Albania

INDICATORS OF THE QUALITY OF WORKERS’ RIGHTS

Edison Hoxha

1. EMPLOYMENT OPPORTUNITIES

1.1 Legal foundations of the rights of workers

Labour Rights in Albania are regulated by the Labour Law, which is based on the Constitution of the Republic of Albania and international standards.^[1]

The Labour Law was adopted in 1996 and has undergone several amendments. Notably, changes occurred in the year 2003 and 2015. The 2015 amendments were substantial and aimed at aligning the law with the European Union acquis. These changes improved workers’ rights in many aspects.

The most recent amendments to the Labor Law were adopted at the end of July 2024. Among these changes, the annual leave entitlement for workers was adjusted from ‘not less than 4 calendar weeks’ to ‘not less than 22 working days.’ Additionally, the right of workers to take annual leave for periods shorter than 7 days was made more flexible.^[2]

A notable feature of these recent changes is that neither the workers’ unions nor the employers’ associations were consulted or invited to discuss these amendments. This contrasts with the 2015 amendments, which involved extensive consultations with various stakeholders. Moreover, the recent changes were not even discussed in the National Labour Council meetings, the highest body of tripartite social dialogue at the national level, as required by law in such cases.

In addition to the Labour Law, which regulates employment relationships for more than 90% of workers in Albania, there is another crucial law for employees: Law 152/2013, “On Civil Servants”.^[3] This law primarily regulates employment relationships for workers who hold public functions in state administration institutions, independent institutions, or local government units, excluding elected officials and those with political functions. This specific regulation has been in place since 1999, when the first law on civil servants was adopted. Employees in this category are selected through a competitive procedure and enjoy stronger legal protection. A notable characteristic is that in cases of wrongful dismissal, these employees have the right to return to their previous position through the court, which generally does not occur under the Labour Law, except in some exceptional cases.

1.2. General situation on the labour market

According to the Quarterly Labour Force Survey (QLFS) conducted by the Institute of Statistics of the Republic of Albania (INSTAT), the data for the general state of the labour market for the fourth quarter of 2023 for the population aged 15-64 are as follows:^[4]

• the employment rate is 66.7%;
• the official unemployment rate is 10.7%;
• the labour force participation rate is 75.1%;
• 4.6% of the economically inactive population are classified as “discouraged unemployed”.

QLFS is a statistical survey conducted within households. Its primary objective is to provide information on the labour market situation in Albania, which is used to formulate labor market policies and assess their effectiveness. Additionally, it aims to meet the needs of users for up-to-date data on labour market dynamics.

The total number of people employed in Albania reached 730,000 people in the fourth quarter of 2023, with a 2% increase on an annual basis, according to the INSTAT.

1.3. Other important issues

For the procedure of generalizing the data from the Labor Force Survey, the population used is estimated based on the 2011 Population and Housing Census results, combined with demographic events (births and deaths) provided by the General Directorate of Civil Status.^[5]

The working-age population is defined as those aged 15-64 years.

Employed individuals are considered those who performed work, even for just one hour, for pay or compensation during the reference week. The reference week is the calendar week from Monday to Sunday prior to the date of the interview.

The labour force participation rate and the employment rate are calculated for the population aged 15 to 64 years. Meanwhile, the unemployment rate is calculated for the economically active population (i.e., the labour force) aged 15 and over.^[6] Employment and labour force participation rates calculated for the population aged 15 and over are affected by the inclusion of pensioners in the denominator, and thus are less meaningful compared to rates calculated for the 15-64 age group. On the other hand, calculating the unemployment rate for the population aged 15 and over, the denominator includes the economically active population, which consists of employed people or those actively seeking work and being able to work. Consequently, this indicator is not affected by the population above retirement age.

2. ADEQUATE EARNING AND PRODUCTIVE WORK

2.1.Basic data on earnings

Monthly wages for the first quarter of 2024 are as follows:

• the average net monthly wage for an employee during the first quarter of 2024 was 591 € (gross 730 €), an increase of 13.8% compared to the same quarter of the previous year;
• the average net monthly wage for an employee in the public sector was 675 € (gross 849 €);
• the average net monthly wage for an employee in the private sector was 554 € (gross 686 €);
• the approved net minimum wage is 360 € (gross 400 €);
• in the first quarter of 2024, the median wage was 590 €;
• according to the global network Clean Clothes Campaign in 2021 in Albania the living wage was 104,980 ALL (cca. 1004 €). It should be noted that due to rising inflation, the living wage is now significantly higher, but more recent data is currently unavailable;^[7]
• if we stick to the existing data on the living wage from 2021, we can say that the ratio of the living wage to the minimum wage was 1:2.8 (minimum wage covered 35,85% of the living wage);
• the ratio of living wage to the medial wage was 1:1.7 (medial wage covered 58.76% of the living wage);
• economic activities offering a higher average gross monthly wage than the national average are Financial and Insurance Activities and Information and Communication. Data shows that the lowest wages are in the sector of Agriculture, forestry and fishing.^[8]

2.2. Other important issues

On February 29 2024, INSTAT published the results of the 2022 Survey on Income and Living Conditions (SILC), which measures the standard of living, relative poverty, and material and social deprivation in Albanian households.^[9]

Risk of Being Poor

• At-risk of poverty rate in Albania, in 2022, was 20.6 %, experiencing a decrease by 1.4 percentage points compared with 2021.
• The at risk of poverty threshold represents the lowest annual income available for a person to not be considered poor. This threshold for one person household in 2022 was estimated at cca. 2,256 € per year, meaning 188 € per month.^[10]

3. DECENT WORKING TIME

3.1. Basic data on working time

According to the Labour Law of Albania:

• the normal daily duration of work is no more than 8 hours. For workers under 18 years old, it is no more than 6 hours;
• the normal weekly duration of work is no more than 40 hours;
• the maximum weekly working duration is no more than 48 hours;
• the minimum daily rest is no less than 11 hours without any interruption;
• the minimum weekly rest is no less than 36 hours including 24 hours without any interruption;
• the minimum duration of annual leave is no less than 22 working days.

3.2 Additional Information on Working Time

According to the Labour Law of Albania:

• overtime is done when circumstances require it, as far as possible and necessary, while also considering the employee’s personal and family conditions;
• for the extra hours of work that have not been compensated with a holiday, the employer must pay the employee the normal salary and an extra payment not lower than the 25% of the salary;
• in agreement with the employee, the employer may compensate the extra hours of work with a holiday, which is at least 25 per cent longer than the former and corresponds to the duration of the extra hours of work and is given within 2 months, starting from the day of the carrying out of the job;
• the extra hours of work done during weekly holidays or on the official red-lettered day are compensated with a holiday or payment, which are at least 50% greater than the extra hours of work done or the normal salary respectively.

3.3. Other important issues

Employers generally do not comply with legal provisions regarding the payment for overtime hours worked by employees. Particularly in the private sector, the working week often exceeds 48 hours. A problem also persists with undeclared payments, where part of the salary, mainly the mandatory minimum wage, is paid through the bank, while the rest is given in cash in order to avoid paying taxes and contributions.

4. STABILITY AND SECURITY OF WORK

4.1. Information on stability of work

As of 2023, the distribution of employment contracts in Albania can be summarized as follows:^[11]

• About 43% of employment contracts in Albania are for an indefinite period. This rate reflects a trend toward more stable, long-term employment as the Albanian labour market continues to evolve.
• Fixed-term contracts account for approximately 37% of employment contracts. These are commonly used for specific projects, seasonal work, or temporary needs within various sectors.
• Temporary agency workers make up around 10% of the workforce. This segment is used to meet short-term labour demands and provides flexibility for both employers and employees.

For the most precise and up-to-date statistics, consulting the latest reports from the INSTAT or relevant labour market studies is recommended.

4.2. Information on security of work

The Labour Law of Albania outlines a clear procedure for terminating employment relationships. There are two main methods:

• Reasonable Cause: When an employer terminates an employee for a reason deemed “reasonable” (such as serious misconduct, breach of contract, or other substantial reasons), the employer generally does not need to provide advance notice.
• Specific Circumstances: If the termination is for a reason not considered to be reasonable or involves situations like layoffs or downsizing, the notice period would be required as specified by the contract or labour regulations.

• Termination of contract providing advance notice: In case the termination of employment contract is due to economic reasons or organizational changes. In this case the advanced notice depends on the period of employment. If the period of employment is up to 6 months the notice period should be no less than 2 weeks. If the period of employment is from 6 months to 2 years, the notice period should be no less than 1 month. If the period of employment is from 2 to 5 years, the notice period should be no less than 2 months. If the period of employment is more than 5 years the notice period is no less than 3 months.

• Employment Contract Terms: The specifics of notice periods and severance pay can sometimes be detailed in individual employment contracts or collective agreements, which may provide more favourable terms than the statutory minimums.
• If the employee is a union leader, the employer must obtain the union’s consent for possible dismissal.

Unemployment Benefits:

• Unemployment benefits are not provided if the dismissal is for justified reasons by the employer or if the employee resigns voluntarily. Unemployment benefits can be provided for up to 12 months, depending on the length of employment.

4.3. Other Important Issues

A key issue remains the adherence to legal procedures regarding termination of employment. Generally, employers fail to comply with the procedures for termination with notice for employees. They often refuse to pay severance benefits, which are legally mandated at half a month’s salary for each year of full-time employment, provided the employee has worked for the company for over three years. Additionally, employers frequently disregard the requirement to notify the union when dismissing union representatives.

Additionally, employers often fail to comply with the collective redundancy procedures outlined in the Labor Law.

Compensation awarded to employees in cases of wrongful dismissal is typically very low.

5. EQUAL OPPORTUNY AND TREATMENT

5.1. Information on the National Anti-Discrimination System

In 2010, Albania enacted a modern law to protect against discrimination.^[12] Based on this law, the institution of the Commissioner for Protection from Discrimination was established as an independent body that ensures effective protection from discrimination and any form of behaviour that promotes discrimination based on gender, race, colour, ethnicity, language, gender identity, sexual orientation, political, religious, or philosophical beliefs, economic, educational, or social status, pregnancy, parental status, parental responsibility, age, family or marital status, civil status, residence, health condition, genetic predispositions, disability, belonging to a particular group, or any other reason.

Protection against discrimination in employment is specifically addressed in Chapter 2, Articles 12 to 16 of the Law on Protection from Discrimination. These legal provisions clearly outline the prohibition of discrimination in employment, including in job announcements, recruitment, selection of employees, and treatment in the workplace. A major issue remains the practical implementation of the law, especially the enforcement of decisions by the Commissioner for Protection from Discrimination, the process of proving discrimination, and the pursuit of legal processes to their conclusion.

Additionally, the Labour Law, in Article 9, broadly prohibits discrimination in the exercise of the right to employment and profession in all its forms. This prohibition, as defined in the Labour Law, is only applicable if there is no reasonable and objective justification.^[13]

5.2. Information on the National Gender Equality System

The Labour Law, along with specific laws, clearly prohibits discrimination based on gender.

With the amendments made in 2015, the Labour Law also addressed parental leave, stipulating that parental leave, after 63 days from childbirth, is equally entitled to both the mother and the father. This change represents a step towards greater gender equality by ensuring that both parents have equal rights to childcare leave.

Since the implementation of this change, an increasing number of men are taking parental leave. According to data from the Institute of Social Insurance, in 2022, 849 men took parental leave, while up to September 2023, the number was 327.

Termination of employment while an employee is on maternity or adoption leave is deemed invalid.

5.3. Information on the Effects of the Anti-Discrimination System

• The women labour force participation rate is 68.6%, whereas for men this indicator is 81.8 %. The men labour force participation rate is 13.2 percentage points higher than women.^[14]
• The gender gap in wages in 2022 was 6.2 %. So men have an average gross monthly salary 6.2 % higher than women. Compared to the previous year, in 2022 an increase in the gender gap in wages is observed by 1.7 percentage points.^[15]
• In 2022, the economic sector in which the gender gap in wages is highest, is the production sector, where the value of GPG reaches 21.3 %. The lowest value of GPG is reached for the Armed Forces, with 2%.^[16]

5.4. Other Important Issues

In 2023, the Commissioner for Protection against Discrimination issued 11 decisions regarding complaints or ex officio cases where gender-based discrimination was alleged. The outcomes of these cases were as follows^[17]:

• 2 decisions of discrimination;
• 5 decisions of non-discrimination;
• 4 decisions of non-admission.

The issues encountered during the examination of these cases, which primarily related to employment discrimination, included:

• termination of employment due to gender;
• unfavourable treatment of employees during employment relationships.

6. SAFE WORK ENVIRONMENT

6.1. Indicators of providing adequate measures for protection and safety of workers

According to official statistics from the State Labour Inspectorate for 2023:^[18]

• number of workers who lost their lives at the workplace: 30 workers;
• number of killed workers per 100,000 workers in 2023 was 4.1;
• number of workers who were injured at work: A total of 168 accidents, of which 40 were commuting accidents, which by law are also considered work-related accidents.

Processes to be evaluated include the fact that inspection procedures are conducted online via the “e-inspection” system, in real-time and in the presence of the inspected entity. The inspectorate is attentive to complaints from employees or interested parties, and complaints can be made while maintaining the anonymity of the complainant.

The total staff of the Labour Inspectorate is 165 employees, of which 94 are field inspectors, meaning one inspector on every 7,766 workers or 1.29 inspectors on 10,000 workers. By the end of 2023, the inspectorate’s staff was short by 22 employees, according to the labour inspectorate structure approved.

6.2. Arrangement of the occupational health and safety system

Occupational health and safety include ensuring the safety and protection of workers’ health by preventing occupational hazards, eliminating risk factors and accidents, providing information, consultation, balanced participation, and training for employees and their representatives in accordance with relevant legislation.

Albania has had a specific law on “Occupational Safety and Health” since 2010, which adheres to the best international standards. This law aims to define measures for ensuring the safety and health of workers.

Key obligations and regulations include:

• Employer Responsibilities:

• Workplace Hygiene: Employers are required to ensure proper hygiene in the workplace.
• Risk Management: After consulting with employees, employers must implement necessary protective measures against specific risks such as hazardous substances, machinery, heavy lifting, air pollution, noise, and vibrations. They are also required to address risks in various sectors like construction, civil engineering, mining, and chemical industries.
• Clear Signage: Employers must place clear and distinctive warning signs at any workplace area that presents a risk to the life and health of employees.
• Prevention and Training: Employers must take measures to prevent workplace accidents and occupational diseases; provide professional information and training for employees and their representatives regarding occupational health and safety; and organise collective and individual protection for workers.

• Regulatory Framework:

• Numerous subordinate legislative acts and regulations have been adopted by the Council of Ministers, which are direct transpositions of EU directives and regulations.
• There is a specific Decision of the Council of Ministers (VKM) regarding occupational health, which stipulates that all entities operating within the Republic of Albania, regardless of the type of activity and number of employees, must have an occupational physician. This VKM determines the number of working hours for the occupational physician based on the number of employees and can be full-time, part-time, or external.
• It also specifies the periodicity of medical check-ups depending on the type of activity and the kind of medical tests based on the employees’ job positions.
• The list of occupational diseases includes conditions directly related to the profession and exposure in the workplace.

These regulations ensure a structured approach to managing health and safety in the workplace, helping to mitigate risks and maintain a safe working environment.

6.3. Other important issues

Several notable issues require attention within the context of workplace health and safety:

• Risk-Based Inspection Planning:

• Positive Developments: It is recommended that 83% of inspections are planned based on risk assessments. This proactive approach ensures that resources are allocated efficiently, focusing on areas with higher risk levels.
• Digital Systems: The use of digital systems such as the Matrix of Penalties (MPS), Risk Analysis System (RAS), and e-Inspection have enhanced transparency and efficiency in the inspection process. These tools allow for real-time monitoring and facilitate inspections in the presence of the inspected party.

• Challenges:

• Vacancy Fulfilment: There is an ongoing challenge in filling vacancies within the Inspectorate. Increasing the number of field inspectors is crucial to ensure comprehensive coverage and effective oversight.
• Interinstitutional Collaboration: Enhanced cooperation between institutions is necessary to address overlapping responsibilities and improve overall effectiveness in managing workplace safety and health.

• Accountability Issues:

• Criminal and Civil Liability: There is a significant issue concerning the lack of criminal and civil liability for those responsible for workplace accidents, particularly in cases resulting in fatalities. Strengthening legal frameworks to ensure accountability and appropriate penalties is essential for deterring negligence and enhancing safety standards.

• Occupational Medicine:

• Specialist Qualification: A major problem in occupational medicine is the lack of specialised training for occupational physicians. This specialisation is not available at universities or academic departments, resulting in occupational physicians often being general practitioners or having other specialisations. Improving the availability and quality of specialised training in occupational medicine is critical to ensure that medical professionals are adequately prepared to address workplace health issues.

Addressing these issues effectively can significantly improve workplace health and safety standards, leading to better protection for workers and enhanced compliance with regulatory requirements.

7. SOCIAL SECURITY

7.1. Adequate amount of workers’ pensions

Here is a summary of the most recent data available for pensions and related metrics in Albania:^[19]

• as of 2023, the minimum pension in Albania is approximately 18,000 ALL per month (cca. 177 €). This amount can vary based on specific circumstances and changes in policy;
• the average monthly pension in Albania is approximately 30,000 ALL (cca. 296 €). This average includes all types of pensions and reflects a broader range of pension amounts;
• the median pension amount is not always distinctly reported separately from the average pension. However, it is generally lower than the average pension amount and is estimated to be around 25,000 ALL per month (cca. 247 €);
• if we take into account the living wage calculation of the global network Clean Clothes Campaign (cca. 1004 € for Albania), the ratio of the living wage to the minimum pension is roughly 1:5.67 (the minimum pension covers 17.62% of the living wage), and living wage to the average pension is roughly 1:2.54 (average pension covers 39.34% of the living wage).

Number of Employed Pensioners

• The number of employed pensioners in Albania is estimated to be around 10,000 to 15,000. They represent a small but significant portion of the total pensioner population. This number represents roughly 5-7% of the total number of pensioners.

Number of Elderly Individuals Not Receiving a Pension

• As of the latest data, approximately 15% of elderly individuals who have reached retirement age do not receive any form of pension.

These numbers offer a snapshot of the pension landscape in Albania and reflect the ongoing challenges and adjustments within the country’s social security system.

7.2. Other Important Issues

Social Pension

The social pension is a benefit granted to every Albanian citizen who has reached the age of 70, has had permanent residence in Albania for at least the last five years, does not meet the conditions for any type of pension from the mandatory social insurance scheme, and has no income or whose income from any other source is lower than the income provided by the social pension.

The amount of the social pension for individuals with other sources of income will be the difference between the social pension and the individual’s other income.

The criteria, procedures, and documentation for the social pension are determined by a Decision of the Council of Ministers.

For the year 2023 social pension estimated 8,588 ALL (cca. 85€).

Childbirth Benefit

The benefit for each newborn child will be an amount equal to 50% of the minimum monthly wage, as approved by the Council of Ministers, at the time of the birth of the right.

Death Benefits (Death Grant)

The payment for a death case of a family member is equal to 50% of the minimum wage at the national level.

8. SOCIAL DIALOGUE, EMPLOYERS’ AND WORKERS’ REPRESENTATION

8.1. Basic data on effects of social dialogue and collective bargaining

Social dialogue in Albania is primarily tripartite and structured at two levels: national and regional.

National Level:

The national level is exercised by the National Labor Council, which includes 10 of the most important representatives of employee trade unions, 10 of the most important representatives of employer organisations, and 7 of the most significant ministers of the government. They meet periodically to discuss the most important economic and social issues affecting employers and employees. This body’s mandate is renewed every 3 years, and its work is directed and coordinated by the Ministry responsible for labour. In practice, its role has remained formal due to the lack of will from government representatives and the inability of employee and employer representatives to assert themselves and exert the necessary pressure. Specifically, the National Labor Council held only one meeting in 2023, and no meetings occurred in 2024. Since 2019, Albania has not had a dedicated Ministry of Labour; labour issues are covered by the Ministry of Economy, Culture, and Innovation.

Regional Level:

Social dialogue at the regional level should be exercised by regional tripartite consultative councils, which consist of representatives from regional employee trade unions, regional employers, and regional institutions. This structure was foreseen by changes to the Labour Law in 2015 and was supposed to come into effect within 6 months of the changes to the Labour Law. However, as of 2024, this structure has still not been constituted.

Trade Union Organisation:

Regarding trade union organisation, there are two main confederations: the Confederation of Trade Unions of Albania and the Union of Independent Trade Unions of Albania, which have existed since 1991. In recent years, a considerable number of independent trade union organisations have emerged, uniting one or more sectors and representing employees in these sectors. This includes trade unions active in education, public services, industrial sectors, etc.

Collective Bargaining Coverage:

Regarding the number of employees covered by collective contracts, 66% belong to the public sector and 33% to the private sector. Meanwhile, the number of collective contracts filed with the Regional and Local Employment Directorates in the National Agency of Employment and Skills (AKPA) shows that 45.6% originate from the public sector, while 54.4% stem from the private sector.

8.2. Additional information on social dialogue bargaining

According to representation indicators for trade unions and their groups, it is observed that the most represented unions nationwide are those in the education sector.

8.3. Other important issues

• There is no general national collective agreement.
• Collective agreements are primarily sectoral, especially in the public sector, such as education and healthcare and are heavily influenced by the employer. There are cases, particularly in construction, manufacturing, and other sectors, where although collective contracts exist, employees have no information about them.
• A key characteristic of social dialogue is that it is weak, underdeveloped, and rarely notable. This is due both to the passive role of government institutions and the lack of proper organisation among social actors. Initiatives for organisation in sectors such as call centres, mining, manufacturing, and oil have been forcefully suppressed by employers, despite the costs involved, and almost in every case, the main initiators of these efforts have been dismissed from their jobs.

Production of this document was supported by Rosa Luxemburg Stiftung Southeast Europe with funds of the German Federal Foreign Office. This publication or parts of it can be used by others for free as long as they provide a proper reference to the original publication. The content of the publication is the sole responsibility of the Centre for the Politics of Emancipation and does not necessarily reflect a position of RLS.

[1] See: https://qbz.gov.al/preview/c1c18a6c-5f3e-457d-b931-de505b3c7ed0

[2] See: https://qbz.gov.al/eli/ligj/2003/07/29/9125/07caca3c-59e1-4025-aca4-a68fea640bd5

[3] See: https://qbz.gov.al/eli/ligj/2013/05/30/152-2013

[4] Quarterly Labor Force Survey, INSTAT: http://www.instat.gov.al/

[5] Quarterly Labor Force Survey, INSTAT: http://www.instat.gov.al/

[6] Quarterly Labor Force Survey, INSTAT: http://www.instat.gov.al/

[7] Living wage costs calculations (for year 2021) according to the research of Clean Clothes Campaign can be found here: https://cleanclothes.org/campaigns/europe-floor-wage

[8] See: https://www.instat.gov.al/media/13893/pagat_press_release-t2_2024_anglisht_-final.pdf

[9] Measurement of Income and Living Standards in Albania, 2022. The changes in the Risk of Poverty or Social Exclusion (AROPE). INSTAT: http://www.instat.gov.al/

[10] See: https://www.instat.gov.al/media/13064/silc-2022_final_anglisht_ezh.pdf

[11] The latest reports from the INSTAT.

[12] See: https://qbz.gov.al/preview/3f995b27-40ea-43c3-a42b-a0bd83e468e3/cons/20201111

[13] This is outlined in Article 9/3 of the Labour Law.

[14] Labour Force Survey, INSTAT, https://www.instat.gov.al/media/13103/lfs-q4-2023-pressrelesase-anglisht.pdf

[15] “Men and Women”, INSTAT, https://www.instat.gov.al/media/12598/burra-dhe-gra-2023.pdf

[16] Ibid.

[17] Annual Report of the Commissioner for Protection from Discrimination, Decisions of 2023 on Gender Discrimination.

[18] See: https://inspektoriatipunes.gov.al/wp-content/uploads/2024/04/ISHPSHSH_Raporti-Vjetor_2023-1.pdf

[19] Data from the INSTAT, social security reports, and other official publications.