Management agreements as an institute are always subject of interest and discussion and are especially tempting for Managers and Companies who want to give their mutual relationship special characteristics, individually defined rights, benefits, obligations and responsibilities.
In the Macedonian legislation, the Management agreement is stipulated in the Labor Law and the Companies Law, both offering specific elements of this agreement. However, in practice, the provisions from the Labor Law in combination with part of the provisions from the Companies Law are used in order to create an agreement that best suits the interests of the parties.
According to Article 54 of the Labor Law it is stipulated that If an employment agreement is concluded by business persons – Мanagers, the parties can arrange the rights, obligations and responsibilities of the employment relationship differently, especially for:
1) the conditions and limitations of the fixed-term employment relationship
2) working hours
3) provision of daily and annual leave
4) the payment of the work and
5) the termination of the validity of the employment agreement
Additionally, in Article 55 of the Labor Law it is provided that the Manager exercises the rights and the obligations arising from the employment relationship at with the employer to whom he is appointed or elected, according to the provisions of the Labor law, collective agreement and contract for employment of business persons, i.e the Management Agreement.
The above cited provisions actually define the diversity of the Managerial Agreement itself, allowing the contracting parties autonomy in regulating this “sui generis” (employment) relationship. Namely, when concluding a Management Agreement, it is necessary to carefully arrange certain key elements of this relationship, especially appreciating that usually the intention of the contracting parties is that the certain relationship will be with special privileges, rights and responsibilities, which will be largely different from those that have the other employees of the Company.
This means that the Manager as an equal party to the contractual relationship, has the opportunity and the right to negotiate and request that certain rights and benefits be granted to him/her. These may include a substantial amount of salary and compensation for their special duties and responsibilities, annual leave in a duration of more than 30 days, flexible working hours, private health insurance for him/her and/or his/her children, life insurance, access to a company car, assistance with their children’s private school, part of the Company’s annual profit and shares in the Company.
This also entails that the Company reserves the right to require the Manager to work beyond the standard 40 hours a week, and when necessary, even outside the Company’s regular working hours. The Manager may be expected to deliver tangible results in the Company’s operations, such as achieving specific annual profit targets or overseeing the management of multiple international subsidiaries of the Company.
We can conclude that, in the simplest terms, the Management agreement is a mechanism that conditions the Manager’s reward on the Company’s success. The better and more successful the Manager will be in achieving the established goals, the greater and more numerous benefits they will be entitled to receive.
As the possibilities for negotiation and agreement are limitless, Management Agreements became increasingly appealing for both Managers and Companies, making them a growing trend in the labor law practice.
We, at Tosic and Jevtic Law Firm are here to provide You with tailored guidance, assistance, and to assist in crafting and refining a Management Agreement that suits Your unique relationship with Your permanent or potential management.
Ljupka Naumoska Gjorgjievska
The Internship Law (“Official Gazette of the Republic of North Macedonia” number 98/19 and 103/21) introduced a novelty in the labor law legislation of the Republic of North Macedonia, i.e. a clear and precise system was established for the employment of interns, ways of securing them, duration of the employment relationship, amount of compensation that must be paid to them, as well as all other details regarding the engagement of the specific category of Employees.
Our Law Firm offers appropriate legal assistance to legal entities in the Republic of North Macedonia that have the need of hiring interns in the course of their business operations. In the following text, we will present the most important details regarding the hiring of interns.
First of all, as a precondition for the employment of interns in accordance with the applicable labor law legislation, it is necessary for the Company – Employer to publish an advertisement for an intern in the Employment Agency of the Republic of North Macedonia, whereby at least 3 (three) working days must pass from the publication of the advertisement to the registration and employment of a specific person as an intern.
The need for an intern, apart from being published in the Employment Agency, can also be published on the website of the Company, on LinkedIn or on another medium, whereby such announcement should contain information about the terms of the internship, as well as the expected goals for hiring the intern, the tasks and the process of the internship.
An intern can be any person who:
An intern can also be a person who has not reached 18 (eighteen) years of age, but in this case one of his/her parents will need to sign the Internship Agreement.
The intern can be hired by the Company for a period of maximum 6 (six) months.
The compensation of the intern hired full-time must be from 42% to 74% of the minimum net salary in the Republic of North Macedonia for internship work up to three months, while in the amount of the minimum net salary in the Republic of North Macedonia for internship work over three months, counted from the fourth to the sixth month.
If the intern is hired on a part-time basis, the compensation for the internship will be calculated in proportion to the time spent on the internship.
The intern has the right to a leave in a duration of 2 (two) days/month if he/she works on full time basis (40 hours/week), i.e. 1 (one) day/month if he/she works part-time.
The Law provides for a maximum number of interns that can be hired by the Company depending on how many permanent employees the Company has.
So for example, a Company that has from 1 (one) to 5 (five) employees can hire 1 (one) intern, while a Company that has from 151 (one hundred and fifty one) to 250 (two hundred and fifty) employees can hire up to 15 interns.
If you need additional information and details about the employment of interns in the Republic of North Macedonia and according to the labor law legislation of the country, feel free to contact our Law Firm, which has employed specialists who deal with labor law and who can offer you answers and appropriate solutions within the legal framework of the applicable labor law legislation.
Ljupka Naumoska Gjorgjievska