Category: North Macedonia

  • The AI Liability Directive – A Step in The Right Direction?

    Artificial intelligence (AI) technologies are a combined range of technologies, including machine-learning techniques, robotics and automated decision-making systems used to improve prediction, optimize operations and resource allocation, and personalize service.

    The adoption of AI by businesses is increasing, and there are currently no clear regulations to govern the liability for damages caused by AI in the EU. Recognizing this, the European Parliament and the European Council have proposed a Directive on adapting non-contractual civil liability rules to AI (AI Directive). The aim is to address the challenges that arise in attributing liability for damages caused by AI technology and to promote the adoption of AI in businesses across the EU.

    The AI Directive seeks to provide clarity and predictability on liability for the damages caused by AI technologies. Clear liability rules should promote trust in AI technologies and increase their adoption. This can benefit both individuals and businesses, as they can take advantage of the benefits of AI technologies without worrying about the legal implications. The AI Directive seeks to tackle the legal uncertainty and inconsistency arising due to national differences in regulations. A unified approach to AI liability in the EU can help create a level playing field for all companies and encourage the development and adoption of AI technologies. It recognizes the challenges associated with complex AI systems and puts forward rules to address them.

    One of the challenges of regulating AI is the difficulty in attributing liability for damages to a specific person or entity. The complexity and autonomy of AI systems make it challenging to prove who is at fault in the event of damages. The AI Directive addresses these challenges by establishing rules on the disclosure of evidence and a legal presumption of causality between the defendant’s fault and the output produced by the AI system. To establish causality under the AI Directive, the claimant must provide sufficient evidence to demonstrate that the defendant has some fault through non-compliance with a “duty of care” in national and EU law. Next, it needs to be shown that it is “reasonably likely” that the fault has influenced the (lack of) output. In other words, there needs to be a plausible connection between the defendant’s fault and the output produced by the AI system that caused the harm or damage. Finally, the claimant needs to demonstrate that the output in question gave rise to the damages suffered by the claimant. This means that the harm or damage suffered by the claimant must have been caused by the output produced by the AI system rather than by some other factor.

    Overall, the AI Directive’s causality principles aim to ensure that victims of harm or damage caused by AI systems are able to establish liability and seek compensation. The principles provide a framework for determining fault and causation in cases where AI systems are involved, helping clarify the legal responsibilities of different parties involved in developing, deploying, and using AI systems. However, the legal presumption of causality between the defendant’s fault and the output produced by AI technology only applies to high-risk AI technologies as defined in the AI Act, that is, AI systems used as safety component of products subject to third-party ex-ante conformity assessment and other stand-alone AI systems with mainly fundamental rights implications, for example, biometric identification and categorization of natural persons, management and operation of critical infrastructure and law enforcement. Other AI technologies that do not meet this definition may not be subject to the same legal presumption of causality.

    Furthermore, despite the AI Directive’s efforts to help claimants overcome AI-specific challenges when claiming damages, the claimant still bears the burden of proving the liable person’s fault and/or duty of care and the damage. This can be difficult and costly, especially for individuals with limited financial resources. The AI Directive requires relevant evidence to be made available to claimants under certain conditions. However, not all claimants may have the technical expertise to understand and interpret this evidence, which could put them at a disadvantage in court.

    The AI Directive is a step in the right direction, but it only covers non-contractual civil liability rules for AI-related damages. It does not address other legal aspects related to AI, such as intellectual property rights or data protection. Furthermore, while the AI Directive aims to promote the adoption of AI technologies by providing a common framework for liability rules and regulations, the lack of harmonization may impede this goal by creating additional legal complexities and uncertainties for companies and individuals operating in the EU. Therefore, it will be important to ensure that there is sufficient coordination and cooperation between member states in implementing the AI Directive to minimize potential inconsistencies and promote a more cohesive legal framework for AI-related liability issues in the EU.

    By Gjorgji Georgievski, Partner, and Dimitar Trombevski, Junior Associate, ODI Law

     

  • North Macedonia’s New Law of Solidarity Sets Dangerous Precedent with Unconstitutional Retroactive Effect

    The government of Republic of North Macedonia recently introduced a new tax law for solidarity, in an effort to address the consequences of the crisis. In response to the difficult economic and energy crisis faced by vulnerable citizens, as well as companies that have experienced significant increases in revenue as a result of the crisis, the government has implemented a series of measures including subsidies, social protection, tax exemptions, and financial support for domestic energy companies.

    The new tax law for solidarity is a one-time public contribution for the year 2023, which will contribute to the Republic of North Macedonia’s budget. The taxpayer for the solidarity tax is the taxpayer for the income tax as specified by the Income Tax Law, who achieved a total income in 2022 greater than 615,000,000 denars or 10.000.000 EUR. The tax base for the solidarity tax is calculated by reducing the tax base specified in the tax balance for tax calculation.

    The main goal of this new tax law is to address the disparities in the market caused by the crisis, and to provide support to those who are socially threatened by the crisis while collecting revenue from those who have seen significant increases in income. The government believes that this new tax law will help mitigate the effects of the crisis and promote a more equitable distribution of resources.

    But, this recent change in tax legislation has sparked controversy and concern among the experts. The change, which retroactively affects income and profits from before its implementation, has been widely criticized for its retrograde nature. Critics argue that the new law undermines the principles of fairness and equality, as it unfairly penalizes those who make profits, pay the tax and have already completed financial transactions based on the previous tax code. This retroactive application of the law creates a sense of unpredictability and undermines the credibility of the legal system.

    Furthermore, this change in tax legislation is very likely to be challenged in front of the Constitutional court, as it violates the principle of legal certainty and the right to property. The retroactive nature of the law is a clear breach of the constitution and constitutes a threat to the rule of law.

    It is imperative that the government takes into account the serious concerns raised by the experts regarding the recent change in tax legislation.

    By Martin Boskoski, Founding Partner, Lalicic & Boskoski Law Office

  • North Macedonia’s Labor Pains: A Buzz Interview with Ana Tosic Cubrinovski of Tosic & Jevtic

    A significant labor legal landscape overhaul in North Macedonia, with a long-awaited and long-debated new law being adopted, is what is dominating legal discourse in the country, according to Tosic & Jevtic Managing Partner Ana Tosic Cubrinovski.

    “A new law on labor relations is on its way to being adopted – something we have waited on for quite some time now,” Tosic Cubrinovski begins. “It is a very important, general law that unites all industries and the entire private business sector – workers and employers alike and part of the public sector, too. It has a massive societal impact.”

    The road to this new law was a thorny one, according to Tosic Cubrinovski. “There have been several attempts in recent years to pass a new law – several texts were suggested from multiple sides, including chambers of commerce, labor unions, industry experts… all were trying to make things better, but it was very difficult.” As she puts it, the old law was “lacking in many places,” partly due to it “failing to have specific definitions of core legal points and notions” and partly because it was simply outdated.

    “For example, the old law had only one provision that tackled remote work,” Tosic Cubrinovski continues. Given the way in which workplace setups morphed over the past several years, this was “clearly not enough. The working version of the new law, which is likely to be adopted, provides much-needed definitions and delineations of remote work, home office work,” she explains. Moreover, the new text more closely regulates the way “in which remote work is to be arranged – via a mandatory annex to the labor contract if it is additionally agreed. In this instance, however, I believe that this holds the potential to reduce employee mobility, especially if an annex will have to be created each time the employee shifts from remote work back to office work,” Tosic Cubrinovski says.

    Furthermore, Tosic Cubrinovski says that it might be problematic that “the provisions that regulate work from home might conflict with the fundamental rights of the employee, largely because the term ‘home’ is not clearly defined in the new text. For example, whether work from a weekend house or a hotel will be considered as ‘home’ by the employer.”

    Finally, other than a few potential issues, Tosic Cubrinovski reports that the new text is an overall step in the right direction. “Other provisions of the text are more advanced and specific to the context of our country. Still, it is difficult to predict in what way the new law will shape the market,” Tosic Cubrinovski concludes.

  • The CEELMDirect Profile Pick: An Interview with Robert Bachovski Sinkoli of Bachovski Sinkoli Attorneys

    CEELMDirect Profile Pick: A series of interviews with Premium profile-holders on the CEELMDirect legal directory. Today’s interview: Robert Bachovski Sinkoli, Managing Partner at Bachovski Sinkoli Attorneys in North Macedonia.

    CEELMDirect: Hi Robert, and thanks for speaking with us. Let’s start at the beginning. What led you into the law in the first place?

    Bachovski Sinkoli: In a few words, creativity in problem solving was the primary reason that led me into law. Being an attorney was the second, as in my view that is the profession in the legal sphere that requires the most creativity. It involves finding a certain argumented solution and presenting it to a judge, your client, or some other authority.

    More extensively, when considering a career in law, there were a few other factors that influenced my decision-making process.

    Lawyers play a vital role in society by helping individuals and organizations navigate the legal system and protect their rights. As a lawyer, you could work in a variety of settings, including private law firms, corporations, non-profits, or government agencies. Depending on their areas of expertise, lawyers may be involved in litigation, negotiations, contracts, or advising clients on legal matters. A career in law can be very rewarding, but it can also be demanding and challenging. It is important to think and to find the field of endeavor enjoyable, as that may be the most crucial point in the legal career and the key to success as a lawyer. It should be noted that being comfortable working long hours, under pressure, and in a very competitive environment is a prerequisite to being a lawyer.

    A law degree is a versatile and valuable asset that can open doors to many career paths. Many lawyers go on to work in the private sector – as I do – but there are also opportunities in the public sector, with non-profits and other organizations. Also, there are many different specializations within the field of law, such as criminal law, corporate law, intellectual property law, family law, etc.

    Overall, the path to becoming a lawyer is a long one, but being passionate about reaching a solution to a certain legal situation and being willing to work hard can be extremely rewarding.

    CEELMDirect: What was your favorite course and professor in law school?

    Bachovski Sinkoli: My favorite subject in law school was International Private Law, particularly international dispute resolution cases focusing on alternative dispute resolution. Nowadays, I am keen on IP, Competition, and M&A-related cases. In terms of favorite professor, I’d rather not name anyone…

    CEELMDirect: Now out of law school, and practicing as a lawyer: What was the first successful client matter you led personally?

    Bachovski Sinkoli: My first independent successful case involved serving as lead counsel in an IP dispute. While I had the relevant theoretical knowledge, debating my clients’ arguments in front of a judge and eventually succeeding was a frightening – and at the same time exciting – experience.

    CEELMDirect: OK, something light. When important clients (or prospective clients) come to visit you in Skopje, what restaurant do you like to take them to most, and why?

    Bachovski Sinkoli: There are plenty of nice restaurants in Skopje, and probably visiting any of the restaurants in the wider central area would not be a mistake. Personally, I’d adjust the choice depending on if the client is familiar with Balkan cuisine or not. In the majority of situations my choice was and probably would be Pelister, a relaxed restaurant offering various high-end quality dishes, a mix of Mediterranean cuisine.

    CEELMDirect: If you were to pursue any profession other than the law, what would it be?

    Bachovski Sinkoli: I cannot imagine being in any other profession than the law.

    CEELMDirect: And finally, what firm social event or retreat have you enjoyed most over the years?

    Bachovski Sinkoli: Any of the team-building events are my favorite firm social events. Whether those are social games, a trip, or something else, all of them are great. Team-building events can be beneficial for companies because they can help to improve communication, collaboration, and problem-solving skills among team members. These events can also help to build trust and foster a sense of teamwork and unity within the company. Additionally, team-building events can be fun and enjoyable for employees, which can lead to higher morale and a more positive work environment.

    CEELMDirect: Sounds good. Thanks again for sharing your thoughts with us, and continued success in 2023 and beyond!

  • North Macedonia: New Consumer Protection Act

    A new Consumer Protection Act (the “Act”) entered into force in North Macedonia on 15 November 2022.

    The previous Consumer Protection Act was already largely harmonised with the consumer protection rules of the European Union. However, the new Act now further harmonises the consumer protection law of North Macedonia with that of the EU, and envisages provisions that can be used as a legal basis for the adoption of new bylaws in the area of consumer protection.

    Key novelties

    Seasonal discounts
    The new Act now explicitly regulates seasonal discounts and the manner in which merchants may offer such discounts, providing that they can only be implemented after the end of the season. As such, seasonal discounts may only be organised in the following periods:

    • the summer seasonal discount period between 25 August and 25 September of the ongoing year; and
    • the winter seasonal discount period between 25 December and 25 January of the following year.

    Clearance sale of goods and services
    The new Act defines specific situations when the merchant can have clearance sale of goods and services:

    i. the merchant ceases to operate;
    ii. the merchant ceases to operate in its previous business premises;
    iii. the merchant discontinues certain goods or services related to its business activity; or
    iv. the merchant performs complex construction operations in or on its business premises.

    The sales from points ii. and iii. are allowed only if the merchant does not continue to offer the goods or services in its previous business premises, i.e. does not put the specified goods or services on the market less than six months from the day of the end of the sale.

    Promotional sales (promotion)
    As opposed to the previous Consumer Protection Act, the new Act envisages a precise definition of what is considered as a “promotional sale”. Namely, a promotional sale is a special form of placing on sale a limited number of new goods or services in relation to all existing goods or services offered by the merchant. Such a promotional sale can be offered solely for a period of no longer than eight days. In this regard, the goods or services that are on promotional sale must be labelled in a clear, visible and readable manner with the words “promotion” or “promotional sale” (mkd. “Промоција” or “Промотивна продажба”). Finally, when announcing the promotional sale, the merchant must state its duration.

    Sale actions of goods and services
    The new Act defines sale actions of goods or services as a special form of placing on the market a limited number of goods or services, in relation to all goods or services offered by the merchant. Such a sale action must be carried out within a period of no longer than 30 days. The goods and services that are on sale action must be labelled in a clear, visible and readable manner with the words “action” or “sale action” (mkd. “Акција” or “Акциска продажба”). As for promotional sales, the merchant must state the duration of the sale action.

    Language of the documents that must accompany the goods and services
    The Act now prescribes an additional obligation for merchants regarding the information on the goods and services provided to consumers. Specifically, merchants should provide certain information on the goods and services in Macedonian language and the Cyrillic alphabet, as well as in the language spoken by at least 20 % of the citizens on the territory of North Macedonia and its respective alphabet (i.e. Albanian language and its Latin alphabet). In particular, this applies to the documents accompanying goods and services (such as declarations of conformity, certificates, warranties, technical instructions, etc.) as well as (i) contracts for time-shared use of real estate, (ii) long-term holiday good contracts, (iii) resale contracts, and (iv) exchange contracts concluded between the consumer and the merchant. The fulfilment of this obligation does not exclude the possibility of other languages being included when informing the consumer.

    Out-of-court settlement of consumer disputes
    The new Act now provides for a general obligation of merchants to first settle disputes with consumers in an amicable way. If this is not possible, the parties will have the option of settling out of court as a means of improving the effective dispute resolution between the merchants and the consumers. This manner of dispute resolution includes settlement of a consumer dispute based on a submitted consumer complaint or request by either a consumer or by the bodies authorised to protect the collective interests and rights of consumers. Such dispute resolution should be carried out (i) before a holder of a code of conduct, or (ii) via mediation, or (iii) via arbitration, or (iv) in any other form of out-of-court settlement of consumer disputes in accordance with the applicable special regulations.

    Transboundary violations of consumer rights
    The Act now regulates the initiation of procedures for the protection of consumer rights in case of transboundary violations. Therefore, when the violation of rights occurs on the territory of North Macedonia, any body from another EU Member State authorised to protect the collective interests and rights of consumers can initiate proceedings before a competent court or the market surveillance authorities in North Macedonia. However, these provisions will become applicable following the accession of North Macedonia to the EU.

    Fines
    The Act envisages lower fines compared to the previous Consumer Protection Act, now ranging from EUR 500 to EUR 10,000 depending on the size of the merchant. Moreover, the Act prescribes fines for the responsible person within the merchant, ranging from EUR 50 to EUR 350.

    By Martin Ivanov, Attorney at law, and Filip Zafirovski, Associate, Schoenherr

  • Lack of Trust and Exceeded Expectations in North Macedonia: A Buzz Interview with Kristijan Polenak of Polenak

    Lack of public trust in the legal system together with factors beyond the country’s control are adding to the complexity of the challenges in North Macedonia, yet things are going better than expected, according to Polenak Law Firm Managing Partner Kristijan Polenak.

    “We are struggling with the lack of public confidence in the legal system,” Polenak begins. “The polls show that the overall estimate of public trust in the judicial system is rather low – it was 8% last year and is not expected to improve this year either.” According to him, this uncertainty has an effect on business activity and transactions. “Interestingly enough, it doesn’t affect the volume of transactions,” he notes. “We still have investors coming but, overall, we’re losing pace compared to the neighboring countries.”

    According to Polenak, there were some negative developments in the legal sector. “The chair of the state Judicial Council has recently resigned complaining about the pressures,” he points out. “There were a few scandals related to the academy of judges and prosecutors, which adds to the disappointment. The position of private legal practitioners has not changed. The bar could put more effort into assisting lawyers.”

    “We are also affected by matters that are rather outside of our control, such as imported inflation and the residuals from the COVID-19 pandemic,” Polenak says. “Among those, we are most affected by the energy price crisis. Our companies are likely paying the highest electricity prices in Europe.” However, he highlights that “the pipeline between Thessaloniki and Skopje has been unlocked, hopefully enabling the transportation of oil derivatives in the imminent future. There is also huge interest to invest in renewables.” According to him, the new projects should have positive outcomes in terms of reducing energy prices.

    Relatively positive news, on the other hand, is the government’s decision to postpone the tax increase, according to Polenak. “The law was adopted three years ago but, as a result of serious resistance from the business community, the government postponed its enactment several times,” he says, adding that it is good news for companies doing or planning to do business in North Macedonia.

    Polenak adds that some sectors may see a larger number of transactions next year. “Banks are still doing well but the risk factors have increased. In the context of the overall interest rate increases, this sector will be affected, most likely, next year,” he notes. According to him, overall, the regulator is of an opinion that there are too many banks in North Macedonia, leading to triggering a drive for consolidation. “The health industry is another active area, with many regional players interested to invest,” he says. “Industrial technology development zones are still attracting investors and a couple of those that are already present are looking at opening second plants. Obviously, they are happy with the results, and that’s why they come back.”

    Still, Polenak highlights that “the inflation itself is moderate – around 16 to 17% on an annual basis. This leads to a record-high budget driven by inflation as well.” Overall, he believes that it was a relatively smooth ride, considering the rough year.

  • North Macedonia Has Its Work Cut Out: A Buzz Interview with Kiril Papazoski of Papazoski and Mishev Law Firm

    Harmonizing national law with EU legislation, implementing sizeable renewable energy projects, and addressing production shutdowns are high on North Macedonia’s domestic agenda, according to Kiril Papazoski, Director, Papazoski and Mishev Law Firm, an independent law firm in cooperation with PwC.

    “Recently, North Macedonia has implemented some legal acts with far-reaching implications,” Papazoski notes. “A new law transposing the EU Revised Payment Services Directive into our legal system will come into force on January 1, 2023.” According to him, “this is revolutionary legislation, changing the entire payment system in the country, introducing a dramatic shift not only for banks and financial institutions but for the new payment institutions looking to join the market, including fintech and other players.”

    “Besides, we, as an EU candidate country, are already in the process of screening our legislation in order to align it with EU standards,” Papazoski adds. “Recently, a new consumer protection law has been adopted, also transposing an EU directive.” Additionally, he notes that ESG-related legislation is in the pipeline. “In that regard, the Macedonian stock exchange has published ESG guidelines for listed companies for the first time. At this point, they are not mandatory but provide directions on how regulatory matters are likely to develop in the future.”

    According to Papazoski, the hot topic for the past year has been the energy crisis. “A lot of renewable energy projects – such as wind farms, photovoltaics, and hydro energy projects – are either being developed or ready to be developed,” he notes. “Our biggest hydro-project, Chebren, is planned to be developed, and the government has been looking for a private partner for a long time. With the closing of the recent tender, we have a viable bid from a regional energy company, so, hopefully, the project will start soon.” Other than that, he says there are a lot of private initiatives on photovoltaics and wind farms, with some projects ready to start after having secured licenses and regulatory approvals.

    Related to the energy crisis, Papazoski points out that “North Macedonia has only one connection with a gas pipeline, through Bulgaria, and that connection is practically 100% leased by Gazprom. Consequently, only Russian gas can come through that connection. The Macedonian transmission system operator has now agreed with the Greek TSO to connect the two gas transmission systems with a new gas interconnector and, thus, diversify gas suppliers in order to boost energy security.”

    “To tackle the energy crisis, there is a push from the business community asking the government to subsidize energy prices,” Papazoski adds. “The government has already awarded such subsidies to food production facilities, but other businesses are still struggling.” Additionally, he says that “a couple of quarries, mines, and production facilities have closed production due to energy and gas prices,” noting that “they are not shut permanently but – being energy-intensive businesses – they decided to close production and send employees on paid leave for an indefinite period.”

    On a more positive note, Papazoski highlights the movements in the IT industry. “We have highly educated IT engineers in the country and a very high interest in universities for computer sciences and programming,” he says. “And, considering the crisis, the banking sector is quite stable as well. There are a lot of distressed assets, triggering increased interest in M&A transactions. So there are some positive signs, definitely. And, hopefully, the crisis will also lead to some opportunities.”

  • North Macedonia’s Massive Tax Overhaul: A Buzz Interview with Vedran Lalicic of Lalicic & Boskoski

    North Macedonia is preparing for far-reaching tax reforms, with updated rules on the profit tax, VAT, personal income tax, and social contributions, while dealing with the economic slowdown and increased prices, according to Lalicic & Boskoski Partner Vedran Lalicic.

    “A general slowdown in the economy, increased prices, and a great deal of distress due to the energy crisis and war in Ukraine are all affecting North Macedonia,” Lalicic notes. “In light of that, the biggest internal development potentially having an effect on a big part of our society and the business sector is the upcoming tax reform.”

    “In summer, the government adopted an updated strategy for the reform of the tax system,” Lalicic notes. “This will change tax regulations in a number of areas, leading to an increased tax burden for businesses and citizens. While these upcoming changes have only recently been announced, the media and some government officials have reported that they should come into effect in January 2023.”

    According to Lalicic, among the introduced changes, the most important one is related to the profit tax. “The existing regulation allowing a tax exemption on reinvested profit has been abolished, which spells a negative trend for businesses,” he notes. “I would also highlight additional conditions that will be stipulated for tax exemptions on dividends, for both domestic and foreign companies. Any investments in shares and profits arising thereof will be taxed, according to the new taxation strategy.” Still, Lalicic says that “one positive sign related to the profit tax will be the gradual introduction of tax exemptions for part of the costs of investments in the green transition and digital transformation. It can kickstart investors and companies moving toward environmental initiatives and projects, to implement ESG criteria in North Macedonia as well.”

    “There will be some changes on VAT as well, Lalicic says, adding that “at this stage, the government is considering narrowing the list of goods and services for which a preferential 5% VAT tax is applied. For example, the accommodation industry might fall outside the 5% rule in the future, and pay the newly proposed preferential rate of 10%. We don’t have further information about specific industries just yet.” Furthermore, he says that “the expansion of the list of goods and services for which VAT cannot be refunded is planned. Those industries where the VAT exemption does not apply and will fall under the regular VAT rules.”

    According to Lalicic, another change will apply to the personal income tax and social contributions. “The amendments will make it compulsory for businesses to pay mandatory social contributions arising from deed contracts,” he says. “Those might lead to increased costs for companies. Additionally, the maximum legal limit for payment of social contributions is abolished – from now on they will be paid on the total amount of gross income and there will be no cap.”

    “Unfortunately, this will affect the business sector in multiple ways,” Lalicic says. “The government is very strict about the announced changes. So far, only provisional meetings were organized with business associations, and it looks like the government will adopt the changes despite public opinion. Considering what the country is going through, the timing might not be great for implementing such wide-reaching reforms,” he concludes.

  • One Year of the New Personal Data Protection Law, Where Are We at Now?

    Back in February 2020, the new Personal Protection Data Law was published in the official gazette, which meant that North Macedonia was catching up with the European Union on personal data protection.

    But, the government gave enough time for the companies to settle and this was to be practiced starting from the 24th of August, 2021. 

    Maybe because there was not enough fuss sooner, everyone started talking about being compliant with the new law sometime around the beginning of August last year. Back in August last year, everyone was trying to find professional consultants who can help them to adopt the necessary documents and actions to comply with the new law. 

    This meant doing very complex work in a hurry, which resulted in many companies only having the documentation drafted, and not adopting the process as much as the law expected. 

    But maybe this is something that was expected since the personal data protection regulation was not easily welcomed by anyone who was focused on improving the revenue. The businesses all felt that this was an unnecessary burden. 

    For this reason, the Agency and the Ministry of Justice acknowledged the need for more time for the controllers and informed the public that the first six months will have a softer approach to the private sector. This means a more educational and corrective approach, rather than penalizing the controllers with the high misdemeanor penalties that the law prescribed. 

    This is how the Agency approached and continued with a great work of education and giving guides to the controllers on how to comply with the law. Many pieces of training, publications, and other educational materials were published on the website. On a more individual approach, the Agency approached many controllers who were using their website as a webshop and guided them through the process of how to comply with the new obligations. 

    With this, it seemed also that the public and the individuals were also acknowledging that they now have a mechanism to get their privacy rights protected. 

    Overall, it seems that slowly but surely, the North Macedonia controllers and processors are making progress and compliant with the new regulation. Yes, many companies are still catching up, but the regulation is very complex for many controllers and it was surely expected that this would be a marathon and not a sprint.

    By Martin Boshkoski, Partner, Lalicic & Boskoski Law Office

  • ODI Law Advises Makedonski Telekom on Collective Bargaining Negotiations with Trade Unions

    ODI Law has advised Makedonski Telekom on the collective bargaining negotiations with two representative trade unions.

    According to ODI Law, “the collective bargaining negotiation process was completed in July 2022, and Makedonski Telekom and the trade unions entered into a new collective bargaining agreement for a term of two years. The new collective bargaining agreement applies to approximately 1,000 employees of Makedonski Telekom.”

    Deutsche Telekom Group company Makedonski Telekom is the national telecommunications operator in North Macedonia. The company provides voice and data services via mobile and a fixed network, internet services, convergent services, digital television, and cloud and information and communications technology solutions.

    The ODI Law team included Partner Gjorgji Georgievski and Associate Ema Tasevska.