Amendments to the Labor Law

The Parliament of Montenegro has adopted the Law on Amendments to the Labor Law (“Official Gazette of Montenegro”, no. 122/25 of 22.10.2025). These amendments further regulate certain employee rights, particularly in the areas of protection of persons with disabilities, amendments to employment contracts, severance pay, and the rights of employees caring for children with developmental disabilities.

These additions have a significant impact on employers, employees and HR departments, as they change and expand existing obligations in several important articles of the law.

Below is an overview of the most important provisions, based on the content of the submitted document.

Amendments to Labor Law Article 48 – proposal to amend the employment contract

The labor law specifies the procedure for amending an existing employment contract through an annex, emphasizing deadlines, employer obligations and employee rights. A new provision has been introduced stating that:

• an employee who refuses the proposed annex retains the right to challenge the legality of such an annex in proceedings related to the termination of employment;
• employee protection has been strengthened through the possibility of addressing the labor inspectorate, the court or other competent authorities.

These amendments significantly clarify the legal position of employees in situations where working conditions change.

New solutions regarding the protection of persons with disabilities

New Article 119a and additional amendments specifically regulate the position of employees with disabilities.

Key obligations of the employer:

• mandatory assignment of an employee with a disability to a workplace that matches their qualifications, in accordance with the decision on unified disability assessment;
• if such assignment is not possible, the employer must ensure other rights provided by regulations on professional rehabilitation;
• if none of the solutions is possible, the employer may declare the employee redundant, with special protection mechanisms.

The amount of severance pay for an employee with a disability (Article 169a) is specifically defined, depending on the type of injury, and may amount to:

• at least 12 average salaries, or
• 36 average salaries if the disability was caused by an occupational injury or occupational disease.

Rights of employees caring for children with developmental disabilities

The amendments also include new Article 134a, regulating the right to work half full-time hours.

An employee using this right is required to:

• submit a written request to the employer,
• meet the conditions under the law on unified disability assessment,
• comply with the procedure prescribed by the competent state administration body.

During this period, the employee is entitled to salary compensation, with clearly prescribed exceptions.

Severance pay – more precise definition of employer obligations

In addition to special provisions for persons with disabilities, the amendments introduce new Article 169a, broadly regulating the right to severance pay for employees whose work is no longer needed.

Key novelties:

• severance pay amounts to at least 1/3 of the monthly average salary for each year of service;
• the right to severance pay is acquired after at least 18 months of service with the employer;
• time spent with the employer’s predecessor (in cases of status changes) counts toward service;
• severance pay is determined based on the employee’s salary or the average salary in Montenegro, whichever is more favorable to the employee.

Other amendments of the labor law – councilor function and expiry of previous provisions

New Article 90a regulates the right to absence from work during sessions of the Assembly of the Capital City, the Royal Capital or the municipality for employees who perform the function of councilor.

Also, new Article 219a repeals previous provisions relating to the protection of persons with disabilities and the rights of employees caring for children, as they have been replaced by new, more detailed solutions.

Application of the Labor Law

The law enters into force eight days after publication, and will apply from the date of commencement of the unified disability assessment system.

Proceedings initiated before the law enters into force are to be completed under previous regulations, except for proceedings concerning the termination of employment.