Dismissal Procedures in Albania: A

Dismissal Procedures in Albania: A Comparative Study

Artan Çela, PhD Candidate

University of Tirana, Faculty of Law, Head of Legal Representation, Department of Legal Affairs, Albanian Power Corporation
Email:[e-mail]

Doi:10.5901/mjss.2015.v6n2p95

Abstract

Because of its economic and social implications, and in spite of regulation at the highest level, the termination of employment by the employer is one of the most sensitive issues in labour law today1. This article deal with the legal provisions concerning the termination of contract of employment by the employer, covering topics such as, the procedure of employment contract termination, notice to terminate the contract of employment, damages or compensation for unfair or unjustified dismissal. It offers a comparative overview of the procedures governing termination of employment in Albania and some industrialized countries of EU Member States. In Albania, this article deals only with employees whose work is regulated by the labour code, categories of employed persons whose terms and conditions of employment are governed by specific law, are beyond the scope of this Article.

Keywords: dismissal; termination of employment; laying off; period of notice; compensation for dismissal;



1. Introduction

The traditional rules governing the contract of employment which developed in various countries during the nineteenth century were characterized by a formal symmetry of the rights of either party to terminate the contract of employment, by giving notice, without either party having to justify its decision. However, the consequences of this equivalency of rights differed widely for the parties: termination of the contract by the worker – exercising his fundamental right to protect his freedom of work – is in most cases merely inconvenience for the employer, whilst the termination of the contract of employment by the employer could result in insecurity and poverty for the worker and his family, particularly during periods of massive unemployment2. For this reason the objective of this article is to provide an overview in termination of employment by employer in Albania and some EU Member States including information in dismissal procedural, period of notice and damages or compensation for unfair or unjustified dismissal. The countries, France, Germany and United Kingdom have been selected to provide a diversity of systems, in geographic, developmental and legal terms. It provides an introductory summary of the legislation on termination of employment by employer. This article is divided into six parts, including this introduction and concluding remarks.

2. Termination of Employment by the Employer

An employees right not to be unfairly or unjustifiably dismissed is a modern cornerstone of the law relating to the termination of employment. The ILO first began examining the question of international standards on termination of contracts of employment more than 60 years ago 3 . Under Article 3 of ILO Convention No.158 (1982), the terms “termination” and “termination of employment” mean termination of employment at the initiative of the employer. Article 4 of the Convention provides that “the employment of a worker shall not be terminated unless there is a valid reason for such termination”. Article 5 of the Convention lists a number of reasons that do not constitute valid reasons for termination of employment. The need to base termination of employment on a valid reason is the cornerstone of the Convention’s provisions. The adoption of this principle removes the possibility for the employer to unilaterally end an employment relationship of indeterminate duration by means of a period of notice or compensation in lieu thereof. The Convention requires that there be a valid reason for termination of employment, whether it is terminated following a period of notice or not. In other words, giving the worker a period of notice does not exempt the employer from stating his


1 International Labour Organization (2000). Terminations of employment digest: A legislative review. International Labour Office. Geneva, pp.7.
2 International Labour Conference 82 Session 1995 (1995). Protection against Unjustified Dismissal. International Labour Office. Geneva, pp. 1.
3 International Labour Organization, International Labour Standards Department (2011). Termination of Employment Instruments. Geneva.


reasons or terminating the employment. National laws and practices that only require a valid reason for termination of employment where there is not period of notice (this is generally in the case of serious misconduct) and that do not require justification for termination of employment when notice has been given are not in accordance with the Convention4.
In Albania, according to Article 141 of the Code of Labor, the contract of undefined duration will end, if one of the parties terminates it, or if the notice deadline expires. At any time the employer may immediately terminate the contract for reasonable causes. Reasonable cause will be considered all the serious circumstances that, in accordance of the
principle of mutual trust, do not allow for asking the employer to continue the labor relations. The court decides itself whether there have been reasonable causes for the immediate termination of the contract. Reasonable causes will be considered only those cases where the employee violates the contractual obligations of serious offence, as well as the cases where the employee repeatedly violates the contractual obligations of non-serious offence, regardless of the employer’s written warning. If the contract is terminated for no reasonable cause, then the employee will have the right to sue the employer at the court within 180 days, starting from the day on which the notice deadline has expired. (See Article 146 of CL). At any time the employer may immediately terminate the contract for reasonable causes. Furthermore, the employer may not terminate the contract in the case where, according to the legislation in force, the employee is completing his/her military service, benefits payment related to temporary disability to work from the employer or Social
Insurance for a period of not longer than one than one years, as well as in the case where the employee is one vocations given to him/her by the employer5.
In France, the Labour Code states that all dismissal should be based on well-founded an valid grounds. In the absence of agreement between the parties, a contract of employment may be terminated by the employer only on account of serious misconduct or in the case of force majeure. A contract of employment for an unspecified period may be terminated by either of the parties. The termination by an employer should be justified by a genuine and serious reason. Any termination carried out by an employer for one or more reasons not inherent in the personality of the employee resulting from the elimination or transformation of the job or a substantial modification of the contract of
employment, especially after economic hardships or technological changes, constitutes a dismissal for economic reasons. No employer may terminate the contract of a woman who has been medically certified as pregnant; nor may her employment be terminated during a period of leave to which she is entitled (whether or not she takes it), or within four weeks of the expiration of the leave period. In addition, an employer may not terminate the employment of a worker whose contract has been suspended because of an employment injury or occupational disease, unless the employer can show that the employee has engaged in serious misconduct or that it is impossible, for reasons unrelated to the injury or illness, or the contract to continue in force. Termination of the employment of a trade union delegate, an employee representative and persons of similar status can only occur after authorization by the labour inspectorate. Sec. L.122-45 of the Labour Code states that no dismissal may be founded on discrimination based upon origin, sex, family status, race,
nationality, political opinion, trade union activities, religion, disability, or exercise of the right to strike or health. Any such dismissal is considered null and void.
In Germany, pursuant to sec.626 of the Civil Code, the reasons for summary dismissal must be based on grave misconduct or incompetence of the employee, or severe economic circumstances to the behaviour of the employee. However, the dismissal is only lawful if in view of all circumstances of the case, and in evaluating the interest of both parties, it is intolerable for either of the parties to fulfil the contract until the period of notice. Examples of serious breaches of contract include a criminal offence, persistent refusal to fulfil the contract of employment in spite of warnings, and deceiving the employer about skills or qualifications essential for the job. White Collar Employees Act also lists additional
grounds for summary dismissal. Summary dismissal must be carried out with two weeks of the occurrence on which it is based. The Protection Against Dismissal Act, prima facie position on dismissal is that it is assumed to be socially unjustifiable and therefore unlawful. The first and foremost aim of the PADA is to protect the employees contract of employment. The PADA define collective redundancy as a situation where, within a given period of 30 days, the employment relationship of a relatively large number of employees is actually terminated by the employer by way or ordinary dismissal with notice.
In United Kingdom, according to the common law, any contract may be terminated by either party with due notice. However, the common law has been restricted by legislation aimed at curbing unfair dismissal. The Employment Rights
Act (1996) includes, as a principle, the right of an employee not to be dismissed unfairly. Accordi

Hasil (Bahasa Indonesia) 1:

Dismissal Procedures in Albania: A Comparative StudyArtan Çela, PhD CandidateUniversity of Tirana, Faculty of Law, Head of Legal Representation, Department of Legal Affairs, Albanian Power CorporationEmail:[e-mail]:10.5901/mjss.2015.v6n2p95AbstractBecause of its economic and social implications, and in spite of regulation at the highest level, the termination of employment by the employer is one of the most sensitive issues in labour law today1. This article deal with the legal provisions concerning the termination of contract of employment by the employer, covering topics such as, the procedure of employment contract termination, notice to terminate the contract of employment, damages or compensation for unfair or unjustified dismissal. It offers a comparative overview of the procedures governing termination of employment in Albania and some industrialized countries of EU Member States. In Albania, this article deals only with employees whose work is regulated by the labour code, categories of employed persons whose terms and conditions of employment are governed by specific law, are beyond the scope of this Article.Keywords: dismissal; termination of employment; laying off; period of notice; compensation for dismissal; 1. IntroductionThe traditional rules governing the contract of employment which developed in various countries during the nineteenth century were characterized by a formal symmetry of the rights of either party to terminate the contract of employment, by giving notice, without either party having to justify its decision. However, the consequences of this equivalency of rights differed widely for the parties: termination of the contract by the worker – exercising his fundamental right to protect his freedom of work – is in most cases merely inconvenience for the employer, whilst the termination of the contract of employment by the employer could result in insecurity and poverty for the worker and his family, particularly during periods of massive unemployment2. For this reason the objective of this article is to provide an overview in termination of employment by employer in Albania and some EU Member States including information in dismissal procedural, period of notice and damages or compensation for unfair or unjustified dismissal. The countries, France, Germany and United Kingdom have been selected to provide a diversity of systems, in geographic, developmental and legal terms. It provides an introductory summary of the legislation on termination of employment by employer. This article is divided into six parts, including this introduction and concluding remarks.2. Termination of Employment by the EmployerAn employees right not to be unfairly or unjustifiably dismissed is a modern cornerstone of the law relating to the termination of employment. The ILO first began examining the question of international standards on termination of contracts of employment more than 60 years ago 3 . Under Article 3 of ILO Convention No.158 (1982), the terms “termination” and “termination of employment” mean termination of employment at the initiative of the employer. Article 4 of the Convention provides that “the employment of a worker shall not be terminated unless there is a valid reason for such termination”. Article 5 of the Convention lists a number of reasons that do not constitute valid reasons for termination of employment. The need to base termination of employment on a valid reason is the cornerstone of the Convention’s provisions. The adoption of this principle removes the possibility for the employer to unilaterally end an employment relationship of indeterminate duration by means of a period of notice or compensation in lieu thereof. The Convention requires that there be a valid reason for termination of employment, whether it is terminated following a period of notice or not. In other words, giving the worker a period of notice does not exempt the employer from stating his1 International Labour Organization (2000). Terminations of employment digest: A legislative review. International Labour Office. Geneva, pp.7.2 International Labour Conference 82 Session 1995 (1995). Protection against Unjustified Dismissal. International Labour Office. Geneva, pp. 1.3 International Labour Organization, International Labour Standards Department (2011). Termination of Employment Instruments. Geneva. reasons or terminating the employment. National laws and practices that only require a valid reason for termination of employment where there is not period of notice (this is generally in the case of serious misconduct) and that do not require justification for termination of employment when notice has been given are not in accordance with the Convention4.In Albania, according to Article 141 of the Code of Labor, the contract of undefined duration will end, if one of the parties terminates it, or if the notice deadline expires. At any time the employer may immediately terminate the contract for reasonable causes. Reasonable cause will be considered all the serious circumstances that, in accordance of theprinciple of mutual trust, do not allow for asking the employer to continue the labor relations. The court decides itself whether there have been reasonable causes for the immediate termination of the contract. Reasonable causes will be considered only those cases where the employee violates the contractual obligations of serious offence, as well as the cases where the employee repeatedly violates the contractual obligations of non-serious offence, regardless of the employer’s written warning. If the contract is terminated for no reasonable cause, then the employee will have the right to sue the employer at the court within 180 days, starting from the day on which the notice deadline has expired. (See Article 146 of CL). At any time the employer may immediately terminate the contract for reasonable causes. Furthermore, the employer may not terminate the contract in the case where, according to the legislation in force, the employee is completing his/her military service, benefits payment related to temporary disability to work from the employer or SocialInsurance for a period of not longer than one than one years, as well as in the case where the employee is one vocations given to him/her by the employer5.Di Perancis, kode tenaga kerja menyatakan bahwa semua pemecatan harus didasarkan pada beralasan alasan valid. Dalam hal tidak adanya perjanjian antara kedua pihak, kontrak kerja dapat dihentikan oleh majikan hanya karena kesalahan serius atau dalam kasus force majeure. Kontrak kerja untuk waktu yang tidak ditentukan dapat diakhiri oleh salah satu pihak. Pemutusan oleh majikan harus dibenarkan karena alasan yang tulus dan serius. Penghentian dilakukan oleh majikan untuk satu atau lain alasan tidak melekat pada kepribadian karyawan yang dihasilkan dari penghapusan atau transformasi pekerjaan atau modifikasinya substansial kontrakemployment, especially after economic hardships or technological changes, constitutes a dismissal for economic reasons. No employer may terminate the contract of a woman who has been medically certified as pregnant; nor may her employment be terminated during a period of leave to which she is entitled (whether or not she takes it), or within four weeks of the expiration of the leave period. In addition, an employer may not terminate the employment of a worker whose contract has been suspended because of an employment injury or occupational disease, unless the employer can show that the employee has engaged in serious misconduct or that it is impossible, for reasons unrelated to the injury or illness, or the contract to continue in force. Termination of the employment of a trade union delegate, an employee representative and persons of similar status can only occur after authorization by the labour inspectorate. Sec. L.122-45 of the Labour Code states that no dismissal may be founded on discrimination based upon origin, sex, family status, race,nationality, political opinion, trade union activities, religion, disability, or exercise of the right to strike or health. Any such dismissal is considered null and void.In Germany, pursuant to sec.626 of the Civil Code, the reasons for summary dismissal must be based on grave misconduct or incompetence of the employee, or severe economic circumstances to the behaviour of the employee. However, the dismissal is only lawful if in view of all circumstances of the case, and in evaluating the interest of both parties, it is intolerable for either of the parties to fulfil the contract until the period of notice. Examples of serious breaches of contract include a criminal offence, persistent refusal to fulfil the contract of employment in spite of warnings, and deceiving the employer about skills or qualifications essential for the job. White Collar Employees Act also lists additionalgrounds for summary dismissal. Summary dismissal must be carried out with two weeks of the occurrence on which it is based. The Protection Against Dismissal Act, prima facie position on dismissal is that it is assumed to be socially unjustifiable and therefore unlawful. The first and foremost aim of the PADA is to protect the employees contract of employment. The PADA define collective redundancy as a situation where, within a given period of 30 days, the employment relationship of a relatively large number of employees is actually terminated by the employer by way or ordinary dismissal with notice.In United Kingdom, according to the common law, any contract may be terminated by either party with due notice. However, the common law has been restricted by legislation aimed at curbing unfair dismissal. The Employment RightsAct (1996) includes, as a principle, the right of an employee not to be dismissed unfairly. Accordi