New Law on Work Engagement of Persons – Providing Path to Legal and Social Protection for Informal Workers

Assembly-Macedonia

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Today N. Macedonia advances toward a more inclusive and equitable labor market. A major milestone has been reached with the adoption of the Law on Work Engagement of Persons by the Assembly of the Republic of North Macedonia with a wide cross-party consensus. The law establishes a formal framework to recognize and protect thousands of workers engaged in seasonal, temporary, and casual jobs—many of whom have long remained outside the legal and social protection system.

Workers in sectors such as agriculture, hospitality, and domestic services have traditionally not been declared. This law offers a transformative solution, allowing simplified work engagement while safeguarding access to existing benefits like pensions, unemployment assistance, and scholarships. Pensioners, students, and persons at social risk will be able to work formally without losing their acquired social and health benefits.

This law is not just a technical reform – it’s a social justice tool.” said Dr. Marija Risteska, Executive Director of CRPM. “Developed as textbook example of policy solution to current problems of informal economy, this Law offers much needed safety net for workers and flexibility for employers. It is addressing modern needs of the labour market and formalizes forms of work that are present on Macedonian labour market, but are not resulting in pension, disability benefits and do not provide protection from work injuries for employees. At the same time, the Law offers easy registration of workers, simplified payment system of taxes and benefits for the engaged workers and extends the pool of workers addressing labour market shortages that employers currently face,” added Dr. Risteska.

The law aligns with the country’s strategic priorities and follows successful regional models, particularly from EU countries and Serbia. Through the platform integrated into this law, the planned e-registration platform will allow quick and simple registration, significantly reducing bureaucratic barriers for employers.

“The new law creates an opportunity for workers to move out of the grey economy and enjoy greater security. GIZ is proud to have supported this reform, which ensures fair and safe access to the labor market for all—especially for seasonal and occasional workers. We believe this is a significant step toward a more socially just and economically sustainable society,” said David Oberhuber, Country Director of GIZ North Macedonia.

Key Benefits of the Law include:

  • Formalization of Informal Work: Provides legal status and social protection to currently unregistered workers.
  • Digital One-Click Registration: The development of a modern digital platform will enable quick, paperless registration through a user-friendly platform.
  • Legal Clarity and Protections: Clearly defines casual and seasonal work, ensuring fair treatment and workplace safety.
  • Stronger Public Revenues: Increased tax and contribution compliance will boost the national budget and reduce economic informality.
  • Improved Business Environment: Promotes fair competition by ensuring all businesses operate under the same legal framework.

The law also includes strict safeguards to prevent abuse, including limits on engagement duration and restrictions against using casual work as a replacement for standard employment.

By integrating informal workers into the formal system, the law will help build a fairer and more resilient labor market, while reinforcing public trust in institutions. It marks a critical step in national legislation, ensuring that every form of work is legally recognized and equally valued.

The project “Better Conditions for Employment of Seasonal Workers in North Macedonia”, is supported by the German Development Cooperation, and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in partnership with the Center for Research and Policy Making (CRPM).

 

 

 

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