming aware, handles the complaint confidentially, and does not allow retaliation against the complainant.
The employer collects only data related to the employee's professional skills or to the performance of the contract. The current general framework is Law No. 124/2024, which replaced Law No. 9887/2008.
Employees organize into unions and participate in collective bargaining. Employers organize into associations. The Code provides special protection for union representatives against termination of their employment contracts.
Basic rights do not depend on the will of the parties. They arise automatically with the relationship, even if they are not mentioned anywhere in the contract.
Basic rights of the employee
| The right | Content | Article |
|---|---|---|
| Salary | Not lower than the national minimum wage, paid regularly. | one hundred eleven and one hundred sixteen |
| Invoice | Calculation of the salary with all deductions for each payment. | 119 |
| Annual leave | No fewer than 22 working days during the work year. | 92 |
| Weekly break | No fewer than 36 hours, of which 24 are uninterrupted. | 85 |
| Workplace safety | Safe environment, information, and training at the employer's expense. | 39 |
| Non-discrimination | Defense in recruitment, pay, training, and termination. | nine and thirty-two |
| Personal data | Collection of only work-related data | 33 |
The employee, for his part, performs the work with due care, maintains the tools and facilities made available to him, follows instructions on work organization, and keeps business information confidential.
The employer sets the schedule within legal limits, provides instructions on how to perform the work, and takes disciplinary action when rules are violated. This right comes with two conditions.
First, the disciplinary procedure must guarantee the employee the right to be heard and to defend themselves within a reasonable timeframe. When the business does not have a collective bargaining agreement, the types and procedures of disciplinary measures are set out in the individual employment contract.
Secondly, the employer keeps records. The Code requires an employees' register and a leave register, while the contributions legislation requires payroll records, updated monthly.
Read also: Accurate reporting of employees and wages.
Documents kept for each employee
✔ Individual employment contract, signed by both parties
✔ Additional documentation for any change in pay, schedule, or position.
✔ Confirmation of the ESIG027 declaration for the start of the relationship
Monthly invoices
✔ Permit applications and approvals, with medical reports
✔ Annual leave schedule, with days used and remaining
✔ Workplace Health and Safety Training Tests
Read also: Employee file and mandatory records.
The State Labor Inspectorate monitors compliance with labor and safety legislation. It enters workplaces without prior notice, interviews employees, verifies records, and obtains copies of documents.
As of May 13, 2025, Law No. 99/2024 takes effect. The minutes are electronically signed and notified within 48 hours. The entity submits objections within 8 days. The final decision is made within 30 days. At the first inspection, the primary measure is a warning with a deadline for correction.
The tax administration separately audits employee declarations and payroll records. There are two audits based on different legal grounds, which often start from the same alert: a company with revenue and zero employees.
Read also: How is a job inspection conducted today?.
Key changes and what they affected
| Change | Act | What did he touch? |
|---|---|---|
| Broad review of the Code | Law 136/2015 | Contract, schedule, termination procedure, protection against discrimination |
| Annual leave of 22 working days | Law 91/2024 | It replaced the four-calendar-week rule. |
| The new inspection framework | Law 99/2024 | Electronic minutes and appeal deadlines |
| New personal data law | Law 124/2024 | Employee file and cameras in the workplace |
| Minimum wage 50,000 LEK | Government Decree 776/2025 | Payroll and contribution base as of January 1, 2026 |
The old rule on vacations—no fewer than four calendar weeks—no longer applies. Many contracts and internal regulations still retain that wording.
Read also: Amendments to Articles 92 and 93 by Law No. 91/2024.
Read also: Minimum wage to increase to 50,000 LEK from January 2026: what changes for businesses.
Yes. The contract is considered entered into from the moment the employee agrees to perform the work in exchange for payment. In justified cases, the contract is put in writing within seven days of the date of employment.
The law applies. A clause that falls below the legal minimum becomes void, while the rest of the contract remains in effect. When the contract provides more than the law requires, the contract prevails.
Yes, the same ones. The only difference is the unique work and residence permit, which the employer applies for on e-Albania before the start of employment.
No fewer than 22 working days per calendar year, in accordance with Article 92 as amended by Law No. 91/2024. Official holidays are not counted as part of the leave. The previous rule of four calendar weeks no longer applies.
No. The contract can only be amended by written agreement of the parties. The amendment is made by a supplementary instrument signed by both parties.
State Labor Inspectorate. The first documents required are the signed contracts, the employee register, the leave register, and the updated payroll records.
Eight days from the notification of the minutes, which is issued within 48 hours of the inspection. The final decision is made within 30 days.
As of January 1, 2026, according to Government Decree No. 776 of December 19, 2025, the maximum wage for contribution purposes is 186,416 LEK.
