Minister Purišić: Law on Labour basic aims are combating grey economy, labour market flexibility and protecting of employees rights

Podgorica, Montenegro (28 November 2019) -- At its today’s session, the Montenegrin Cabinet passed the Draft Law on Labour, whose basic aims are combating of the informal economy, labour market flexibility and protection of employees’ rights.

Years of work and cooperation among social partners preceded the Draft Law, thus an additional practice of strengthening a social dialogue has been established, Minister of Labour and Social Welfare Kemal Purišić stated at the press conference.

An adequate norm has been provided for all the projected aims and the law will respond to the all objectives.

The new Law contains 40 norms more in relation to the Law currently in force.

The Law was passed in a transparent procedure, with consultations and comments of the significant partners such as the World Bank and the International Monetary Fund.

"The positive assessment of the European Commission was obtained on 13 November 2019, after which it was adjusted with the Secretariat for Legislation and forwarded to the Government on the adopting,” Minister Purišić noted.

Minister Purišić stated some of the key novelties, which are: having an act on internal organisation and job classification for an employer with more than ten employees, taking up employment on the day of entry into employment.

"The duration of the fixed – term employment contract has been extended to 36 months instead of the previous 24 months. Furthermore, a new Law foresees a contract of employment outside: teleworking, work from home and domestic work and a special type of employment contract, a contract of employment concluded though the Temporary Employment Agency but no longer than 24 months," Minister Purišić pointed out.

The Minister added that in accordance with the new Law, annual vacation cannot be replaced with financial compensation, which is undisputed right of the employee.

"The Law also provides for the payment of earnings to be only through a giro account and the calculation of earnings to have the power of an executive document and a protection against termination of employment for a fixed period of time during the maternity and the maternity leave," Minister Purišić stressed.

The Law also provides the Labour Inspectorate, the MRRS Agency and the courts for special protection of the employee at the employer.

"A contractual termination of employment will only have effect when it was certified of the competent authority," Minister Purišić said.

At its today’s session, the Cabinet adopted the Decision on determining the annual number of permits for temporary residence and work of foreigners for 2020, in a total number of 20 454 permits.

PUBLIC RELATIONS SERVICE OF THE GOVERMENT OF MONTENEGRO