Hiring your first employee in Kosovo

Your first employee is a big step. The business no longer depends only on you, but you also take on new obligations. Most problems with employees, and with the labour inspectorate, start with things that weren't done in the first week.

1. A written contract, before day one#

The Law on Labour requires a written contract. It should include at least:

• the parties, i.e. the business's official name and the employee's details;
• the place of work and a job description;
• the start date and contract type (open-ended, fixed-term or for specific tasks);
• gross salary, allowances and pay date;
• working hours;
• annual leave;
• notice periods for termination;
• the probation period, if any.

Give the employee a copy. Keep yours in their personnel file.

2. Probation#

Probation is common and legal. Under the Law on Labour it cannot exceed six months. During probation, the contract can be ended at shorter notice.

Probation does not mean undeclared work. The employee has a contract, pay and contributions from day one.

3. Pay#

• Pay can't be below the minimum wage in force. Check the current amount, as it changes by government decision.
• Pay through the bank, on the date set in the contract.
• Contributions and tax are withheld from gross pay. The calculation is covered in Payroll tax and contributions.

4. Hours and overtime#

• A full working week is usually 40 hours.
• Overtime is limited by law and paid at a premium on top of regular pay.
• Night, weekend and public-holiday work also carry premiums.

Keep a record of hours. It protects you if there's a dispute.

5. Leave#

• Annual leave: at least four weeks a year, paid.
• Public holidays: paid days off, or paid at a premium if worked.
• Sick leave and maternity leave are regulated by law, with specific rules on who pays and for how long.

6. Declaring to ATK and the pension trust#

From the first month, the employee must appear in your monthly return in EDI, with payroll tax and pension contributions. If you haven't had employees before, make sure your EDI access or your accountant covers this. See Filing taxes in EDI.

7. Health and safety at work#

Depending on your activity, you have occupational safety obligations: a risk assessment, protective equipment and training. In construction, manufacturing and hospitality these are often checked by the Labour Inspectorate.

8. The personnel file#

For each employee keep:

• the contract and any amendments;
• a copy of their ID;
• records of hours and leave;
• proof of salary payments;
• any warnings or disciplinary decisions, in writing.

They'll check you too#

Job seekers increasingly check an employer before accepting an offer: its status, owners and how long it has existed. Verify your business on Kerko so your profile shows the right contacts and description. Likewise, if you hire someone who has run a business before, you can look up that history on Kerko.