FTC regulated: Yes

Remarks

Arts. 24 to 26 LL.

Valid reasons for FTC use: no limitation

Remarks

Art. 24 LL states that a labour contract can be signed for a limited or unlimited duration. The LL does not set out any limitations on the reasons for which FTC can be concluded.
There is only one reference to such reasons in art. 25(2) LL which refers to the possibility of concluding a labour contract for a limited duration for a purpose of replacement of the temporary absent employee, and until his/her return.
(The previous LC of 2003 (amended in 2005) contained a limited list of valid reasons justifying the use of FTCs)

Maximum number of successive FTCs: no limitation

Remarks

The Labour Law does not impose any limitations on the number of successive FTCs.

Maximum cumulative duration of successive FTCs: no limitation

Remarks

No statutory limitation on the maximum cumulative duration of successive FTCs.

Maximum probationary (trial) period (in months): 6 month(s)

Remarks

Art. 19 LL: the trial period shall not exceed 6 months except for crew members of long-haul commercial ship, in which case the trial period lasts until the return of the ship to the port of origin.
Art. 20(2) LL provides that if the employee fails to satisfy the job requirements, his/her employment shall terminate upon expiry of the trial period as stipulated in the contract.
As an exception to this rule, during the probationary period, each party may unilaterally terminate the contract even before the expiry of that period, with a written justification, in accordance with the collective agreement and the labour contract. (art. 20(3) LL).

Obligation to provide reasons to the employee: Yes

Remarks

Art. 143(4) LL: the grounds of dismissal shall be indicated in the dismissal decision.
(See also art. 143(2) LL: prior to any dismissal based on disciplinary grounds, the employer shall warn in writing the employee about the existence of reasons that can justify the dismissal and to give him/her at least five days to respond.)

Valid grounds (justified dismissal): worker's conduct, economic reasons, worker's capacity

Remarks

Art. 143(1) LL provides that the employer may terminate the labour contract "if there is a justified reason to do so regarding working capacity of the employee, his behaviour and needs of the employer" and gives an exhaustive list of 16 instances when termination of employment by the employer is authorized:
"1) if the employee refuses to work in the job position that he is assigned to or refuses to fulfill duties at work referred to in the labor contract;
2) if the employee does not comply with a labor discipline envisaged by the employer's act and the labor contract, i.e. if his behavior is such that he cannot continue working with the employer;
3) with the expiration of the period for which the employment contract for a limited time is signed, i.e. with the expiration of the period of validity of the labor contract signed for a limited time;
4) if the employee comes to work under the influence of alcohol or narcotics, drinks during work or uses narcotics;
5) if the employee was unjustifiably absent from work for five
consecutive business days, or seven business days with interruptions within the period of three months;
6) if the employee fails to state his opinion on the offer or refuses the offer to conclude the annex to the labor contract, under Article 40, paragraph 1, items 1 and 2, within the deadline referred to in Article 41, paragraph 2 of this Law;
7) if the employee fails to show adequate results during trial work;
8) if the employee is provided with one of the rights based on redundancy under Article 93, paragraph 2, item 5 of this Law;
9) if the employee refuses one of the rights that the employer offered him on the basis of the redundancy;
10) when the severance pay is paid out to the employee on the basis of redundancy;
11) if the employee fails to return to work within 30 days, under Article 76 paragraph 3 of this Law;
12) if the employee gave false data regarding the performance of the activities that he concluded the labor contract for when starting to work, i.e. when entering employment, and during the employment;
13) if a pecuniary fine is imposed on the employee for violation of duties at work two or more times within a period of one year;
14) if the employee works for another employer under Article 58, paragraph 1 of this Law, without the consent of the employer where he is employed full time;
15) if the employee contracts the activities within the scope of business activity performed by the employer to his own account or account of another person (unfair competition);
16) and in other cases determined by the collective agreement."

Prohibited grounds: marital status, pregnancy, maternity leave, family responsibilities, race, colour, sex, sexual orientation, religion, political opinion, social origin, nationality/national origin, age, trade union membership and activities, disability, financial status, language, birth, state of health

Remarks

See art. 5 LL which prohibits discrimination on the above listed grounds of job seekers and employed persons.
Art. 7(1)5) LL specifies that such discrimination shall be prohibited with regards to termination of employment.
See also art. 108(1) LL: prohibition of dismissal on the grounds of pregnancy or maternity leave.

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with family responsibilities, confirmed injured workers, workers with disabilities

Remarks

Art. 108 LL provides for protection due to pregnancy and child care:
- It is prohibited to dismiss a female employee due to pregnancy and during maternity leave.
- It is prohibited to terminate the employment (including by way of redundancy) of a the parent who works half time in order to take care of a child with severe development difficulties, a single parent of a child under seven years of age, or a child with severe disability.

Art. 160(1) LL provides for specific protection of trade union representatives and in particular states that they shall not be declared as redundant.

Art 94(2) LL provides for higher redundancy payment for workers suffering from disability: 24 months' wages (instead of 6) in the event the disability results from injury not related to work or illness ans 36 months' pay (instead of 6) in the event of work injury or occupational disease.

Notification to the worker to be dismissed: written

Remarks

Art. 143c(1)(2) LL.
Note: following the 2011 amendments, the relevant article numbers have changed but not their content.

Notice period:

Remarks

Art. 144 LL provides for a notice period of minimum 15 days.

tenure ≥ 6 months:

  • All: 15 day(s).

tenure ≥ 9 months:

  • All: 15 day(s).

tenure ≥ 2 years:

  • All: 15 day(s).

tenure ≥ 4 years:

  • All: 15 day(s).

tenure ≥ 5 years:

  • All: 15 day(s).

tenure ≥ 10 years:

  • All: 15 day(s).

tenure ≥ 20 years:

  • All: 15 day(s).

Pay in lieu of notice: Yes

Remarks

Art. 144(2)(3) LL.

Notification to the public administration: No

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): Termination due to technological, economic and restructuring changes of at least, within a 30 day-period of at least:
- 10 employees in enterprises with more than 20, and less than 100 employees for an unlimited period of time;
- 10% of employees in enterprises with minimum 100 and maximum 300 employees for an unlimited period of time;
- 30 employees in enterprises with more than 300 employees for an unlimited period of time.
It also covers redundancy of at least 20 employees within 90 days regardless of the total number of employees.

Remarks

Art. 92 LL.
Notification to the trade union or workers' representatives and the Employment Agency is also required if the employer intends to dismiss at least 20 employees within the period of 90 days, regardless of the total number of employees (art. 92(2) LL).

Prior consultations with trade unions (workers' representatives): No

Remarks

The labour law provides for mandatory notification (art. 92 LL), however consultations are not expressly required: art. 92(4) only states that the employee's representatives and the Employment Agency shall submit to the employer their opinion on the notification within 8 days from the date of receipt of such a notification.

Notification to the public administration: Yes

Remarks

Art. 92(1) LL: the employer must inform immediately in writing the Employment Agency of Montenegro. Such notification shall include:
- the reasons for redundancy,
- the number and category of employees employed under a contract of unlimited duration,
- the criteria for selecting the redundant employees,
- the timeframe for implementing the employment measures of the redundant labour force,
- the criteria for calculating redundancy pay.

Notification to workers' representatives: Yes

Remarks

Art. 92(1) LL: the employer must inform immediately in writing the the trade union, i.e. representatives of the employees. Such notification shall include:
- the reasons for redundancy,
- the number and category of employees employed under a contract of unlimited duration,
- the criteria for selecting the redundant employees,
- the timeframe for implementing the employment measures of the redundant labour force,
- the criteria for calculating redundancy pay.

Approval by public administration or judicial bodies: No

Remarks

No approval required. According to art. 92(4) LL, the Employment Agency of Montenegro is only required to submit its opinion to the employer.

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): No

Remarks

No statutory criteria in the LL.
Information on selection criteria shall be communicated by the employer to the Employment Agency and the worker's representatives (art. 92(3) LL).
Art. 93(2)2) states that upon obtaining the opinion of the trade union, i.e. representatives of employees and the Employment Agency of Montenegro, on the notification of the termination of employment, the employer must adopt the program of measures for resolving redundancy and that this program, among other, must contain the criteria for determining redundant employees. The criteria for determining redundant employees must not oppose to the provisions of the Labour Law regarding prohibition of discrimination against employees.

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes

Remarks

Art. 93(2)5 LL: upon obtaining the opinion of the trade union, i.e. representatives of employees and the Employment Agency on the redundancy notification, the employer must adopt the program of measures for resolving redundancy and this program, among other, must contain employment measures. These are: assignment to other activities with the same employer requiring the degree of employee's qualifications, with full or part-time working hours; assignment to another employer requiring the degree of employee's qualifications, with full or part-time working hours; professional training, retraining or additional training for another job position with the same or another employer, and other measures in accordance with the collective agreement or the labour contract.

Priority rules for re-employment: No

Severance pay:

Remarks

There is no general right to severance pay upon dismissal except in case of redundancy (see under redundancy pay).

tenure ≥ 6 months: 0 month(s)

tenure ≥ 9 months: 0 month(s)

tenure ≥ 1 year: 0 month(s)

tenure ≥ 4 years: 0 month(s)

tenure ≥ 5 years: 0 month(s)

tenure ≥ 10 years: 0 month(s)

tenure ≥ 20 years: 0 month(s)

Redundancy payment:

Remarks

Art. 94 LL provides for the right to redundancy pay of an employee who is made redundant and is not granted any of the rights included in art. 93(2)5) (employment measures such as transfer, retraining for another position....)
- This payment shall amount to at least 6 months' average wages in Montenegro.
- Higher amounts shall be given to employees with disabilities, as follows:
* at least 24 average monthly wages, if the disability resulted from injury not related to work or from illness;
* at least 36 average monthly wages, if the disability resulted from a work injury or a professional disease.

tenure ≥ 6 months: 6 month(s)

tenure ≥ 9 months: 6 month(s)

tenure ≥ 1 year: 6 month(s)

tenure ≥ 2 years: 6 month(s)

tenure ≥ 4 years: 6 month(s)

tenure ≥ 5 years: 6 month(s)

tenure ≥ 10 years: 6 month(s)

tenure ≥ 20 years: 6 month(s)

Notes / Remarks

Notes

1) Non-economic dismissal: no severance pay
2) Economic dismissal: redundancy pay equal to at least 6 months' pay.

Compensation for unfair dismissal - free determination by court: Yes

Remarks

There are no provisions on compensation in the LL.
Application of the general civil law rules on damage compensation: reimbursement of actual loss of earnings between the dismissal and the ruling + any compensatory damages awarded by the Court

Reinstatement available: No

Remarks

There is no provision on reinstatement in the LL.

Preliminary mandatory conciliation: No

Competent court(s) / tribunal(s): ordinary courts

Remarks

Art. 143(6) LL provides that the employee who is not satisfied with dismissal decision shall be entitled to initiate a dispute before a competent court for the protection of his rights within 15 days from the day of submission of the
decision.
There are no specialised labour courts in Montenegro; labour disputes are heard by ordinary courts.

Existing arbitration: Yes

Remarks

Individual labour disputes can be settled through arbitration: see art. 121(1) LL and art. 69 of the General Collective Agreement. Length of arbitrage procedure is not specified. Art. 69 of the General Collective Agreement states that the decision reached through arbitration is obligatory for both parties.

Notes / Remarks

Notes

There are no provisions on remedies in the 2008 LL. The only provision on avenues for redress is art. 143(6) LL which provides that the employee who is not satisfied with dismissal decision shall be entitled to initiate a dispute before a competent court for the protection of his rights within 15 days from the day of submission of the
decision.