When is an Employment Agreement Necessary?

The most common question that appears is whether an employment contract is needed for a newly established trading company? Is it necessary to have a minimum of 1 employee by the start date? With the founding of the company, a manager is appointed. Managers, as managers, are usually registered as employees, but since one person can be the manager of several companies, this is not the rule.

The date of establishment of the trading company does not mean the start of the company’s work, that is, the date of first employment does not necessarily correspond to the date of establishment.

Employment Procedure

Registration of employment is done at the Employment Agency of the Republic of Macedonia (Employment Center). The procedure is simple and is completed in several steps:

-A PPR form (application for the need for a worker) is submitted, the form is available on the EA website. It contains data about the Company, the number of workers who are required, the position in which they should be employed, salary, etc.
-After submitting the form – EA opens an active advertisement. It is necessary that at least 5 days pass from the day of submission (all days of the week except Sunday are counted) in order to be able to register the employee. (If a company needs immediate employment, through employment mediation agencies, this period of 5 days is shortened and the employment is completed in 1 day)
-After the expiration of 5 days, an authorization to register an employee is submitted to the EA (can be found on the EA website). The authorization contains information about the person who is employed, the date of starting work and the basis for starting work.
With the submission of the application, at the same moment, EA issues M1/M2 form as proof of registration.

Employment Agreement

It is necessary to conclude an employment contract with the employee. This type of Agreement can be concluded for a fixed or indefinite period of time.

It must be concluded in written form and one copy is given to the employee.

Mandatory elements of the employment contract are

• The workplace – position in which the employee will start work;
• The place where the work will be performed (if not specified, it is considered to be at the headquarters of the Company);
• The amount of the salary;
• Contract duration.

Other provisions:

Apart from the mandatory elements of the Employment Agreements, depending on the nature of the work, the Agreement itself may provide for additional provisions related to:

Holidays, working hours and absences
Trainings;
Compliance with the Law and regulations on secrecy and protection of personal data;
Confidentiality, keeping confidential information;
Competition clauses;
Provisions related to intellectual property, etc

Termination of the Employment Agreement

The employment contract ceases to be valid:

-With the passing of the time for which it was concluded;
-With an amicable termination;
-By resigning (reasons established in the Law);
-With the death of an employer (natural person) or an employee;
-Due to the termination of an employer according to the Law;
-With a court ruling;
-In other cases established by law;

During the composition of the Employment Agreement itself, the provisions must be in accordance with the Law on Labor Relations and the general collective agreement for the private sector of the economy.
Otherwise, the provisions can be null and void and will not produce legal effect.

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