[Albania] Labour law issues plague public companies

In Albania, a report published this week has revealed that adherence to labour laws is an ongoing issue for public companies, EURACTIV reports.

The Department of Audit of Public Companies and Foreign Investments carried out 26 audits throughout 2022. Of which 18 were carried out in Joint Stock Companies, six in projects with foreign financing and two on implementing recommendations in previous audits.

The report notes, “The lack of analysis of regulatory, economic and financial issues on the part of joint-stock companies; Problems in the field of staff recruitment such as appointments, dismissals, suspensions, resignations, position changes and salary changes without giving the relevant explanations, or differential and unfounded salary system; Ineffective expenditure of funds as a result of the illegal termination of labour relations.” 

Procurement procedures were reportedly another of the issues identified. The audit found cases of illegal management of public funds, unfair disqualifications of economic operators, criteria not per the budget items and issues with license categories and the number of employees.

“Problems in procurement procedures and the implementation of works related to favouritism of Economic Operators, technical specifications that do not guarantee the required quality, the selection of the evaluation method contrary to the established principles, as well as unfair benefits of funds as a result of the liquidation of unfinished works/services,” the report said.

In the Department’s audits from January to December 2022, 807 recommendations were repeatedly addressed in the audited institutions, of which 467 measures are organisational, 136 disciplinary measures, 35 administrative measures, 74 compensation measures and 95 measures for economic management, efficiency and effectiveness of public funds.

However, it is not solely public companies where issues concerning labour laws have arisen. According to the 2022 Global Rights Index on worker rights, Albania is categorised as a regular violator of rights, together with Bulgaria, Mexico, Liberia and the UK. 

The status is defined as one where governments and companies regularly interfere in collective labour rights or fail to guarantee essential aspects of them, in addition to the presence of deficiencies in laws which make frequent violations possible.

Albania has made progress over the last two decades, but there are still several labour market challenges, according to the International Labour Organisation.

“Key problems around working conditions and social protection are too many work accidents, low levels of wages, and insufficient coverage of the social security system,” it notes.

Though it is reportedly difficult to find concrete statistics, it is estimated that up to a third of the country’s population is employed informally or has irregular wages or working contracts.

Source: EURACTIV

(Quotes via original reporting) 

In Albania, a report published this week has revealed that adherence to labour laws is an ongoing issue for public companies, EURACTIV reports.

The Department of Audit of Public Companies and Foreign Investments carried out 26 audits throughout 2022. Of which 18 were carried out in Joint Stock Companies, six in projects with foreign financing and two on implementing recommendations in previous audits.

The report notes, “The lack of analysis of regulatory, economic and financial issues on the part of joint-stock companies; Problems in the field of staff recruitment such as appointments, dismissals, suspensions, resignations, position changes and salary changes without giving the relevant explanations, or differential and unfounded salary system; Ineffective expenditure of funds as a result of the illegal termination of labour relations.” 

Procurement procedures were reportedly another of the issues identified. The audit found cases of illegal management of public funds, unfair disqualifications of economic operators, criteria not per the budget items and issues with license categories and the number of employees.

“Problems in procurement procedures and the implementation of works related to favouritism of Economic Operators, technical specifications that do not guarantee the required quality, the selection of the evaluation method contrary to the established principles, as well as unfair benefits of funds as a result of the liquidation of unfinished works/services,” the report said.

In the Department’s audits from January to December 2022, 807 recommendations were repeatedly addressed in the audited institutions, of which 467 measures are organisational, 136 disciplinary measures, 35 administrative measures, 74 compensation measures and 95 measures for economic management, efficiency and effectiveness of public funds.

However, it is not solely public companies where issues concerning labour laws have arisen. According to the 2022 Global Rights Index on worker rights, Albania is categorised as a regular violator of rights, together with Bulgaria, Mexico, Liberia and the UK. 

The status is defined as one where governments and companies regularly interfere in collective labour rights or fail to guarantee essential aspects of them, in addition to the presence of deficiencies in laws which make frequent violations possible.

Albania has made progress over the last two decades, but there are still several labour market challenges, according to the International Labour Organisation.

“Key problems around working conditions and social protection are too many work accidents, low levels of wages, and insufficient coverage of the social security system,” it notes.

Though it is reportedly difficult to find concrete statistics, it is estimated that up to a third of the country’s population is employed informally or has irregular wages or working contracts.

Source: EURACTIV

(Quotes via original reporting)