LABOUR LAW

(consolidated text)
published in “Official Gazette of Montenegro“, 49/2008, 26/2009, 59/2011 and 66/2012

I GENERAL PROVISIONS

Subject matter of the Labour Law

Article 1

The rights and obligations of employees arising from employment, the method and the procedure
of their exercise, encouraging employment and facilitating flexibility in the labour market, shall be
regulated by this Law, collective agreement and contract of employment.

Application of the Law

Article 2

(1) The provisions of this Law shall apply to all persons employed with an employer who work
in the territory of Montenegro, and to employees who have been assigned to work abroad
by their employer with the head office in Montenegro, unless otherwise prescribed by the
law.

(2) The provisions of this Law shall also apply to the employees in state bodies, public
administration authorities, local government authorities and public services, unless
otherwise prescribed by the law.

(3) The provisions of this Law shall also apply to employees who are foreign citizens and
persons without citizenship who work with an employer in the territory of Montenegro,
unless otherwise prescribed by the law.

Definition of employment relationship

Article 3

Employment relationship is a relationship based on employment between an employee and an

employer that is established by a contract of employment, in accordance with the law and collective
agreement.

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 Relation between the law, collective agreement and contract of employment

Article 4

(1) Collective agreement and contract of employment may not contain provisions stipulating
narrower scope of rights or less favourable terms of employment than the rights and
conditions provided by the law.
(2) Collective agreement and contract of employment may stipulate broader scope of rights
and more favourable terms of employment than the rights and conditions defined by this
law.
(3) If certain provisions of collective agreement stipulate narrower scope of rights or less
favourable terms of employment than the rights or terms stipulated by the law, the
provisions of the law shall apply.
(4) If certain provisions of contract of employment stipulate narrower scope of rights or less
favourable terms of employment than the rights or terms stipulated by the law and
collective agreement, they shall be null and void.
(5) In case collective agreement was not concluded with the employer, branch collective
agreement for relevant activity shall apply directly and in case there is no branch collective
agreement the general collective agreement shall apply.

Prohibition of discrimination

Article 5

Direct or indirect discrimination of a person seeking employment and an employed person, on the
grounds of gender, birth, language, race, religion, colour of skin, age, pregnancy, health condition,
or disability, nationality, marital status, family responsibilities, sexual orientation, political or other
belief, social background, financial status, membership in political and trade union organizations or
any other personal feature shall be prohibited.

Direct and indirect discrimination

Article 6

(1) Direct discrimination, pursuant to this Law, shall include any treatment based on any of
the grounds referred to in Article 5 of this Law whereby a person seeking employment
and an employed person is placed in a less favourable position in comparison to other
persons in the same or similar situation.

(2) Indirect discrimination, pursuant to this Law, exists when a certain provision, criterion or
practice places or would place a person seeking employment and an employed person in
a less favourable position in comparison to other persons on the basis of his or her
particular characteristic, status, orientation or belief.

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 Discrimination on several grounds

Article 7

(1) Discrimination referred to in Articles 5 and 6 of this Law shall be prohibited in relation to:

1) employment requirements and selection of candidates for the performance of a particular

job;
2) terms of employment and all rights arising from employment relationship;
3) education, training and professional improvement;
4) promotion at work;
5) termination of contract of employment.

(2) Provisions of a contract of employment introducing discrimination on any of the grounds

referred to in Articles 5 and 6 of this Law shall be null and void.

Harassment and sexual harassment

Article 8

(1) Harassment and sexual harassment at work or in relation to work shall be prohibited.

(2) Harassment, pursuant to this Law, shall include any unwanted conduct based on any of
the grounds referred to in Articles 5 and 6 of this Law, as well as harassment through
audio and video surveillance, intended to or actually undermining the dignity of a person
seeking employment, and an employed person, creating an intimidating, hostile, degrading
or offensive environment.

(3) Sexual harassment, pursuant to this Law, shall include any unwanted verbal, non-verbal or
physical conduct intended to or actually undermining the dignity of a person seeking
employment, and an employed person in the sphere of sexual life, creating an intimidating,
hostile, degrading, embarrassing or offensive environment.

(4) An employee may not suffer harmful consequences in case of reporting, or witnessing
harassment and sexual harassment at work and in relation to work pursuant to paragraphs
2 and 3 of this Article.

Abuse at work place (mobbing)

Article 8a

(1) Any form of abuse at work place (mobbing), or any conduct towards an employee or a
group of employees with an employer which is repeated and which is intended to or actually
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 undermines the dignity, reputation, personal and professional integrity, position of an
employee creating an intimidating, hostile, degrading, embarrassing or offensive
environment, aggrevating terms of employment or leading to isolation of an employee or
inducing him/her to terminate his/her contract of employment upon his/her own initiative
shall be prohibited.

(2) Prohibition of abuse at work place (mobbing), measures for prevention of abuse, the
procedure for protection of persons exposed to abuse as well as other matters of
importance for prevention of and protection from abuse at work and in connection to work
shall be regulated by a special law.

Positive discrimination

Article 9

(1) Any distinction, exclusion or preference in respect of a particular job shall not be considered
discrimination when the nature of the job or conditions in which it is performed are such that
characteristics related to particular grounds referred to in Articles 5 and 6 of this Law
constitute a genuine and determining requirement for a position and that the objective
aimed at is legitimate.

(2) Provisions of the law, collective agreement and contract of employment relating to special
protection and assistance for specific categories of employees, and in particular those
governing the protection of persons with disabilities, women during pregnancy and
maternity leave and leave from work for the purpose of child care, i.e. special child care, as
well as provisions relating to special rights for parents, adoptive parents, guardians or foster
parents, shall not be considered as discrimination.

Protection before relevant court

Article 10

In case of discrimination, in accordance with Articles 5 through 8a of this Law, a person seeking
employment, and an employee, may initiate proceedings before a relevant court, in accordance
with the law.

Rights of employees

Article 11

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 (1) An employee shall be entitled to an adequate salary, safety and protection of life and health
at work, professional improvement and other rights in accordance with the law and
collective agreement.

(2) An employed woman shall be entitled to special protection during pregnancy and child
delivery.

(3) An employee shall be entitled to special protection during parental leave.

(4) An employee shall be entitled to special protection for the purpose of providing child care in
accordance with this Law.

(5) An employee under 18 years of age and an employee with disability shall be entitled to
special protection, in accordance with this Law.

Representation of employees

Article 12

(1) Any employee shall be entitled to form associations, to participate in bargaining when
concluding collective agreements, to settle collective and individual labour disputes
amicably, to be consulted, informed and to express his/her own positions regarding the
important issues in respect of employment directly or through his/her representatives, in
accordance with the law.

(2) An employee, or a representative of employees, may not be held responsible, or placed in

a less favourable position with regard to terms of employment due to activities referred to
in paragraph 1 of this Article, if he/she acts in accordance with the Law and collective
agreement and contract of employment.

Obligations of employees

Article 13

An employee shall:

1) perform duties assigned to him/her in a conscientious and responsible manner;

2) respect the organization of work and operations with the employer, as well as conditions
and rules of the employer with regard to meeting of contractual and other obligations
arising from employment relationship;
3) take care and treat means of work and material resources of the employer in a
conscientious manner;
4) notify the employer of relevant circumstances affecting or which could affect performance
of work;
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 5) notify the employer of any type of potential dangers for life and health of employees and
occurrence of material damage;
6) respect regulations for safety and health at work and perform work carefully while
protecting own life and health as well as life and health of others;
7) act in accordance with other obligations stipulated by the law, collective agreement and
contract of employment.

Obligations of employer

Article 14
An employer shall:

1) allow any employee to perform duties within his/her working position set forth by the
contract of employment;
2) provide any employee, in accordance with the law and other regulations, with working
conditions and organize work with regard to safety and protection of life and health at
work;
3) pay salary for the work carried out to each employee, in accordance with the law, collective
agreement and contract of employment;
4) inform employee of the terms of employment, organization of work, employer’s rules with
regard to meeting of contractual obligations at work and rules and obligations arising from
regulations on safety and protection of life and health at work;
5) ask for an opinion from the trade union, or the representative of employees with the
employer where trade union is not established, in cases stipulated by the law;
6) act in accordance with other obligations stipulated by the law, collective agreement and
contract of employment;
7) respect personality, protect privacy of an employee and provide protection of his/her
personal information.

Definitions of terms

Article 15

(1) Certain terms used in this Law shall have the following meanings:

1) an employer is a national or foreign legal person, or a part of a foreign legal person, or a

physical person concluding contract of employment with an employee;
2) an employee is a physical person working with an employer who has rights and obligations
arising from employment relationship based on contract of employment;
3) collective agreement includes: general, branch collective agreement and employer’s
collective agreement;
4) work position means a set of duties envisaged in the systematization act;
5) work experience is time spent in employment relationship with a certain qualification level,
or level of education and occupation;

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 6) systematization act is a document defining work positions, job descriptions, the skills and
work experience, the type and level of qualification, or level of education and occupation.

(3) Terms employee and employer used in this Law shall be used as neutral terms, both for
men and women.

II CONTRACT OF EMPLOYMENT

1. Conditions for conclusion of contract of employment

General and special conditions

Article 16

(1) Contract of employment may be entered into by a person fulfilling general conditions
envisaged by this Law and special conditions envisaged by the law, other regulations and
the systematization act.

(2) General conditions referred to in paragraph 1 of this Article are: that the person is at least
15 years old and that he/she has general health ability to work.

(3) A person with disability whose general health condition allows professional engagement on
corresponding positions may enter into contract of employment under conditions and in the
manner stipulated by this Law, unless otherwise provided for by a special law.

Requirements for persons under the age of 18

Article 17

(1) Contract of employment may be concluded with a person who is under the age of 18, with
a written consent from the parents, adoptive parents or guardians, if such work does not
compromise his/her health, moral and education, or provided that such work is not
prohibited by law.

(2) A person under the age of 18 may enter into contract of employment only based on
findings from a relevant health authority determining his/her ability to perform duties
covered by the contract of employment and that such duties are not harmful to his/her
health.

Obligation of providing evidence

Article 18

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(1) When establishing employment relationship, an employee shall present to the employer
documents proving that he/she fulfils the conditions to work on positions for which he/she
is establishing employment relationship stipulated by systematization act.

(2) An employer may not ask from a person information on family or marital status and family
planning, or ask from him/her to present identity documents and other evidence which is
not of direct importance for performing duties for which he/she is establishing employment
relationship, i.e. contract of employment, or to give statement of termination of contract of
employment by that person.

(3) An employer may not hold establishing employment relationship, i.e. contract of
employment, conditional upon evidence of pregnancy, unless those are positions which
include significant risk for the health of woman and child determined by a relevant health
authority.

Probationary period

Article 19

(1) Probationary period, as a special condition for employment, may be defined by the
systematization act, unless otherwise stipulated by a special law.

(2) Probationary period shall not exceed six months, except in case of a crew member of
deep-sea merchant marine where a probationary period may be negotiated for a longer
period, i.e. until the return of the ship into the main harbour.

(3) The extent of probationary period, the method of its organizing and result assessment is
defined by collective agreement or contract of employment.

Rights of employee during probationary period

Article 20

(1) During the probationary period, an employee shall have all rights and obligations arising
from employment relationship, in accordance with duties of the employee’s position.

(2) If an employee fails to satisfy requirements of the position in the probationary period,
his/her employment shall cease upon expiry of the term defined by the contract of
employment.

(3) Exceptionally of paragraph 2 of this Article, during probationary period each contractual
party may terminate contract of employment unilaterally even prior to expiry of the term of
the contract with written explanation, in accordance with collective agreement and contract
of employment.

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 2. Conclusion of contract of employment

Establishing of employment relationship

Article 21

(1) Employment relationship is established by conclusion of a contract of employment.

(2) Contract of employment shall be concluded between an employee and an employer.

(3) Contract of employment shall be considered as concluded upon signing by the employee
and the employer, or a person authorized by the employer.

Conclusion of contract of employment prior to commencement of work

Article 22

(1) Contract of employment shall be concluded prior to commencement of work, in written

form.

(2) If an employer fails to conclude a contract of employment with an employee in accordance

with paragraph 1 of this Article, it shall be considered that the employee has entered into
employment relationship for an indefinite time period, as of the day of commencement of
work, if the employee accepts employment.

(3) In cases referred to in paragraph 2 of this Article the employer shall conclude contract of
employment for an indefinite time period within three days as of the day of commencement
of work.

Contents of contract of employment

Article 23

(1) A contract of employment shall contain the following:

1) name and headquarters of the employer;

2) first and last name of the employee, place of residence, or stay of the employee;
3) citizens central register number of the employee, or personal identification number
in case of a foreign citizen;
4) type and degree of professional qualification of the employee, or the level of
education and occupation;
5) type and description of jobs to be performed by the employee;
6) the place of work;
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 7) the duration of employment relationship (fixed-term or contract for an indefinite
time period);
8) duration of a fixed-term contract of employment;
9) the date of commencement of work;
10) working hours (full-time, part-time or reduced);
11) the amount of the basic salary, the level of coefficient and elements for
determining of work performance, wage compensation, increased salary and other
earnings of the employee;
12) time-frame for the payment of salary and other benefits to which an employee is
entitled;
13) the method of using break during work, daily and weekly break, annual holiday,
public holidays and other leave from work, in accordance with the law and the
collective agreement.

(2) A contract of employment may also entail other rights and obligations, in accordance with
the law and the collective agreement.

(3) The appropriate provisions of the law and collective agreement shall apply to the rights
and obligations not established by a contract of employment.

Duration of contract of employment

Article 24

(1) A contract of employment shall, as a rule, be concluded for an indefinite period of time.

(2) A contract of employment for an indefinite period of time shall be binding for the contractual
parties until one of them terminates it or until it terminates on other grounds prescribed by this law.

(3) A contract of employment that does not specify the time period of duration of employment shall
be considered a contract for an indefinite period of time.

Fixed-term contract of employment

Article 25

(1) A contract of employment may be concluded for a fixed term, for the purpose of performing
certain jobs whose duration is predetermined for objective reasons or due to occurrence of
unforeseeable circumstances or events.

(2) An employer may not conclude one or more contracts of employment referred to in paragraph 1
of this Article with the same employee if their duration, continuously or with interruptions, is longer
than 24 months.

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(3) An interruption of less than 60 days shall not be considered an interruption in accordance with
paragraph 2 of this Article.

(4) Exceptionally of paragraph 2 of this Article, a fixed-term contract of employment may last even
longer than 24 months only if it is necessary for the purpose of substituting a temporary absent
employee, performance of seasonal jobs or work on a specific project until the completion of the
project, in accordance with the law and collective agreement.

(5) An employee who has concluded a fixed-term contract of employment shall have the same
rights, obligations and responsibilities arising from and based on employment for the duration of
the contract as an employee who has concluded a contract of employment for an indefinite period
of time.

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Transformation of contract of employment from fixed-term contract
to contract for an indefinite period of time

Article 26

If a fixed-term contract of employment was concluded contrary to Article 25 of this Law, or if the
employee continued working for the employer after the expiry of the period for which the contract
had originally been made, the employee shall be considered to have concluded a contract of
employment for an indefinite period of time if he/she accepts such employment.

Commencement of employment

Article 27

(1) An employee shall become entitled to the rights and obligations based on employment
relationship as of the day of commencement of work.

(2) Should an employee fail to commence employment on the day established by contract of
employment, it shall be considered that he/she failed to establish employment relationship,
unless he/she was prevented from doing so due to justifiable reasons in accordance with
collective agreement or unless otherwise arranged between the employer and employee.

Registering for social insurance

Article 28

(1) An employer is obliged to register an employee to mandatory social insurance (health,

pension, disability and unemployment insurance) in accordance with the law, as of the day
of commencement of employment.

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 (2) An employer shall deliver a copy of the registry forms referred to in paragraph 1 of this
Article to the employee not later than 10 days from the day of commencement of
employment.

3. Types of contracts of employment

Contract of employment for a director

Article 29

(1) A director may establish employment for an indefinite time period or for a fixed term.

(2) Employment referred to in paragraph 1 of this Article shall be established by a contract of

employment.

(3) Employment for an indefinite time period referred to in paragraph 1 of this Article may last
until expiry of the term for which the director was appointed, or until his/her dismissal.

(4) The contract referred to in paragraph 2 of this Article with a director shall be concluded by
the employer’s relevant body, or the employer.

Contract of employment for performance of higher risk jobs

Article 30

(1) A contract of employment may be concluded for the jobs where special conditions of work
are prescribed only if the employee meets the conditions to work at such positions.

(2) An employee may perform jobs referred to in paragraph 1 of this Article only on the basis
of the previously established health ability to work at such position by a competent
authority, in accordance with the law.

Contract for part-time employment

Article 31

(1) A contract of employment may be concluded for part-time work, for an indefinite time
period or for a fixed term.

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 (2) A part-time employee shall have all rights arising from and based on employment in
proportion to the time period spent at work.

Contract of employment for performance of jobs at home

Article 32

(1) An employer may organize work at home if allowed by the nature of work.

(2) The jobs which may be performed at home are those that are a part of employer's activity
scope or are in close relation to that activity.

(3) Employer's collective agreement defines requirements and methods of working at home.

(4) An employee who performs a job at home shall have the same rights and obligations as an
employee who performs a job in the employer’s premises.

(5) Employer’s collective agreement shall regulate the conditions for exercising the rights and
obligations referred to in paragraph 4 of this Article.

(6) Working hours for performance of jobs at home may be established based on the
predetermined quality of work per time unit.

Records of contracts for work at home

Article 33

(1) An employer is obliged to keep records on work referred to in Article 32 of this Law and
inform the competent labour inspection body.

(2) The competent labour inspection body may prohibit work at home for a particular employer
whenever there is a direct threat to life and health of the employees and if it poses a threat
to the environment.

Contract of employment with a foreigner

Article 34

A foreigner or a person without citizenship may conclude a contract of employment if he/she meets
the conditions prescribed by this Law, a special law and international conventions.

Contract of employment for household jobs

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 Article 35

(1) A contract of employment may be concluded for household jobs.

(2) A contract of employment referred to in paragraph 1 of this Article may also include
payment of a portion of the salary in kind.

(3) The payment of a portion of the salary in kind shall include provision of accommodation
and meals, or only accommodation or only meals.

(4) The value paid in kind shall be expressed in money in the contract of employment.

(5) The smallest percentage of salary shall be established by the contract of employment and
may not be lower than 50% of the employee’s gross salary.

(6) If the contract stipulates payment of salary partially in money and partially in kind, an
employer shall pay the employee the net compensation in money for the time period of
absence from work.

4. Announcement of vacancies

Announcement

Article 36

An employer shall announce vacancies in the manner and according to the procedure established
by a special law.

Internal announcement of vacancies

Article 37

An employer who has hired an employee for a fixed term, or for part-time work and who has
available vacancies for full-time jobs for an indefinite time period may inform the employees of that
on the notice board at the employer’s headquarters, or in employer’s organization unit.

5. Education, vocational training and further improvement

Obligations of employer and employee

Article 38

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 (1) When required by the work process, a new method of organisation of work, and in
particular when new methods in organization and technology of work are introduced and
applied, the employer shall make it possible for an employee to receive education,
vocational training or further improvement.

(2) An employee shall undergo vocational training and further improvement of skills for work
according to his/her abilities and needs.

(3) Costs of education, vocational training or further improvement shall be provided from the
employer’s funds and other sources, in accordance with the law and collective agreement.

6. Trainees

Trainee employment

Article 39

(1) An employer may sign a contract with a person being employed for the first time as a
trainee for a specific level of education, or professional qualification, in accordance with
the law and collective agreement.

(2) The traineeship shall be extended in case of absence from work due to: temporary
incapacity for work in accordance with the regulations on health protection and health
insurance and maternity leave.

7. Amendment of the contractual terms of employment

Annex to the contract of employment

Article 40

(1) An employer and an employee may offer amendment of the contractual terms of
employment (hereinafter referred to as: annex to the contract):

1) for the purpose of deployment to another adequate job, due to the needs of the
process and organization of work;
2) for the purpose of deployment to another position with the same employer, if the
activity of the employer is of such nature that the work is performed in places
outside the employer’s headquarters, or employer’s organization unit, in
accordance with Article 42 of this Law;
3) which refers to defining of the salary;
4) in other cases defined by collective agreement, or contract of employment.

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(2) An adequate job referred to in paragraph 1 items 1 and 2 of this Article shall include a job
which requires the same level of professional qualification, or level of education and
occupation.

Offer to amend contract of employment

Article 41

(1) An offer referred to in Article 40 paragraph 1 of this Law shall be submitted in written form
and it shall contain: reasons for the offer, deadline for the other party to declare about the
offer and the legal consequences that may occur in case of rejection of the offer.

(2) The party receiving the offer shall declare about the offer for conclusion of annex to the
contract within the time period which may not be less than eight working days as of the
day of delivering the offer.

(3) If the party receiving the offer does not declare within the time period referred to in
paragraph 2 of this Article, it shall be presumed that the offer was rejected.

(4) If the party receiving the offer accepts it, an annex to the contract shall be concluded,
which becomes a constituent part of the contract of employment.

(5) An employee referred to in paragraph 4 of this Article shall have the right to dispute an
annex to the contract of employment with the labour inspection, the Agency for Peaceful
Settlement of Labour Disputes or with the relevant court.

Deployment to another work place

Article 42

(1) An employee may be deployed to another work place provided that:

1) the employer’s activity is of such nature that work is performed in places outside
the employer’s headquarters, or employer’s organization unit;
2) distance from the place where the employee works, or his/her place of residence,
or stay, to the place where he/she is transferred to work is less than 60km;
3) there is organized regular transport allowing timely arrival to and return from work;
4) compensation of travel expenses is provided by the employer in the amount of the
ticket cost.

(2) An employee may be deployed to another work place in other cases only with his/her
consent.

(3) An employed woman during pregnancy, an employed woman with a child under five years
of age and a single parent with a child under seven years of age, an employed parent with a
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 child with severe developmental disabilities, an employee under 18 years of age and an
employed person with disability may not be deployed to work in another place outside the
place of residence, or stay.

Transfer of contract of employment to a new employer

Article 43

(1) An employee may be transferred to work with a new employer upon his/her consent, and based
on an agreement between employers.

(2) An employee referred to in paragraph 1 of this Article shall conclude a contract of employment
with the other employer prior to the commencement of employment with that employer.

8. Temporary work

Agency for temporary assignment of employees

Article 43a

(1) Assignment of employees for performance of jobs with another employer (hereinafter referred
to as: beneficiary) may be done by an agency for temporary assignment of employees (hereinafter
referred to as: Agency).

(2) Agency shall obtain the capacity of a legal person upon entry into the registry maintained by the
public administration authority in charge of labour affairs (hereinafter referred to as: the Ministry).

(3) Agency may undertake assigning of employees to a beneficiary only provided that it is its sole
activity and that it has a licence for work issued by the Ministry.

(4) The Ministry shall issue the licence for work referred to in paragraph 3 of this Article within
seven days as of the day of filing of a request.

(6) The Ministry shall regulate the closer conditions, the method and procedure for issuing
and revoking of licence for work and keeping records of the issued and revoked licencies.

Employee assignment agreement

Article 43b

(1) An agreement shall be concluded between an Agency and the beneficiary for the purpose of
employee assignment.

(2) An agreement referred to in paragraph 1 of this Article shall contain, in particular:

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 1) the number of employees assigned to the beneficiary;
2) the time period during which the employee is assigned;
3) the place of work;
4) the duties the employee will perform;
5) application of the measures of protection at work place where the employee is to perform
the jobs;
6) the method and the time period within which the beneficiary has the obligation to submit
pay slip to the Agency, as well as the regulations applied by the beneficiary in determining
salaries;
7) responsibility of the Agency if the employee assigned to work fails to fulfil his/her
obligations.

(3) An agreement referred to in paragraph 1 of this Article may not be concluded for the purpose
of:

1) substitution of employees during strike, in accordance with the law, with the beneficiary
where the strike is on;
2) assignment of an employee to perform jobs for which the beneficiary had terminated
contracts of employment on the grounds of redundant employees in the last 12 months;
3) performance of jobs within the scope of the activity of the Agency, and
4) performance of jobs in other cases established by a collective agreement which is binding
for the beneficiary.

Contract of employment for temporary performance of jobs

Article 43c

(1) An Agency may conclude a contract of employment with an employee for a fixed term or for an
indefinite time period, in accordance with this Law.

(2) An employee shall realize his/her rights arising from and based on employment with the
Agency.

(3) A contract of employment referred to in paragraph 1 of this Article, apart from the information
referred to in Article 23 paragraph 1 items 1 through 6 and item 13 of this Law, shall also contain
the following information:

1) that the contract is concluded for the purpose of assignment for temporary performance of
particular jobs with the beneficiary;

2) obligations of the Agency towards the employee during the assignment to the beneficiary.

(4) Salary of an employee assigned to a beneficiary may not be lower than the salary of a person
employed with the beneficiary working on the same or similar jobs with the same professional
qualification, or the level of education and occupation.
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 (5) For the period during which an employee is not assigned to a beneficiary, he/she shall be
entitled to wage compensation in accordance with this Law and the contract of employment.

Protection of an employee assigned to a beneficiary

Article 43d

(1) Cessation of the need for an employee’s work with an employer, prior to the expiry of the time
period for which he/she was assigned, may not constitute a reason for termination of contract of
employment.

(2) An employee who believes that any of his/her rights arising from and based on employment
were violated during the work with a beneficiary may realize protection of the right with the Agency.

Obligations of the Agency towards an employee

Article 43e

(1) Agency shall introduce an employee with the content of the agreement and deliver the
agreement upon his/her request not later than on the day of commencement of work with the
beneficiary.

(2) Prior to assignment of an employee to a beneficiary, the Agency shall introduce an employee
with all risks of performing work with a beneficiary relating to health and protection at work and for
that purpose train him/her for work on such jobs, in accordance with the regulations on protection
at work, unless the employee assignment agreement stipulates that these obligations are to be met
by the beneficiary.

(3) Agency shall introduce an employee with the new technologies of work for jobs to be performed
by the employee, unless the employee assignment agreement stipulates that the beneficiary
committed to meet that obligation.

(4) Agency shall pay the agreed salary to an employee for the work carried out with a beneficiary
even if the beneficiary does not deliver the agreed pay slip to the Agency, or does not meet its
obligations towards the Agency.

Obligations of a beneficiary

Article 43f

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(1) A beneficiary shall be considered as an employer for an employee with regard to the obligation
of application of regulations regulating protection of health, protection at work and special
protection of particular categories of employees.

(2) A beneficiary shall notify its trade union of the number and reasons for engagement of
employees at least once in six months.

Indemnification

Article 43g

(1) If an employee suffers damage at work and in connection to work with a beneficiary, he/she
shall be indemnified by the Agency, unless otherwise stipulated by the agreement referred to in
Article 43 b of this Law.

(2) Damage caused to a third person by an employee at work or in connection to work with a
beneficiary shall be indemnified by the beneficiary.

(3) The Agency shall be responsible for the damage caused to a beneficiary by an employee at
work or in connection to work, in accordance with the law.

III RIGHTS AND OBLIGATIONS OF EMPLOYEES

1. Working hours

Full-time employment

Article 44

(1) Full-time employment shall not be longer than 40 hours a week, unless otherwise
specified by the Law.

(2) Working hours with less than 40 hours a week may be established by collective
agreement.

Part-time employment with several employers

Article 45

(1) An employee can conclude contracts of employment with several employers within the
scope of 40-hours working week and in that way achieve full time engagement.

20
(2) Modalities of achieving rights and obligations and the work schedule of employees who
concluded a contract of employment, as referred to in paragraph 1 of this Article, shall be
regulated by an agreement between employers.

Part-time employment

Article 46

(1) A contract of employment may be concluded with part-time engagement, but not less than
¼ (10 hours) of a full time engagement.

(2) The positions for which contract of employment is concluded for part-time engagement
shall be established by systematization act, depending on the nature of work and
organization type.

Shorter working hours due to harder working conditions

Article 47

(1) An employee working on a position that is extremely difficult, arduous and detrimental to
health shall have shorter working hours proportionally to the detrimental effect to
employee's health or working ability, but not shorter than 36 hours in a week.

(2) The work positions referred to in paragraph 1 of this Article shall be defined by
systematization act in accordance with collective agreement.

(3) An employee with shorter working hours referred to in paragraph 1 of this Article shall
have the same rights based on employment as an employee with full-time engagement.

(4) An employee working on positions referred to in paragraph 1 of this Article shall not work
over time on such tasks, or conclude a contract of employment for such jobs with another
employer.

Reduction of working hours due to technology improvement and shift work introduction

Article 48

- deleted -

21
 Overtime work

Article 49

(1) Working hours of an employee may last beyond the full time engagement (overtime work)
provided that an unexpected increased workload cannot be completed through adequate
organization of work or work schedule.

(2) Overtime work may only last for such a period required to eliminate the cause of its
introduction, but not longer than 10 hours a week.

(3) Overtime work shall be introduced upon a written decision of the employer prior to the
beginning of such work.

(4) If it is not possible to set overtime work for an employee by a written decision due to the
nature of such work or urgency of performing overtime work, such work may also be set
orally, and the employer shall subsequently deliver the written decision to the employee
but not later than five days after the completed overtime work.

Obligation of introduction of overtime work

Article 50

(1) An employee shall work overtime in case of:

1) prevention of direct occurrence of danger for safety and health of people or larger
imminent material damages;
2) natural hazard (earthquake, flood and other);
3) fire, explosions, ionizing radiation and significant sudden breakdown of facilities,
equipment and installations;
4) epidemics or diseases threatening human life or health, endangering livestock or
herbal stock or other tangible assets;
5) larger pollution of water, food and other objects for human or lifestock nutrition;
6) traffic or other accidents that endangered human life or health or tangible assets to
a larger extent;
7) the need to immediately provide urgent medical help or other immediate medical
service;
8) the need to perform urgent veterinary intervention;
9) in other cases envisaged by the collective agreement.

(2) Exceptionally of Article 49 paragraph 2 of this Law, overtime work referred to in paragraph
1 of this Article may last until causes of its introduction are eliminated.

22
 Overtime work (hours on duty in health institutions)

Article 51

A health institution may introduce overtime work (work on duty), if new employment, introduction of
work in shifts or rescheduling of work cannot provide continuous hospital and out-patient health
care..

Notifying labour inspection of introduction of overtime work

Article 52

(1) An employer shall notify the Labour Inspector of introduction of overtime work not later
than three days from passing of the decision on introduction of overtime work.

(2) The Labour Inspector shall prohibit overtime work if he/she determines that introduction of
such work is contrary to the provisions of Articles 49 through 51 of this Law.

Schedule of working hours

Article 53

(1) The decision on the work schedule, rescheduling, shorter working hours and introduction
of overtime work shall be enacted by a relevant body of an employer.

(2) The schedule, the start and finish of working hours for specific activities and for specific
positions shall be defined by the decision of a relevant state body or local government
body.

(3) An employer shall pass a written decision on the schedule of working hours for the
employees and their distribution in shifts, if the employer’s work is organized in shifts.

Rescheduling of working hours

Article 54

(1) The rescheduling of working hours may be performed whenever required by the nature of
the activity, work organization, the need for better usage of assets, more rational
distribution of working hours and performance of certain activities within defined time
limits.

23
 (2) The work rescheduling in cases referred to in paragraph 1 of this Article, shall be
performed so that the total full time engagement of an employee does not exceed, in
average, annual full time work.

Calculation of hours of work

Article 55

An employee whose employment terminated prior to expiry of the rescheduling time shall be
entitled to have the overtime hours recalculated into the full working hours in the total annual
working hours and to be recognized as service period for entitlement to pension, and the remaining
working hours to be calculated as an overtime work.

Night-time work

Article 56

(1) Work between ten o’clock in the evening and six o’clock in the morning the next day shall
be considered night time work.

(2) Night-time work shall constitute special work conditions.

(3) An employee who works for at least three hours of his/her working hours during night, or
an employee who works at least a third of his/her full annual working hours during night,
shall be entitled to special protection, in accordance with regulations regarding protection
at work.

(4) If, according to an opinion of a relevant health authority, an employee’s health condition
could be aggrevated due to work during night, the employer shall deploy the employee to
an adequate day-time work.

Work in shifts

Article 57

(1) An employer that has work organized in shifts shall provide switching of shifts so that an
employee does not work during night (night shift) for more than one working week
continuously.

(2) An employer working under specific conditions shall regulate work in shifts and work on
duty for the employees, in accordance with the employer’s collective agreement.
24
 Additional work

Article 58

(1) An employee who works full-time may conclude a contract on additional work with the same or
another employer, unless otherwise prescribed by a special law.

(2) A contract of employment referred to in paragraph 1 of this Article shall cease to apply upon
expiry of the contracted time period or upon termination of the contract by either party.

2. Rest and leave

Rest during day-time work (break)

Article 59

(1) A full time employee shall be entitled to a rest period of a minimum 30 minutes every
working day.

(2) An employee who works longer than four and shorter than six hours a day shall be entitled
to rest period of a minimum 15 minutes every working day.

(3) An employee who works longer than full working hours, and at least 10 hours a day, shall
be entitled to rest during the day for 45 minutes.

(4) The rest period during a working day may not be used at the beginning or at the end of the
working hours.

(5) The rest period referred to in paragraphs 1 through 3 of this Article shall be counted into
the working hours.

Schedule of breaks

Article 60

(1) If the nature of work does not allow for interruptions, as well as in case of work with clients,
the rest period during working hours shall be organized so that the work is not interrupted.

(2) Decision on schedule of breaks during working hours shall be made by the relevant body
of the employer.

25
 Daily rest

Article 61

An employee shall be entitled to a recess of at least 12 successive hours between two consequent
working days, unless otherwise prescribed by the law.

Weekly rest

Article 62

(1) An employee shall have the right to a weekly rest of not less than 24 successive hours.

(2) Weekly rest shall be used on Sundays.

(3) An employer shall provide another day for an employee to use his/her weekly rest if the nature
of work and work organization requires so.

(4) In case referred to in paragraph 3 of this Article the employer shall determine the schedule for
the employee to use weekly rest.

(5) In case an employee has to work during his/her weekly rest period, the employer shall allow
him/her one day of a leave during the following week for at least 24 successive hours.

(6) An employee under 18 years of age shall be entitled to weekly rest of at least two consecutive
days, one of which is Sunday.

Entitlement to annual leave

Article 63

(1) An employee shall be entitled to an annual leave.

(2) Duration of annual leave shall be determined in proportion to the time spent at work.

(3) An employee shall be entitled to 1/12 of the annual leave for each month of work with an
employer if his/her employment commences or terminates during that calendar year.

(4) A temporary working disability due to illness, paid leave, maturity leave, recess during official
and religious holidays and absence due to responding to requests of state or military entities shall
be considered as time spent at work for the purpose of achieving the right to an annual leave.

(5) An employee may not waive the right to annual leave, and that right may not be denied to an
employee.

26
 Proportional part of annual leave

Article 64

- Deleted -

Duration of annual leave

Article 65

(1) For each calendar year an employee shall have the right to annual leave in duration
determined by collective agreement or contract of employment but not less than 20
working days.

(2) An employee under 18 years of age shall be entitled to annual leave of at least 24 working
days.

(3) An employee working for shorter working hours as referred to in Article 47 of this Law
shall be entitled to annual leave of at least 30 working days.

(4) Duration of annual leave shall be determined by increasing the number of working days
referred to in paragraphs 1 through 3 of this Article based on the criteria determined by
collective agreement and contract of employment.

Days not calculated into annual leave

Article 66

(1) When determining the duration of annual leave, the working week shall consist of five
working days.

(2) The holidays which are not working days in accordance with the law, paid absence from
work and temporary inability to work in accordance with the health insurance regulations
shall not be counted into the annual leave period.

(3) If an employee is temporarily unable to work during his/her annual leave in accordance
with the health insurance regulations and during maternity or parental leave, he/she shall
have the right to continue the annual leave at the end of sick leave.

Annual leave in education

Article 67

27
(1) An annual leave of teachers, expert-associates and educators in schools and other
educational and teaching institutions shall be entitled to an annual leave during the
summer vacation and may not last longer than that vacation.

(2) In case teachers and educators are obliged to attend courses for professional
improvement or performing other activities related to the beginning of a school year or
performing educational and teaching activities organized by the school / educational
institution during the summer vacation, the extent of an annual leave shall be determined
in accordance with this Law and the collective agreement.

Schedule for using annual leave

Article 68

(1) An employer shall decide about the schedule for using annual leave, taking into
consideration the needs of the organisation of work and based on the plan for using
annual leaves, upon prior consultation with the employee.

(2) An employer shall deliver the decision on annual leave to the employee not later than 30
days prior to the date of commencement of annual leave.

(3) Exceptionally of paragraph 2 of this Article, decision on annual leave may be delivered
even earlier, if the employer and the employee agree.

(4) An employer may alter the duration of annual leave if so required for the performance of
work, not later than five working days prior to the day set for the annual leave, upon a
consent from the employee.

(5) Exceptionally of paragraph 4 of this Article, consent from the employee shall not be
necessary in case of force majeure.

Article 69

(1) Annual leave may be used in two parts.

(2) If an employee uses annual leave in two parts, the first part shall be used as at least 10
consecutive days during the calendar year, and the second part until June 30th the
following year the latest.

(3) If an employee has not used his/her annual leave or a part of annual leave in the calendar
year due to absence from work in accordance with the regulations on health insurance,
maternity or parental leave, leave from work for the purpose of providing child care and
special child care, he/she shall be entitled to use that leave until June 30th the following
year.
28
 Annual leave in case of termination of employment

Article 70

(1) An employee whose engagement / contract of employment has been terminated due to a
transfer to another employer shall exercise the right to an annual leave for the referred
calendar year with the employer from whom the right to an annual leave originates, unless
otherwise negotiated by an agreement between the employee and employer.

(2) The employer that had provided the previous work engagement to an employee is obliged
to issue a certification on the use of annual leave.

(3) In case of an employee with a fixed-term contract of employment whose employment or

contract of employment terminates due to retirement, an employer shall be obliged to
provide usage of an annual leave to such employee prior to termination of employment or
contract of employment, in proportion to the time period spent at work in that calendar
year.

Indemnification for unused annual leave

Article 71

(1) An employee that did not use the right to an annual leave or used it partially due to
employer's fault is entitled to compensation for damage.

(2) The compensation referred to in paragraph 1 of this Article shall be defined on the basis of
employee's remuneration for the month during which compensation is made, depending
on the length of the unused leave.

3. Absence from work

Paid absence for personal needs

Article 72

(1) An employee shall have the right to absence from work with wage compensation (paid
absence) in case of matrimony, child birth, severe illness of a closer family member, taking
of professional examination and in other cases defined in collective agreement and
contract of employment.

(2) Duration of the paid absence referred to in paragraph 1 of this Article shall be determined
by collective agreement and contract of employment.
29
(3) An employee shall be entitled to paid absence for seven working days in case of death of a
closer family member.

(4) Closer family members referred to in paragraphs 1 and 3 of this Article shall include
spouse, children (in and out of wedlock, adopted and foster children), siblings, parents,
adoptive parents and guardians.

Unpaid leave

Article 73

(1) An employee shall be entitled to unpaid leave during and in cases determined by collective
agreement and contract of employment.

(2) During leave from work, as referred to in paragraph 1 of this Article, an employee shall be
entitled to health care, and other rights and obligations based on and arising from
employment shall be suspended.

(3) The contribution for health protection referred to in paragraph 2 of this Article shall be paid
by the employer.

Absence from work due to public and religious holidays

Article 74

(1) An employee shall be entitled absence from work during public and religious holidays in
accordance with the law.

(2) If an employee works during the holidays referred to in paragraph 1 of this Article due to
work process needs, he/she shall be entitled to increased salary in accordance with
collective agreement and contract of employment.

Absence from work due to health condition

Article 75

(1) An employee shall be entitled to absence from work in cases of temporary inability to work,
due to illness, injury at work or other cases in accordance with the regulations on health
insurance.

(2) An employee shall be entitled to absence from work for voluntary donating of blood, tissue
and organs, in accordance with the law and collective agreement.
30
 (3) In case of absence from work, as referred to in paragraph 1 of this Article, an employee
shall notify the employer of the absence within three days and submit a report of temporary
inability to work to the employer within five days from the day of preparation of the report.

Suspension of employment-based rights

Article 76

(1) Rights and obligations of an absent employee arising from and based on employment shall
be suspended in case of:

1) delegating employee to another country for engagement under international

technical or cultural and educational cooperation, delegating to diplomatic,
consular or other missions, and appointing for specialization or professional
education, upon employer's consent;
2) Appointing or delegating an employee to a public position requesting temporary
termination of work engagement with the employer, until expiry of one term of
office, in accordance with the law;
3) Execution of a prison sentence, safety measure, correctional or protective
measure, up to six months.

(2) A spouse of an employee sent abroad as referred to in paragraph 1 item 1 of this Article
shall also be entitled to suspension of employment status.

(3) An employed individual and his / her spouse shall be entitled to return to work with the
same employer within 30 days upon cessation of reasons for the suspension of rights
arising from and based on employment, to the same position or to other position
correspondent to the level and type of their professional qualification, or the level of their
education and occupation.

4. Salary, compensations and other allowances

Salary

Article 77

(1) An employee shall be entitled to an adequate salary, determined in accordance with the
law, collective agreement and contract of employment.

(2) An employee man or woman shall be guaranteed the same salary for the same work or
work of the same value performed with an employer.

31
 (3) Work of the same value shall include work for which the same level of professional
education, or the level of their education, or professional qualification, responsibility, skills,
working conditions and work results are required.

(4) In case of violation of the rights referred to in paragraph 2 of this Article an employee shall
be entitled to an indemnification in the amount of the unpaid portion of the salary.

(5) An employer's decision or an agreement with an employee which is not in accordance with
paragraph 2 of this Article shall be null and void.

Gross salary and salary increase

Article 78

(1) Salary realized by an employee for the work performed and time spent at work, wage
compensation and other earnings determined by collective agreement and contract of employment
shall comprise the gross salary under this Law.

(2) Salary shall be increased in accordance with collective agreement and contract of employment
in case of: overtime work, nigh-time work, service period, work on public and religious holidays
determined in accordance with the law as non-working days and in other cases determined by
collective agreement and contract of employment.

Salary for the work performed and time spent at work

Article 79

(1) Salary for the work performed and time spent at work shall consist of the basic salary,
portion of the salary for work performance and increased salary, in accordance with
collective agreement and contract of employment.

(2) The contracted salary shall be the salary determined by contract of employment and it may
not be lower than the minimum wage stipulated in Article 80 of this Law.

(3) Work performance shall be determined based on the quality and scope of the work
performed, as well as effort and attitude of the employee towards work duties, in
accordance with collective agreement.

Minimum wage

Article 80

32
(1) An employee shall be entitled to minimum wage for the standard performance and full
working hours, or working hours equivalent to full working hours in accordance with this
law, collective agreement and contract of employment.

(2) Minimum wage referred to in paragraph 1 of this Article may not be lower than 30% of the
average wage in Montenegro in the previous six months according to the official data
determined by the administration body in charge of the statistics.

(3) The amount of the minimum wage referred to in paragraph 2 of this Article shall be
determined by the Government of Montenegro (hereinafter referred to as: the Government)
upon a proposal from the Social Council of Montenegro, every six months.

Definition of Minimal Wage

Article 81

- Deleted -

Wage compensation

Article 82

(1) An employee shall be entitled to a wage compensation in the amount determined by

collective agreement and contract of employment during: public and religious holidays
which are non-working days; annual leave; paid leave; responding to a summon from
public authorities; professional improvement upon an order from the employer, temporary
incapacity during inability to work in accordance with the health insurance regulations and
during maternity, or parental leave and leave for the purpose of providing care to child, in
accordance with this Law; termination of work occurring without employee’s fault; refusal
to work if prescribed measures of protection at work are not implemented; absence from
work based on previously agreed participation in work of an employer’s body or trade
union body; during retraining, additional training and training for work on other positions
and in other cases determined by the law, collective agreement and contract of
employment.

(2) An employer shall be entitled to a refund of the compensation paid out under paragraph 1
of this Article case of an employee’s absence from work due to responding to a summons
from public authorities, from the authority issuing the summons, unless otherwise
prescribed by the law.

Other allowances

Article 83

33
An employee shall be entitled to other allowances relating to work determined by the collective
agreement or contract of employment.

Pay slip and payment of salary

Article 84

(1) Salary shall be paid in terms and in the manner determined by collective agreement and
contract of employment, and at least once a month.

(2) An employer shall deliver the pay slip to an employee upon payment of the salary.

(3) An employee that was not in position to pay the salary when it is due or does not pay the
entire amount shall deliver the pay slip that was due for payment to the employee by the
end of the month when the salary is due, which will have the effect of a valid statement.

Suspension and compensation of salary

Article 85

(1) An employer may collect employee’s debts by witholding a portion of his/her salary only
based on a final court decision, in cases determined by the law or upon consent from the
employee.

(2) A witheld portion of an employee’s salary for the purpose of mandatory alimentation,
based on a final court decision, may not exceed a half of his/her salary, and one third of
the salary or wage compensation for other obligations.

Salary records and wage compensation

Article 86

An employer shall keep monthly records of salaries and wage compensations, in accordance with
the law.

5. Rights of employees when changing employers

Status changes and changes of employers

Article 87
34
(1) In case of a change in status, or a change of employer, in accordance with the law, an
employer successor shall overtake employees from the employer predecessor and shall
respect all the rights and obligations of the employees under the contract of employment in
force on the day of the takeover.

(2) An employer predecessor shall inform the employee of the takover referred to in paragraph
1 of this Article in writing not later than five days prior to the takeover.

(3) An employer successor shall conclude a contract of employment with the employees
referred to in paragraph 1 of this Article within five days as of the takeover.

(4) The contract of employment referred to in paragraph 3 of this Article may not contain lesser
scope of rights for the employee than the rights determined by the contract of employment with
the employer predecessor, for the duration of the obligations under the collective agreement
taken over.

(5) An employer predecessor shall terminate contract of employment with an employee who
refuses to conclude a contract of employment or does not declare about acceptance of
conclusion of contract of employment within the time period referred to in paragraph 3 of this
Article with the employer successor.

Working contract transfer

Article 81

- Deleted -

Implementation of the employer predecessor’s collective agreement

Article 89

(1) An employer successor shall apply the collective agreement of the predecessor for at
least one year from the day of change of the employer, unless prior to that deadline:

1) the validity period of the collective agreement with the employer predecessor
expires;
2) a new collective agreement is concluded with the employer successor.

Obligation to notify the trade union

35
 Article 90

(1) An employer predecessor and an employer successor shall, prior to the change of
employer, notify the representative trade union of:

1) the date of the change of employer;

2) reasons for the change of employer;
3) legal, economic and social consequences of the change of employer to the
positions of the employees and measures for their mitigation.

(2) An employer predecessor and an employer successor shall, prior to the change of
employer, in cooperation with the representative trade union take measures with the aim
of mitigating social-economic consequences to the position of the employees.

(3) If a registered trade union does not exist with the employer, the employer shall inform the
employees of the circumstances referred to in paragraph 1 of this Article.

Change of ownership over capital

Article 91

In case of change of majority ownership over the capital of the company or other legal person,
provisions of Articles 87 through 90 of this Law shall apply accordingly.

IV REDUNDANT EMPLOYEES

Notification

Article 92

(1) If an employer determines that, due to technological, economic and restructural changes,
in the period of 30 days the number of redundant employees with a contract of
employment for an indefinite period is at least:

1) 10 employees with an employer employing more than 20, and less than 100
employees with a contract of employment for an indefinite time period;
2) 10% employees with an employer employing at least 100, and maximum 300
employees with a contract of employment for an indefinite time period;
3) 30 employees with an employer employing more than 300 employees with a
contract of employment for an indefinite time period, the employer shall
immediately inform the trade union or the representatives of employees and the
Employment Agency of Montenegro (hereinafter referred to as: the Agency).

36
(2) The notification referred to in paragraph 1 of this Article shall also be delivered by an
employer that determines at least 20 redundant employees in the period of 90 days,
regardless of the total number of employees.

(3) The notification referred to in paragraph 1 of this Article shall contain:

1) reasons for termination of the need for work of employees;

2) the number and the category of employees with contract of employment for an
indefinite time period;
3) the criteria for determining the redundant employees;
4) the number and the category of redundant employees;
5) period within which employment measures referred to in Article 93 paragraph 2
item 5 of this Law will be implemented;
6) the criteria for calculation of the amount of severance pay.

(4) If an employer determines that, due to technological, economic and restructural

changes, the number of redundant employees with a contract of employment for an
indefinite period will be less than the census determined in paragraphs 1 and 2 of this
Article, the employer shall notify the employee at least five days prior to the decision to
terminate his/her employment.

(5) Trade union, or the representatives of employees and the Agency shall submit their opinion
regarding the notification referred to in paragraph 1 of this Article to the employer within 15
days after receiving the notification.

Program for realization of the rights of redundant employees

Article 93

(1) Upon receiving the opinion of the trade union, or the representatives of employees and the
Agency, the employer referred to in Article 92 paragraphs 1 and 2 of this Law shall pass a
program of measures for resolving redundant employees (hereinafter referred to as:
program).

(2) The program referred to in paragraph 1 of this Article shall contain in particular:

1) reasons for termination of the need for work of employees;

2) the criteria for determining the redundant employees;
3) the total number of redundant employees;
4) the number, the qualification structure, the age and insurance service period for
redundant employees and the jobs they are performing;
5) employment measures: deployment to other jobs with the same employer within
the level of the professional qualification of the employee, deployment with
another employer within the level of the professional qualification of the employee,
upon his/her consent, professional training, retraining or additional training for
37
 work on other position with the same or other employer and other measures in
accordance with the collective agreement or contract of employment.

(3) The criteria referred to in paragraph 2 item 2 of this Article may not be contrary to the
provisions of this Law relating to prohibition of discrimination of employees.

(4) The program referred to in paragraph 1 of this Article shall be passed by the relevant body
of the employer, or the employer.

(5) The employer shall not have the obligation to pass the program referred to in paragraph 1
of this Article, in case of redundant employees as referred to in Article 92 paragraph 4 of
this Law.

Severance pay

Article 94

(1) In case of a redundant employee who was not provided with any of the rights referred to
in Article 93 paragraph 3 item 5 of this Law, the employer shall pay him/her a severance pay in the
amount of at least 1/3 of his/her average monthly pay less the taxes and contributions in the
previous six months for each year of employment with the employer, or 1/3 of the average monthly
pay less the taxes and contributions in Montenegro, if the latter is more favourable for the
employee.

(2) The severance pay referred to in paragraph 1 of this Article may not be lower than three
average monthly pays less the taxes and contributions with the employer in the last six months, or
the average monthly pay less the taxes and contributions in Montenegro in the last six months, if
the latter is more favourable for the employee.

(3) In case of an employed person with disability who was determined the status of a
redundant employee, who was not provided with any of the rights under the program referred to in
Article 93 paragraph 2 item 5 of this Law, the employer shall pay him/her a severance pay:

1) of at least 24 average salaries, if the disability was caused by an injury outside

work or an illness;
2) of at least 36 average salaries, if the disability was caused by an injury at work or
a professional disease.

(4) The amount of the severance pay referred to in paragraph 2 of this Article for an
employed person with disability shall be determined based on the average salary with the
employer, if that is more favourable for him/her.

Temporary engagement of employees

38
 Article 95

(1) An employer may hire a redundant employee for the purpose of performing duties
correspondent to his/her professional qualification, or the level of education and
occupation, until any of the rights determined by this Law are provided to him/her.

Termination of employment after payment of severance pay

Article 96

(1) Employment relationship, i.e. contract of employment, of an employee who has become
entitled to a severance pay, as referred to in Article 94 of this Law, shall be terminated, as
of the day of payment of the severance pay.

(2) An employee whose employment relation, or contract of employment, terminates, as

referred to in paragraph 1 of this Article, shall become entitled to a cash benefit and to
pension and disability insurance and health care, in accordance with special regulations.

V PROTECTION OF EMPLOYEES IN CASE OF BANKRUPTCY PROCEDURE

Outstanding claims

Article 97

(1) An employee who was employed on the day when the bankruptcy procedure was initiated
shall be entitled to settlement of outstanding claims with an employer that is in bankruptcy
procedure (hereinafter referred to as: claim), in accordance with this Law, shall belong to
in the period for which the rights determined by this Law are realized.

(2) The rights referred to in paragraph 1 of this Article shall be determined in accordance with
this Law, unless they are paid in accordance with the Law on Company Insolvency
(hereinafter referred to as: the special law).

(3) If the entitlements referred to in paragraph 1 of this Article are partially paid in accordance
with the special law, an employee shall be entitled to the difference up to the level of the
entitlements determined by this Law.

Entitlement to payment

Article 98
39
(1) An employee shall be entitled to payment of:

1) salary and wage compensation during absence from work due to temporary
inability to work in accordance with the health insurance regulations that the
employer has the obligation to pay in accordance with this Law;
2) indemnification for unused annual leave due to employer’s fault, for the calendar
year in which the bankruptcy procedure was initiated, if he/she was entitled to it
prior to initiation of the bankruptcy procedure;
3) severance pay due to retirement in the calendar year in which the bankruptcy
procedure was initiated, if he/she became entitled to retirement prior to initiation of
the bankruptcy procedure;
4) Indemnification based on a court decision passed in the calendar year in which the
bankruptcy procedure was initiated due to an injury at work or a professional
disease, if that decision became final prior to initiation of the bankruptcy
procedure.

(2) An employee shall be entitled to payment of contributions for mandatory social insurance
referred to in paragraph 1 item 1 of this Article, in accordance with the regulations on
mandatory social insurance.

Payment amount

Article 99

(1) Salary and wage compensation, referred to in Article 98 paragraph 1 items 1 and 2 of this
Law shall be paid in the amount of the minimum wage, or indemnification for unused
annual leave.

(2) Severance pay due to retirement referred to in Article 98 paragraph 1 item 3 of this Law
shall be paid in the amount of three average salaries in the economy of Montenegro.

(3) Indemnification referred to in Article 98 paragraph 1 item 4 of this Law shall be paid in the
amount of the indemnification determined by a decision of the relevant court.

Data Delivery

Article 100

(1) The Labour Fund shall be competent for excercising the rights referred to in
Article 98 of this Law

Decision Issuing

40
 Article 101

- cease to be valid

VI PROTECTION OF EMPLOYEES

General protection

Article 102

(1) An employee shall be entitled to protection at work in accordance with the law and
collective agreement.

(2) An employee may not be deployed to a position or work longer than full-time hours, or at
night, if such work could aggrevate his/her health condition in accordance with findings of
an authority in charge of assessing health ability.

(3) An employee who, apart from the conditions determined by systematization act, also
meets the conditions to work regarding health conditions, mental and physical abilities and
age may be deployed to a position with increased danger from occurrence of disability,
professional or other diseases.

Protection of employees reporting corruption

Article 102 a

(1) In case when an employee acts in good will and reports that there is grounds for suspicion of a
criminal offence with the character of corruption, his/her employment relationship may not be
terminated on that basis, or he/she removed from the work place (suspended), and he may not be
deprived of any of the rights arising from employment.

(2) If an employee is placed into an unfavourable position in comparison to other employees due to
reporting of the suspicion referred to in paragraph 1 of this Article so that any of his rights arising
from employment relationship is violated, the burden of proof shall be borne by the employer.

(3) An employer shall provide protection from disclosure of identity to unauthorized persons for an
employee who reports suspicion of corruption.

1. Protection of women, young people and persons with disabilities

41
 Special protection

Article 103

An employed woman, an employee under 18 years of age and employed persons with disabilities
shall be entitled to special protection, in accordance with this Law.

Special protection of young people and women

Article 104

An employed woman and an employee under the age of 18 may not work on positions where
mostly very difficult physical work is performed, on positions performed underground or under
water, or positions which may be harmful and increase risk for their health and life.

Protection of women in industry and civil engineering

Article 105

(1) An employed woman working in industry and civil engineering may not be deployed to
work at night.

(2) The prohibition referred to in paragraph 1 of this Article shall not refer to an employed
woman working on executive positions or performing jobs of health, social and other
protection.

(3) Exceptionally of paragraph 1 of this Article, an employed woman may be deployed to work
at night when it is necessary to continue work which was interrupted due to natural
hazards, or to prevent damage to raw materials or other materials

Protection of an employee under 18 years of age

Article 106

(1) An employee under 18 years of age may not be ordered to work overtime, or at night.

(2) An employee referred to in paragraph 1 of this Article may be ordered to work part-time by
the employer’s collective agreement.

(3) Exceptionally of paragraph 1 of this Article, an employee under 18 years of age may be
deployed to work at night when it is necessary to continue work which was interrupted due
to natural hazards, or to prevent damage to raw materials or other materials.

42
 Protection of persons with disabilities

Article 107

(1) An employer shall deploy an employed person with disability to positions corresponding to
his/her remaining working ability according to the level of professional qualification, in
accordance with the systematization act.

(2) If an employed person with disability may not be deployed, as referred to in paragraph 1 of
this Article, the employee shall provide other rights to him/her, in accordance with the law
regulating training for work of persons with disabilities and collective agreement.

(3) If an employed person with disability may not be deployed, or provided with other rights in
accordance with paragraphs 1 and 2 of this Article, the employer may not establish his/her
status as a redundant employee.

(4) A redundant employed person with disability, in accordance with paragraph 3 of this
Article, shall be entitled to a severance pay referred to in Article 94 paragraph 3 of this
Law.

.
Protection due to pregnancy and nursing of child

Article 108

(1) An employer may not refuse to conclude a contract of employment with a pregnant
woman, or terminate her contract because of pregnancy or if she is on maternity leave.

(2) An employer may not terminate contract of employment with a parent who is working with
half of working hours due to providing care to a child with severe developmental
disabilities, a single parent with a child up to seven years old or a child with severe
disability, or with a person using any of the stated rights.

(3) During absence from work for the purpose of nursing a child and parental leave an
employer may not terminate the employer's contract of employment.

(4) In case of an employed woman whose fixed-term contract of employment expires while
she is on maternity leave, the term of employment according to the fixed-term contract of
employment shall be extended until expiry of the maternity leave.

(5) Employees referred to in paragraph 2 of this Article may not be declared redundant
employees due to introduction of technological, economic or restructuring changes in accordance
with this Law.

43
(6) An employee who has concluded a fixed-term contract of employment the circumstances
referred to in paragraph 2 of this Article shall not affect termination of employment relationship.

Temporary deployment

Article 109

(1) Based on findings and recommendation of the relevant medical doctor, a woman during
pregnancy and breastfeeding a child may be temporarily deployed to other positions, if it is
in the interest of preservation of her health or the health of her child.

(2) If an employer is not in position to provide an employee referred to in paragraph 1 of this

Article with deployment to another position, as referred to in paragraph 1 of this Article, the
employee shall be entitled to absence from work, with wage compensation in accordance
with the collective agreement, which may not be lower than the compensation she would
receive if she were on her position.

(3) An employed woman referred to in paragraph 1 of this Article during temporary

deployment to other positions shall be entitled to the salary corresponding to the position
where she worked prior to the deployment.

Protection from overtime work, or night-time work

Article 110

(1) An employed woman during pregnancy and a woman with a child under three years of age
cannot work longer than full time hours, or at night.

(2) Exceptionally of paragraph 1 of this Article, an employed woman with a child over two
years of age may work at night only if she accepts such work in a written statement.

(3) One of the parents with a child with severe developmental disabilities, as well as a single
parent with a child under seven years of age may work overtime, or at night, only based on
a written consent.

2. Protection of the rights of employees providing care to child

Parental leave

Article 111

44
(1) Parental leave is entitlement of one of the parents to use absence from work for the purpose of
providing care and nursing to child.

(2) Parental leave may be used for 365 days from the birth of the child.

(3) The parent may start work even prior to expiry of the leave referred to in paragraph 2 of this
Article, but not prior to expiry of 45 days from the birth of the child.

(4) In case referred to in paragraph 3 of this Article the parent shall not be entitled to continue to
use parental leave.

(5) If one of the parents interrupts parental leave as referred to in paragraph 3 of this Article, the
other parent shall be entitled to use the remaining part of the parental leave referred to in
paragraph 2 of this Article.

(6) A child's mother may not interrupt parental leave prior to expiry of 45 days from the birth of the
child.

Maternity leave

Article 111a

(1) An employed woman may start maternity leave 45 days prior to delivery, and 28 days prior to
delivery as mandatory leave.

(2) If an employed woman starts work as referred to in Article 111 paragraph 3 of this Law she
shall be entitled to use, apart from daily break, in agreement with the employer, another 90 minutes
of leave for the purpose of breastfeeding the child.

Wage compensation and return to the same position

Article 111b

(1) During the leave referred to in Articles 111 and 111a of this Law the parent shall be entitled to
wage compensation in the amount of the salary he/she would earn if he/she was at work, in
accordance with the law and collective agreement.

(2) The employer shall provide the employee referred to in Articles 111 and 111a of this Law with
return to the same working position or to an adequate working position with at least the same
salary upon expiry of maternity, or parental, leave.

Protection in case of stillborn

Article 112
45
If an employed woman gives birth to a stillborn or if the child dies prior to expiry of the maternal
leave she shall be entitled to extend her maternity leave for as long as it is necessary, according to
the finding of the relevant specialist doctor, to recover from the delivery and the physical condition
caused by the loss of the child, and at least 45 days, and she shall be entitled to all rights based on
maternity leave during that period.

Work of parents with half the full-time working hours

Article 113

(1) Upon expiry of the leave referred to in Article 111 paragraph 1 of this Law, one of the
employed parents shall be entitled to work half the full-time working hours until the child
reaches three years of age, if the child needs additional care.

(2) An employed adoptive parent of the child or a person who is entrusted with the child for
care and nursing by a relevant guardian authority shall be entitled to work half the full-time
working hours, for the period referred to in paragraph 1 of this Article.

Work with half the full-time working hours for the purpose of nursing a child with developmental
disabilities

Article 114

(1) A parent, adoptive parent or a person entrusted with a child with developmental disabilities
for care and nursing by a relevant guardianship authority or a person providing care to a
person with severe disability shall be entitled to work half the full-time working hours, in
accordance with special regulations.

(2) Working hours referred to in paragraph 1 of this Article i Article 113 of this Law shall be
considered as working hours for exercising of the rights arising from and based on
employment.

Employment-based rights during nursing of a child

Article 115

(1) The method and the procedure for exercising the rights referred to in Articles 113 and 114
of this Law shall be regulated by the ministry in charge of social and child welfare.

(2) During leave referred to in Articles 113 and 114 of this Law an employee shall be entitled
to a wage compensation, in accordance with the law.

46
 (3) Entitlement referred to in Article 114 of this Law may not be used while the ill person is
placed in a social and health care institution.

Child adoption leave

Article 116

One of the adoptive parents of a child under the age of eight shall be entitled to a leave from work
for the purpose of nursing the child for a continuous period of one year as of the day of adoption
with wage compensation, in accordance with the law.

Notification of intention to use parental leave, or leave for the purpose of adoption

Article 117

(1) An employee intending to use a right to parental leave or leave due to adoption shall notify
the employer on the intention in written form, one month prior to the beginning date of
exercising the referred right.

(2) An employee can stop excercising the right referred to in paragraph 1 of this Article and
employer shall accept his/her return to work and provide deployment to the correspondent
position within the period of one month from receiving the employee's notification on
termination of excercising the referred right.

(3) An employee that exercised the right referred to in paragraph 1 of this Article shall be
entitled to additional professional training, if the employer introduced certain changes of
technological, economic or structural nature or changes in the method of operating.

Leave from work without wage compensation

for the purpose of nursing a child under the age of three

Article 118

(1) One of the parents has a right to a leave from work until the time the child turns three, and
he/she may not continue the leave if he/she terminates exercise of this right before expiry
of the stated period.

(2) During the absence from work, as referred to in paragraph 1 of this Article, an employee
shall be entitled to health insurance and pension and disability insurance, and other rights
and obligations shall be suspended.

(3) Funds for the health insurance and pension and disability insurance referred to in
paragraph 2 of this Article shall be provided from the health insurance and pension and
disability insurance funds.
47
 (4) An employee shall not be entitled to wage compensation during the leave from work
referred to in paragraph 1 of this Article.

VII PROTECTION OF EMPLOYEES’ RIGHTS

Protection with the employer

Article 119

(1) The employer shall decide on the rights and obligations of the employees arising from and
based on employment, in accordance with the law, collective agreement and contract of
employment.

(2) An employee who believes that the employer has violated any of his/her rights arising from
and based on employment may file a claim with the employer to request exercise of the
right.

(3) An employer shall decide on the request of an employee, within 15 days as of the day of
filing the request.

(4) The decision referred to in paragraph 3 of this Article shall be final, unless otherwise
prescribed by the law.

(5) The decision referred to in paragraph 3 of this Article shall be delivered to the employee in
writing, with explanation and note on the legal remedy within eight days as of the day of
expiry of the period for making the decision.

Protection with the relevant court

Article 120

(1) An employee who is not satisfied with the decision referred to in Article 119 of this Law or
who has not received the decision within the prescribed period, shall be entitled to initiate
proceedings before the relevant court for the purpose of protecting his/her rights within 15
days as of the day of receiving the decision.

(2) An employer shall enforce the final court decision within 15 days as of the day of receiving
the decision, unless other deadline is prescribed by the court decision.

48
 Alternative resolution of labour disputes

Article 121

An employee and an employer may entrust the Agency for Amicable Settlement of Labour
Disputes with resolving disputes arising from and based on employment, in accordance with a
special law.

Protection provided by the competent inspection

Article 122

- Deleted -

The statute of limitations regarding employment relationship claims

Article 123

The statute of limitations shall not apply to cash claims arising from and based on employment.

VIII EMPLOYEE’S RESPONSIBILITIES

1. Responsibility for breach of work obligations

Responsibility of employees

Article 124

(1) At work, an employee shall observe the obligations prescribed by the law, collective
agreement and contract of employment.

(2) An employee that fails to meet the work obligations due to his fault or fails to act upon
decisions of the employer shall be responsible for the breach of a work obligation, in
accordance with the law, collective agreement and contract of employment.

(3) Criminal liability shall not exclude responsibility of an employee to meet work obligations if
such offence constitutes a breach of work obligation.

(4) An employee shall be liable for a breach of work obligation that was regulated by collective
agreement and contract of employment at the time of its execution.

49
(5) Initiating and conducting procedure for breach of work obligations and other matters of
importance for protection of work discipline shall be closely regulated by collective
agreement and contract of employment.

Measures in case of breach of work obligations

Article 125

(1) If an employee breaches work obligations, one of the following sanctions may be applied:

1. a fine;
2. termination of employment relationship.

(2) A fine may be imposed for less serious breaches of work obligations, in accordance with
collective agreement and contract of employment in the amount up to 20% of monthly
salary of the employee realized in the month when the decision was passed, for a period
from one to three months.

(3) Termination of employment relationship may be imposed for a serious breach of work
obligations in accordance with collective agreement and contract of employment.

Authority imposing measures

Article 126

(1) Decision on imposed measure in case of breach of work obligation shall be passed by the
relevant body of the employer, i.e. the employer.

(2) The decision referred to in paragraph 1 of this Article shall be final.

Protection before relevant court

Article 127

(1) An employee may initiate procedure before relevant court against a final decision imposing
a measure referred to in Article 125 of this Law, within 15 days from the day of delivering
the decision.
(2) Initiation of procedure before relevant court does not suspend enforcement of the decision
referred to in paragraph 1 of this Article.

The statute of limitations for initiating and conducting procedure

Article 128
50
 (1) The statute of limitations shall be applied to initiation of a procedure of investigating
breaches of work obligation within three months from the day when the information on the
breach and the perpetrator became known.

(2) If breach of work obligation includes criminal elements, the statute of limitations shall be
applied within six months from learning about the breach and the perpetrator or upon
expiration of term legally envisaged for applying statute of limitations for the correspondent
criminal act.

(3) The statute of limitations shall be applied to the procedure of investigating breaches of
work obligations within three months from its initiation.

Deadline for enforcement of the imposed measure and deletion from the records

Article 129

(1) The imposed measure referred to in Article 125 of this Law may not be enforced after
expiry of 30 days from the day when the decision imposing the measure became legally
binding.

(2) The employer shall keep record on measures imposed in case of breach of work
obligations.

(3) If an employee does not breach work obligations within two years from the day the
decision imposing a fine became legally binding, the imposed measure shall be deleted
from the records.

1. Temporary exclusion of an employee (suspension)

Suspension from work

Article 130

An employee shall be temporarily suspended from work:

1) if he/she was found in breaching work obligation for which imposing of a measure of
termination of employment relationship, i.e. termination of the contract of employment, was
prescribed;
2) If an employee was convicted to a detention, starting from the first day of sentence serving
until the end;
3) If a criminal investigation on a criminal act related to work or work engagement was
initiated against the employee;
4) If a procedure on a criminal act of corruption was initiated against the employee.

51
 Decision of suspension

Article 131

(1) An employee shall be temporarily suspended from work by a written order from the
employer, or other authorized person employed with the employer, followed by a decision
on temporary suspension and its rationale.

(2) If a decision referred to in paragraph 1 of this Article is not passed within three days from
suspension of an employee from work, it shall be considered that the decision was not
passed at all.

Wage compensation and reimbursement of wage compensation during temporary suspension

Article 132

(1) While temporary suspended from a position, an employee shall be entitled to wage
compensation amounting to one third of his / her monthly earnings for the month preceding
the month of temporary suspension or to one half of the referred earnings if the employee
supports a family.

(2) The wage compensation during a period of detention shall be disbursed at the expense of
the body that imposed the detention.

(3) The body which passed the decision on detention shall notify the employer of its decision
within three days.

(4) A request to refund wage compensation for the period of employee's detention, as well as
taxes and contributions included in the referred earnings shall be submitted by an
employer to the body that enacted decision on the detention.

(5) While temporary suspended from a position, an employee shall be entitled to a difference
between the compensation received under paragraph 1 of this Article and the amount of
full earnings received for the month prior to the month of temporary suspension increased
by the average increase of employees' earnings with the employer, for the period the
compensation was due, especially:

1) If the criminal procedure is terminated due to a final decision or if employee is

absolved from criminal charges by a final decision or the charge against the
employee is overruled for other reasons than the lack of competence, and;
2) If the employee is absolved from liability or if the procedure of investigating
breaches of work obligations is terminated.

52
3. Financial responsibility

Compensation of damage to employer

Article 133

(1) An employee shall be responsible for the damage at work or for work-related damage
caused to the employer by the employee intentionally or due to gross negligence.

(2) If the damage is caused by more than one employee, each of the employees shall be
responsible for a portion of the damage he participated in.

(3) If the proportion of the damage caused by each employee referred to in paragraph 2 of
this Article is not determinable, all employees shall be considered as equally responsible
and shall be obliged to recover the damage in equal portions.

(4) If the damage is caused by premeditated criminal act of more than one employee, they
shall bear joint and several liability.

Compensation of damage to employee

Article 134

(1) If an employee is injured or suffered damage at work or in relation to work, the damage
shall be recovered by the employer.

(2) A special commission, formed by the employer, shall be responsible for investigating
weather the damage occurred or not and defining of the level of the damage caused,
circumstances in which it occurred, the persons liable for the damage and method of its
recovery.

(3) If the damage is not recovered in accordance with the provision of paragraph 2 of this
Article, the decision concerning the damage shall be taken by the relevant court.

Compensation of damage to a third person

Article 135

An employee that caused damage at work or work-related damage to a third person deliberately or
due to gross negligence, and the referred damage was covered by the employer, shall compensate
the amount paid by the employer.

53
2. Prohibition of competition

Prohibition of competition of employee

Article 136

(1) The contract of employment may stipulate the jobs an employee may not perform on
his/her behalf and for his/her account, or on behalf and for the account of another legal or
physical entity, without the consent of his/her current employer (hereinafter referred to as:
prohibition of competition).

(2) Prohibition of competition may be stipulated only if there is possibility for an employee to
acquire through his/her work with the employer new, important technological knowledge, a
wide circle of business partners or to acquire knowledge of important business information
and secrets.

(3) Collective agreement and contract of employment shall also determine territorial limitations
of prohibition of competition relative to the type of job to which the prohibition refers.

(4) Should an employee violate the prohibition of competition, an employer shall be entitled to
request damage compensation from the employee.

Conditions for prohibition of competition

Article 137

(1) The conditions of prohibition of competition as referred to in Article 136 of this Law may be
stipulated through an agreement between an employer and an employee following
termination of employment, where such period may not exceed two years after termination
of employment.

(2) Prohibition of competition referred to in paragraph 1 of this Article may be agreed if an

employer commits in a contract of employment to pay cash compensation to an employee
in the agreed amount.

IX TERMINATION OF EMPLOYMENT

Methods of termination of employment

Article 138
Employment shall terminate:

1) by virtue of law;
2 ) by mutual agreement between the employer and employee;
54
3) by notice of cancellation of employment contract by an employer or an employee.

Termination of employment by virtue of law

Article 139

Employment shall terminate by virtue of law:

1) when the employee reaches the age of 67 and minimum 15 years of pension
insurance, unless otherwise agreed between an employer and an employee – as
of the day of delivering a final decision to the employee;
2) if it is determined in a manner set out by the law that an employee has suffered a
loss of working ability – as of the date of delivery of the final decision determining
a loss of working ability;
3) if, pursuant to provisions of the law, i.e. a final court decision or a decision of
another body, an employee is forbidden to perform particular jobs and he/she
cannot be deployed to other jobs – as of the date of delivery of the final decision;
4) if an employee is absent from work for more than six months due to serving a
prison sentence – as of the date of commencement of serving the prison
sentence;
5) if a security, correctional or protective measure of more than six months has been
pronounced to an employee and consequently he/she would be absent from work
– as of the date of commencement of application of such measure;
6) in case of bankruptcy or liquidation, or in all other cases when an employer ceases
to work, in accordance with the law.
.

Possibility of continuing employment

Article 140

(1) An employee who has reached the age of 67 and has minimum 15 years of insurance
service may continue to work, if required so for performance of certain activities, based on
a written decision of the relevant body of the employer, i.e. the employer.

(2) An employee can continue to work after the age of 67 if he/she has not accrued 15 years
of insurance service, until the referred condition is met.

(3) An employee engaged in educational and teaching activities in an educational institution,

or scientific and teaching activities in higher education institution, who has met the
condition for termination of the work engagement in regard to the legally envisaged age,
may continue to work until the end of the school year, based on a decision of the
employer's relevant body.

Termination of employment by mutual agreement

55
 Article 141

(1) Employment shall terminate by mutual agreement between an employer and an employee.

(2) Mutual agreement referred to in paragraph 1 of this Article shall be concluded in written
form.

(3) In case of mutual agreement on termination of employment the employer may provide
severance pay to the employee.

Termination by employee

Article 142

(1) Employment, i.e. contract of employment may be terminated by a notice of termination

from the employee.

(2) Termination of a contract of employment may be initiated by a parent or a guardian of an

employee under the age of 18.

(3) An employee shall deliver notice of termination of the contract of employment to the
employer in written form, at least 15 days prior to the day stated as the day of termination
of employment.

Termination by employer

Article 143

(1) An employer may terminate a contract of employment of an employee if there is justified reason
for such action, as follows:
1) if an employee fails to meet the results of work defined by collective agreement, employer’s
act or contract of employment, in a period of not less than 30 days;
2) if an employee fails to comply with obligations prescribed by the law, collective agreement
and contract of employment, which shall be harmonized with the law and the collective
agreement;
3) if an employee’s behaviour is such that he/she cannot continue employment with the
employer, in cases prescribed by the law and the collective agreement or employer’s act,
which shall be harmonized with the law and the collective agreement;
4) if an employee refuses to conclude an annex to the contract of employment referred to in
Article 40 paragraph 1 items 1 and 2 of this Law;
5) if an employee refuses to conclude an annex to the contract of employment referred to in
Article 40 paragraph 1 item 3 of this Law;
6) if an employee abuses the right to temporary inability to work;
7) due to economic problems in operations;
8) in case of technical and technological or restructural changes causing cessation of the
need for work of an employee.
56
(2) An employer may terminate a contract of employment as referred to in paragraph 1, item 1 of
this Article if the employer has previously provided instructions for work to the employee.

(3) An employer may terminate a contract of employment without the obligation to respect the
notice period of termination referred to in Article 144 of this Law, in a case referred to in Article 143
paragraph 1 items 2 and 3 of this Law.

(4) An employee referred to in paragraph 1 items 5, 7 and 8 of this Article shall be entitled to a
severance pay as referred to in Article 94 of this Law.

What is considered as justified grounds for termination of a contract of employment

Article 143 a

The following shall not constitute justified grounds for termination of a contract of employment, as
referred to in Article 143 of this Law:

1) temporary absence from work due to illness, accident at work or professional disease;
2) maternity, or parental, leave, absence from work for child care and absence from work due
to special child care;
3) membership in a political organization, trade union, difference according to a personal trait
of an employee (gender, language, ethnicity, social status, religion, political or other beliefs
or other personal traits of the employee;
4) acting as a representative of employees, in accordance with the law;
5) in case when an employee addresses trade unions or competent authorities for protection
of employment rights in accordance with the law and contract of employment;
6) in case when an employee addresses the competent public authorities for justified
suspicion of corruption or filing a complaint of such suspicion in good faith.
7) in case when an employee addresses or points out to compromising of environment
connected to the employer’s operations to the employer or the relevant public authorities.

Procedure for termination of contract of employment

Article 143b

(1) An employer may pass a decision on termination of a contract of employment in cases

referred to in Article 143 paragraph 1, items 1, 2 and 3 of this Law after giving a previous
warning notice to the employee of the possible reasons for termination of employment.

(2) The warning notice referred to in paragraph 1 of this Article shall be given in written form
and shall contain the grounds for termination of employment, evidence pointing to realized
conditions for termination and the time period to reply to the warning notice.

57
(3) The time period referred to in paragraph 2 of this Article may not be less than five working
ways.

(4) An employer shall deliver the warning notice referred to in paragraph 2 of this Article to the
trade union the employee is a member of, for the purpose of obtaining its opinion, and the
trade union shall provide statement of the warning notice in writing within five working
days.

Decision on termination of employment

Article 143 c

(1) A decision on termination of a contract of employment shall be passed by the relevant

body of the employer, i.e. the employer, in the form of a decision, and it shall deliver it to
the employee.

(2) A decision referred to in paragraph 1 of this Article shall contain: the grounds for
termination of employment, explanation and note of legal remedy.

(3) A decision referred to in paragraph 1 of this Article shall be final.

(4) Provisions of the Law on General Administrative Procedure shall apply accordingly to
delivery of warning notice, notification and decision, unless otherwise prescribed by this
Law.

Protection of the rights of en employee in case of termination of employment

Article 143 d

(1) An employee that finds a decision referred to in Article 143 c of this Law unsatisfactory
shall be entitled begin litigation with the competent court with the purpose of seeking
protection of defined rights, not later than 15 days from the date of the receipt of the
decision, and he/she may also begin litigation before the Agency for Amicable Settlement
of Labour Disputes.

(2) In case of a dispute concerning termination of employment, the burden of proving

justifiability and legality of the grounds for termination shall belong to the employer.

(3) If a procedure referred to in paragraph 1 of this article determines that there were no
legal or justifiable grounds for termination of a contract of employment, whether prescribed
by an act of the employer or agreed by the employer in the contract of employment, the

58
 employee shall be entitled to return to work, as well as to a compensation of financial and
non-financial damage in a procedure prescribed by the law.

(4) If a procedure referred to in paragraph 1 of this Article determines that and employee’s
contract of employment was terminated without legal or justifiable grounds, he/she shall be
entitled to a compensation of financial damage in the amount of the lost salary and other
earnings he/she would earn at work, in accordance with the law, collective agreement and
contract of employment, and payment of contributions for mandatory social insurance.

(5) Compensation of damage referred to in paragraph 4 of this Article shall be reduced by the
amount of earnings realized by the employer based on the contract of employment, upon
termination of employment.
(6) If a procedure referred to in paragraph 1 of this Article determines that the termination of
employment resulted in violation of the rights of personality, honour, reputation and dignity,
the employee shall be entitled to compensation of non-financial damage within the
procedure prescribed by the law.

Termination notice period

Article 144

(1) An employee shall have the right and duty to remain working for at least 30 days as of the
day of receipt of termination of the contract of employment, i.e. decision on termination of
employment (termination notice), in cases determined by collective agreement and
contract of employment.

(2) An employee may, upon agreement with the relevant body of the employer, cease to work
even prior to expiry of the time period during which he/she has the duty to remain working,
and he/she will be provided with a wage compensation during that time period in the
amount determined by collective agreement and contract of employment.

(3) If an employee ceases to work prior to the expiry of the notice period upon a request from
the employer, he/she shall be entitled to a wage compensation and other rights arising
from and based on employment, as if he/she has worked until expiry of the notice period.

(4) During notice period, an employee shall be entitled to be absent from work for at least four
hours a week for the purpose of seeking new employment.

(5) If an employee has become temporarily unable to work during the period when he/she has
the duty to remaining working, the time period referred to in paragraph 1 of this Article shall
be suspended upon his/her request and shall continue upon termination of the temporary
inability to work.

Termination of contract of employment of a director

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 Article 145

Employment, i.e. contract of employment of a director, who is not re-elected upon expiry of his/her
terms of office, or who is dismissed prior to the expiry of his/her terms of office, shall terminate,
unless otherwise provided for by a special law.

Obligation of payment of salary and wage compensation

Article 146

(1) In case of termination of employment, i.e. contract of employment an employer shall pay to
an employee all outstanding salaries, wage compensations and other earnings realized by
the employee until termination of employment, and pay contributions for social insurance in
accordance with the law, collective agreement and contract of employment.

(2) An employer shall make payment of earnings referred to in paragraph 1 of this Article prior
to passing of the decision on termination of the contract of employment.

(3) An employee may file a request for protection of rights, for payment of earnings referred to
in paragraph 1 of this Article to labour inspection within 30 days as of the day of
termination of employment.

Limitation of Employment

Article 146a

(1) An employee who is paid redundancy benefit based on the agreed termination of
employment in public company, public institution and other public service, which majority
owner is the state or local government unit or the state, i.e. local self-government has the
share in capital, may not be employed in another public company, public institution and
other public service, state authority, state administration authority and local administration
authority within a period of five years from the date of paid redundancy benefit.

(2) An employee who is paid redundancy benefit based on expiration of need for his work
in public company, public institution and other public service, which majority owner is the
state or local government unit or the state, i.e. local self-government has the share in
capital, except an employee who is a person with
disability, may not be employed in another public company, public institution and other
public service, state authority, state administration authority and local administration
authority within a period of one year from the date of paid redundancy benefit.

(3) An employer referred to in Paragraph 1 of this Article shall provide information about

60
 employees who have received redundancy benefit to the Employment Agency and the
administrative authority in charge for personnel management.

(4) The limitation referred to in Paragraphs 1 and 2 of this Article shall not apply to an
employee who returns the total amount of paid redundancy benefit. "

X COLLECTIVE AGREEMENTS

Subject matter and application of collective agreement

Article 147

(1) A collective agreement, in accordance with the law, shall define the rights, obligations and
responsibilities arising from and based on employment, the procedure of amending the
collective agreement, mutual relations between participants of the collective agreement
and other matters of importance for an employee and an employer.

(2) A collective agreement shall be concluded in written.

(3) A collective agreement shall be applied directly.

Types of collective agreements

Article 148

(1) A collective agreement may be concluded as: general, branch and employer’s collective
agreement.

(2) General Collective Agreement shall be negotiated for the territory of the Republic and
shall apply to all employees and employers, and branch collective agreements shall be
negotiated for branches of activity, groups, or subgroups of activity and shall apply to
employees and employers in a branch, group or subgroup.

(3) Employer’s Collective Agreement shall apply to employees of the employer.

(4) Rights and obligations arising and based on employment of individuals self-employed in
art or other cultural activity shall be defined in accordance with the Branch-Level
Collective Agreement.

Content of collective agreements

Article 149

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 (1) The General Collective Agreement shall establish basic elements for defining salary,
wage compensation, other earnings of employees and the scope of the rights and
obligations arising from employment in accordance with the law.

(2) A branch-level collective agreement shall establish minimum wage in a correspondent

branch of activity, group or subgroup of activity, elements for determining basic salary and
other earnings of employees and regulate the scope of the rights and obligations of
employees arising from employment in accordance with the law.
(3) Employer’s collective agreement shall establish minimum wage, elements for determining
basic salary, wage compensation and other earnings of employees and regulate broader
rights, obligations and responsibilities of an employee arising from and based on
employment in accordance with the law and collective agreement.

.
Participants in conclusion of collective agreements

Article 150

(1) General Collective Agreement shall be signed between a relevant body of the
representative trade union organization of Montenegro, a relevant body of the
representative employers’ federation of Montenegro and the Government of Montenegro
(hereinafter referred to as: the Government).

(2) A branch-level collective agreement for a branch of activity, group, or subgroup of activity
shall be signed:

1) for industry - a relevant body of the representative employers’ federation and a

relevant body of the representative trade union organization;
2) for public companies and other public services founded by the State – a
representative trade union organization and the Government, and for other public
companies – a representative trade union organization and the founder;
3) for public institutions founded by the State - a representative trade union
organization and the Government, and for other public institutions - a
representative trade union organization and the founder;
4) for mandatory social insurance organizations - a representative trade union
organization, management board, i.e. board of directors of those organizations
and the Government;
5) for public bodies and organizations and local government bodies - a representative
trade union organization and the Government;
6) for political, trade union, sports and non-governmental organizations - a
representative trade union organization and the relevant body of the
representative employers’ federation;
7) for foreign legal and physical entities (embassies, diplomatic-consular missions,
foreign companies' regional offices etc.), a representative trade union organization
and the relevant body of the representative employers’ federation;

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 8) for persons who are self-employed in art or other cultural activity - a representative
trade union of artists and a public administration body in charge of the cultural
matters.

(3) Employer collective agreement shall be signed between a relevant body of the employer
and a representative trade union organization, i.e. a representative of the employees.

(4) Collective agreement of an employer in public sector, institution or other public service
founded by the State shall be signed between representative trade union organizations,
the director and the Government, and for other public companies and public services - a
representative trade union organization, the director and the founder.

Bargaining and signing of collective agreements

Article 151

(1) Participants in signing of a collective agreement shall negotiate the agreement.

(2) Each party may initiate negotiations by offering the other party, in written form, a draft of a
new text or amendment to the text of the collective agreement.

(3) The party offered a draft agreement referred to in paragraph 2 of this Article shall provide
its opinion of the offered draft agreement for negotiations in writing within 15 days.

(4) If parties do not continue negotiations or do not reach agreement within three months from
the beginning of the negotiations, they shall address the Agency for Amicable Settlement of
Labour Disputes.

(5) A collective agreement shall be considered negotiated as of the moment of its signing by
authorized representatives of all parties.

(6) General and branch collective agreement shall be registered with the Ministry and
published in "Official Gazette of Montenegro".

(7) The modality of publishing employer collective agreement shall be envisaged by that
agreement..

(8) The modality and method of registering collective agreements referred to in paragraph 5 of
this Article, shall be defined by the Ministry.

Term of collective agreements

Article 152

(1) Collective agreements shall be negotiated for an indefinite period or a fixed term.
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 (2) A collective agreement concluded for an indefinite period shall be terminated by
agreement of all participants or by cancellation, in the manner prescribed by the
agreement.

(3) A collective agreement concluded for an indefinite period shall define the method in which
any of the parties may terminate that agreement.

(4) A collective agreement concluded for a fixed term shall cease to apply upon expiry of the
validity period of the agreement.

(5) A collective agreement concluded for a fixed term may be extended by an agreement of
the participants concluding the agreement, not later than 30 days prior to the expiry of the
agreement.
.

Extended application of an employer’s collective agreement

Article 153

In case of restructuring of an employer, the collective agreement applicable prior to the

restructuring shall apply to the employees until conclusion of a new collective agreement, but
maximum for a year.

XI ORGANIZATIONS OF EMPLOYEES AND EMPLOYERS

Rights of employees and employers to organize at their own discretion

Article 154

Employees and employers shall have the right to establish heir organizations and become
members of those organizations at their own discretion, without previous approval, under the
conditions defined by the statute and the rules of those organizations.

1. Employee’s trade union

Freedom of trade union association

Article 155

(1) Employees shall be guaranteed the right to trade union association and activities, without
previous approval.

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 . Trade Union Representation

Article 156

- cease to be valid -

Conditions for operation of trade unions

Article 157

(1) A trade union organization shall decide independently on the manner of its representation
with an employer.

(2) A trade union organization may appoint or elect one person to act as the trade union
representative.

(3) An employer shall provide the trade union representative with timely exercise of rights, as
referred to in paragraph 2 of this Article, and access to information relevant for realization
of the rights.

(4) A trade union representative shall perform trade union activities in such a manner which
will not affect the efficiency of the employer’s operations.

(5) A trade union organization shall inform the employer of the appointment of a trade union
representative.

Informing trade union by an employer

Article 158

(1) An employer shall inform a trade union organization at least once a year of:

1) the results of operations;

2) development plans and their influence to the position of employees, developments
and changes in the salary policy
3) measures for improvement of conditions of work, safety and protection at work and
other matters relevant for the financial and social status of employees.

(2) An employer shall inform a trade union organization of:

1) measures of safety and protection at work;

2) introduction of new technology and changes in organization;
3) schedule of working hours, night-time work and overtime work;
4) passing of a program of introduction of technological, economic and restructural
changes and a program for exercise of the rights of redundant employees;

65
 5) time and method of payment of salaries.

(3) An employer shall timely inform and deliver acts for trade union organization for the
purpose of attending meetings of employer’s bodies where initiatives and proposals of the
employer are discussed.

(4) A trade union organization representative shall be entitled to participate in a discussion

before relevant employer’s bodies.

Freedom to exercise trade union rights

Article 159

(1) An employer shall provide employees with free exercise of their trade union rights.

(2) An employer shall provide the trade union organization with conditions for efficient
performance of trade union activities for protection of interests and rights of employees, in
accordance with the collective agreement.

(3) A trade union organization representative shall be entitled to be absent from work with a
wage compensation for the purpose of performing activities organized by the trade union
in accordance with the collective agreement.

(4) An employer shall not be obliged to pay wage compensation to a trade union
representative, whose absence from work is not in accordance with the collective
agreement referred to in paragraph 3 of this Article.

(5) An employer must be informed in writing of absence of a trade union organization member
in cases referred to in paragraph 3 of this Article, at least three days prior to his/her
absence.

(6) A collective agreement shall regulate conditions, manner and procedure of

professionalization of work of a trade union representative, in the interest of protection of
trade union rights.

Protection of trade union representatives

Article 160

(1) A trade union representative and a representative of employees, while performing trade
union activities and six months upon their termination, may not be called to account in
relation to trade union activities, proclaimed redundant, deployed to another position with
the same or another employer in relation to trade union activities, or placed in a less
favourable position in any other manner, provided the referred employee acts in
accordance with he law and collective agreement.

66
 (2) An employer may not place a trade union representative or employees' representative in a
more or less favourable position due to their membership in trade union or his/her trade
union activities.

2. Employers’ Association

Representativeness of employers’ federations

Article 161

(1) An employers’ federation, as referred to in of this Law, shall be considered as

representative if its members employ at least 25% of the employees in the economy of
Montenegro and participate in the gross domestic product of Montenegro with at least
25%.

(2) Employers’ federations shall file an application with the Ministry for the purpose of
registration.

(3) The Ministry shall regulate the method and the procedure of registering employers’
federations and closer criteria for determining representativeness of employers’
federations.

(4) If none of the employers’ federations meet the conditions referred to in paragraph 1 of this
Article, employers may make an agreement on participation in conclusion of collective
agreement.

Court protection

Article 162

The relevant court shall rule in case of a dispute regarding trade union, or employers’ federation,
representativeness, as referred to in of this Law, in accordance with the law.

XII SPECIAL TYPES OF CONTRACTS OF EMPLOYMENT

1. Temporary and occasional jobs

Performance of temporary and occasional jobs

Article 163

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In case of a need for performing certain activities that do not require particular knowledge and skills
and, by their nature, are not likely to last for more than 120 working days in a calendar year
(temporary and occasional jobs), an employer may enter into a special contract of employment with
a correspondent individual registered in the records of the Employment Agency or an
intermediation agency.

2. Performing Activities outside Employer's Premises

Manufacture of items and provision of services

Article 164

An employer may enter into a special contract of employment for manufacture of certain items or
provision of services from its scope of activity outside its premises (manufacture of home-made
items, collection of secondary raw materials, selling books, brochures, newspapers, providing
computer services etc.).

- Item Deleted -

Service Contract

Article 165

- Deleted -

Content of special contracts of employment

Article 166

Contracts referred to in Articles 163 and 164 of this Law shall contain provisions on: personal
information of the employee, the activity which is the basis for the agreement, terms for beginning
and finishing the work, the conditions and modality of performing work, as well as the amount,
schedule and method of payment of salary for work to be performed.

Insurance of persons who conclude a special contract of employment

Article 167

(1) A person who has concluded a contract as referred to in Articles 163 and 164 of this Law
shall be entitled to health and pension insurance, in accordance with the law.

(2) An employer shall keep records of the contracts referred to in Articles 163, 164 and 165 of
this Law.

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4. Volunteering
Article 168

An employer may conclude a contract on volunteering with an unemployed person, in accordance

with a special law.

XIII EMPLOYMENT RECORD CARD

Employment record card as a public identity document

Article 169

(1) An employee shall have an employment record card.

(2) An employment identity card is a public identification document.

(3) The content of an employment record card, the procedure of its issuance, modality of data
entry, method for substituting and issuing new employment record cards, the method of
maintaining the registry of issued employment record cards and the format of an
employment record card shall be defined by the Ministry.
(4) An employment record card shall be issued by an authorized body of the local
government.

Safeguarding of employment record card

Article 170

(1) An employee shall deliver his / her employment record card to the employer on the day of
commencement of engagement.

(2) Entering negative data regarding an employee's work into an employment record card
shall be forbidden.

(3) On the day of termination of employee's engagement, the employer shall hand employee a
neatly filled in employment record card.

XIV SUPERVISION

Conducting of supervision
69
 Article 171

(1) Supervision over applying of this Law, other labour regulations, collective agreements
contracts of employment, or contracts referred to in Articles 163 and 164 of this Law
regulating the rights, obligations and responsibilities of employees shall be conducted by
the Ministry through labour inspection.

(2) An employer shall obtain approval from a competent body for conducting business in its
premises or place of work, a concluded contract of employment or a contract referred to in
Articles 163 and 164 of this Law with each employee, as well as registration for mandatory
social insurance.

(3) A labour inspector shall have authorizations in performing supervision as defined by law.

XV PENALTY PROVISIONS

Infringement by employer

Article 172

(1) A fine in the amount from EUR 500 to EUR 20,000 shall be imposed to an
employer with the status of a legal entity for an infringement if the referred employer:

1) concludes a contract of employment contrary to the provision of Article 16 of this

Law;
2) concludes a contract of employment with a person under the age of 18, contrary to
the provisions of this Law (Article 17);
3) requests from a candidate information contrary to the provisions of Article 18
paragraphs 2 and 3 of this Law when concluding a contract of employment;
4) agrees on a trial period of more than six months (Article 19 paragraph 2);
5) fails to enter into contract of employment, or a special contract with an individual
prior to the beginning of his/her engagement (Articles 21, 163, 164);
6) fails to enter into contract of employment for an indefinite time period with an
employer (Article 22 paragraph 3);
7) fails to carry out transformation of a fixed-term contract of employment to a
contract of employment for an indefinite time period (Article 26 );
8) fails to deliver a copy of the registration for mandatory social insurance to an
employee (Article 28 paragraph 2);
9) does not keep records of employment and fails to inform the labour inspector of
that (Article 33, paragraph 1);
10) fails to pay the agreed salary for work in a household in the manner and in the
amount defined in Article 35 of this Law;

70
11) fails to provide an employee with education, professional training and
improvement when required by the needs of the work process (Article 38
paragraph 1);
11a) concludes a contract of employment for temporary jobs contrary to Article 43c of
this Law;
11b) fails to introduce an employee with all the risks of performing work with the
employer; fails to introduce an employee with the content of the contract and fails
to deliver the contract upon his/her request not later than on the day of beginning
engagement with the beneficiary; fails to pay to an employee the agreed salary for
performed work with the beneficiary and in case when a beneficiary fails to meet
its obligations towards the Agency (Article 43e);
12) fails to provide to an employee who works for shorter working hours as referred to
in Article 47 of this Law to use the rights arising from employment belonging to an
employee with full working hours or engages him/her to work overtime in such jobs
(Article 47 paragraphs 3 and 4);
13) introduces work for longer than full time working hours for a period longer than it is
necessary to remove the causes of its introduction (Article 49 paragraph 2);
14) introduces work for longer than full time working hours in cases other than the
ones defined by this law and collective agreement (Article 50);
15) has conducted rescheduling of working hours contrary to the provisions of Articles
54 and 55 of this Law;
16) fails to provide an employee who works at night with special protection in
accordance with Article 56 of this Law;
17) fails to provide an employee who works in shifts to switch shifts (Article 57
paragraph 1);
18) fails to provide a break during daily work, daily and weekly and annual leave, in
accordance with provisions of Articles 59, 60, 61, 62, 63, 65, 66, 67, 68, 69 and 70
of this Law;
18a) fails to define the schedule of using weekly break (Article 62 paragraph 4);
19) deprives an employee who has exercised the right to temporary suspension of
employment of the right to return to work (Article 76 paragraph 3);
20) fails to pay to an employee salary at least once a month and fails to deliver pay
slip to an employee (Article 84);
21) fails to keep monthly records of salaries and wage compensations (Article 86);
21a) an employer successor fails to take over all employees from the employer
predecessor and fails to conclude a contract of employment with them and fails to
provide respect of their rights, in accordance with contract of employment and
collective agreement with the employer predecessor, in accordance with Article 87
of this Law;
22) fails to apply collective agreement of the employer predecessor in accordance with
Article 89 of this Law; -- deleted
23) fails to pass a program of measures for resolving the redundant employees (Article
93);
24) fails to provide severance pay in accordance with provisions of Article 94 of this
Law;
25) fails to provide protection of employees, in accordance with provisions of Articles
102, 102a,103, 104, 105, 106, 107, 108, 109 and 110) of this Law;
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 26) fails to provide an employed parent, adoptive parent and guardian to use the rights
in accordance with Articles 111, 111a, 111b and 117 of this Law;
27) fails to pass and deliver decision on protection of the rights of an employee within
15 days as of the day of filing the request (Article 119 paragraph 3);
28) allows an employee who reaches the age of 67 to continue work, without passing
a written decision (Article 140 paragraph 1);
29) fails to deliver to an employee a decision on termination of contract of employment
in the form of a formal decision (Article143, paragraph 3);
30) fails to pay to an employee the outstanding salaries, compensations of salaries
and other earnings until the day of termination of employment in case of
termination of a contract of employment in accordance with Article 146 of this
Law;
31) fails to inform the trade union once a year of the matters prescribed by this Law, or
fails to timely inform the trade union for the purpose of attending the meetings
where initiatives and proposals of the employer are to be discussed (Article 158);
32) fails to provide the employees with free exercise of trade union rights or fails to
provide the trade union with conditions for exercise of trade union rights (Article
159);
33) fails to keep records of contracts referred to in Articles 163 and 164 of this Law;
34) fails to return to an employee a neatly filled employer record card on the day of
termination of employment, i.e. contract of employment (Article 170 paragraph 3);
35) fails to obtain approval from a competent body for conducting business in its
premises or place of work, or a concluded contract of employment or a contract
referred to in Articles 163 and 164 of this Law with each employee, as well as
registration for mandatory social insurance in accordance with Article 171
paragraph 2 of this Law.

(2) A responsible person with an employer shall also be fined for an infringement referred to
in paragraph 1 of this Article in the amount from EUR 30 to EUR 2,000.

(3) An employer-entrepreneur performing an industrial activity shall be fined for an

infringement referred to in paragraph 1 of this Article in the amount from EUR 150 to EUR
6,000.

Imposing a fine on site

Article 173

(1) A fine shall be imposed on site for an infringement referred to in Article 172 paragraph 1 items
8, 18a, 28, 34, 35 and 36 of this Law:

1) to a physical and responsible person in the amount of EUR 200;

2) to an entrepreneur in the amount of EUR 300.

(2) A fine referred to in paragraph 1 of this Article shall be imposed by a labour inspector.
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XVI TRANSITIONAL AND FINAL PROVISIONS

Contract on mutual rights

Article 174

(1) An employer shall conclude a contract regulating mutual rights, obligations and
responsibilities containing elements referred to in Article 23 (except for the ones referred to
in items 7, 8 and 9) of this Law with employees who started their employment prior to
coming into effect of this Law, but have not concluded a contract of employment.

(2) A contract referred to in paragraph 1 of this Article shall not include entering into
employment relationship, or change labour legal status with the employee.

Deadline for conclusion of contract on mutual rights

Article 174a

(1) An employer shall offer a contract referred to in Article 174 of this Law to an employee within 90
days as of the day of coming into effect of this Law.

(2) Employment of an employee who refuses to sign a contract referred to in paragraph 1 of this
Article shall terminate.

Initiated procedures for protection of the rights of employees

Article 174b

Procedures for the exercise and protection of the rights of employees, initiated prior to coming into
effect of this Law, shall be finalized according to the regulations which were in force prior to coming
into effect of this Law.

Initiated procedures in case of redundant employees

Article 174c

The procedure for determining redundant employees, which was initiated but not finalized prior to
coming into effect of this Law, shall be finalized according to the regulations which were in force
prior to coming into effect of this Law.
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 Harmonization of collective agreements

Article 174d

(1) A general collective agreement in accordance with this Law shall be concluded not later than
December 31st, 2011.

(2) The provisions of collective agreements which are not contrary to the provisions of this Law
shall apply until conclusion of a general collective agreement referred to in paragraph 1 of this
Article.

Passing of regulations

Article 174e

The regulation referred to in Article 43a of this Law shall be passed within 90 days as of the day of
coming into effect of this Law.

Initiated procedures

Article 175

Procedures for the exercise and protection of the rights of employees, initiated prior to coming into
effect of this Law, shall be finalized according to the regulations which were in force prior to coming
into effect of this Law.

Initiated procedures in case of redundant employees

Article 176

(1) The procedure for determining redundant employees, which was initiated but not finalized
prior to coming into effect of this Law, shall be finalized according to the regulations which
were in force prior to coming into effect of this Law.

(2) In case when a final decision of a relevant authority determined a right based on
regulations applicable prior to the day of coming into effect of this Law for an employee on
grounds of his/her redundancy, the employee shall continue to use the right according to
those regulations.

Harmonization of collective agreements

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 Article 177

The provisions of collective agreements applicable on the day of coming into effect of this Law,
and which are contrary to the provisions of this Law, shall be harmonized with this Law within
12 months as of the day of coming into effect of this Law.

Passing of regulations

Article 178

(1) The Ministry shall pass regulations for implementation of this Law within 12 months from
the day of coming into effect of this Law.

(2) The regulations passed based on the Labour Law (“Official Gazette of the Republic of
Montenegro“, no. 43/03 and no. 25/06) shall apply until regulations referred to in paragraph
1 of this Article are passed.

Cessation of the previous law

Article 179

The Labour Law (“Official Gazette of the Republic of Montenegro“, no. 43/03 and no. 25/06) shall
cease to apply as of the day of coming into effect of this Law.

Effective date

Article 180

This Law shall come into effect eight days from the day of its publishing in “Official Gazette of
Montenegro“.

75