Amendments to the Labour Law of Montenegro (2026): Stronger employee protection, greater transparency, and preparation for the EU labour market
The Parliament of Montenegro adopted the Law on Amendments to the Labour Law (“Official Gazette of Montenegro”, No. 165/2025) at the end of 2025, which has been applied since January 1, 2026. These amendments represent an important step in the further modernization of labour legislation and its alignment with European Union standards, with a particular focus on improving employee protection, employment transparency, and clearly defining the rights and obligations of employers.
The amendments are particularly significant in the context of European integration, as they establish a legal framework that will enable the smooth implementation of the principle of free movement of labour and ensure greater legal certainty for all participants in the labour market.
Expansion of the scope of the Labour Law in accordance with European standards
One of the key amendments relates to expanding the scope of persons to whom the Labour Law applies. Namely, a new paragraph has been introduced prescribing that the law will also apply to employed citizens of the member states of the European Union, the European Economic Area, and the Swiss Confederation, as well as to their family members, regardless of their citizenship.
Although this provision will formally apply only from the date of Montenegro’s accession to the European Union, its introduction now has great strategic importance. In this way, legal continuity and alignment with the European legal system are ensured in advance, facilitating the integration of the Montenegrin labour market into the European framework.
In practice, this amendment confirms the state’s commitment to creating an open, competitive, and harmonized labour market, which may have a positive impact on attracting foreign investments and qualified workforce.
More transparent employment procedures, especially in the public sector
Important amendments also relate to job vacancy announcement procedures, with the aim of strengthening transparency and reducing the possibility of non-transparent employment, particularly in the public sector.
The Labour Law now clearly prescribes that companies, public institutions, and other public services whose founder or majority owner is the state or a local self-government unit are obliged to submit job vacancies to the Employment Agency of Montenegro for public announcement.
A particularly significant novelty is the prohibition of employee transfers through agreements between public sector employers without conducting a public announcement. If such an agreement is concluded contrary to the labour law, it shall be considered null and void.
These amendments aim to:
- strengthen the principle of equal opportunities for all candidates,
- increase the transparency of the employment process,
- reduce the possibility of employment without public competition,
- improve trust in institutions and the public sector.
For private employers, procedures remain more flexible, but the obligation to report job vacancies to the Employment Agency still represents an important element of a regulated labour market.
Significant improvement of employee protection in cases of unlawful dismissal
One of the most important amendments to the Law relates to more precise definition of employee rights in cases of unlawful or unjustified termination of employment contracts.
A new article of the Labour Law clearly prescribes that the employee has the right to:
- reinstatement, if the dismissal is determined to be unlawful,
- compensation for material damage in the amount of lost wages,
- payment of mandatory social insurance contributions for the disputed period,
- compensation for non-material damage in cases of violation of personality, honour, or dignity.
A particularly important novelty relates to situations where the employee establishes employment with another employer during the court proceedings. In such cases, the employee retains the right to:
- full wage compensation for the period from the date of dismissal until the establishment of the new employment,
- as well as the right to compensation for the difference in wages if the new salary is lower than the previous one.
This amendment has great practical importance, as it removes legal uncertainty for employees who could previously have been placed in an unfavorable position if they found new employment during court proceedings.
At the same time, these provisions further encourage employers to make lawful and well-founded decisions regarding termination of employment.
Introduction of additional sanctions for non-compliance with the law
The amendments to the Labour Law also introduce new penalty provisions aimed at strengthening the enforcement of regulations and preventing abuses.
Legal entities may be fined in the amount of 2,000 to 20,000 euros if, among other things, they conclude an agreement on employee transfer contrary to legal provisions.
These sanctions have a preventive function and represent an additional mechanism for protecting the legality of labour relations.
Extension of the validity of the General Collective Agreement and ensuring continuity
The Labour Law also provides an important transitional provision relating to the General Collective Agreement. It is prescribed that a new General Collective Agreement will be concluded no later than March 31, 2026, while the application of the existing collective agreement is extended until that date.
In this way, continuity of employee rights and stability of the collective bargaining system are ensured, without legal gaps or uncertainty in the application of regulations.
What these amendments mean for employers and employees
Overall, the amendments to the Labour Law bring a balanced approach to protecting employee rights and improving legal certainty, while simultaneously strengthening employer responsibility.
For employers, this means the need for additional alignment of internal procedures, especially in the areas of employment and termination of employment. Transparency and legality of actions become even more important elements of business operations.
For employees, the amendments bring a higher level of legal protection, more clearly defined rights, and greater security in case of disputes with employers.
In a broader context, these amendments represent an important step toward establishing a modern, transparent, and European-aligned labour relations system in Montenegro, which is of key importance for labour market stability and further economic development.
Other categories