Termination Of Unlimited Duration Employment Contracts

The most common problems currently facing employers in Albania relate to termination of individual employment contracts entered into for an unlimited duration. Although the country's Labor Code (law no. 7961, 12 July 1995) sets out clear provisions regarding the procedures, timing and grounds for termination of such contracts, it is essential for employers to strictly follow provisions regarding the relevant procedure and subsequent notification periods.

For additional guidance, employers can look to the judgment of the Albanian Supreme Court in Kloboshtica vs. Italian Institute of Foreign Trade (decision no.19, nr reg. 12/5, 15 November 2007). The court ruled that compliance with the...