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Undoubtedly, payroll is a critical process for any organization. The pay cycle in Montenegro refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

In Montenegro, the payroll frequency is monthly, and payment is generally made by the last working day of the month.

There are no provisions in law.

In 2022, the national minimum wage in Montenegro remained fixed at €532.5 per month, which is 6,390 euros per year, considering 12 payments per year.

Accordingly, the national minimum wage has been raised by 201.2 Euros per month from the previous year, 60.73%. in the last year.

Overtime cannot exceed more than 10 hours per week for a total of 50 hours worked. In general, overtime must be agreed upon in writing except for emergencies. Overtime pay is generally outlined in collective bargaining agreements, but the minimum legal threshold is 140% of the regular pay.

The data should not be retained longer than necessary in order to meet the defined purpose.

A new general collective agreement concluded in Montenegro
With effect from December 31, 2022: 

• New GCA prescribed a limitation on overtime work of 250 hours per year.
• The New GCA now differently defines paid leave when it  is  used  for  taking  a professional exam which  is  in  connection  with  the  job  performed  at  the  employer and when is not.
• Bigger impact on employees’ right and position  would  be  the  obligation  on  the employer to pay the salary to the employee’s account by the fifteenth of the month for the previous month.
• The New GCA also determines the calculation value  of  the  coefficient  for  weekly average number of working hours in the amount.

The employment law in Montenegro provides for a non-discrimination clause. It is found in Article 5 of the Labour Law. The provision prohibits the direct or indirect discrimination of workers based on their gender, language, religion, birth, race, age, marital status, pregnancy, and nationality. It also prohibits discrimination of employees based on social background, financial status, political affiliation, and union membership.

You're required by law to hire all Montenegro employees using a written employment contract concluded prior to their start date. You can tailor the contract to the employee's position and choose a fixed-term or indefinite option. However, fixed-term contracts are only permitted for up to three years.

The following should be part of the onboarding document:

• Personal information includes (Name, Surname, date of Birth)
• Residential address with proof
• Copy of national IDs
• Citizenship

Probationary periods of up to 6 months are permitted. If after three months, the employee is not satisfactory, his supervisor can request a skills review, and a commission to assess will be formed. If the commission agrees with the supervisor, the employee can either be transferred to a more suitable job or terminated.

There are nine public holidays.

• Jan 01 to Jan 03: New Year's Day
• Jan. 6: Orthodox Christmas Eve
• Jan 07 to Jan 09: Orthodox Christmas
• Apr 14: Orthodox Good Friday
• Apr 17: Orthodox Easter
• May 01: Labor Day
• May 02: Day after Labor Day
• May 21 to May 23: Independence Day
• Jul 13 and Jul 14: National Day Holiday

In addition to the minimum prescribed by the law, the annual leave shall be extended:

1. According to the length of service:
   • from 5 to 15 years – by one working day;
   • from 15 to 25 years – by two working days;
   • from 25 to 35 years – by three working days;
   • over 35 years – five working days;
2. According to health condition:
   • to persons with disabilities – by three working days;
   • to a parent of a child with developmental delay – by three working days;
3. To a single parent of a child up to 15 years of age – by two working days

   Annual leave may also be extended on the basis of working conditions, performance at work and other criteria established by branch, collective agreement with the employer or the contract of employment.

Employees receive 70.00% compensation from their employer for the first 60 days of sick leave and then after from social security.

Employees are obligated to provide their employers with a medical certificate within three days of starting their sick leave.

Pregnant employees are entitled to receive 98 days of paid maternity leave at the employee's regular pay rate.

Maternity leave should start 28 days before the due date, and the remaining 70 days are taken after childbirth.

Employees can use parental leave after the completion of maternity leave for a duration of 365 days. Each parent is entitled to an even share of the leave. Parental leave can be transferred from one parent to the other upon expiry of 30 days from when the parental leave was started. If this is done, the parent who transferred the right to the other parent shall not be entitled to the continuation of the use of parental leave.

An employee shall be entitled to be absent from work, with fringe benefits (paid leave), to a maximum of seven working days during a calendar year, in the cases of:

Paid leave referred shall be exercised regardless of the number of days that an employee used in a calendar year on other grounds through the application of paragraph 1 of this Article.

Paid leave may be used at a time when the predicted event occurred. Employees shall exercise the right to paid leave by submitting the employer with a request and proof of the reason for the leave unless the reason for the leave is generally known.

The employer shall keep records of each case when the right to paid leave is exercised.

• Marriage – five working days;
• Birth of a child – three working days;
• Care for a child with developmental delay – three working days;
• Death of a relative, outside the immediate family, up to the third-degree blood kinship inclusive, or the second-degree kinship by marriage – one working day;
• Serious illness of an immediate family member – seven working days;
• Eliminating the effects of natural disasters caused to the household – three working days;
• Participation in trade union cultural, sporting or other public manifestations of national and international importance – two working days;
• Use of prevention of work-related disability and recreation leave, within the meaning of Article 60 of the present collective agreement – five working days;
• Moving employee’s own household in the area of the same populated place – one working day, and moving from one populated place to another – three working days;
• Voluntary blood donation – one working day; - Voluntary donation of tissues and organs – in accordance with medical records;
• Taking professional exam – five working days.

Employees shall be entitled to unpaid leave from work for up to 30 days per calendar year in the cases of:

• Care for an immediate family member as a result of serious illness;
• Medical treatment at own expense;
• Participation in cultural, sporting, and other events of national importance;
• When there is the consent of the employer and the employee, as well as in other cases stipulated by the branch collective agreement, collective agreement with the employer, or contract of employment. 

At the request of an employee, the employer may allow leaving longer than 30 days if it does not disturb the working process. 

The provisions shall also be applied in the exercise of the right to unpaid leave. 

In addition to the reasons determined by law, the employer may terminate the employee’s contract of employment in the following cases:

1. If, on the occasion of commencing employment or assignment to another position (job), the employee gave false information relating to the conditions of employment or the performance of other tasks;
2. If the employee, without the knowledge of the employer, and contrary to the concluded contract of employment violated the rights and obligations of the prohibition of competition;
3. If there is an unexcused absence from work for more than two working days in a row, or five working days intermittently during a calendar year;
4. Coming to work intoxicated, drinking during work, or using narcotic drugs, refusing to take an appropriate test to determine these facts by a trained person, in accordance with separate regulations;
5. The use and disposal of an official car, machine, and tool for work contrary to the act of the employer with which the employee has previously been familiarized;
6. If he/she abused the right to leave for temporary inability to work, especially during the period of temporary inability to work, he/she worked for another employer, or if the employer has not submitted a report on temporary inability to work, either personally or through another person, within five days of the issuance of the report;
7. If he/she violated the regulations on safety at work thereby causing a danger to his / her own or other employees’ health or severe injuries at work, occupational disease or work-related illness;
8. Violent, indecent or insulting behavior towards clients or employees;
9. If the employee fails to return to work within two working days after the end of unpaid leave, or within 30 days of termination of the reason why his / her rights and obligations arising from work were inactive, without reasonable cause;
10. If the employee commits a criminal offense at work or in relation to work; and
11. In other cases, if determined by branch collective agreement or collective agreement with the employer.

In the cases referred to in paragraph 1, items 1, 3, 5, 6, and 7 of this Article, the employer shall previously warn the employee in writing about the existence of reasons for termination of the contract of employment, leaving him/her a period of five working days to declare it, in writing.

The employer shall submit for opinion the warning referred to in paragraph 2 of this Article in writing to the trade union whose member is the employee who is required to declare in writing within five working days of receipt of the warning.

In the cases referred to in paragraph 1, items 3, 5, 6, 8, 9, and 10 of this Article, the employer may terminate the contract of employment without observing the notice period of 30 days from the day of submission of the decision on termination of employment.

Employees may be terminated for just cause and must provide written notice of at least 30 days. The employee has 5 days to respond.

Employees are generally eligible for severance pay of at least 1/3 of their monthly pay in the last six months for each year of employment, with a minimum of the equivalent 3 months’ of the employee’s pay or average Montenegrin pay, whichever is more favorable to the employee.

Montenegro Work Visas & Work Permits – The summary shows basic requirements for Montenegro work visas.

Some of the standard requirements for foreign workers applying to work in Montenegro include:

• A passport  

• Passport photos  

• Application forms  

• Application fees  

• Medical insurance  

• Job contract/offer from a Montenegro-based employer

• Proof of sufficient funds

• Criminal record check

• Request a proposal

There are three main categories of documents for foreign employees looking to work in Montenegro. Standard work permits are intended for short-term work, so they are good for contract workers, seasonal work, and so on. Personal work permits offer more freedom as holders can seek work with any employer, and are valid for up to one year.

Employment permits are likely to be the most suitable for most workers and are linked to a specific job with a Montenegrin employer.

In addition to one of these documents, foreign workers will need a residence permit to stay in Montenegro legally.

Temporary Residence for Employment

A foreigner can work in Montenegro on the basis of a temporary residence and work permit or work registration certificate unless otherwise provided by the law.

A foreigner can perform in Montenegro only those activities that the temporary residence, and work permit or work registration certificate was issued for. and only for the employer who employs him/her.

The employer can deploy the foreigner only to the activities that he/she was issued a residence and work permit or work registration certificate for.

In the business premises or place of work of a foreigner, the employer must have on disposal a copy of the permit to stay and work, or a copy of the work registration certificate of the foreigner who works for him.

The employer is obliged to notify the Ministry of the termination of the work of the foreigner, before the expiry of the residence and work permit. At the latest within eight days from the date of termination of the foreigner's work.

The employer shall not employ or use the work of a foreigner who is illegally residing in Montenegro.

Without a permit for temporary residence and work or work registration certificate. A foreigner can work in Montenegro, if he/she has the following:

• a temporary residence permit for family reunification with a Montenegrin citizen or a foreigner who has a permanent residence permit;
• recognized refugee status or approved subsidiary protection in accordance with the law governing asylum
• temporary residence permit on humanitarian grounds.

In the aforementioned case. a foreigner has free access to the labor market of Montenegro unless a special regulation provides otherwise.

The employer must have on disposal in the business premises or place of work performance of the foreigner a copy of his/her temporary residence permit, or evidence of recognized refugee status or approved subsidiary protection.

An employer who employs a foreigner is obliged to notify the Ministry within eight days from the date of employment or the beginning of the work of a foreigner, or cessation of work.

According to its purpose, the temporary residence and work permit may be issued for:

• The employment of a foreigner;
• Seasonal employment of a foreigner;
• Work of a seconded employee.

A seconded employee is a foreigner who in a limited period of time is employed in Montenegro which is not a state in which he/she regularly works.

The aforementioned permit refers to:

• contracted services provision;
• movement of persons within a foreign economic society.

The temporary residence and work permit for the purpose of employment and seasonal employment of a foreigner may be granted only if the records of the Employment Bureau of Montenegro (the Employment Bureau) have on disposal no unemployed persons eligible for employment in positions to which the permit relates; or the person registered with the Employment Bureau refused employment on these activities.

Exceptionally, the restriction shall apply neither to the employment of the executive director of a foreign company registered in Montenegro and executive director of a foreign company with the founders of a company registered in Montenegro. nor to the foreigner with higher education holding a management position in such a company. i.e. the foreign entrepreneur who is self-employed. in accordance with special regulations.

The Conditions for the Issuance of a Temporary Residence and Work Permit for Employment and Seasonal Employment

The temporary residence and work permit for employment and seasonal employment shall be issued to a foreigner who meets the requirements of the law, and submits the following as proof of the justification of an application:

• a written offer from the employer for hiring a foreigner in a particular work position;
• proof of the acquired level of education and qualification
• proof of good health.

One of the requirements to get a Montenegro Residency Permit is a Police Clearance or Certificate of No Criminal Record from your home country or country of citizenship. It must be issued not more than 6 months from your application.