North Macedonia Employer Compliance Hub: Employment Regulations & Payroll & Tax

Key Law Terms Overview in North Macedonia

Labor Law of Macedonia

LABOR RELATIONS LAW
(“Official Gazette of the Republic of Macedonia” No. 62/05, 106/08, 161/08, 114/09, 130/09, 50/10,
52/10, 124/10, 47/11, 11/12, 39/12, 13/13, 25/13, 170/13, 187/13, 113/14, 20/15, 33/15, 72/15,
129/15, 27/16, 120/18 and “Official Gazette of the Republic of North Macedonia” No. 110/19,
267/20, 151/21 and 288/21)
I. GENERAL PROVISIONS
Scope of the Law
Article 1
(1) This Law shall regulate labour relations which are entered into on the basis of an
employment contract concluded between the employees and the employers.
(2) The labour relation shall be stipulated by this and another Law, Collective Agreement and
Employment Contract.
Aim of the Law
Article 2
The aim of this Law shall be to involve employees in the working process and to ensure a
harmonized running of the working process, during which the right of employees to have freedom of
labour, dignity and protection of interests are to be honoured.
Regulation of Labour Relations
Article 3
(1) Unless stipulated otherwise by a special Law, this Law shall also regulate labour relations
of employees employed with state bodies, bodies of the units of local self-government, institutions,
public enterprises, bureaus, funds, organizations, and other legal entities and natural persons carrying
out a public service.
(2) Labour relation may be terminated solely in a manner and under conditions stipulated by
Law and Collective Agreement.
(3) Each of the parties shall be obliged to fulfil the rights, obligations and responsibilities that
are agreed upon and stipulated in the labour relation.
Application of the Law
Article 4
(1) This Law shall be applied to labour relations between employers established or residing
in the Republic of North Macedonia and the employees employed by them, when they continually
perform work on the territory of the Republic of North Macedonia, as well as in cases when the
employer temporarily appoints the employee to perform work abroad.
(2) This Law shall also be applied to labour relations between employers from the territory of
the European Union and employer from the territory of a state that is not a member of the European
Union and the employees employed in them concluded on the basis of an employment contract for
performing work on the territory of the Republic of North Macedonia.
(3) The provisions of this Law and other laws that regulate the work hours, daily rest and
annual vacations, night shifts, minimum annual vacation days, minimum salary, protection and safety
at work and special protection of the employees shall be applied to employees who are referred to a
temporary work assignment in the Republic of North Macedonia based on an employment contract
in line with foreign law by an employer from the territory of a member state of the European Union
or from a state that is not a member of the European Union.
(4) This Law shall apply to the work relations of the employees sent by their employer to
perform services for another employer from the territory a member state of the European Union on
the territory of the Republic of North Macedonia and an employer from the territory of a state that is
not a member state of the European Union.
(5) This Law shall not apply to the navy personnel and the trade- navy enterprises, plane crew
members and foreign citizens employed in the companies for passenger and rail road traffic that have
registered headquarters abroad.
Definitions
Article 5
(1) Certain terms applied in this Law have the following meaning:
1. “Labour relation” shall be a contractual relation between the employee and the employer
whereby the employee is voluntarily included in the employer’s organized work process, in which he
for remuneration continuously carries out work in person according to the instructions and under
supervision of the employer.
2. “Employee” shall be any natural person who has entered into a labour relation on the basis
of a concluded employment contract.
3. “Definite time period employee” shall be a person employed with an employment contract
concluded between the employer and the employee, whereby the expiry of the employment contract
shall be determined from objective reasons such as the upcoming of a certain date, completion of a
certain assignment or the occurrence of a certain event.
4. “Indefinite time period employee” shall be a person who has signed an employment
contract on an indefinite time duration.
5. “Sent operator” shall be an employee who for a limited time duration works on the
territory of a members state, other than the state in which he/ she is regularly employed. (Terminated
by a Decision from the Constitutional Court of the Republic of Macedonia published in “Official
gazette of the Republic of Macedonia no. 132/10);
6. “Employer” shall be a legal entity and natural person or another entity (state body, body of
a local self-government unit, subsidiary of a foreign company, a diplomatic and consular
representative offices) employing employees on the basis of an employment contract;
7. “Smaller employer” shall be an employer employing 50 or less employees.
8. “Work time” shall be the time during which the employee works and performs their tasks
and works assignments in accordance with law, a collective agreement and the employment contract.
9. “Rest time” shall be each period outside the work time;
10. “work in shifts” shall be each method of organization of the work in shifts during which
the employees substitute each other subsequently on the same work post in compliance with a defined
plan that may be continues or interrupted, including the need of the employees to work different hours
in a certain period of days or weeks;
11. “Publishing a public announcement” shall be each announcement of the need of an
employee, filling a vacancy, regardless of whether the announcement is published in the daily press
or other public information media, printed or electronic with charge or free of charge in the
employment mediation service on the web page of the Agency;
12. “Shift operator” shall be each employee whose work schedule is a part from the work in
shifts;
13. “Enterprise” shall be a public enterprise, trade company or an owner- operator performing
an activity, regardless whether for profit or not, that is situated on the territory of the member states;
14. “Institution” shall be a business unit defined in compliance with law that is situated on the
territory of a member stated where the economic activity is being currently implemented with human
and material resources.
15. “Collective agreements or decisions of arbitration that have been declared as generally
valid” shall imply collective agreements or decision of arbitration which must be respected by all
enterprises in a certain geographic area and a certain professional calling or branch of economy and
16. “Representatives of the employees” shall be representatives of the employees envisaged
by law and the laws of the member states of the European Union.
(2) The terms employee and employer used in the text of this Law written in a masculine
gender have neutral meaning and encompass feminine gender too, i.e. refer to both male and female.
Ban on Discrimination
Article 6
(1) The employer must not treat unequally the job seeker (hereinafter referred as the applicant)
in gaining employment or the employee on the basis of race, colour of skin, gender, age, health or
disability, religious, political or other conviction, membership in trade unions, national or social
origin, family status, property and financial situation, sexual orientation or other personal
circumstances.
(2) Women and men must have equal opportunities and equal treatment regarding the following:
1) approach to employment, including promotions and professional training in the work;
2) work conditions;
3) equal salary for equal work;
4) professional schematics for social security;
5) work leave
6) work time and
7) cancelation of the employment contract
(3) The equal treatment principle shall imply a prohibition for direct and/ or indirect
discrimination, within the scope of paragraphs (1) and (2) of this Article.
Direct and Indirect Discrimination
Article 7
(1) The ban on direct or indirect discrimination in cases referred to in Article 6 of this Law
shall refer to discrimination of the applicant and the employee.
(2) Direct discrimination, in terms of paragraph (1) of this Article, shall be any action that is
subject to grounds referred to in Article 6 of this Law by which the person was, is or could be treated
less favourably in comparison with other persons in similar cases.
(3) Indirect discrimination, in terms of this Law, shall be when an apparently neutral
provision, criterion or practice, puts or would put the applicant or employee in more unfavourable
position in respect to the other persons due to a certain distinction, status, orientation or conviction
referred to in Article 6 of this Law.
(4) Discrimination, in terms of Article 6 of this Law, shall be banned in respect to the
following:
1. Employment requirements, including the criteria and requirements for selection of the
candidates for performance of a certain work, in any type of business in accordance with the National
Classification of activities at all levels of professional hierarchy,
2. Promotion at work,
3. Access to all types and levels of professional training, retraining and further improvement
of skills,
4. Operational and work conditions and all labour relation rights and rights pertaining to
labour relation, including equality of salaries,
5. Termination of the employment contract, and
6. Rights of the members and the activities in the associations of employees and employers
or in any other professional organization, including the privileges resulting from that membership.
(5) The provisions of the collective agreements and the employment contracts that determine
discrimination of some of the grounds referred to in Article 6 of this Law shall be null and void.
Exceptions from the Ban on Discrimination
Article 8
(1) Making distinction, exclusion or giving priority in respect to certain work shall not be
considered to be a discrimination when the disposition of the work is such, or the work is performed
in such conditions that the characteristics related to some of the cases referred to in Article 6 of this
Law represent real and determining condition for carrying out the work, under condition that the goal
that is aimed to be accomplished is justified and the condition is balanced.
(2) All measures anticipated by this Law or another law and the provisions of this Law or
other laws, collective agreements and the employment contracts that are related to special protection
and aid to specific category of employees, especially to those for protection of disabled persons,
elderly employees, pregnant women and women that use some of the rights for protection of
motherhood, as well as the provisions related to the special rights of parents, adoptive parents and
the dependents are neither considered discrimination nor they may be considered basis for
discrimination.
(3) Regarding the employment conditions, and the rights and obligations emerging from the
labour relation, the definite time duration employees shall not be treated in a less favourable manner
from the indefinite time duration employees only because they have an employment agreement on an
indefinite time duration, unless the different treatment is justified from objective reasons.
(4) The period of acquiry of qualifications regarding certain conditions shall be the same upon
employment of the employees for indefinite time duration, as for the employees on definite time
duration, unless the period for acquiry of qualifications is longer than the definite time duration
employment contract.
Harassment and Sexual Harassment
Article 9
(1) Harassment and sexual harassment shall be prohibited.
(2) In terms of Article 6 of this Law, harassment and sexual harassment shall represent
discrimination.
(3) Harassment, pursuant to this Law, shall be considered any undesired behaviour caused by
some of the cases referred to in Article 6 of this Law that aims at or signifies harm to the dignity of
the applicant or the employee, and which causes fear or creates hostile, humiliating or offensive
conduct.
(4) Sexual harassment, pursuant to this Law, shall be considered any verbal, non-verbal or
physical behaviour that has a sexual character and that aims at or represents harm to the dignity of
the applicant or employee, and which causes fear or creates hostile, humiliating or offensive conduct.
Psychological harassment (mobbing)
Article 9-a
(1) All types of psychological harassment (mobbing) at the work post shall be prohibited.
(2) The psychological harassment at the work post (mobbing) shall be discrimination within
the scope of Article 6 of the present Law.
(3) Psychological harassment at the work post (mobbing) within the sense of the present Law
shall be each negative behaviour of an individual or a group that is frequently repeated (in a period
of at least six months) and represents a violation of the dignity, integrity, image and honour of the
employees and provokes fear or creates unfriendly, humiliating or offensive behaviour the end goal
of which may be termination of the labor relation or resignation from the work post.
(4) The performer of the psychological harassment on the work post (mobbing) may be one
person or more with negative behaviour within the sense of paragraph (3) of this Article, regardless
of their capacity (employer as a natural entity, responsible person or an employee).
Protection against discrimination of female employee on grounds of pregnancy, childbirth
and motherhood
Article 9-b
(1) All types of discrimination of a female employee due to pregnancy, childbirth and
motherhood shall be prohibited, regardless of the time duration and the type of the established in
compliance with law.
(2) The prohibition of discrimination from paragraph (1) of this Article shall refer to
the approach to employment, the work conditions and all rights within the labor relation as well as
the cancelation of the employment contract to female employees who are pregnant or use rights that
emerge from childbirth or motherhood.
Indemnification for Discrimination
Article 10
In cases of discrimination referred to in Article 6 of this Law, the applicant or the employee
shall have the right to claim indemnification in accordance with the Law on Obligation Relations.
Responsibility to Provide Proofs in Case of Dispute
Article 11
(1) If the applicant, and/or the employee, in case of dispute presents facts that that the
employer acted contrary to Articles 6 and 9 of this Law, the employer shall undertake the
responsibility to provide proofs that there was not any type of discrimination, i.e. that the employer
proceeded in compliance with Articles 6 and 9 of this Law, except if he proves that the different
treatment was made due to exceptions referred to in Article 8 of this Law.
(2) In case of dispute, when it has been acted contrary to Article 9-a from this Law, the
assignment of proving shall fall on an individual or a group against who the dispute for psychological
harassment at the work post (mobbing) is being initiated, unless they provide evidence that the
different treatment incurred due to the exceptions referred to in Article 8 of this Law.
(3) Due to the initiation of a legal protection procedure, because of psychological harassment
at the work post (mobbing), as well as the testimonies during the procedure, the employee cannot in
a direct or indirect manner be exposed to worsen work conditions, i.e. cannot be put in an
unfavourable position, especially by decreasing their salary, transfer to another work post or
prevention from professional advancement or specialisation.
(4) In case of dispute, when acted contrary to Article 9- b from this Law, the assignment to
provide evidence shall fall on the employer.
Limiting the Autonomy of the Contracting Parties
Article 12
(1) In entering into and terminating an employment contract as well as during the labour
relation, the employer and the employee must comply with the provisions of this Law and other laws,
international agreements that oblige the Republic of North Macedonia and other regulations,
collective agreements and acts of the employer.
(2) The employment contract, and/or collective agreement, may not define fewer rights than
the rights stipulated by law, and if they contain such provisions they shall be considered null and void
and relevant provisions of the law shall be applied.
(3) The employment contract, and/or collective agreement may lay down rights which are
more favourable for the employees than those laid down in this Law.
(4) Labour relation rights defined by the Constitution, law and collective agreement may not
be deprived or constrained by s and actions of the employer.
II. EMPLOYMENT CONTRACT
Employment Contract
Article 13
(1) Labour relation between the employee and employer is entered into by signing an
employment contract.
(2) The rights, obligations and responsibilities based on the performance of work arising from
the labour relation and the inclusion in the obligatory social insurance based on the labour relation
shall begin to be exercised on the day of commencement of work agreed in the employment contract.
(3) The employer shall be obliged to submit a registration/ cancelation (electronic template
M1/ M2 printed by the system within the employment Agency of the Republic of North Macedonia)
for the employer to the mandatory social security (pension and disability, health insurance and
insurance in case of unemployment), in accordance with the special prescriptions in the Employment
Agency of the Republic of North Macedonia, by submitting a PPR template, authorization of the
authorized person with a list of persons that are being registered/cancelled stating the name, surname,
unique personal number, as well as the number of employment contract and the date of conclusion of
the employment contract one day prior to the employees first work day and for urgent matters at least
one hour before the employee starts working. A certified copy of the registration or certificate from
a computer record from the information system of the Agency shall be handed to the employee within
three days from the entry to work.
(4) The Employment agency of the Republic of North Macedonia, the Pension and disability
fund of the Republic of North Macedonia and the Health Insurance Fund of the Republic of North
Macedonia shall be obliged to keep and permanently store the records of the registrations and
cancelations in the social security and at the request of the person to issue data on the state and
changes regarding the social security of the employee.
(5) The Employment agency of the Republic of North Macedonia, the Pension and disability
fund of the Republic of North Macedonia and the Health Insurance Fund of the Republic of North
Macedonia shall exchange data regarding the social security.
(6) If the date of commencement of work is not determined, the next day from the date of
signing the employment contract shall be considered the date of commencement of work and the
employee shall be registered in the employment Agency of the Republic of North Macedonia on the
day of conclusion of the employment contract.
(7) The employee may not commence to work prior to the conclusion of the employment
contract and prior to the moment when the employer registers him to the obligatory social insurance.
(8) The rights, obligations and responsibilities based on carrying out work arising from the
labour relation and registration in the obligatory social insurance on the basis of the labor relation
shall start being exercised on the date of commencement of work, even in case the employee does
not begin to work on that date due to justified reasons.
(9) According to this Law, justified reasons due to which the employee does not begin to work
on the date determined by the employment contract are cases when the employee is excusably absent
from work pursuant to law, collective agreement and the employment contract.
(10) If the employee is absent from work for no justified reason on the first day, the day
defined as the day of commencement to work, in accordance with paragraph (4) of this Article, the
labour relation shall be considered not established.
(11) If the employer after the termination of the labour relation, does not cancel the obligatory
social security of the employee within eight days, the cancelation may be performed upon request of
the employee based on a previously submitted minutes from the Labour Inspector to the Employment
Agency of the Republic of North Macedonia.
Employment Contract for Indefinite and Definite Period of Time
Article 14
(1) Employment contract shall be concluded for a period of time which duration has not been
defined in advance (employment for indefinite period of time).
(2) Employment contract may also be concluded for a period of time which duration has been
defined in advance (definite time period employment).
(3) The employment contract not determining the time for which it has been concluded, shall
be considered as an indefinite time period employment contract.
Form of Employment Contract
Article 15
(1) The employment contract shall be concluded in a written form.
(2) The employment contract shall be kept in the business premises of the employer that
employs the employee.
(3) Copy of the concluded employment contract shall be handed to the employee on the date
of signing the employment contract.
Parties of the Employment Contract
Article 16
The employer and the employee shall be the parties of the employment contract.
Employer – Legal Entity or another Entity
Article 17
(1) If the employer is a legal entity, unit of the local self-government, subsidiary of a foreign
company or another organization, the employer shall be represented by the representative laid down
by law or founding act or statute, or by the person authorized in writing by the employer.
(2) If the employer is a state body, it shall be represented by its state official or by the person
authorized in writing by him, unless stipulated otherwise by law.
(3) When concluding the employment contract with persons with special authorizations and
responsibilities, the employer shall be represented by a body laid down by law, founding act or statute.
(4) When concluding the employment contract with a managerial person during the period of
founding of the employer, the latter shall be represented by the founder.
Eligibility to Conclude Employment Contract
Article 18
(1) An employment contract may be concluded by person who has reached the age of 18 and
is in a good state of health.
(2) It is prohibited for a child under the age of 15 or a chid that has not yet finished the
mandatory education to work, unless for a participation in activates for which the law stipulates that
the child may perform, but no longer than two hours a day, but not over 12 hours a week, and during
the summer break, not longer than six hours a day, i.e. not over 30 hours a week, whereby two
subsequent vacation weeks are to be mandatorily provided.
(3) The employer shall be obliged to provide protection for the young persons from economic
exploitation and any type of work that may have adverse consequences for their safety, health,
physical, mental, moral or social development or it may endanger their education.
(4) A child under the age of 15 may, with payment of compensation, in exceptional situations
participate in activities that by their scope and character do not influence harmfully to the health,
safety, development and education such as: participation in cultural and artistic activities, sports
events and advertisement activities.
(5) The approval for performance of the activities stipulated in paragraph (3) of this Article
shall be issued by the state administration body competent for labour inspection based on request of
the organized of the activities referred to in paragraph (4) of the present Article, upon previous
consent from the legal representative of the child and performed examination by the labour inspection
of the location where the activities are to be performed.
(6) A young person shall be considered any person that may conclude an employment
contract, who is at least 15 years old but under 18 and is not covered in the mandatory education, for
the performance of tasks that are not harmful for their health and safety.
(7) The maximum number of work hours for the young person at the age under 16 shall be 30
hours a week applying also in case when the young person is employed with more employees
simultaneously.
(8) The maximum number of work hours for a young person over the age of 16 shall be 37
hours and 45 minutes per week applying also in case when the young person is employed with more
employees simultaneously.
(9) The work time of the young person must not exceed eight hours within a time period of
24 hours.
(10) The time the young person spends in professional training within the theory and practical
classes shall be considered as work time.
(11) The work the young person performs at an employer for which they are remunerated,
shall be considered participation in training.
(12) The employer must not use the award method in order to increase the scope of work,
endangering the safety and health of the young person.
Conditions for Concluding the Employment Contract
Article 19
(1) An employee who concludes the employment contract must meet the prescribed
conditions for carrying out work defined by law, employer’s act and/or conditions required by the
employer.
(2) The employer must lay down, by an act, the specific conditions for carrying out job of
each position. Smaller employers shall not be subject to this obligation.
(3) A disabled person trained to carry out certain work shall be regarded as a person who is
in a good state of health to conclude an employment contract for such work.
Foreigners and Persons without Citizenship
Article 20
(1) A foreigner or a person without citizenship may conclude an employment contract if he
fulfils the conditions laid down by this Law and the conditions determined by special Law regulating
employment of foreigners.
(2) An employment contract concluded contrary to paragraph (1) of this Article shall be
considered null and void.
Freedom of Contract
Article 21
Taking account of the legal bans, the employer shall have the right to freely decide on which
applicant, who fulfils prescribed, agreed and/or conditions required by the employer for carrying out
work (hereinafter referred as conditions for carrying out work), to conclude employment contract
with.
III. RIGHTS AND OBLIGATIONS OF THE PARTIES WHEN
CONCLUDING EMPLOYMENT CONTRACT
Manner of Recruiting Employees
Article 22
(1) The employer shall recruit employees in one of the following manners:
1. By publishing a public advertisement of vacancies in the daily newspapers for which the
employer bears the expenses;
2. By publishing in the relevant employment mediation agency, free of charge, in accordance
with law;
3. By mediation of the relevant employment mediation agency by directing persons for
employment from the registered lest of unemployed persons;
4. Via employment mediation agency by charging the employer, in compliance with law, by
previous entry of the public announcement in the electronic system of the Employment Agency of
the Republic of North Macedonia.
(2) The realization of the need of employees by public announcement in accordance with
paragraph (1), item 1) of this Article shall be performed by previous entry of the public announcement
in the electronic system of the employment agency of the Republic of North Macedonia prior to the
publishment of the public announcement.
(3) During the process of employment in a public institution, public enterprise and other legal
entity that performs public services, governmental authority and body of the local self-government
unit, the principle of proper and just involvement of members of all ethnic communities in the
Republic of North Macedonia, and/or in the local self-government units, without breaking the criteria
for professionalism and competence shall be applied.
(4) The need of employee in a public institution, public enterprise and other legal entity that
performs public services, governmental authority and body of the local self-government unit, shall
be expressed by publishing public announcement in at least two daily newspapers from which at least
one is to be in Macedonian language and the other in the language spoken by at least 20% of the
citizens who speak an official language other than Macedonian.
(5) On exceptional basis, the employer referred to in paragraph (3) of this Article, for urgent
and pressing duties may also enter into labour relation without public advertisement, but for a period
not longer than 30 days, by mediation of the relevant employment mediation agency.
(6) Notwithstanding paragraph (1) item 1 of the Present Article, for performance of seasonal
work, an employment contract may be concluded without public announcement, but for a maximum
of 90 days, by mediation of the service competent for employment mediation.
Public Advertisement of Vacancies
Article 23
(1) When the employer recruits employees via public advertisement, the public advertisement
of vacancy must contain the following: –
Title of the work post;
–
The conditions required to perform the professional tasks; – – – – – –
The beginning and end of the daily and weekly work time;
The work schedule;
The amount of the basic net salary or cash amount ranging from the lowest to the
highest amount of the net salary for the work post an employee is needed;
The time limit for application that must not be under three work days;
The time limit within which the selection shall be made and
Accurate data on the employer (name, headquarters, telephone number, contact person
and address at which the applications are to be submitted)
(2) If up to 200 applicants for one work post responded to the public announcement referred
to in paragraph (1) of this Article, the selection shall be made within 45 days, in the number of
responders is from 201 to 500 for one work post, the selection shall be made in 90 days and if the
number of responders for one work post is over 500 the selection shall be made within 120 days from
the day of expiry of the application time limit.
(3) Within the duration of the public announcement, the employer cannot publish a new
announcement for the same work post.
(4) The public announcement shall end with selection, or its lack, or with the expiry of the
time limit referred to in paragraphs (1) and (2) of this Article.
(5) If for a certain work post an employee is needed having certain authorizations, the public
announcement should state that the work post requires special authorizations.
(6) The announcement in the premises of the service authorized for employment mediation
shall be considered a public announcement.
(7) If the employer announces the vacancy in the mass media, the time limit for application
shall start from the day of the last announcement.
Gender Equality when Advertising Vacancies
Article 24
(1) The employer must not advertise a vacancy only for men or only for women, unless the
particular gender is the essential condition for carrying out work.
(2) An advertisement of vacancy must not suggest that in recruiting the particular gender is
given priority by the employer, except in cases referred to in paragraph (1) of this Article.
Employer’s Rights and Obligations
Article 25
(1) The employer may only demand the applicant to submit documents proving the fulfilment
of required conditions for carrying out work.
(2) When concluding the employment contract, the employer must not demand the applicant
to provide information on the family, i.e. marital status and family planning, i.e. submission of other
documents and evidence that are not directly connected with the labour relation.
(3) The prohibition for submission of other documents and evidence mentioned in paragraph
(2) of the present Article shall include also a pregnancy test or confirmation for such test when
concluding the employment contract with a female employer, regardless pf the work post for which
the labour relation is being established.
(4) If the work creates a great risk on the health of the mother and her child, and such risks
have been envisaged in accordance with the prescriptions in the field of work health and safety
referring to pregnant female employees, employees that recently gave birth or are breastfeeding, the
employer referred to in paragraph (2) of the present Article shall be obliged to notify the female
employee on the dangers emerging from the work upon the conclusion of the employment contract.
(5) The employer must not condition the conclusion of the employment contract with data
from paragraph (2) of the present Article or with signing an agreement regarding the termination of
the labour relation.
(6) When concluding the employment contract, the employer may examine the knowledge
i.e. the capability of the applicant for the performance of the work for which the employment contract
is being concluded.
(7) When concluding the employment contract the applicant shall not be obliged to submit
evidence for their health condition, unless the employer on own account sends the applicant to a
medical examination.
(8) The check of knowledge, and/or abilities of the applicant or examination of his health
condition must not be related to circumstances which are not of direct relevance for work at the
position for which the employment contract is to be concluded.
(9) Before concluding an employment contract, the employer must inform the applicant on
the work, the working conditions, as well as the employees’ rights related to carrying out work at the
position for which the employment contract is to be concluded.
(10) The employer shall be obliged to inform the definite time period employees on the
vacancies through announcement on a visible location within the employer, to ensure them that they
have the same indefinite time duration employment opportunity as do the rest of the employees.
(11) The employer shall as much as possible facilitate the approach of the definite time
duration employees to proper training opportunities to improve their capabilities, the carrier
development and the professional mobility.
Rights and Obligations of the Applicant
Article 26
(1) When concluding the employment contract, the applicant shall be obliged to submit to the
employer the documents proving the fulfilment of conditions for carrying out work and inform the
employer of all the facts known to the applicant, relevant for the employment, as well as of the
diseases or any other circumstances that may prevent or substantially limit him in fulfilling the
obligations arising from the contract, or which may jeopardise the life or health of the persons he is
in contact with in executing the obligations.
(2) The applicant shall not be obliged to answer questions that are not directly related to the
labour relation.
Rights of the Unselected Applicants
Article 27
(1) Within five work days after concluding the employment contract, the employer must
notify in writing the applicant who was not been selected of the fact that they were not selected and
which applicant was selected and return to them all the submitted document as evidence for fulfilment
of the required conditions for the performance of the work.
(2) Within three days, the employer shall be obliged to return to the applicant who was not
selected all the documents that he submitted as proof of fulfilment of required conditions for carrying
out work.
Contents of the Employment Contract
Article 28
(1) The employment contract shall contain: – data on the contracting parties including their residence or registered office; – date of commencement of work; – title of the position or data on the type of work for which the employee concludes the
employment contract including a brief description of the work he is to carry out pursuant to the
employment contract; – provisions on the responsibility of the employer to inform the employee on the risky work
posts and special professional qualifications or knowledge or necessary special medical supervision,
in compliance with law, by stating the special risks that, according to the legal prescriptions may be
a work consequence. – place where the work is to be carried out. If the exact place is not stated, it shall be presumed
that the employee carries out the work at the employer’s registered office; – duration of the employment, when a definite time employment contact is concluded; – stipulation stating whether the employment is part or full-time; – stipulation on regular daily or weekly work hours and the organization of work hours; – stipulation on the amount of the basic salary the employee shall receive as remuneration for
carrying out work in accordance with law, collective agreement and employment contract; – stipulation on other compensations the employee is entitled to for carrying out work
according to law and collective agreement; – stipulation on annual leave, i.e. the manner of determining the annual leave; and – list of the employer’s general acts which stipulate the employee’s conditions of work.
(2) The employment contract may also contain other rights and obligations laid down in this
Law and in other law and collective agreement.
(3) Regarding certain issues in the employment contract, the parties may refer to laws,
collective agreements and employer’s acts.
Article 28- a
(1) Modifications of the employment contract may be suggested by the employer or employee.
(2) The modifications of the employment contract shall be made by an annex to the
employment contract.
(3) The annex to the employment contract shall be concluded in the same form as the
employment contract in accordance with the law.
(4) The modifications of the employment contract may be made if both parties agree on that.
Invalid Provisions of the Employment Contract
Article 29
(1) The stipulation of the employment contract that is contrary to the general provisions on
rights, obligations and responsibilities of the contracting parties laid down by law, collective
agreement, and/or employer’s act shall become null and void at the moment of conclusion of the
employment contract.
(2) The provisions of law, collective agreements, and/or employer’s general acts which
partially lay down the contents of the employment contract, shall be integral part of and amendments
to this employment contract or shall be directly implemented.
IV. OBLIGATIONS OF THE EMPLOYEE
Employee’s Obligations in Respect to Carrying out Work
Article 30
(1) The employee must carry out work with due diligence at the position for which he has
concluded the employment contract, during the working hours and at the location set down for
carrying out work respecting the organization of work and business activity of the employer.
(2) In cases laid down by law and collective agreement, the employee shall be obliged to
perform other work as well that is not stipulated in the employment agreement if it is within the
framework of his professional training.
Observing the Employer’s Instructions
Article 31
The employee shall be obliged to follow the requirements and instructions of the employer in
relation to fulfilment of working duties arising from the labour relation.
Respecting the Regulations on Safety and Health at Work
Article 32
(1) The employee shall be obliged to respect and implement the regulations on safety and
health at work in order to protect their own life and health, as well as the life and health of others. It
is the right and responsibility of each employee to take care of their own safety and the safety of the
other persons employed in the same organization, in accordance with the trainings and instructions
given by the employer, to be familiarized with the work health and safety measures and to be trained
on their application, in compliance with the work health and safety prescriptions.
(2) The employee shall be entitled to reject to work if there is a direct threat upon their life
and health due to non-implementation of the prescribed measures for protection at work and ask for
their removal.
Obligation of Informing
Article 33
(1) The employee shall be obliged to inform the employer of relevant circumstances which
affect or might affect the fulfilment of his contractual obligations.
(2) The employee shall be obliged to inform the employer through the immediate superior
employee or another authorized person within the employer (hereinafter: employers’ representatives)
in writing or orally on the occurrence of material damage and omission, safety and health danger or
another incident that may endanger their safety and health and the safety and health of the other
employees, in line with the prescriptions for work health and safety.
Ban on Harmful Actions
Article 34
The employee shall be obliged to refrain from all actions which, in view of the nature of work
he carries out at the employer, cause damage or might harm the interests of the employer.
Obligation for Keeping Business Secret
Article 35
(1) The employee must not exploit for their private use nor disclose to a third party the
employer’s business secrets defined as such by the employer’s special act, which were entrusted to
the employee or of which they have learnt in any other way.
(2) The employee shall be liable for disclosing a business secret if he knew or should have
known for such nature of data.
(3) Each employee who has contact with materials, information and data that are classified
shall be obliged to keep them secret.
(4) The representatives of the employees and all experts aiding them, must not discover any
information to the employees or third persons that are of the employer’s business interest and have
been clearly confined to them. This obligation shall continue to be valid after the termination of their
term of office.
(5) In certain cases, according to the conditions and limitations defined by law, it may be
determined that the employer shall not be obliged to transfer information or to consult when the
nature of such information of consultations is such, that according to objective criteria it would
seriously harm or bring into question the functioning of the employer.
Ban on Competition – Legal Ban on Competitive Activity
Article 36
(1) During the labour relation, the employee must not for his own account or for a third-party
account carry out work nor conclude business covered by the activity which is actually carried out
by the employer and represents or might represent competition to the employer without employer’s
consent.
(2) The employer may demand compensation for the damage caused due to the employee’s
actions contrary to those referred to in paragraph (1) of this Article within three months from the day
he learnt of the carrying-out of such work or conclusion of such business, and/or within two years
after the work was completed or the business was concluded.
Competition Clause – Contractual Ban on Competitive Activity
Article 37
(1) If in carrying out work or in relation to work the employee gains technical, production or
business knowledge and business relations, the employee and the employer may lay down in the
employment contract the ban on competition activities after the termination of the labour relation
(hereinafter referred to as “competition clause”).
(2) The competition clause may be agreed for a period not longer than two years after
termination of the employment contract and only in cases the employee’s employment contract was
terminated at his own will or due to his fault.
(3) The competition clause must not exclude the possibility of employment for the employee.
(4) If the competition clause is not laid down in writing, it shall be assumed not to be agreed.
Compensation for Respecting the Competition Clause
Article 38
(1) If respecting the competition clause referred to in Article 37 paragraph (1) of this Law
prevents the employee from gaining appropriate earnings, the employer shall be obliged to pay him
compensation in cash during the whole period of respecting the ban.
(2) The compensation in cash for respecting the competition clause has to be laid down in the
employment contract and shall monthly amount to at least a half of the average employee’s salary
during the past three months prior to the termination of the employment contract.
Termination of the Competition Clause
Article 39
(1) The employer and the employee may agree on termination of the competition clause
validity.
(2) Should the employee terminate the employment contract due to the employer’s violation
of its provisions, the competition clause shall cease to have effect if the employee, within one month
after the day of termination of the employment contract, notifies in writing his former employer that
he is not bound by the contract.
IV. OBLIGATIONS OF THE EMPLOYER
Providing Work
Article 40
(1) The employer must provide the employee with work agreed by the parties in the
employment contract.
(2) Unless agreed otherwise, the employer must provide the employee with all the necessary
means and material for work he requires in order to fulfil his obligations uninterruptedly and ensure
him access to business premises.
Obligation of Remuneration
Article 41
The employer must ensure the employee appropriate remuneration for his work in accordance
with the provisions of Articles 105 through 114 of this Law.
Obligation for Ensuring Health and Life Safety Working Conditions
Article 42
(1) The employer shall be obliged to provide the conditions for health and life safety of
employees in accordance with special regulations on health and safety at work and to undertake the
necessary measures guaranteeing that each employee has been sufficiently trained for the special
characteristics of the work, considering their professional training and experience.
(2) The employer should make a risk assessment within the systematic examination of all
aspects of the operation, with the purpose of identifying the possible reasons for injuries or damage
of the employee’s health or the safety conditions.
(3) After the obtainment of the notification that some female employee is pregnant, during
the different stages of the pregnancy, the employer shall be obliged to conduct multiple risk
assessments for the risks that may affect the pregnant women, her unborn child or recently born child.
Additional risk assessment shall be applied in case of modification of the work conditions, equipment
or machines.
(4) After proper consultations and consent from the woman, depending on the nature, intensity
and duration of the risk, the employer should introduce measures for improvement of the health and
safety of the pregnant employee, employee who recently gave birth or is breastfeeding as well as
elimination or decreasement of the danger of the risk from: – – – –
Irreversible effects;
Cancer;
Hereditary genetic damages ;
Damages to the unborn child and damages to the child’s nutrition.
(5) If no risk is discovered during the assessment, the employer should inform all employees
on the potential risks. Also, the employer should explain what is to be done to ensure that their
pregnant employees shall not be exposed to risks that may damage their health and safety.
Obligation to Protect the Employee’s Personality
Article 43
(1) The employer shall be obliged to protect and respect employee’s personality and dignity,
as well as to take into account and protect the employee’s privacy.
(2) The employer shall be obliged to provide such a working environment in which none of
the employees is subject to any, including sexual, harassing.
Protection of Employee’s Personal Data
Article 44
(1) Personal data of employees may be collected, processed, used and provided to third parties
only if this Law or another law stipulates that, or if it is necessary in order to exercise the rights and
obligations arising from or related to the labour relation.
(2) Personal data of employees may only be collected, processed, used and provided to third
parties by the employer or the employee who is specially authorized to do so by the employer.
(3) If the legal basis for collecting personal data of employees does not exist anymore, they
must be immediately deleted and no more used.
(4) The provisions referred to in paragraphs (1) and (2) of this Article shall also apply to
personal data of applicants.
Suspension of Rights and Obligations Arising from the
Employment Contract
Article 45
(1) In cases when the employee temporarily stops to work in order to serve a prison sentence
or due to an imposed educational, safety or protective measure which prevents him from working for
six months or less, or due to conscription or civil serving with compensation payment, detention and
in other cases laid down by law, the employment contract shall not cease to have effect and the
employer must not terminate it, unless a procedure for termination of the employer was initiated, for
which period the employment contract shall be suspended.
(2) During suspension of the employment contract, contractual and other rights and
obligations arising from the labour relation which are directly related to carrying out work shall be
suspended.
(3) The employee shall have the right and obligation to return to work at latest within five
days after the grounds for suspension of the contract ceased. On that day, the suspension of the
contract shall end.
Fixed-term Employment Contact
Article 46
(1) A definite time duration employment contract may be concluded for carrying out the same
work with or without interruption up until five years.
(2) The definite time duration employment contract for a substitution for a temporarily absent
employee may be concluded until the return of the temporarily absent employee.
(3) The labour relation based on a definite time duration employment contract, except for
seasonal work, shall be transformed in an employment contract for indefinite period of time if the
employee continues to work after expiration of the period referred to in paragraph (1) of this Article,
under conditions and in a manner determined by law.
(4) As an exception, the labor relation established with definite time duration employment
contact may be transformed in an indefinite time labour relation, prior to the expiry of the time limit
referred to in paragraph (1) of the present Article, if the employer works more than two years on the
same work post being vacant on the ground of retirement or other basis for which financial means
have been provided under the conditions and manner stipulated by law.
Seasonal Work
Article 47
(1) Seasonal work is work that due to the climate or natural conditions is not performed during
the entire year, but within certain periods- seasons and does not exceed eight in a period of 12
consequent months.
(2) If an employee carries out seasonal work and/or works under uneven distribution of work
time on the basis of the definite time duration employment contract without interruptions for at least
three months in a year and accumulates more work hours than it is laid down for full-time work, the
work hours shall be at his request calculated into work days with full work hours.
(3) Work days calculated according to paragraph (1) of this Article, shall be included in the
employee’s years of service as if they had spent them at work. In such calculation, the total period of
service in a calendar year may not exceed 12 months.
Part-time Employment Contact
Article 48
(1) An employment contract may also be concluded for work time that is shorter than full
work hours (part-time work hours).
(2) Part-time shall be considered the work time shorter than the full work hours in force with
the employer.
(3) The employee who concluded a part-time employment contract shall have the same
contractual and other rights and obligations arising from labour relation as the employee who works
full time, and shall exercise these rights and obligations proportionally to the time for which he
concluded the employment contract, with the exception of those for which it is otherwise stipulated
by law.
(4) The employee shall be entitled to annual leave with minimum duration of ten work days.
(5) Unless otherwise stipulated in the employment contract, the employer must not impose on
the part-time employee the work exceeding the agreed work hours, except in the cases referred to in
Article 119 of this Law.
(6) In the part time employment contract, the employer shall be obliged to determine the
commencement and end of the part time daily operation of the employer and to keep special records
on the part time employees. Employment Agency of the Republic of North Macedonia shall once a
month notify the State Labour Inspectorate on the concluded part time employment contracts.
Part-time Employment Contract Concluded with Several Employers
Article 49
(1) The employee may conclude a part-time employment contract with several employers and
thus achieve the full work hours stipulated by law.
(2) The employee shall be obliged to make an agreement with the employers on the work
time, on the way of using annual leave and on other absences from work.
(3) Employers employing the part-time employee shall be obliged to assure the employee
simultaneous using of annual leave and other absences from work, unless that would cause damage
to them.
(4) Obligations of the employer and of the employee referred to in paragraph (2) of this Article
shall be integral part of the part-time employment contract.
Employment Contract for Working at Home
Article 50
(1) The work carried out by the employer at his home or in premises by his choice, which are
outside the employer’s business premises, shall be considered as working at home.
(2) In the employment contract for working at home, the employer and the employee may
agree that the employee carries out the work, which falls within the employer’s activity or which is
necessary for the performance of the employer’s activity, at home.
(3) The employer shall be obliged to submit the employment contract for working at home to
the labour inspector within three days from the date of concluding the contract.
(4) The employment contract between the employer and the employee shall regulate the
rights, obligations and conditions which depend on the nature of work carried out at home.
(5) The employee shall be entitled to reimbursement for his own resources used for work at
home. The reimbursement amount shall be stipulated by the employer and the employee in the
employment contract.
(6) The employer shall be obliged to assure safe working conditions for health and safety
when working at home.
Ban on Working at Home
Article 51
The labour inspector may ban the employer to organize work at home if it is harmful to the
employees working at home or to the living and working environment where the work is carried out.
Works not Allowed to be Carried out at Home
Article 52
Law or another regulation may determine the works which are not allowed to be carried out
at home.
Employment Contract with Housekeepers
Article 53
(1) An employment contract may be concluded for carrying out housekeeping works.
(2) The employment contract referred to paragraph (1) of this Article may stipulate that providing
food and accommodation for the employee with the employer is part of the employee’s salary, which
part must be stated in money in the contract.
(3) The contract referred to in paragraph (1) of this Article shall be registered in the relevant
employment mediation agency.
(4) The lowest salary amount which is obligatorily calculated and disbursed in cash shall be
stipulated in the employment contract and it may not be lower than 50% of the employee’s earnings.
Employment Contract with Managerial Staff
(Management Contacts)
Article 54
In the case of concluding an employment contract with managerial staff (managers), the
parties to the employment contract may differently regulate the rights, obligations and responsibilities
arising from labour relation, especially regarding to:
1. conditions and limitations of the fixed-term labour relation;
2. working hours;
3. assurance of daily breaks and annual leave;
4. remuneration for work;
5. termination of the employment contract validity.
Exercising the Rights and Obligations Arising from Labour Relation
of the Executive Body (Manager)
Article 55
The Executive Body (Manager) shall exercise the rights and obligations arising from labour
relation during the period he is appointed to, i.e. selected for that position at the employer where he
is appointed, i.e. selected, in accordance with the provisions of this or another law, collective
agreement and employment contract.
V. ON-THE-JOB TRAINING, VOLUNTARY AND TRIAL PERIOD
On-the-job Training Period
Article 56
(1) Law, other regulation or collective agreement on the activity level may stipulate
concluding of an employment contract as a trainee, who for the first time starts carrying out work
according to the type and degree of professional training, aiming at making the employee capable for
carrying out independently the work within the labour relation.
(2) The trainee who completed successfully the program for professional training shall be
capable for carrying out the work within the labour relation independently, according to the type and
degree of his professional training.
Duration of the On-the-job Training Period
Article 57
(1) The on-the-job training period may last no longer than one year, unless it is otherwise
stipulated by law.
(2) The on-the-job training period can be proportionally extended if the trainee’s working
hours are shorter than the full-time working hours, but not longer than six months.
(3) The on-the-job training period duration shall be extended for the time of justifiable
absence lasting longer than 20 working days, except for the annual leave period.
(4) The on-the-job training period may be shortened at a proposal of the responsible person,
but only to one third of the originally determined period.
Carrying out the On-the-job Training
Article 58
(1) During the on-the-job training period, the employer must provide for the trainee, according
to the program, training for the purpose of qualifying him to carry out work independently.
(2) Law, other regulations or collective agreement on the activity level shall determine the
duration and the course of the on-the-job training period as well as the program and the manner of
monitoring and evaluating the on-the-job training period.
(3) At the end of the on-the-job training period, the trainee must take an examination, which
shall be an integral part of the on-the-job training period and shall be taken prior to the expiration of
the on-the-job training period.
Restriction for Notice by the Employer to the Trainee
Article 59
In the course of the internship, the employer must not terminate the employment contract to
the trainee, except in case of conducting proceedings for ceasing of existence of the employer, in case
of violation of work order and discipline or the work obligations, in line with law.
Trial Work
Article 60
(1) When concluding the employment contract, the employee and employer may agree on
trial work.
(2) In addition to all rights and obligations from labour relation, the employment contract
shall stipulate the salary amount and the trial period duration which may not exceed four months. The
trial period may be extended in case of justified absence from work (illness and the like).
(3) In the performance of a seasonal work, the trial work may be of duration of three work
days.
(4) The employer may terminate the trial work employment agreement for the performance
of seasonal work, within three days from the day of conclusion of the trial work employment
agreement.
(5) During the trial period, the employee may terminate the employment contract with a notice
period of three work days. On the basis of an evaluation for failure in completion of the trial work,
the employer may terminate the employment contract after the expiration of the trial period.

Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.

The Social Insurance Law

Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.

Income Tax Law of Macedonia

Macedonia

Individual – Taxes on personal income

Last reviewed – 24 August 2025

Taxation of individuals’ income in North Macedonia is based on their residence status.

Macedonian tax residents are taxed on their worldwide income.

Non-residents are taxed on their income derived in the Macedonian territory.

Personal income tax rates

As of 1 January 2023 onwards, a 10% flat tax rate is applicable on individual’s income from work, self-employment income, income from royalties and industrial property rights, income from sale of own agricultural products, rental income, income from capital, capital gains, and insurance income, as well as other taxable income not categorised separately in the legislation. The applicable tax rate on the gains realised from games of chance is 15%.

The taxation of interest on time saving deposits and capital gains realised from sale of securities and shares released from investment funds is postponed until 1 January 2023.

As of 1 January 2023, the tax rates per category of income will be as follows:

Type of income	Annual tax base	Tax rate (%)
Employment income. Income from self-employment. Income from royalties and other related rights. Income from sale of own agricultural products. Income from intellectual property (IP) rights. Income from lease and sub-lease of movables and immovable property. Income from capital. Capital gains.* Income from termed deposits.** Income from insurance. Other income.	Regardless of the amount of realised income.	10
Gains from games of chance.	Regardless of the amount of realised income.	15
Income whose origin cannot be proved.	The difference between the value of the property and the proved amount of available assets for its acquisition.	70

* As of 1 January 2023, the applicable tax rate on capital gains from sale of securities and shares issued by an investment fund will be 0% if the taxpayer has owned them for a period longer than two years.

** The taxation of income from termed deposits is postponed until accession of North Macedonia to the European Union.

Local taxes on income

There are no local taxes on income.

Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.

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Regulation Updates in North Macedonia

Discover the latest employment and compliance updates in Macedonia — helping you stay ahead in a changing regulatory landscape.

Declaration on Partnership and Action: Joint Commitment to the Formalization of the Informal Economy in North Macedonia

What it is: The Declaration on Partnership and Action: Joint Commitment to the Formalization of the Informal Economy in North Macedonia was signed and publicly released on 2026-02-18.

What it changes: It commits national ministries, employer organizations, trade unions, the State Labour Inspectorate, and the Public Revenue Office to coordinated measures aimed at formalizing the informal economy, including strengthened enforcement, digitalization, and inter-agency data exchange, to affect employer reporting and compliance responsibilities.

Who is affected:

Employers
Worker representatives (employer organizations and trade unions)

What employers should do:

Prepare for potential changes in reporting and compliance requirements as part of the coordinated measures.
Anticipate increased use of inter-agency data exchange and digital processes related to formalization efforts.

Notes: Effective month: 2026-02. Manual verification recommended.