Global HR Compliance in Montenegro

If you plan to hire internationally, the Hiring and Firing Workforce in Montenegro Guide will help you understand how employment works locally — from contracts to terminations, leave entitlements, and employer responsibilities.

For many companies, hiring international staff supports either of two goals: expanding into new markets or securing talent with specific expertise. Whether you’re sending someone in-market to sell and build relationships, or onboarding specialists not available (or cost-efficient) in your home country, the key question is how to do it legally — and sustainably.

Acumen International’s Global Employer of Record (EOR) service allows you to hire employees in Montenegro without setting up a local entity. We act as the legal employer while you direct the employee’s work. You manage performance; we manage compliance, payroll, and HR administration. It’s the simplest way to enter new markets, reduce risk, and avoid employment classification issues — all while giving your people proper benefits, protections, and long-term engagement.

Employment Agreements in Montenegro

Permanent contracts
An open-ended employment relationship is the default under Montenegrin law. If no written agreement is signed before work begins, and the employee starts working, the law assumes a permanent contract is in place. In such cases, the employer must formalise a permanent contract within three days of the employee’s start date.

Fixed-term contracts
Fixed-term agreements may only be used in specific, limited situations — such as replacing absent employees, performing seasonal work, or completing a defined project. The maximum cumulative duration for fixed-term employment is 36 months, unless a legal exception applies.

Termination and Severance

Employers can terminate contracts for reasons including underperformance, misconduct, business closure, or redundancy. Valid grounds must be documented, and the employee must be notified in writing and given an opportunity to respond.

Dismissal without a valid reason — or failure to follow required procedure — can expose employers to penalties. Special protections apply to pregnant employees, union representatives, and workers with disabilities or caregiving responsibilities.

Notice period
The minimum notice period is 30 calendar days. Employers and employees may agree to waive the notice period, but salary compensation must still be paid for the equivalent time. Employees are entitled to four hours per week of paid time off during the notice period to seek other employment.

Severance pay
In redundancy situations, employees are entitled to severance. The minimum is one-third of the employee’s average gross monthly salary per year of service. If this amount is lower than one-third of the national average, the latter applies.

Eligibility requires at least 18 months of employment with the same employer.

Statutory Benefits and Employer Contributions

Mandatory benefits
Employers are required to register all employees for health, pension, disability, and unemployment insurance. Employees are entitled to:

• Paid annual leave (minimum 20 working days)
• Paid leave for personal matters (e.g. bereavement, marriage, childbirth)
• Paid absence due to public or religious holidays
• Sick leave with doctor’s certification
• Parental leave entitlements

Voluntary benefits
Some employers offer additional rewards such as service awards or bonuses, but these are not required by law.

Working Hours and Overtime

The standard workweek is 40 hours. In exceptional case, such as seasonal peaks or emergency response, employees may work overtime, provided the average weekly working time, including overtime, does not exceed 48 hours over a four-month reference period.

Collective agreements may cap annual overtime at 250 hours. Overtime must be compensated at an enhanced rate defined in the employment or collective agreement.

Leave Entitlements

Annual leave
Employees are entitled to at least 20 working days of annual leave, which may be split but must include at least two continuous weeks. Any remaining leave must be taken by the end of June the following year.

Sick leave
Sick leave is allowed for certified illness or injury. The employee must notify the employer within three days and submit medical confirmation within five days. Employers must pay sick leave in accordance with social insurance rules and the employment agreement.

Personal leave
Paid leave is provided for events such as marriage, childbirth, or death of a close family member. The specific number of days depends on the situation and is defined in collective agreements or employment contracts.

Parental Leave

Maternity leave
Mothers are entitled to 98 days of leave — 28 days before the expected due date and 70 days after childbirth. In case of multiple births, the 70-day postnatal period may be shared between both parents.

Paternity leave
Fathers may take leave starting from the birth of the child, particularly in cases where the mother is unable to care for the child due to illness, death, abandonment, or incarceration.

Probation Period

Employers may include a probationary period in the employment contract, not exceeding six months (except for seafarers on long-haul vessels). The probation period must be explicitly stated in writing and may not be extended beyond legal limits.

How Acumen International Can Help You Hire in Montenegro

Direct Employment Without a Local Entity
We serve as the legal employer in Montenegro so you can hire quickly and compliantly without establishing a branch or subsidiary.

Local Compliance, Centrally Managed
We handle employment contracts, registrations, and statutory filings in line with Montenegrin labour law, so you don’t need to navigate local regulations on your own.

Custom Support for Complex Hiring
Whether you’re hiring in remote regions or managing role-specific risks, we tailor solutions to suit your structure, compensation strategy, and legal exposure.

Global Mobility Support
We sponsor work permits, visa and support expat onboarding in Montenegro, ensuring compliance with local immigration requirements.

Cost and Payroll Planning
Use our Global Payroll Calculator to understand total employment costs in Montenegro, including gross-to-net estimates and employer contributions.

One Partner Across 190+ Countries
With Acumen, you gain a single point of coordination for hiring and managing talent globally, including Montenegro, with consistent compliance and operational oversight.