Introduction

Whether you're expanding into Southeast Europe or managing remote teams across borders, understanding the differences in employment law is critical to avoiding risk. Kosovo and the United States operate under distinctly different legal frameworks - one rooted in civil law, the other in common law. And these differences shape everything from how you hire to how you terminate an employee.

For businesses operating in both jurisdictions, assuming a uniform approach is not just inefficient - it can be costly. A misstep in classification, miscommunication of notice periods, or lack of benefits compliance could trigger fines, legal claims, or reputational damage. In a recent McKinsey survey, 40% of global executives cited legal and regulatory complexity as their biggest concern in cross-border growth.

This article offers a calm, clear look at the contrasts between Kosovo and US labour law - with practical advice to help your HR team stay on solid ground.

Quick Tips

• Always issue written employment contracts in Kosovo - they are legally required.

• In the US, contracts are rare and most employment is 'at will' - understand the implications.

• Kosovo mandates statutory annual leave and severance - US rules vary by state and are often minimal.

• Notice periods are required in Kosovo; in most US states, termination can be immediate.

• Social contributions and tax withholdings differ significantly - seek local payroll guidance.

Contracts and Termination: Civil vs Common Law

Kosovo requires a written employment contract for all employees, and these contracts must outline working hours, responsibilities, remuneration, and termination conditions. Termination in Kosovo follows due process and must include valid legal grounds. Notice periods (ranging from 7 to 30 days) and severance pay (typically one month per year of service) are mandatory for redundancy or employer-led termination.

In contrast, most employment relationships in the US are 'at will', meaning either party can end the arrangement at any time without cause or notice, unless otherwise specified in a contract or covered by collective bargaining. Some states have added protections, but the baseline is much looser. This flexibility is valued by many US businesses but creates risk for global employers who try to apply the same standard elsewhere.

Working Time and Leave Entitlements

Kosovo operates under EU-style labour protections despite not being an EU member. Employees are entitled to at least 20 days of paid annual leave, plus public holidays and up to 12 months of maternity leave (with paid portions covered by state funds). Sick leave, bereavement leave, and family support leave are also enshrined in the Labour Law.

In the US, there is no federal mandate for paid holiday or maternity leave. Most leave policies are discretionary or governed by state law. The Family and Medical Leave Act (FMLA) provides for 12 weeks of unpaid, job-protected leave for eligible employees, but only applies to companies with 50 or more staff. This contrast in statutory protection is significant and must be considered in global benefits planning.

Social Security and Payroll Compliance

In Kosovo, both employer and employee make contributions to the state pension and health systems. These are administered centrally, and payroll reporting is tightly regulated. Employers must withhold and remit tax, pension, and health contributions monthly. Non-compliance can lead to inspections and penalties.

The US system is decentralised, with varying state and federal tax responsibilities. Employers must register for Federal Employer Identification Numbers, calculate FICA (Social Security and Medicare), federal income tax, and state-specific obligations. Misclassifying employees as contractors is a common pitfall - one that has triggered audits and back pay claims for several of my US clients.

A Real Example: Contractor Misclassification Across Borders

A client based in Texas hired remote workers in Kosovo using contractor agreements. On the surface, it seemed efficient. But these individuals worked regular hours, had fixed responsibilities, and were managed as employees. When one raised concerns about unpaid leave, it became clear that the arrangement didn’t meet Kosovo’s legal standards.

We supported the client to establish compliant employment contracts in Kosovo, register for social contributions, and set up a payroll provider. The shift not only reduced legal exposure but improved retention, as workers felt more secure and valued.

Final Thoughts

Global expansion brings incredible opportunity - but it also brings legal complexity. Kosovo’s labour law is detailed and protection-heavy; the US system is flexible but fragmented. Neither is better or worse - they are simply different, and they demand tailored approaches.

What’s next for your global people strategy?

Book a free compliance check-in or HR audit with ThinkGlobal HR. We’ll help you assess your risk, adapt your contracts, and build compliant systems that grow with you. From Pristina to Pittsburgh, we’re your people partner.