In Montenegro, the Labor Law stipulates that both employers and employees must provide a minimum of 30 days' written notice prior to terminating an employment contract. This rule applies whether the employee is resigning or the employer is initiating termination without just cause.

Exceptions to the Standard Notice Period

However, there are exceptions to this standard 30-day notice period:

• Mutual Agreement: If both the employer and employee agree to terminate the employment contract, they can mutually agree on a shorter notice period or even an immediate termination date.

• Dismissal for Cause: In cases where an employee is dismissed for severe misconduct or breaches of the employment contract, the employer may not be required to provide a notice period. However, they must still adhere to the correct dismissal procedures as outlined in the Labor Law.

Please note that specific provisions on notice period may not be readily available online, so it is advisable to consult a legal professional for the most recent details.

In Montenegro, employees who are terminated may be entitled to severance pay. This entitlement is generally applicable under certain circumstances such as involuntary dismissal by the employer (excluding reasons like gross misconduct), retirement, or mutual agreement to terminate the employment contract. However, it's important to note that the minimum severance entitlement may not apply if the employee's length of service is less than 18 months.

Eligibility for Severance Pay

Employees in Montenegro become eligible for severance pay if their employment is terminated under the following conditions:

• Involuntary dismissal by the employer (except for reasons like gross misconduct).
• Retirement.
• Mutual agreement to terminate the employment contract.

Calculating Severance Pay

The Montenegro Labor Law outlines the calculation of severance pay:

• Minimum Entitlement: The minimum severance pay is equivalent to one-third (1/3) of the employee's average salary over the last six months of employment for each year of service.
• Alternative Calculation: Severance pay cannot be less than three months' worth of the employee's salary or the average salary in Montenegro (whichever is higher).

Additional Considerations

• Severance pay for employees who suffered workplace injuries are often higher than the standard calculations.
• Collective bargaining agreements may offer more generous severance entitlements than the minimums provided by law.

The termination process of employees in Montenegro is regulated by the Labor Law, which outlines specific procedures that employers must adhere to.

Notice of Termination

The employer is required to provide a written notice of termination to the employee, clearly stating the reasons for termination and the effective date. The employee, in turn, has the right to submit a written response to the notice of termination within a specified timeframe.

Disciplinary Dismissal

The Labor Law allows employers to terminate an employee's contract immediately for specific defined causes, such as serious misconduct or gross negligence. However, this requires a strict disciplinary procedure. For less severe breaches of discipline, the employer must usually first issue warnings to the employee. Before termination, the employer must conduct a disciplinary hearing where the employee can defend themselves and present evidence. If termination is decided, the employer must issue a written decision with reasons.

Redundancies

In cases of collective redundancies, such as layoffs due to economic circumstances, the employer is required to consult with employee representatives and notify relevant authorities. Objective criteria, such as qualifications and seniority, must be used to select employees for redundancy.

Appeal Rights

Employees who believe they have been unfairly dismissed have the right to appeal the decision through internal company procedures or through the Montenegrin court system.