Introduction

For companies expanding into new markets, understanding local labour laws is not just a compliance box to tick - it’s a vital part of protecting your business and your people. Albania and the United States might seem worlds apart economically and culturally, but both offer unique opportunities for employers. The key is knowing how to navigate each system confidently.

While the US leans heavily on decentralised, employer-friendly regulations, Albania follows a civil law tradition with stronger employee protections embedded in statute. Without the right guidance, businesses risk misclassifying employees, falling short on statutory benefits, or breaching local obligations - often unintentionally.

Whether you’re hiring a contractor in Tirana or setting up a full-time team in Texas, here’s what you need to know.

Quick Tips

• At-will employment doesn’t apply in Albania - dismissal requires cause and process.

• US federal law sets a floor, but state laws often raise the bar - always check both.

• Albania mandates annual leave, paid sick leave, and maternity protections.

• Social contributions are significantly higher in Albania than most US states.

• Contractors must be correctly classified - in both countries, missteps can mean fines.

Termination: One Country’s Freedom Is Another’s Framework

In the US, most employees are hired under “at-will” contracts, meaning employers can terminate employment for any lawful reason without prior notice (unless restricted by a contract or state law). This gives employers flexibility but comes with reputational and retention risks if mishandled.

In contrast, Albania’s Labour Code protects employees from dismissal without cause. Termination requires documentation, a justification, and often a notice period or severance payment. Employers must also demonstrate attempts at internal resolution before ending employment contracts.

HR leaders should ensure termination processes are clearly defined in contracts and backed by consistent documentation. In both countries, poor process is one of the most common sources of disputes.

Working Hours and Leave: Plan Ahead to Avoid Operational Gaps

Standard working hours in Albania are capped at 40 hours per week, typically spread over five days, with a legal maximum of 48 including overtime. Employees are entitled to a minimum of 20 days of paid annual leave, along with paid public holidays, maternity leave (365 days total, with 80% pay for the first 150), and sick leave benefits.

The US, by contrast, has no federally mandated paid annual leave or public holiday entitlements. Leave policies are employer-determined, although the Family and Medical Leave Act (FMLA) provides unpaid, job-protected leave in specific cases. Paid leave, including sick leave and maternity provisions, often depends on state laws or company policy.

Global businesses must adapt their operational planning accordingly. In Albania, expect more statutory absence protections. In the US, build your employer value proposition through enhanced leave packages to attract and retain talent.

Social Security and Contributions: Budgeting for Compliance

Albania requires employers to contribute approximately 15% of gross salary to social security and health insurance schemes, with employees contributing a further 11.2%. These payments cover pensions, health insurance, and unemployment benefits.

In the US, employers and employees split contributions for Social Security (6.2% each) and Medicare (1.45% each), but other benefits like unemployment insurance and workers’ compensation vary by state.

From a cost perspective, this makes Albanian hires potentially more expensive on paper due to statutory contributions, but offers stronger public coverage. US businesses have more flexibility in benefit design but must be careful to stay competitive and legally compliant within each state.

A Real Example: Avoiding Contractor Pitfalls Across Borders

A US-based tech firm approached us after hiring contractors in Albania and several other European countries. Their goal was flexibility, but local authorities raised concerns when the individuals appeared to meet the criteria of full-time employees. We stepped in to reassess worker classification, reviewed working patterns, and helped them switch to compliant employment contracts in Albania.

This prevented future audits, allowed the business to maintain operations without disruption, and improved engagement by offering workers appropriate protections and benefits.

Final Thoughts

Labour law differences between Albania and the US reflect broader cultural and legal distinctions. But the challenge for businesses is universal: hiring across borders demands tailored, well-informed HR strategy.

Rather than relying on assumptions or copy-pasting from other markets, invest time in understanding the legal and cultural norms of each jurisdiction. It’s not just about avoiding fines - it’s about treating your people fairly and building a sustainable, reputation-safe global business.

What’s next for your global people strategy?

Book a free compliance check-in or HR audit with ThinkGlobal HR. Whether you need contract reviews, classification assessments, or strategic advice on international hiring, we’re here to support you - calmly, practically, and with insight born of experience.