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Fixed term contracts are permitted for up to 2 years.

It is legally required to put a written employment contract in place in Montenegro, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Montenegro should always state the salary and any compensation amounts in Euro rather than a foreign currency.

 In general, the work week is 40 hours. 

To apply for a Montenegrin employment permit, foreign nationals should gather the following documents for submission:

• A valid passport

• Proof of health insurance

• A police background check from the applicant’s country of origin

• A police background check from Montenegro

• An employment offer from a company based in Montenegro

In 2022, Montenegro relaxed work and residence permit requirements and no longer requires separate evidence, such as a bank statement or proof of salary issued by the employer, to prove that the applicant has the financial means to support themselves in Montenegro. An offer of employment is now considered valid proof and must state that the employer will pay at least the minimum wage.

Kosovo is located in Europe and has a population of 1.8 million. The capital city of Kosovo is Pristina which has a population of about 210,000. About 90 percent of Kosovo’s two million people are ethnic Albanians, most of whom are Muslim. The remaining 10 percent are mainly Orthodox Christian Serbs living in northern Kosovo, near the border with Serbia.

When negotiating terms of an employment contract and offer letter with an employee in Kosovo, it may be useful to keep the following in mind:

In Kosovo, employment contracts can be oral or written, but it is best practice to put a strong, written contract in place, in Albanian or Serbian, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Kosovo should always state the salary and any compensation amounts in Euros rather than a foreign currency. The employment contract template is part of the service with Globalization Partners; no need to draft a separate template if you use our employer of record and PEO service in Kosovo. 

Montenegro celebrates 8 national holidays, many of which are multi-day events:

• New Year’s Day

• Orthodox Christmas Eve

• Orthodox Christmas

• Orthodox Good Friday

• May Day

• Orthodox Easter Monday

• Independence Day

• Statehood Day

In general, employees are entitled to 21 days of paid annual leave.

Additionally, employees are eligible for up to 7 days of paid leave for:

• matrimony

• birth

• professional examinations

• death of an immediate family member

 Employees are eligible for at least 5 paid sick days per year.

Female employees are entitled to up to 365 days of maternity leave, which can start up to 45 days before the birth and not later than 28 days before the birth. She may not return to work until at least 45 days after the birth. Maternity leave pay is outlined in the labor law. If the mother returns to work before she has used all of her leave, the father may use the balance.

After the maternity leave, either parent can work half time until the child turns three years old.

A parent can also take unpaid leave until the child turns 3 and receive job protection.

Montenegro has universal, compulsory health insurance. Employers contribute 2.3% of wages and employees contribute 8.5% of wages.

There are also private clinics available for which supplementary health insurance can be purchased, and dental care is generally paid for out of pocket.

Common benefits include supplementary health insurance, meal allowance, transportation allowance. 

Probationary periods of up to 6 months are permitted. If after 3 months, the employee is not satisfactory, his supervisor can request a skills review and a commission to assess will be formed. If the commission agrees with the supervisor, the employee can either be transferred to a more suitable job or terminated.

Employees may be terminated for just cause and must provide written notice of at least 30 days. The employee has 5 days to respond.

Employees are generally eligible for severance pay of at least 1/3 of their monthly pay in the last six months for each year of employment, with a minimum of the equivalent 3 months’ of the employee’s pay or average Montenegrin pay, whichever is more favorable to the employee.

Employers and employees must both make contributions to social security as follows:

• Pension & Disability
  • Employer: 5.5%
  • Employee: 15%

• Health Insurance
  • Employer: 2.3%
  • Employee: 8.5%

• Unemployment Insurance:
  • Employer: 0.5%
  • Employee: 0.5%

This information is provided as generally accepted information and is not intended as advisory services.