Hire in Montenegro

To hire an employee on a fixed-term basis in Montenegro, the contract must fulfill one of the following:

• Have a pre-determined deadline
• Be designated for a specific task or project
• Be linked to a specific event

The maximum duration for such contracts is 36 months, which includes the time the employee spends with the employer through a staff leasing agency. If an employee continues working with the employer after 36 months, the contract becomes indefinite.

The maximum length of the probation period in Montenegro is six months. This cannot be extended unless the employee is a crew member of deep-sea merchant marine vessels. In this case, the probation period may be extended until the ship returns to the main harbor.

Employees in Montenegro typically work for eight hours per day and 40 hours per week. Within a four-month period, the average total work time, including overtime, should not exceed 48 hours per week, with a maximum total work time of 50 hours per week. The Labor Act allows for overtime work up to 250 hours annually, which can be specified in collective bargaining agreements.

Employers in Montenegro are allowed to require their employees to work overtime in case of unexpected situations like unanticipated increase in workload, force majeure or other unexpected circumstances. They must inform their employees in writing before the overtime work begins. Additionally, employers are required to inform the Labor Inspectorate prior to the introduction of overtime. There are no specific regulations governing overtime rates.

There is no statutory requirement for employers to keep attendance and retain records. However, this practice is recommended.

An employment relationship in Montenegro can be terminated in the following ways in Montenegro:

• By force of law
• By agreement between the employer and employee (in writing and notarized)
• By the employer terminating the employment agreement with a minimum 30-day notice period, or by the employee terminating the employment agreement with a minimum 30-day notice period, unless otherwise agreed by the parties (notice must be in writing and notarized)

The employer cannot declare an employee redundant if the employee is on any leave related to pregnancy, childbirth or childcare.

If an employee wishes to resign, they must provide written notice to their employer at least 30 days before the termination date. In cases where there is mutual agreement between the employer and employee, there is no specific notice period required. The employment relationship will end on the date agreed upon by both parties.

Severance pay is provided in the event of retirement or in circumstances specified in Article 172 of the Labor Law. If employment is terminated by mutual agreement, severance pay is not mandatory. The amount of severance pay is calculated based on one-third of the employee’s average gross wages for the previous six months for each year of service, or one-third of the employee’s average monthly salary without taxes and contributions in Montenegro (whichever is higher). Severance compensation must not be less than three times the average monthly wages without taxes and contributions in the previous six months or three times the average monthly salary without taxes and contributions in Montenegro (whichever is greater).

The employment agreement can list specific jobs that the employee cannot perform on their own or on behalf of another party without the employer’s permission. The employer and employee may also agree to a non-compete agreement after the employment has ended, with the employee receiving financial compensation for up to two years.

According to the Labor Act, an employee’s salary must be paid to their bank account by the 10th day of the month for the previous month worked. If an employer fails to pay the full salary or compensation on time, they must provide a salary statement. This legal document must be provided before the end of the month.

The employer must provide a payslip to the employee upon salary payment.

Regular jobs in Montenegro must provide a minimum of 20 working days of yearly leave, while jobs with severe circumstances where full-time work hours are reduced from 40 to 36 hours per week must provide a minimum of 30 working days of yearly leave. Workers with a six-day workweek are entitled to at least 24 working days of annual leave.

It’s important to note that the right to annual leave cannot be replaced with monetary compensation unless employment is terminated.

An employee may take paid time off work due to temporary incapacity caused by illness, workplace injury or other conditions covered by health insurance laws. The length of the absence is agreed upon in the collective bargaining agreement or employment contract.

During the first 60 days of the absence, the employer is responsible for paying the salary compensation. This amount is later refunded by the social security fund. Employees are entitled to a minimum of 70% and a maximum of 100% of their average wages for the last three months, depending on the reason for the absence. The maximum compensation applies to work-related accidents or diseases, pregnancy, treatment of an underlying disease as well as voluntary blood, tissue and organ donation.

A pregnant female employee is entitled to 98 days of maternity leave, starting 28 days before the projected date of delivery and ending 70 days after childbirth. She must inform her employer in writing one month prior to taking maternity leave.

During the pregnancy, the employee is entitled to one day of absence each month for prenatal medical checkups, and she must give three days’ written notice to her employer before the appointment. Additionally, there is a two-hour break each day for breastfeeding.

In the event of multiple births, both parents may use the 70-day period following childbirth simultaneously.

After the maternity leave, there is parental leave for 365 days following childbirth. The parental leave may be split into equal parts for both parents (but not taken simultaneously). If one parent has already started the parental leave, they can transfer the remaining time to the other parent after using 30 days of leave. The first parent loses their right to parental leave time after transferring the remaining leave to the other parent.

Montenegro observes 12 public holidays. If employees are required to work on a public holiday, the employer must give three days’ notice to the affected employees. If applicable, the trade union must also receive notice.