---
title: "Albania Termination & Severance 2026"
description: "Albania termination 2026: banded notice up to 90 days, severance at 15 days per year of service, capped at 12 months of salary under the Labour Code."
canonical: https://www.teamed.global/country-hiring-guides/albania/termination-and-severance
---

Albania · Termination child

Served by Teamed vetted partner-entity network in Albania

# How do you *terminate an employee in Albania* in 2026?

Albanian law ties severance to every year worked: 15 days of wages per year of service, owed after just 3 years, and capped at 12 months of salary under Labour Code Art. 144. Notice on top of that runs up to 90 days once tenure passes five years.

Last reviewed 12 June 2026 · Albania guide

![A view of Tirana's central Skanderbeg Square at dusk, with colourful facades and a warm evening sky.](/images/country-guides/albania-termination-severance.webp)

Illustration · Tirana, Albania

Answer.cite this

Albania's [Labour Code](https://rivermate.com/guides/albania/termination) sets four notice bands by tenure. You must give 14 days in the first six months. From six months to two years the minimum rises to 30 days. From two to five years it is 60 days. Beyond five years the minimum is 90 days, and the overall cap is 13 weeks. During probation the notice window shortens to 5 days.

Severance accrues at 15 days of wages for every year of service. It is owed once the employee completes 3 years of continuous service. The total is capped at 12 months of salary.

If a dismissal is found to be wrongful, a court can award up to 12 months of salary. The law sets no fixed deadline for final pay. Standard practice is to settle on the last working day or the next regular payroll run.

![A signed employment contract resting on a wooden desk alongside a pen.](/images/country-guides/albania-termination-polaroid-1.webp)

Written notice required

## How much notice must you give an employee in Albania?

Notice is banded by tenure under [Labour Code Art. 143](https://rivermate.com/guides/albania/termination). In the first six months you must give **14 days**. From six months to two years the minimum is **30 days**. From two to five years it is **60 days**. Beyond five years the minimum is **90 days**.

The cap across all bands is 13 weeks. A contract can set a longer period but never a shorter one.

| Length of continuous service | Statutory minimum employer notice |
| --- | --- |
| Up to 6 months | 14 days |
| 6 months to 2 years | 30 days |
| 2 to 5 years | 60 days |
| Over 5 years | 90 days (statutory cap) |

### Probation and resignation notice

During the statutory probation period of up to 3 months, either party can end the contract with just 5 days of notice, a much shorter window than post-probation rules. Employees resigning outside probation must give the employer at least 14 days.

Notice must be given in writing. Albania does not have a Pay in Lieu of Notice (PILON) concept built into statute in the same way as UK law, but parties regularly agree payment in lieu by mutual consent when the employer wants the employee off-site immediately.

## What does fair procedure look like in Albania?

Albanian law requires a documented, written process before any employer-initiated dismissal. You must establish a valid ground. You must issue the notice in writing. You must give the employee a chance to respond.

Dismissing someone because they are pregnant, in a union, disabled, or exercising a legal right is illegal. That is true regardless of any other step you take in the process.

Under the Albanian Labour Code, valid grounds for employer-initiated termination include: genuine business-driven redundancy where the role ceases to exist; sustained incapacity or repeated failure to meet a required performance standard; gross misconduct, including dishonesty or conduct that destroys the employment relationship; and breach of confidentiality obligations. Dismissal for any other reason, without a documented ground, exposes the employer to a wrongful dismissal claim.

### The written-notice requirement

Every notice of termination must state the reason, confirm the notice period, and be delivered to the employee personally or by registered post. A verbal termination carries no legal weight and restarts the clock on any claim period. Where notice is served during a period of certified sick leave, the Labour Code's protections for employees in that period may apply.

### Wrongful dismissal compensation

If a court finds the dismissal unlawful, it may award compensation of up to 12 months of salary. Albania does not currently publish a minimum qualifying service period before this protection arises; sources consulted did not find a fixed threshold analogous to the UK's two-year qualifying period. The practical position is that protected categories have day-one protection and the general wrongful dismissal remedy is available from the start of employment.

1. Establish a valid ground Anchor the dismissal to a recognised Labour Code reason: genuine redundancy, sustained incapacity, gross misconduct, or breach of a core contractual obligation. A dismissal without a documented ground exposes the employer to a wrongful dismissal award.
2. Issue written notice Serve the termination notice in writing, stating the reason and the applicable notice period from the tenure band table. Verbal notice has no legal weight under Albanian law.
3. Observe the full notice period Run out the correct notice band or agree a payment in lieu by mutual consent. Cutting the period short without written agreement converts a lawful dismissal into a potential claim.
4. Calculate severance entitlement Apply the Art. 144 formula to each employee with qualifying service and confirm the total does not exceed the monthly salary cap. Show your workings in writing.
5. Process final pay and deregister Settle notice pay, accrued holiday, and any statutory severance in the final payroll run. File the social-security deregistration with the relevant authority on or before the termination date.

## How is severance pay calculated in Albania?

Severance under [Labour Code Art. 144](https://rivermate.com/guides/albania/termination) accrues at **15 days of wages for every year of service**. It is payable once the employee completes **3 years** of continuous service.

The total is capped at **12 months of salary**. Severance is owed on top of notice pay. It does not replace it.

The accrual rate of 15 days per year of service means an employee with six years of service earns 90 days of wages in statutory severance, assuming six years times 15 days equals 90 days. The monthly salary cap of 12 months operates as the ceiling: once the accrued days of wages reach 12 months of salary, no further severance accrues regardless of additional service.

Severance is calculated on the employee's average daily wage including regular allowances. Bonuses that are discretionary and not part of the regular pay structure are typically excluded from the calculation base, though the Labour Code's wording on this is interpreted through court practice rather than a single definitive regulation.

### When severance is not owed

Statutory severance under Art. 144 is not owed in every termination scenario. Where an employee is dismissed for gross misconduct, or where the employment ends during probation, the severance entitlement generally does not apply. Severance is also not owed where the employee resigns without a constructive-dismissal argument. Always confirm the specific ground before calculating the liability.

### Final pay timing

Albanian statute does not set a fixed number of days after termination by which final pay must be settled. The Labour Code protects wages for one month post-termination and imposes interest on delayed payment, but no express deadline in days was found across the sources consulted. Standard practice is settlement on the last working day or the next regular payroll run.

## Are there special rules for larger-scale redundancies in Albania?

Albania has no collective-redundancy consultation regime like the UK or France. The law applies individual notice and severance rules to each affected employee. Those costs add up quickly across a larger group.

Where a restructuring affects a significant part of the workforce, courts and the State Labour Inspectorate look closely at selection criteria and documentation.

KPMG Albania · Labour Code amendments

Albania's Labour Code was amended by [Law No. 91/2024 (KPMG Albania)](https://kpmg.com/al/en/insights/2024/08/recent-amendments-to-the-labor-code.html), in force from 25 August 2024. The amendments cover annual leave (raised to 22 days), working-time rules, and strengthened employee protections during workforce restructurings. Employers planning significant headcount reductions should review obligations under the amended Code with local counsel before issuing any notice.

The practical effect of Albania's per-employee framework in a large redundancy is that every dismissed employee with 3+ years of service generates an independent severance claim at 15 days per year worked, capped at 12 months per employee. For a team of 20 with an average tenure of four years, that's 80 severance entitlements each valued at 60 days of wages, all due at the point of termination, in addition to the four separate notice-period obligations that apply to each tenure band.

The State Labour Inspectorate has the authority to investigate and sanction employers who carry out mass redundancies without adequate documentation of the business reasons, the selection process, and the individual notifications. Reinstatement orders, back-pay awards, and fines are all within its remit under the amended Labour Code.

## Can you end employment by mutual agreement in Albania?

Yes. The Labour Code allows termination by mutual agreement. Both parties sign a written agreement. It records the termination date, any agreed payment, and a confirmation that neither side has outstanding claims against the other.

A mutual-agreement exit skips the notice bands and the procedural steps that apply to employer-initiated dismissal. The employee's consent must be genuine and free from pressure.

Mutual termination is the cleanest exit route where both parties want speed or certainty. The employer typically offers a payment above the statutory severance entitlement in exchange for a signed waiver. Because the employee is consenting rather than being dismissed, there is no wrongful-dismissal claim to manage.

Points to confirm in any mutual-agreement document:

- **Written form required.** An oral agreement carries no legal weight. The document must be signed by both parties and dated.
- **Waiver of claims.** Include a clear confirmation that both parties release each other from claims arising out of the employment relationship up to the termination date.
- **Payment terms.** State the amount, the payment date, and whether any non-compete or non-solicitation obligations continue post-exit.
- **Reference clause.** Agree the wording of any future reference at the time of signing, not afterwards.

If the employer applies pressure that crosses into duress, Albanian courts have the power to void the agreement and treat the exit as an unlawful dismissal, restoring the employee's full entitlement including the wrongful-dismissal award up to 12 months of salary. Document the process carefully and give the employee time to consider before signing.

## How Teamed runs Albania terminations

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Albania for [**from $599 per employee per month**](/pricing). There is **zero FX mark-up** in any currency. Our partner-entity network in Albania means the termination runs through a properly constituted local employer, not a shell arrangement.

We handle the notice calculation, severance maths, written-procedure documentation, and final-pay reconciliation on **one platform**. Decisions on who to dismiss, why, and on what terms remain yours.

**Real HR and legal experts** handle your Albanian hires, from the first offer letter through to the final payslip and social-security deregistration. **An actual person**, not a chatbot or a pooled queue, owns your account. There is **no setup fee** and **no exit fee**, and employer cost **passes through at cost, itemised** on every invoice.

The split of responsibilities under EOR for Albania terminations:

| What Teamed handles | What the client decides |
| --- | --- |
| Notice period calculation against the four Labour Code bands | Whether to dismiss, why, and on what timeline |
| Written termination notice drafted to Albanian statutory requirements | Performance standards and what counts as gross misconduct |
| Severance calculation under Art. 144 and cap verification | Whether to offer enhanced terms above the statutory formula |
| Mutual-agreement documentation where both parties consent | The commercial terms and any ex-gratia payment above statutory |
| Final payroll: notice, accrued leave, severance, social-security deregistration | Communication with the wider team and timing of announcement |
| Coordination with local employment-law partners for contested exits | Settlement vs dispute strategy |

Albania sits at the early stage of Teamed's network build-out. EOR via a vetted local partner is the right structure for a first Albanian hire and stays right until the headcount justifies a direct-registration entity. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see when that moment arrives. A contractor who converts to EOR keeps their record on **one platform**, and that same employee can **graduate** to your own Albanian entity when the model fits, **until it isn't** the right structure any more. Start from the Albania hiring overview for the full picture.

## Frequently asked questions

How much notice must you give an employee in Albania?

Notice is banded by tenure under Labour Code Art. 143: 14 days for service up to six months, 30 days from six months to two years, 60 days from two to five years, and 90 days beyond five years, capped at 13 weeks. During probation, notice shortens to 5 days.

When does the statutory severance entitlement start in Albania?

After 3 years of continuous service. Below that threshold no statutory severance is owed on termination, though notice pay is still due from the applicable band under Art. 143.

How is Albanian severance pay calculated?

Severance accrues at 15 days of wages per year of service under Art. 144, capped at 12 months of salary. An employee with four years of service would be entitled to 60 days of wages, applying four years multiplied by 15 days per year.

What is the maximum compensation for wrongful dismissal in Albania?

Courts can award up to 12 months of salary where a dismissal is found to be unlawful. Albania does not publish a fixed minimum qualifying service period before this protection applies; sources consulted indicate it is available from the start of employment for dismissals lacking a valid ground.

Can you terminate an Albanian employee by mutual agreement?

Yes. A written mutual-agreement exit is expressly permitted under the Labour Code and bypasses the notice bands and the procedural requirements that apply to employer-initiated dismissal. Both parties must sign, consent must be genuine, and the agreement should include a clear waiver of claims to be effective.

When must final pay be settled after termination in Albania?

Albanian statute does not specify a fixed number of days for settlement of final pay. The Labour Code protects wages for one month post-termination and requires interest on delayed payment, but no express deadline in days was found across the sources consulted. Standard practice is the last working day or the next regular payroll run.

Teamed Legal Operations

The trap in Albania is treating notice and severance as the same obligation. They're not. Notice runs under Art. 143, severance under Art. 144. You owe both on a standard redundancy once the employee clears three years. Miss either and you're looking at a court award that adds them back plus the wrongful dismissal component on top.

A note from Tom Price-Daniel

Albania's severance formula starts after 3 years, not ten.  
At 15 days per year worked, a five-year employee costs you 75 days of wages in severance before you've even counted notice.  
EOR means Teamed absorbs that calculation. You see the number before you make the call.

Tom Price-Daniel · Co-founder, Teamed

## Related Albania guides

- Hiring in Albania, overviewparent
- [UK termination and severance](/country-hiring-guides/united-kingdom/termination-and-severance)neighbour
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [EOR vs Entity Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)tool
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction, so verify current requirements with the relevant authorities, the Albanian State Labour Inspectorate and the relevant courts for Albania, or speak to a qualified professional, before relying on any specific framework. The Labour Code was amended by Law No. 91/2024 (in force August 2024); check for further legislative updates before acting on any figure cited here.