Changes To The Contract
Both parties may propose changes to the employment contract after giving a written offer to the other party which shall contain reasoning for the changes, deadline for response and the legal remedies in case of refusing. The Labour Law contains an exhaustive list of employment agreement changes that entitle the employer to terminate the contract if the employee refuses to conclude the underlying annex (e.g. in case annex relates to salary, transfer to another place of work or position). Any other proposed amendment of the employment contract cannot lead to the dismissal of an employee in case of the employee’s refusal.
Change In Ownership Of The Business
The law regulates the protection of employees in cases of corporate status changes (e.g. mergers, split-offs and spin-offs) or a legal transaction that results in the change of employer.
The employer must notify the employees and trade union or the employees’ representative within the legal deadlines and in the prescribed manner. In the event of change of employer, employees transfer to the employer successor who is bound to respect all of their rights for at least a year.
The EU Directive relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses, or parts of undertakings or businesses is not directly applicable in Montenegro, however the local legislator has considered its provisions when the Labour Law was drafted.
Social Security Contributions
Social security contributions include pension and disability, health insurance, and insurance for unemployment. The cost of social security contributions are borne by the employer and by the employee, however the employer is obligated to calculate the aggregate social security contribution amounts (including both the employer’s and employee’s contributions) and to withhold the amount from the salary.
Accidents At Work
An employer must implement health and safety measures for each work position in order to ensure a safe working environment for its employees.
In case of any fatal, collective or severe injury at work, or other injury due to which the employee is unable to work for more than three working days, as well as on any dangerous situation that could endanger the safety and health of employees, the employer is obliged to immediately, and no later than within 24 hours, notify the labour inspection.
The employer is obliged to insure the employees against injuries at work, occupational diseases and work-related illnesses and to pay compensation of damage for injury at work to the employee.
Discipline And Grievance
The Labour Law recognizes the division of violations of working duty and, accordingly, prescribes different measures for different severities of violations. The basic list of violations is determined in the Labour Law, and it can be further expanded by the collective bargaining agreement or employment contract.
Depending on a particular breach and its severity, the employer may impose one of disciplinary measures provided by the law such as a warning, pecuniary fine, conditional termination and termination of employment.
The Labour Law envisages various mechanisms for the protection of employees’ rights including a mandatory mediation process before the Republic Agency for Peaceful Settlement of Labour Disputes or Center for Alternative Dispute Resolution. In case of termination of employment or in other cases when previous mandatory mediation fails, the procedure before the courts can be initiated.
The employee is entitled to a grievance procedure, by filing a motion to the employer if he or she considers that any right is jeopardized by the employer. The Employer must respond to such a request in written within 15 days. The employer’s response is final.
Harassment/Discrimination/Equal pay
Protection through internal procedures and court proceedings is provided to employees who were harassed at work, in line with the specific law. Harassment at work is also explicitly forbidden by the Labour Law in a general manner.
The Labour Law protects employees from any form of discrimination in terms of hiring, working conditions, training, promotions and dismissal. Discrimination is defined in a very broad manner. Acts of discrimination represent a misdemeanor for which the monetary penalty is prescribed.
Employees are guaranteed equal salary for the same work or work of the same value. Work of the same value means work for which the same level of education is required, i.e. qualification, knowledge responsibility, skills, working conditions and work results. In case of violation of this right, the employee is entitled to compensation in the amount of the unpaid part of the salary.
Compulsory Training Obligations
The employer is obliged to provide the employee with professional training related to safety and health at work and when the work process requires it. Employees are obliged to attend such professional training. The costs are borne by the employer or from other sources in accordance with the law and the collective bargaining agreement. The training, as a rule, is performed during working hours.
Offsetting Earnings
The employer may collect the monetary claim against the employee by withholding the amount from the salary only or the compensation of the salary on the basis of a final court decision, in cases determined by law or with the consent of the employee.
Based on the final court decision or in case of mandatory support, the employer may offset the maximum of one half of the salary or compensation of the salary. In other cases the employer may offset the maximum of one third of the salary or compensation of the salary.
Payments For Maternity And Disability Leave
Employees are entitled to the compensation of salary during maternity and childcare (parental) leave. This compensation cannot be paid to both parents at the same time. The amount of the salary compensation depends on the duration of the mother’s employment with the employer before the start of maternity leave and on the income made during this period. The compensation of the salary may range from 30% to 100% of the average salary of an employee. This compensation is paid by the employer, however later refunded by the state.
For sick leave, employees are entitled to a certain percentage of the average salary in the previous 12 months: in case of a non-work-related injury or illness at least 70%, and 100% in the case of a work- related injury or professional illness. In general, for the first 60 days of sick leave, the costs are borne by the employer, and as of the 61st day by the state fund. The maximum amounts and the specific rules on determination of the salary compensation are provided by the Law on Health Insurance.
Compulsory Insurance
The social security system in Montenegro is based on the mandatory public pension, health and unemployment insurance. Based on the employment contract or other contract on engagement of an employee, the employer is obliged to submit a single application for compulsory social insurance before the employee commences with work.
Absence For Military Or Public Service Duties
During situations where the employee is responding to a call from the state authority (e.g. military drill), he/she is entitled to paid leave in accordance with the law and the applicable collective bargaining agreement. According to the currently applicable collective bargaining agreement the employee is entitled to 100% of the salary in this case.
Works Councils or Trade Unions
Works councils are not recognized by the law in Montenegro. On the other hand, employees are guaranteed the freedom of trade union organization and action without approval, but with mandatory registration of the union before the competent ministry.
There are a few levels of trade unions which can be established in Montenegro:
- trade union within the employer;
- trade union in the branch, group, sub-group or business activity, and
- trade union on the level of Montenegro
Trade unions can be either representative or non-representative. The specific conditions for acquiring a status of a representative trade union are covered by a special law. The representative trade union within the employer is a trade union which inter alia encompasses minimum 20% of total number of employees within the employer, and as such has some additional rights (e.g. to participate in collective bargaining, to participate in the collective disputes, procedure, etc).
Employees’ Right To Strike
The Constitution guarantees employees’ right to strike where it may be restricted in certain services such as army, police, state authorities and the public service due to protection of the public interest, in accordance with the law. The specifics of this right and the procedure is provided by the Law on strike.
Employees On Strike
The strike committee and the employer are obliged, from the day of the announcement of the strike and during the strike, to try to resolve the dispute amicably or to initiate a procedure for the peaceful settlement of the dispute.
The employer must be notified in writing on the upcoming strike in accordance with the law. The strike must be organized in a way that does not endanger health and safety of persons or property of the employer. The strike committee and the employees participating in the strike cannot prevent the employer from using funds and means to carry out its activities and they must not prevent employees who do not participate in the strike from working.
An employee on strike holds basic employment rights, except for the right to salary. Organizing or participating in a strike in accordance with the law does not represent a breach of working duties, nor a ground for initiating a procedure for determining disciplinary and material responsibility of an employee, for suspension or termination of employment.
Employers’ Responsibility For Actions Of Their Employees
An employer is responsible for actions of its employees. In case the damage was inflicted to the third party intentionally, or due to gross negligence of an employee, the employer could ask for refund of the damages that the employer paid to the damaged party.