Private employment agencies in North Macedonia emerged relatively recently, beginning in 2006. These agencies play a key role in two primary areas: facilitating temporary employment in the labor market and acting as intermediaries in the hiring process. By connecting employers seeking workers with job seekers, these agencies help streamline employment coordination, leading to a more efficient labor market.
The establishment of private employment agencies has had a notable positive impact on North Macedonia’s labor market. Before their creation, the labor market faced years of disorder, insecurity, and uncertainty, which prevented many employees from fully exercising their rights or accessing benefits. Private employment agencies have since addressed these issues, bringing structure and security to employment practices across the country.
One of the major historical challenges in the labor market was the precarious status of individuals temporarily engaged by institutions. Although these workers performed roles similar to regularly employed staff, they often lacked formal recognition, proper compensation, and regular social contributions. This created disparities between temporary and permanent employees. The introduction of private employment agencies aimed to formalize the status of temporary employees and those engaged as consultants, ensuring they received appropriate compensation and social benefits. In effect, these agencies played a regulatory role by ensuring regular salary payments and contributions for temporary employees. Since the enactment of relevant legislation, temporary workers have been treated equally to permanent employees, which marked a significant shift from past practices where they were marginalized.
The legal framework governing private employment agencies was first established in 2006. This framework guarantees that individuals employed through these agencies receive full social contributions, recognized work experience, and access to all employee rights and benefits. Employers are legally required to treat temporary workers the same as their permanent staff, effectively equalizing the status of employees hired through agencies with those directly employed by companies.
At the international level, the Private Employment Agencies Convention No. 181 has been instrumental in protecting employees from exploitation while promoting their rights to association, collective bargaining, and social dialogue. These international standards are mirrored in North Macedonia’s legal system, which places a strong emphasis on the fair treatment and protection of employees.
The operation of private employment agencies in North Macedonia is governed by the Law on Private Employment Agencies. This law outlines the conditions for establishing such agencies. Both natural and legal persons can create private employment agencies as long as they meet the legal requirements, which include having at least a secondary education and being free from legal restrictions or bans on conducting business. To operate, agencies must be registered with the ministry responsible for labor matters. Additionally, the law defines the scope of activities permitted for private employment agencies, which includes providing temporary employment services and job placements both domestically and internationally. While these agencies are allowed to charge fees for their services, these fees can only be charged to employers, not to individuals seeking employment. This provision ensures that workers are not burdened with additional financial costs when searching for jobs.
In terms of regulation, private employment agencies must obtain a valid license from the relevant ministry to operate legally. Their activities, including both temporary employment services and job placements, are subject to oversight by the State Labor Inspectorate, which ensures compliance with the law. The ministry responsible for labor matters issues several types of licenses, distinguishing whether they pertain to temporary employment activities, mediation for employment within the country, mediation for employment abroad, or simultaneous mediation for employment both domestically and internationally. Each license is valid for two years, with the option for renewal. It is worth noting that the license for temporary employment has various subtypes, which are directly related to the number of temporary employment contracts concluded.
In conclusion, private employment agencies have successfully integrated into North Macedonia’s labor market, playing a crucial role in connecting job seekers with employers while ensuring fair treatment for temporary workers. Some agencies have distinguished themselves through their professionalism and adherence to legal obligations, significantly contributing to a more structured and equitable employment system. Strengthening the legal framework will help safeguard the rights of workers and enhance the overall effectiveness of private employment agencies in North Macedonia.
By Ana Tosic Chubrinovski, Managing Partner, JPM Partners North Macedonia
This article was originally published in Issue 11.10 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
