BDK Advokati/Attorneys at Law

New general collective agreement concluded in Montenegro

Montenegro has recently obtained a new general collective agreement (GCA), after almost 18 months of a hiatus. The GCA came into force on 30 March 2014, as a result of bargaining among the representatives of the government, representative trade unions and the Employers’ Union of Montenegro. The GCA is initially valid for two years and applies to all employers in Montenegro.

The GCA seals the legal gaps that have existed since October 2012, when the previous GCA expired. Specifically, the Montenegrin Labour Law provides for a high-level regulation of a number of entitlements (such as the length of paid leave, amount of salary compensation and salary increase, conducting of disciplinary proceeding, criteria for increase of annual leave, etc), leaving the detailed regulation to collective agreements (GCA, branch collective agreements and/or individual collective agreement at the employer’s level) and/or employment agreements. As a result, employers operating in industries that are not covered by a branch collective agreement (e.g. trade) have been facing a number of legal gaps in the past period, since the mentioned entitlements are rarely regulated in individual employment agreements.

BDK Advokati/Attorneys at Law outlines below the most important provisions of the GCA…

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