Manager contract in Macedonia

Real managerial agreements have very few managers in the Macedonia. These managers are usually the first people of companies with foreign capital. The lower levels of management usually have ordinary employment contracts under the Labor Law.

In the Macedonian practice, the most widespread model of a managerial contract concluded between the contracting parties is by establishing a working relationship, full-time on a fixed term. The employer and the employee usually does not specify the managerial contracts and sometimes this contracts are just simple employment agreements only named as a managerial contract.

In theory, the management contracts by their legal nature are contracts of autonomous law. It is a special legal institute envisaged in the Company Law and is not a substitute for the employment contract. In most managerial agreements, the contractual relations between the parties in terms of important status issues and the rights and obligations of the managers are not well developed and defined.

For these reasons, it often comes to terms with certain vague and undefined rights and obligations and the exercise of their rights through court proceedings. According to the Company law, this is a contract for arranging the relations between the company and the CEO (or managers). Nowhere in the law does not mention the term management contract. But the legal status of a person called a manager in the company is very important. So, you have management contracts, named so, but essentially are employment contracts and so should be treated in the legal position in a possible litigation. On the other hand, the Labour law also stipulates certain provisions on what the managerial agreement should regulate differently than the regular employment agreement.

The above mentioned specifics determine that this contracts tend to be very complex and should be signed in a specific procedure in order to differ from the regular employment agreement.