Ending an employment contract in Kosovo

Ending an employment contract is the point where procedural mistakes cost the most. Many employers have lost in court not because they had no reason, but because they didn't follow the procedure. This article explains the ways a contract ends, the notice periods and the steps.

Ways a contract ends#

Way	How it happens	Notice
Agreement	Both parties sign a dated agreement	As agreed
Expiry	A fixed-term contract ends	Advance notice of renewal or not
Resignation	The employee notifies in writing	Yes
Termination by the employer	For economic, organisational or performance reasons	Yes
Serious misconduct	Conduct that makes continuing impossible	None

Notice periods#

For open-ended contracts, when the employer ends the contract, the notice period usually depends on length of service:

Service with the employer	Notice period
6 months to 2 years	30 days
2 to 10 years	45 days
Over 10 years	60 days

When the employee resigns from an open-ended contract, the notice period is usually 30 days. During probation the periods are shorter.

Notice is given in writing, with the date it was handed over. During the notice period the employee keeps working and being paid.

Termination by the employer: the procedure#

Economic or organisational reasons#

When a job disappears because of less work, restructuring or closing a unit:

1. document the reason (for example falling sales, closing a location);
2. give written notice with the right period;
3. pay severance where the law provides it, based on years of service.

Performance or minor breaches#

1. A written warning, describing the problem and a deadline to improve.
2. A chance to explain: the employee must be heard.
3. If the problem continues, a written decision to terminate, with reasons and notice.

Serious misconduct#

Theft, violence, coming to work under the influence of alcohol or disclosing business secrets can justify termination without notice. Even here: document the incident, hear the employee and issue a written decision promptly after it's discovered.

When termination isn't allowed#

A contract can't be ended because of:

• pregnancy, maternity leave or childcare (see Maternity leave);
• justified sick leave (see Sick leave);
• trade union membership;
• the employee's complaint or lawsuit against the employer;
• any form of discrimination.

What the employee is owed on leaving#

• pay up to the last day, including overtime (see Overtime pay);
• compensation for unused annual leave;
• a certificate of employment, with length of service and position;
• severance pay, when the termination is for economic reasons and the law provides it.

After the employee leaves#

• Remove the employee from the monthly EDI return from the following month.
• Close access: email, systems, keys, equipment.
• Keep the employee file for as long as the law requires.
• If the employee was authorised in ARBK, remove the authorisation. See Authorised persons of a business.

Disputes#

An employee who thinks they were dismissed unfairly can first complain to the employer, then to the Labour Inspectorate or the court, within the legal deadlines. A court can order reinstatement and payment of lost wages. That's why a proper procedure is the cheapest protection.

For how to write a contract that sets all this out clearly from the start, see The employment contract.