Labor Rights and Financial Implications for SMEs in Kosovo during the COVID-19 Pandemic

Arbnor Hajdari
Bekim Syla

Session

Law

Description

The COVID-19 pandemic posed unprecedented challenges for developing economies, fundamentally testing the resilience of labor market structures and the adaptability of the workforce. In Kosovo, small and medium-sized enterprises (SMEs), which represent the cornerstone of the national economy, were disproportionately impacted by stringent public health restrictions, limited access to finance, and persistent uncertainty. This study seeks to provide a comprehensive analysis of the extent to which labor rights and social protection mechanisms were exercised during the pandemic, as well as to assess the broader financial and socio-economic implications for SMEs. The findings indicate pervasive informality in employment relations, coupled with significant barriers to accessing state support schemes. More than 60% of workers experienced temporary or permanent job loss, while a considerable number of enterprises reported severe financial distress, in many cases leading to insolvency due to their inability to sustain payroll obligations Nevertheless, a subset of businesses that adopted flexible work arrangements or engaged in minimal digital transformation demonstrated relative resilience, developing adaptive models that enabled continuity under crisis conditions.The study underscores the critical need for institutional reforms aimed at strengthening the enforcement of labor rights, enhancing social protection coverage, and establishing more effective state intervention mechanisms to mitigate risks in future emergencies.

Keywords:

COVID-19, labor force, labor rights, financial implications, small and mediumsized enterprises, labor market resilience, informality, social protection

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-982-41-2

Location

UBT Lipjan, Kosovo

Start Date

25-10-2025 9:00 AM

End Date

26-10-2025 6:00 PM

DOI

10.33107/ubt-ic.2025.240

This document is currently not available here.

Share

COinS
 
Oct 25th, 9:00 AM Oct 26th, 6:00 PM

Labor Rights and Financial Implications for SMEs in Kosovo during the COVID-19 Pandemic

UBT Lipjan, Kosovo

The COVID-19 pandemic posed unprecedented challenges for developing economies, fundamentally testing the resilience of labor market structures and the adaptability of the workforce. In Kosovo, small and medium-sized enterprises (SMEs), which represent the cornerstone of the national economy, were disproportionately impacted by stringent public health restrictions, limited access to finance, and persistent uncertainty. This study seeks to provide a comprehensive analysis of the extent to which labor rights and social protection mechanisms were exercised during the pandemic, as well as to assess the broader financial and socio-economic implications for SMEs. The findings indicate pervasive informality in employment relations, coupled with significant barriers to accessing state support schemes. More than 60% of workers experienced temporary or permanent job loss, while a considerable number of enterprises reported severe financial distress, in many cases leading to insolvency due to their inability to sustain payroll obligations Nevertheless, a subset of businesses that adopted flexible work arrangements or engaged in minimal digital transformation demonstrated relative resilience, developing adaptive models that enabled continuity under crisis conditions.The study underscores the critical need for institutional reforms aimed at strengthening the enforcement of labor rights, enhancing social protection coverage, and establishing more effective state intervention mechanisms to mitigate risks in future emergencies.