Employment Contract Termination in Montenegro
Conditions, notice periods and compensation for each ground of dismissal
For employers: grounds for dismissal
1.1. Redundancy
Conditions: Economic or organisational necessity. Prohibition on hiring for the eliminated positions for 6 months.
Notice: 30 days (up to 20 employees) or consultations with the trade union 30 days in advance (20 or more employees)
Compensation: Minimum 1/3 of average salary for each year of service; no less than three average monthly salaries
1.2. Company liquidation
Conditions: Liquidation decision documented and registered. Employment Centre notified.
Notice: 30 days
Compensation: Minimum two average monthly salaries (excluding taxes and contributions)
1.3. Poor performance
Conditions: Written instructions and 30 days to remedy the situation.
Notice: At least 5 working days before termination
Compensation: None
1.4. Breach of labour discipline
Conditions: Regular lateness, absenteeism, alcohol/drugs at the workplace. Documentary evidence required.
Notice: 5 working days for explanation
Compensation: None
1.5. Contract expiry
Conditions: Contract terminates automatically.
Notice: Not required
Compensation: None
1.6. Probationary period (up to 6 months)
Conditions: The employer may terminate without giving reasons.
Notice: 5 days
Compensation: None
Employee rights
Severance pay
- • Redundancy: minimum 1/3 of average salary for each year, no less than 3 salaries
- • Liquidation: minimum 2 average monthly salaries
- • Wrongful dismissal: labour inspectorate or court — reinstatement + compensation
Right to appeal
- • Labour inspectorate — within 30 days
- • Court — within 15 days of receiving the termination notice
For foreign employees
- • Maximum contract duration — 1 year (renewable)
- • If the employee does not speak Serbian — the contract must be drawn up in two languages with a translator
- • Foreign employees have the same rights and obligations as local employees
Table: overview of termination conditions
| Ground | Notice | Compensation | Note |
|---|---|---|---|
| Redundancy | 30 days | ≥ 1/3 salary per year | Mass — additional steps |
| Liquidation | 30 days | ≥ 2 salaries | Employment Centre notified |
| Poor performance | 30 days + 5 w.d. | None | Instructions required |
| Misconduct | 5 w.d. | None | Documentation |
| Contract expiry | Not required | None | Per contract |
| Probationary period | 5 days | None | No reasons required |
Penalties for employers
Failure to follow dismissal procedures exposes the employer to fines, lawsuits and an obligation to reinstate the employee with compensation for forced absence.