Employer of Record in Kosovo
Skuad’s Kosovo EOR (Employer of Record) solution helps your business expand in Kosovo without the requirement of an entity setup. Our tech-enriched, integrated and automated global HR platform enables you to speed up the onboarding of your remote team, manage their payroll, benefits, etc. compliantly. With the help of our international network, we can help you streamline the process of global expansion.
Expanding your business in Kosovo and building an efficient team of workers can be trouble-free through an effective EOR solution. Know more about Skuad’s HR solutions for your requirements in Kosovo.
Kosova at a Glance
Population: 1,768,172 (2021)
Capital city: Pristina
Languages spoken: Albanian and Serbian
GDP: USD 7.93 billion 2019
Learn more about expanding your business into Kosovo from our team of experts.
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Employment in Kosovo
What You Must Know Before Employing In Kosovo
Kosovo Employment laws apply to both foreign nationals and their citizens. The main sources of employment law in the Republic of Kosovo are: the Constitution of the Republic of Kosovo; Law on Labour No. 03/L-212; Law on Safety and Health at Work No. 04/L-161; Law on Foreigners No. 04/L-219; Law on the Protection of Breastfeeding No. 05/L-023; Law No. 04/L-011 for Organizing Trade Unions in Kosovo; and Law No. 03/L –200 On Strikes.
The employment of civil servants is governed by separate laws and regulations. Other sources of employment law include several administrative instructions.
|Statutory Working Hours
40 hours for five days
30 hours per week
Overtime is permitted only when there is an urgent need to work beyond normal hours. It is limited to eight hours per week. Employees who work a shift beyond their normal working hours are paid 120% of their standard rate for the extra hours. Employees who work beyond 40 hours per week and do night shifts are paid 130% of their standard hourly rate. Employees who work on weekends and national holidays are paid 150% of their standard rate.
|Paid Public Holidays
||The public holidays in Kosovo for 2021 are as follows:
- New Year’s (1 Jan)
- Orthodox Christmas (7 Jan)
- Independence Day (17 Feb)
- Constitution Day (9 April)
- Roman Catholic Easter Monday(5 April)
- Orthodox Easter Monday (3 May)
- Labor Day (3 May)
- Eid al-Fitr (13 May)
- Europe Day (9 May)
- Eid al-Adha (20 July)
- Roman Catholic Christmas (25 Dec)
|| Employees are entitled to obtain four weeks of paid leave annually and collect one additional day for every five years of service with the same employer. The employer is entitled to schedule leave for employees only after considering their preferences. An employee can apply for leave at least 15 days in advance, and the employer must decide within five days of the first day of the application.
||Employees in Kosovo are entitled to 20 days of paid sick leave every year with the full salary paid by the employer. The employee may take additional, unpaid sick leave only with the approval of the employer. The employee must apprise the employer of their intention to take sick leave as early as possible, and the employer may ask the employee to submit a medical certificate if the employee fails to be present at work for more than three consecutive days.
|Maternity / Paternity Leave
Female employees get 12 weeks of paid maternity leave. During the first six months of maternity leave, she is entitled to get 70% of her salary from the employer. The remaining six months of maternity leave are optional. During the seventh, eighth, and ninth months, if the mother continues with the leave period, then she will receive a payment from the government which would be equal to fifty percent of the average salary in Kosovo. However, if the mother chooses to continue with her maternity leave for the final three months, her leave for those days is unpaid. Once the first six months of maternity leave are over, the mother may even transfer her right to maternity leave to the father.
A father is entitled to get three days of paid leave at the birth of the child or for the adoption of his child and two weeks of unpaid leave at any time before the child turns three years old.
If the maternity period is over and a child needs special care for some specific reasons, one parent is permitted to work part-time until the child becomes two years old to provide the additional care the child needs.
|Employee Protection Rights
The Kosovo Labour Laws provides special protection to:
- Employees working in the private and public sectors
- Employees whose employment is governed by a special law, if the special law does not address certain issues deriving from the employment relationship.
- Foreign employees and working people without citizenship.
- Female employees who are pregnant and/or breastfeeding women
- Employees under the age of 18
- Employees with disabilities.
|Employee Anti-discrimination Rights
The Constitution of the Republic of Kosovo, the Kosovo Labour Laws, and the Law on Protection from Discrimination provide employees with protection against all forms of discrimination. Any discrimination that includes exclusion or preference made based on race, color, sex, age, religion, political opinion, family status, social origin or national extraction, language, or trade-union membership, which has the effect of nullifying or impairing equality of opportunity in employment, is prohibited.
|Employee Health Benefits Kosovo
Although Kosovo has medical facilities, the country is still in the process of establishing an advanced health care system. The government of Serbia provides funding for hospitals in major areas of the country and there are private providers and hospitals as well. Private health insurance is available, but only a small number of Kosovo residents have access to it.
Kosovo's employment laws.
Contractors vs. Full-time Employees
Full-time employees are on the company's payroll who have to spend their working hours dedicated to the company's projects. They are expected to follow the company’s guidelines and be loyal to the company. In return, the company pays fixed income and other benefits to the employees and manages their day-to-day activities as well. The company withholds the appropriate taxes (e.g., federal income tax, Social Security tax, Medicare tax). The benefits paid by the company can include mandatory employment benefits, like health insurance, and other desirable benefits, like flexible spending accounts (FSAs), health reimbursement accounts (HRAs), health savings accounts (HSAs), paid vacation, commuter benefits, and stock options.
Contractors, on the other hand, are independent workers who usually work on a freelance or contract basis, meaning they only work when required and have other clients. They enjoy autonomy and flexibility but do not receive any benefits. The company would not withhold or pay any taxes. A contractor is responsible for paying their taxes, including federal income tax and self-employment tax. Additionally, they must pay to avail of any benefit including health insurance.
Although there are many advantages to both options, identifying the better option for your company depends on the individual's needs.
If you have a temporary project in hand, then hiring an independent contractor is the right option for you. On the other hand, if you are intending to enter into a specific market and need to hire people with special skill sets, who will support you for the long term, then you should go for full-time employees.
Many businesses must decide whether to hire a full-time employee or work as an independent contractor.
You need to consider certain factors before making the right decision. The questions given below will help you determine how to classify the worker.
- When, where, and how is the work done?
- Is the worker required to go through lengthy onboard training?
- Is the worker required to do full-time, ongoing/continual work? Or is the worker required to do temporary work based on projects that have specific requirements?
- Does the worker need to be paid hourly, weekly, or monthly? Or the worker needs to be paid once an entire project is over?
- Is the company willing to pay for travel?
Remember that it is very important to classify the worker rightly, as misclassifying a worker can result in back taxes, fines, penalties, and legal disputes.
To help you to make the right decision, global employment solutions companies act as the employer of record to take care of legal and financial issues regarding hiring, paying, and managing remote teams for you. Call us if you want to know more about Skuad’s employer of record Kosovo service.
Hiring in Kosovo
The hiring companies in Kosovo can either opt for advertisements in local newspapers or can advertise on more general career sites such as LinkedIn, Monster, Elevated Career, Indeed, etc. However, these popular job search platforms have many disadvantages, like a high volume of responses, logistical problems, technology issues, poor websites, too impersonal, etc. Another way to hire employees in Kosovo is to join hands with a local expert. It will save you the delay and provide cost-effective solutions that comply with the laws of the country. To experience a positive hiring process, connect with Skuad experts who will take you through each step of the hiring process in Kosovo.
Probation & Termination
Standard Probation Period Kosovo
While typically the standard probation period in Kosovo lasts between 3-6 months; under their labor laws, there is no limit. Once the probation period is over, the employee becomes eligible for benefits and entitlements. During the probationary period in Kosovo, employers and employees can discontinue the employment relationship with a two-day prior notification.
Termination of Employment, Kosovo
Whoever decides to terminate the employment contract between the two parties must give notice to the other party in writing. The notice period is determined according to what was agreed between the two parties in their employment contract.
In most circumstances, termination of a contract by an employer takes place only when it is justified for economic, technical, or organizational reasons, or if the employee is no longer competent to perform the work or can not be transferred to another department or can not be retained for a different job. The termination must be in writing and state the reason the employee is being terminated.
An employer or an employee may terminate a contract with no prior notice if either of the two parties seriously breaches a contractual obligation.
Learn all about the standard probation period, Kosovo, and termination of employment, Kosovo, from Skuad experts today.
EOR Solution in Kosovo
Skuad has a client-centric approach and delivers end-to-end EOR solutions to its diverse clients. The integration of different economies has increased the opportunities to expand your business globally. An EOR service organization plays a vital role in helping you to expand your business operations. Skuad is an established EOR company known for the systemic administration of HR. Skuad’s broad spectrum of services includes the following.
- Talent Discovery: Skuad not only manages your employees in Kosovo but also finds the right talent for your organization.
- Human Resource Administration: Skuad assumes full responsibility for managing remote workers and employees in Kosovo and takes care of their onboarding, payroll, and management.
- Compliance: Skuad ensures that your organization complies with the labor legislation and tax laws of Kosovo.
- Establishment of an Entity: Skuad assists at each step of setting up a new entity in Kosovo.
Talk to our experts about employers of record companies in Kosovo and find out how Skuad’s Employer of Record EOR solutions might be just what you are looking for while expanding in Slovakia.
Types of Visas in Kosovo
If you are planning to relocate employees to Kosovo or hire foreign nationals, you will have to ensure that they all have the required permits and visas to live and work there.
|Short term visa or C type Visa
- Granted for up to 90 days or less in 180 days depending on the reason for your visit. you may be categorized into one of the following visa types.
- Kosovo Tourist Visa
- Kosovo Business or Fair Participation Visa
- Kosovo Family, Relative, or Friend Visit Visa
- Kosovo Cultural, Sports or Conference Visit
- Kosovo Short-Term Education or Internship Visa
|Long term visa or D type visa
||Granted for stays that exceed 90 days with varying motives in Kosovo, even if the applicant’s nationality is on the visa-free list and they are not asked for permanent residence permits. If you meet one of the following criteria, you may be able to apply for a long-term visa to Kosovo:
- A student planning for higher education, language course, or long-term internship.
- An employee going to work for a business located in Kosovo or for periodical employment.
- A researcher, or scientist to work in a certified research center in Kosovo.
- An individual whose family member is a citizen of Kosovo.
- A patient to undergo long-term medical treatment in a medical institution in Kosovo.
|Kosovo Transit Visa
A Kosovo transit visa is required when the nationality of a person is not eligible to travel to another destination from Kosovo. A Kosovo transit visa permits a person to travel to a third country from the region of Kosovo and can be issued for one or multiple trips.
Kosovo Work Visa
The government of Kosovo has exempted several countries, including the United States from visas. Foreign nationals from these countries are not required to obtain a visa to enter Kosovo and can stay for up to 90 days or 180 days.
Whether your employees are from a visa-exempt country or not, they will be required to acquire work permits as well as a temporary residence permit to live in and work in Kosovo.
Kosovo work permits for foreigners can be secured by presenting the documents needed for the processing of work visas to the consulate. People who are eager to work in Kosovo can also apply for Kosovo work permits without a job offer, but they must apply for the work permit themselves and not on behalf of a company. They will require the following documents.
- Visa application form
- Recent passport photograph
- Passport with a validity of at least 6 months
- A copy of the applicant’s passport’s main page
Kosovo Work Visa Requirements
The general requirements to get a visa for entrance in Kosovo are as follows:
- A duly completed and signed application form
- A passport that is valid for at least six months after the applicant’s planned date of arrival in Kosovo
- A passport photo that was taken within the last month
- Evidence that the applicant has travel medical insurance coverage for their time in Kosovo
- Proof that the applicant has sufficient financial means to support themselves in Kosovo
- Evidence that the applicant has accommodations in Kosovo
- Proof of payment of the visa fee
Diplomatic officials may even require additional documents depending on a case-by-case basis. To acquire a temporary residence permit, foreign nationals will be required to provide evidence of insurance and accommodations in Kosovo. They will also be asked to put forward an official police background check from their country of residence.
Know more about the process of visas in Kosovo, Talk to Skuad experts today!
Work Permit Kosovo
Following are the requirements to obtain a Kosovo work permit:
- A temporary residence permit or valid visa
- Details regarding the applicant’s professional position and qualifications
- An employment contract with a business in Kosovo
- A certificate of business registration for the employer
If you are already conducting a business successfully, you may neither have the time nor the resources to control and manage all the risks and follow all the regulations associated with expansion internationally. Let our team of Skuad experts handle it for you — talk to us today to learn more about how our solution can help you harness top talent in Kosovo and beyond.
Payroll & Taxes In Kosovo
As a foreign company, you must adhere to the local laws and taxation policies like income tax, business tax, withholding tax, employee compensation insurance, social security costs, etc. With a resourceful payroll outsourcing company, the process might just get simple. To know more about payroll outsourcing in Kosovo, connect with Skuad experts today.
Kosovo payroll tax rates
The standard corporate tax rate in the state is 10%. Other taxes vary based on the industry of the employee, and taxpayers making up to EUR 50,000 can choose to pay tax on a gross income basis. Kosovo uses a Pay As You Earn (PAYE) system for personal income taxes, so you are responsible for withholding taxes from employees’ wages.
Kosovo employer payroll taxes
Progressive tax rates ranging from 0 – 10% are applied to gross income in the following manner: 0% for salaries up to EUR 960 / year; 4% for salaries from EUR 961 to 3,000 / year; 8% for salaries from EUR 3,001 to 5,400 / year; 10% for salaries over EUR 5,400 / year.
Talk to us today and know more about payroll and taxes in Kosovo!
Incorporation: How to Set Up A Subsidiary In Kosovo?
While incorporating a holding company in Kosovo, one of the most important factors to consider is the location of your subsidiary. Different regions or cities within the state have their laws, charges, availability, etc. Selecting incorporation-friendly destinations can make the process simple and less time-consuming.
Secondly, one must consider the type of entity best suited for your business needs and objectives. For example, incorporating as a limited liability company (LLC) generally gives businesses plenty of freedom to work in Kosovo. On the other hand, setting up a branch in the country will restrict your activities. Kosovo will permit you to set up your subsidiary as an LLC, public limited company, branch, or representative office.
Most companies choose to incorporate as an LLC because it is advantageous for their parent company and allows them to be flexible in operating in the country.
Although it may appear to be a lengthy and time-consuming process, the Kosovo subsidiary setup process will allow you to begin legally working in the country without having to worry about incurring any fines from the subsidiary.
There are immense business opportunities in Kosovo. Many businesses are attracted to expanding into Kosovo because of the growing economy of the country. However, it is important to know the various laws for incorporation.
Know more about setting up a subsidiary in Kosovo with Skuad’s potent EOR solution.
Professional Employer Organization (PEO)
A Professional Employer organization, Kosovo is an organization that manages all comprehensive HR services such as payroll management, employment benefits, regulatory compliance, tax filing, onboarding, training and development, and other services. A PEO is an outsourced HR department that provides access to expert services which are affordable as well. A PEO firm acts as a co-employer, while an EOR firm acts as a legal employer.
Businesses willing to collaborate with a PEO firm will be required to set up a legal entity separately. However, if you join forces with an EOR team, you can legally begin working and hiring in the country because it is already a legal employer.
A PEO can take charge of all the liabilities and responsibilities of the company and control and manage all HR-related matters. An EOR company permits organizations to set up legal subsidiaries in different countries and make their presence felt in the global market.
Skuad’s unified and automated platform acts as an EOR. Skuad is the global HR platform that can make your expansion easy. Its unified employment platform managesWe will manage everything from onboarding employees for your team to providing all statutory benefits so that you can focus your time and energy on the growth of the company. With the help of our international network, we can help you streamline the global expansion process. Reach out to us today and enhance your business prospects with Skuad’s advanced EOR solutions.
Conclusion: What Gives Skuad’s Kosovo Solutions an Edge?
Businesses looking to expand their workforce in promising regions may find Kosovo an attractive destination especially if you have an employer of record like Skuad as a partner. Its one-of-a-kind EOR solution lets you streamline and expedite your global expansion process. Book a demo with Skuad experts to know more.