With the adoption of a new legislative solution in the Republic of North Macedonia, introduced through the Law on Labour Engagement of Persons, which shall enter into force on 1 January 2026, a systemic and coherent framework will be established for the regulation of temporary and seasonal labour engagement. The primary objective of this law is to formalize a segment of the labour market that, to date, has remained largely unregulated or informal, with particular focus placed on three sectors: agriculture, hospitality, and domestic services.
One of the most notable features of this legislative solution, and one broadly welcomed by the wider public, is the explicit provision that now enables retired persons to be lawfully engaged in labour activities. This element of the law is expected to significantly alleviate existing labour shortages in essential sectors while providing retired individuals with an opportunity for lawful supplementary income.
In practice, this law sets out fundamental rules for the protection of engaged persons, the determination of employers’ obligations, and the assurance of fair and transparent conditions governing labour engagements for all parties involved. The law permits the labour engagement of individuals for tasks of a temporary or seasonal nature, determined according to the type of activity and specific work performed. Accordingly, sectors such as agriculture, forestry, fishing, hospitality, accommodation, and household services are identified as the principal fields where employers may engage persons through a simplified legal procedure. This approach is expected to greatly contribute to the legalization of labour engagements, which, until now, have often been conducted without official registration, formal labour agreements, or the payment of statutory social security contributions.
A crucial provision ensures that all labour-engaged persons shall acquire legal status, with the right to monetary remuneration per working hour, which must not be lower than the minimum net hourly amount determined by law. In parallel, employers will be legally obligated to register each labour engagement through the electronic platform of the Employment Agency of the Republic of North Macedonia, and to ensure the payment of corresponding contributions for pension, disability, and health insurance. Through this mechanism, engaged persons will finally gain access to essential social and health protections, even for engagements of a short-term or occasional nature.
Of special note is the provision that such labour engagement shall not jeopardize existing entitlements under social, pension, or educational legislation. In this manner, students, pupils, and particularly retired persons, as well as individuals receiving social welfare assistance, may participate in lawful labour engagements without risk of losing their acquired status or benefits.
Furthermore, the law introduces clear restrictions and obligations, such as a maximum allowable daily working time of 12 hours, limitations on the number of days for which an individual may be labour-engaged annually, as well as a strict obligation to inform each engaged person regarding their working conditions, occupational safety measures, potential occupational risks, and the method and timing of remuneration for the labour engagement.
Oversight of the implementation of the law has been assigned to the State Labour Inspectorate and the Public Revenue Office, while violations of the statutory provisions will be sanctioned through monetary fines, determined proportionally according to the size and capacity of the employer. The highest fines may reach up to EUR 3,000 in denar equivalent for large companies failing to comply with the law.
It is anticipated that this legislative solution will significantly reduce the number of persons engaged within the informal (grey) economy, improve the legal and social protection of engaged persons, and enhance transparency within the area of temporary and seasonal labour engagements. Moreover, the establishment of a centralized digital labour engagement register is expected to facilitate improved monitoring, more efficient collection of social contributions, and the introduction of a modern, transparent approach to labour market regulation.
By Ana Tosic Cubrinovski, Senior Partner, JPM North Macedonia