
Layoffs cost Albanian taxpayers millions of euros.
The government's arbitrariness in contractual relations with third parties and with its employees is turning court decisions into a huge cost for the budget.
At the end of June 2022, the Ministry of Finance estimated that the stock of budget liabilities resulting from court decisions reached 4 billion ALL or 33 million euros.
These liabilities mostly belong to employees who were unfairly dismissed from their jobs, but also lawsuits that were won by companies that had contracts for work and services with the government.
In the total stock of budget arrears, the item of court decisions is higher than the other 10 items that create budget invoices not settled on time.
At the end of June 2022, the stock of arrears reached 15.4 billion ALL, while court decisions took 26% of the stock.
More detailed data from the Ministry of Finance show that 84% (3.4 billion ALL) of liabilities stemming from court decisions are owned by the central government.
While 16% (645 million ALL) belongs to the local government. Most of these obligations have been created by court complaints of dismissed administration employees. The dismissals from the administration were made in violation of the legislation in force for the civil servant and the labor code.