- Overview: Montenegro
- Global HR Compliance
- Global PEO and payroll
- Visa, work permit & immigration support
- Contractor vs. employee: which is better?
Global HR Compliance in Montenegro
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Montenegro Guide below will help you understand the nuances of labor legislation in the country.
Companies hire international workforce for various reasons but in most cases they are:
- entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
- hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.
Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.
If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Montenegro, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Montenegro and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.
We are experts in global workforce employment in , and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Montenegro.
Hiring and Firing Workforce in Montenegro Guide
# Employment contracts
A labour agreement may be negotiated for a defined period of time or as an openended labour agreement.
An employee that entered into a labour agreement for a defined period of time has the same labour-based and labour-originated rights, obligations and responsibilities as an employee that conducted an open-ended agreement.
A labour agreement is considered to be conducted as of the moment it’s signed by employer or individual authorized by employer and individual being employed. If an individual that contracted a labour agreement fails to begin work engagement on the day envisioned by the labour agreement due to reasons defined in the collective agreement, the employer is obliged to enable him to start working upon cessation of the referred reasons.
# Minimum (Statutory) Employment Rules and Regulations in Montenegro
# Hours of work:
The length of standard working week is 40 working hours.
In accordance with the employer’s collective agreement, an employer can introduce working hours of less than 40 hours in a workweek if, due to the technology and organizational improvements and implementation of a shift system, it becomes possible to operate successfully even with shortened business hours.
An employee working less than 40 hours in a workweek shall have the same labour-based rights as an employee working on full-time basis.
# Probation period:
The probation period shall not exceed six months, except in case of crew member of merchant marine long voyages where a probation period may be negotiated for longer period, i.e. until the return of the ship into the main harbor.
The extent of the probation period is defined by a labour agreement, while the method of its organizing and result assessment is defined by employer’s collective agreement.
# Annual leave:
An employee shall have the right to an annual leave of at least 18 work days. An annual leave in case of employee under 18 years shall not be less than 24 work days. An employee working on short-time basis shall have the right to at least 30 working days of an annual leave.
An employee that has not completed a year of working in a calendar year, as well as an employee recruited for the first time, shall have the right to 1/12 of a minimum annual leave. 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.
# Parental leave:
During her pregnancy, child delivery and baby nourishment, an employed woman has the right to a maternity leave of 365 years from the beginning of exercising the referred right. (2) Based on a finding of a competent health institution, an employed woman can begin to exercise the right to a maternity leave 45 days before the delivery, but not later than 28 days before the childbirth. (3) An employed woman may cease her maternity leave before its expiration, but not before expiration of 45 days upon the delivery.
Upon expiration of a maturity leave, one of the employed parents has the right to work half of the full time engagement by the time the child turns three, in case the child is in need for an additional care.
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. 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. Overtime work shall be introduced upon a written decision of the employer prior to the beginning of such work. 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.
# State minimum salary:
Montenegro’s minimum wage rate is €193 a month ($215) for all workers. Montenegro’s minimum wage was last changed in May 2013.
# Employee dismissal:
Employment shall terminate:
- by the grounds of law;
- by mutual agreement between the employer and employee;
- by notice of cancellation of employment contract by an employer or an employee.
There are following legislation grounds for termination the employment:
- 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;
- 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;
- 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;
- 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;
- 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;
- in case of bankruptcy or liquidation, or in all other cases when an employer ceases to work, in accordance with the law.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Montenegro by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.