Employment termination in North Macedonia
The complete guide to employment termination
Understanding the rules on employment termination in North Macedonia is essential for both employers and employees. The Law on Labor Relations sets out strict procedural and substantive requirements for valid dismissal — failing to follow them exposes employers to legal challenges and reinstatement orders. This page is part of our Employment Law practice.
According to the Law on Labor Relations of the Republic of North Macedonia, the employment contract can be cancelled by both the employee and the employer.
While both sides of the employment relationship have the right to access the termination of employment, there is a difference in the grounds and reasons for whether the dismissal is granted by the employee or the employer.
The employee may cancel the employment agreement if he/she has stated in writing that he/she wishes to cancel the employment agreement. On the other hand, in the case of dismissal by an employer, he may only terminate the employment agreement if there is a justifiable cause of dismissal related to the employee’s conduct (personal cause on the employee’s part), for breach of the working order and discipline or work responsibilities (cause of fault) or if the reason is based on the needs of the employer (business reason).
If the employer cancels the employment agreement, he/she is obliged to state the grounds for the cancellation, established by law, collective agreement and the act of the employer, to prove the justification of the reason justifying the cancellation and to state them in the explanation.
According to the Law on Labor Relations of the Republic of North Macedonia, the employment contract can be canceled by both the employee and the employer.
While both sides of the employment relationship have the right to access the termination of employment, there is a difference in the grounds and reasons for whether the dismissal is granted by the employee or the employer.
The employee may cancel the employment agreement if he/she has stated in writing that he/she wishes to cancel the employment agreement. On the other hand, in the case of dismissal by an employer, he may only terminate the employment agreement if there is a justifiable cause of dismissal related to the employee’s conduct (personal cause on the employee’s part), for breach of the working order and discipline or work responsibilities (cause of fault) or if the reason is based on the needs of the employer (business reason).
If the employer cancels the employment agreement, he/she is obliged to state the grounds for the cancellation, established by law, collective agreement and the act of the employer, to prove the justification of the reason justifying the cancellation and to state them in the explanation.
Form, content, and submission of the cancellation
The cancellation of the employment agreement must be in written form. The employer is obliged to explain in writing the cancellation of the agreement, as well as to inform the employee of the legal protection and to inform him/her about his/her insurance rights in case of unemployment, in accordance with the law. The termination of the employment contract must be given to the employee. the contracting party that is terminated by the employment contract.
Accordingly, there can be no dismissal if the employer or employee has only verbally informed the other party that they intend to terminate their employment. In fact, there is no cancellation unless there is a written document handed over from one party to another.
Reasons for dismissal
While the employee has no obligation to explain the reasons for the cancellation of the employment contract, the employer is obliged to follow the legal provisions and to state the reasons for the cancellation of the employment contract correctly.
The employer may cancel the employee’s contract of employment when the extension is not possible if:
1) the employee is unable to perform the contractual or other employment obligations (personal cause) due to his or her behavior, lack of knowledge or ability or failure to fulfill the special requirements stipulated by law; or
2) the employee violates contractual or other obligations of employment (cause of fault) and
3) the need to perform a particular job under the conditions specified in the employment contract ceases for economic, organizational, technological, structural or similar reasons on the part of the employer (business reasons).
Fair and legal dismissal is a very complex procedure that the employer is obliged to implement in accordance with the applicable legal regulations
Contact us here to make the termination is handled properly
2026 Practical Checklist
Whether you are an employer or an employee dealing with termination, verify the following: (1) Written form is mandatory – a verbal notice of termination has no legal effect. The cancellation must be in writing and physically handed to the employee. (2) Employer must state grounds – a dismissal notice without a written explanation of the legal grounds is invalid. The employer must specify whether the ground is personal cause, cause of fault, or business reasons. (3) Employer must inform employee of rights – the written cancellation must also inform the employee of available legal protection and unemployment insurance rights. (4) Employees can challenge unlawful dismissal – if the dismissal does not comply with the legal requirements (wrong grounds, no written form, no explanation), the employee has the right to challenge it and seek reinstatement. (5) Employee termination is simpler – an employee wishing to resign only needs to provide a written statement; no justification is required.
Frequently Asked Questions
Can an employer dismiss an employee verbally?
No. Under the Law on Labor Relations, a termination of employment must be in written form and physically handed over to the employee. A verbal notice has no legal effect and the dismissal will not be considered valid.
What must the employer include in a dismissal notice?
The written notice must state the legal grounds for dismissal (personal cause, cause of fault, or business reasons), provide a written explanation proving the justification of those grounds, inform the employee of available legal protection, and inform the employee of unemployment insurance rights.
Can an employee be dismissed without a specific reason?
No. Unlike an employee who can resign without explanation, an employer must always have one of the three legally prescribed grounds: personal cause (inability to perform), cause of fault (breach of obligations), or business reasons (cessation of need for the role). Dismissal without a valid legal ground is unlawful.
What can an employee do if dismissed unlawfully?
An employee who believes their dismissal was unlawful can challenge it before the employer and before a court in litigation process. If the court finds the dismissal invalid, the employee may be entitled to reinstatement and compensation for lost wages.
Does the employer need to warn the employee before dismissal for cause of fault?
Yes, the Law on Labor Relations generally requires the employer to follow a procedure that includes giving the employee an opportunity to respond before a final decision is made. Skipping this procedure can invalidate the dismissal.
Need legal guidance?
If you have questions about employment termination in North Macedonia – whether as an employer or an employee – the team at Lalicic & Partners is at your disposal. Contact us through our website.