Workers who don't have a job contract cannot benefit from the Emergency Package

But they can do that if they sign agreements with their employer for at least a year.

With this mechanism, the government plans to lower informality in Kosovo's labour sector, which according to some European Union data, the informal economy equals 40 per cent of the economy or gross annual production.

The Kosovo government has already allocated over 170m euros as a stimulating package for overcoming the economic crisis. Workers who have lost their jobs over two months as a result of the COVID-19 crisis will receive between 170 euros a month.

Acting Deputy Minister of Finance and Transfers Agim Krasniqi told Radio Free Europe that for those who worked in the “black” the employer needs to provide one-year contracts. He says the government is interested in establishing order in the labour market.

There's a particular point within the measures, which requires these companies to formalise workers, register them, provide contracts of at least a year and these workers will automatically be part of the benefits. We are interested in formalising this sector”, Krasniqi said

Over 150 thousand workers without contracts

The correct data on the number of informal employees is unknown, since such cases are rarely reported to competent authorities. Despite that, the number of employees without labour contracts has been constantly a concern for authorities in the country and representatives of workers.

According to official data from the Kosovo Statistics Agency, 30.7 per cent is the number of employees in the Kosovo market. This total of 54 percent is said to have permanent contracts and 46 percent temporary contracts.

The Union of United Unions of Kosovo has sometimes expressed concern that in the labour market, there are, in the private sector, many workers working informally.

Jusuf Azemi, chairman of the Independent Private Sector Union, which operates under the BSPK, says on the labour market there are estimated to be over 150 thousand workers without contracts. It even shows that they are surprised by the large number of workers without contracts, now when workers are interested in compensation from emergency packages.

After the government's decision that Kosovo, workers without labour contracts are coming to the union to ask how they will be financed by the Emergency Package, it is resulting in more than 150 thousand workers without labour contracts. It has been noted that there are companies that have up to 30 workers, while with labour contracts there are 3-4 workers. We're surprised at the large number of workers without labor contracts”, Azemi says.

Building and Gastronomia Cuts With Informacy

Berat Rukiqi from the Kosovo Economic Oda, in a conversation for Radio Free Europe, says the move will influence in a way on formalising jobs, but not to a large extent.

This will be a mechanism that will slightly increase the formalisation in employment, but I do not expect much results in this regard” Rukiqi told Radio Free Europe.

Labour Inspectorate officials, earlier said about REL that companies, which mostly employ workers without contract jobs, are those in the construction and gastronomy sector.

However, the private sector in Kosovo accounts for the biggest employer in which more than 220 thousand workers are estimated to work. This sector has often complained that in addition to low wages, workers work long hours, no work contracts, no pay delays, no contributions, in most cases only one day off a week, and no work safety tools.