Under Albanian law, employment intermediary activities are carried out by two types of agencies. The first type consists of “Recruitment Agencies,” which facilitate the hiring of individuals to work for a third party. The second type includes “Temporary Employment Agencies” (TEAs), which recruit and hire individuals for temporary assignments with host companies while keeping them on the agency’s payroll.
While the activities of TEAs are regulated by the Albanian Labour Code and DCM No. 286, dated 21.5.2018, the regulation of Recruitment Agencies has been less comprehensive. Recruitment Agencies have primarily been subject to licensing requirements under DCM No. 538 dated 26.05.2009, under licensing subcategory X.2.A, which also applies to TEAs.
To address this regulatory gap, the Ministry of Economy, Culture, and Innovation (Ministry) recently issued Instruction No. 757, dated 30.09.2024, titled “On the Procedures for Reviewing, Evaluating, and Approving Licensing Applications of Entities Engaged in Employment Intermediary Activities and Their Oversight” (Instruction). This bylaw establishes clear requirements and procedures for licensing private entities operating as Recruitment Agencies and introduces oversight mechanisms for these entities post-licensing.
Under the Instruction, the application process is conducted through the National Business Centre (NBC) and reviewed by the relevant Directorate within the Ministry. Once all required documents are submitted, an on-site inspection is conducted to verify compliance with licensing criteria. Upon approval by the Minister, the NBC issues the license.
Recruitment Agencies are now required to undergo annual inspections and submit activity reports every six months, detailing data on the number of intermediated individuals, the commercial entities they work with, and the number of individuals hired. These reforms aim to align employment intermediary practices with international standards and foster a well-regulated labour market in Albania.
The adoption of the Instruction follows earlier amendments, made on 01.08.2024, to DCM No. 538 dated 26.05.2009, which introduced additional requirements for obtaining an employment intermediary license under subcategory X.2.A, applicable to both Recruitment Agencies and TEAs. The revised regulations now require a comprehensive list of documents, including a diploma, proof of at least five years of relevant work experience, and appropriate qualifications in human resources for the agency’s Technical Director.
Additional required documentation includes proof of property use for at least one year, facility layouts and designs, health and hygiene approval from the State Health Inspectorate, a self-declaration of compliance with service standards, a description of the agency’s activities, and proof of insurance compliance, among other requirements.
These additional requirements apply not only to new agencies but also to those licensed under previous regulations, which must update their documentation to comply with the new standards or face potential revocation of their licenses.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
By Anisa Rrumbullaku, Partner, and Oltion Myftari, Senior Associate, Karanovic & Partners
