Employment termination is a significant event governed by strict legal rules in North Macedonia. The Law on Labor Relations sets out an exhaustive list of valid grounds for dismissal, clear notice obligations and limitation periods that both employers and employees must understand. This page focuses on the substantive grounds and procedural requirements for termination. For a practical overview of the form and content of a dismissal notice, see our related guide on employment termination in North Macedonia. This page is part of our practice as an employment lawyer in Skopje.

Valid Reasons for Termination

In North Macedonia, employment termination is not at the whim of the employer. The law specifies that an employer cannot cancel an employee’s contract for personal reasons unless the employee did not meet the conditions required for the job, as listed in the published employment advertisement and agreed upon in the employment contract. These conditions typically include the level of education required for the position.

The law stipulates a period of six months for cancelling the employment contract if the employee fails to meet the specified conditions at the time of employment. This timeframe is counted from the day the employment contract is signed. Employers must clearly define special conditions for each job, although this requirement may not apply to smaller employers.

According to Article 71 paragraph 2 of the Law on Labor Relations, employers in North Macedonia can terminate an employment contract for the following reasons:

1. a) Personal reasons on the part of the employee, typically related to the employee’s behavior.
2. b) Violation of work order and discipline.
3. c) Failure to fulfil work obligations.

Employers can also terminate contracts based on business reasons related to the needs of the company.

The Law on Labor Relations provides a comprehensive and exhaustive list of valid reasons for employment termination. This list includes employee behavior, knowledge or skill deficiencies, and the failure to meet specific conditions mandated by law for the job. The law strictly prescribes when an employer can terminate an employment contract.

Notice Period for Termination and Statute of Limitations

As per Article 94 paragraph 1 of the Law on Labor Relations, when an employer wishes to terminate an employment contract for personal reasons, they must provide notice to the employee. It should also be noted that termination is subject to a statute of limitations that ends within three months from the date the employer becomes aware of the grounds for termination, or within six months from the occurrence of those grounds. This means that the clock starts ticking from the date the conditions leading to termination arise, regardless of when the employer becomes aware of them.

Learn more about the employment termination from the Supreme Court opinion on the following link.

2026 Practical Checklist

For employers considering termination, and employees facing dismissal, verify the following: (1) Is the ground for termination legally valid? — Article 71 provides an exhaustive list. Any termination not based on a listed ground is unlawful. (2) Six-month window for qualification-based termination — if the ground is failure to meet job conditions (education, qualifications), the employer must act within six months of signing the contract. (3) Statute of limitations for fault-based termination — the employer must initiate termination within 3 months of becoming aware of the ground, and no later than 6 months from when the ground arose. Missing either deadline bars the dismissal. (4) Notice is required for personal-cause termination — under Article 94(1), the employer must give written notice before terminating for personal reasons. (5) Business-reason terminations have additional requirements — redundancy based on economic, organizational or technological reasons requires further procedural steps including consultation. 

Frequently Asked Questions

Can an employer dismiss an employee for any reason?

No. The Law on Labor Relations provides an exhaustive list of valid grounds for dismissal under Article 71. These are: personal reasons (inability to perform), fault reasons (breach of work obligations), and business reasons (cessation of need for the role). Any dismissal not based on one of these grounds is unlawful and can be challenged in court.

What is the statute of limitations for employer-initiated termination?

For fault-based termination, the employer must initiate proceedings within 3 months of becoming aware of the ground and no later than 6 months from when the ground actually arose. If either deadline is missed, the right to terminate on that ground is forfeited.

How long does the employer have to terminate for failure to meet job qualifications?

Six months from the date the employment contract is signed. If the employer does not act within this period, the right to terminate on the ground of failure to meet the conditions specified in the contract is lost.

Can an employee challenge an unlawful dismissal?

Yes. An employee who believes their dismissal was unlawful — for example, because the stated ground is not valid under Article 71, or because the procedural requirements were not followed — can file a claim before the competent court and seek reinstatement and/or compensation.

What are the additional requirements for business-reason (redundancy) termination?

Business-reason terminations require the employer to demonstrate that the need for the specific role has ceased due to economic, organizational, technological, structural or similar reasons. Additional procedural steps apply, including consultation obligations. An employment lawyer can advise on the full procedure required for your specific situation.

Need legal guidance?

If you have questions about employment termination in North Macedonia, the team at Lalicic & Partners is at your disposal. Contact us through our website.