References
Labour Law [LL], Act No. 49/08, as amended by Act No. 26/10 on 7 May 2010<br/>The link provided for is in Montenegrin with the amendments up to 2012
Date:
21 Aug 1970;
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Scope
Size of enterprises excluded (≤): 20
This exclusion only covers collective dismissals: the procedural requirements on collective dismissals only apply to enterprises with at least 20 workers (see definition of collective dismissal in art. 92 LL). However, the rules governing individual dismissals apply to all enterprises.
Workers' categories excluded: none
See art. 2 LL: the law applies to all employees including those employed in state authorities, state administration, local government and public services, unless otherwise regulated by statute.
A law on Civil Servants and State Employees No 50/08 was adopted in 2008. Art. 4 of that law Art. 4 provides that "general labour regulations as to rights, obligations and responsibilities, which are not otherwise regulated by this law or other regulation, shall apply to Civil Servants, and State Employees".
Collective agreements :
Reforms under process:
Under reform in progress: A reform took place in December 2011. Those changes are reflected in the 2012 EPlex profile.
FTC regulated: Yes
Arts. 24 to 26 LL.
Valid reasons for FTC use: no limitation
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
The Labour Law does not impose any limitations on the number of successive FTCs.
Maximum cumulative duration of successive FTCs: no limitation
No statutory limitation on the maximum cumulative duration of successive FTCs.
Maximum probationary (trial) period (in months): 6 month(s)
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
Valid grounds (justified dismissal):
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
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
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
Art. 143c(1)(2) LL.
Note: following the 2011 amendments, the relevant article numbers have changed but not their content.
Notice period:
Art. 144 LL provides for a notice period of minimum 15 days.
Pay in lieu of notice: Yes
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:<br/>- 10 employees in enterprises with more than 20, and less than 100 employees for an unlimited period of time;<br/>- 10% of employees in enterprises with minimum 100 and maximum 300 employees for an unlimited period of time;<br/>- 30 employees in enterprises with more than 300 employees for an unlimited period of time.<br/>It also covers redundancy of at least 20 employees within 90 days regardless of the total number of employees.<br/>
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).
Notification to the public administration No
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 trade union (workers' representatives) Yes
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
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 trade union (workers' representatives) No
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
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...) No
Priority rules for re-employment Yes
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.
:
There is no general right to severance pay upon dismissal except in case of redundancy (see under redundancy pay).
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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.
: 6 month(s)
: 6 month(s)
: 6 month(s)
: 6 month(s)
: 6 month(s)
: 6 month(s)
: 6 month(s)
: 6 month(s)
mine workers: Yes
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
managerial / executive positions: No
There is no provision on reinstatement in the LL.
police: No
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
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
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.