Montenegro Labour Law 2026: Key Amendments for Employers

On 7 April 2026, the Parliament of Montenegro adopted significant amendments to the Labour Law (“the Law”) to align national legislation with the EU Pay Transparency Directive. The Law has entered into force on 23 April 2026.

These amendments introduce clear and detailed employer obligations and reinforce the principles of salary transparency, while also bringing substantial changes to certain labour rights, including the introduction of concepts and mechanisms that have not previously been part of Montenegrin labour legislation.

Below are the key highlights employers should be aware of.

1. Salary Transparency

Employers have a number of obligations with respect to the transparency of salaries, including the following:

1. Employers must disclose the starting salary or its range for each position in job advertisements, as well as in collective bargaining agreement which regulates salaries with employer. The obligation applies regardless of the fact whether the employer has the obligation to publicly advertise a job position. It is also prohibited to ask candidates about their current or previous salaries.
2. Employment contracts can no longer contain provisions that prohibit employees from disclosing their salary.
3. Equal pay is guaranteed for all employees, regardless of gender or personal characteristics, when performing the same work or work of equal value, and any contractual provisions contradicting this rule are void.
4. If unjustified disparities are identified, employers are obliged to correct them in cooperation with trade unions.
5. Employees are now entitled to request information about their average gross salary, and the average gross salary of colleagues performing the same or equivalent work in the previous year.

The employer shall be required, on an annual basis, to inform employees of their right to request this information.

Employers with more than 100 employees are now subject to periodic mandatory reporting to the Social Council of Montenegro regarding employees’ remuneration and gender-based pay differentials. If the Social Council finds significant differences in salaries, together with trade union or employee representatives, must implement measures to remove such differences.

1. In salary discrimination disputes, if an employee presents facts suggesting possible discrimination, the burden of proof shifts to the employer, who must demonstrate that there was no unequal treatment.
2. If the employee does not succeed in a salary discrimination dispute, the court may decide to release the employee from court and labour dispute fees, at the employee’s request.

Finally, as of 1 June 2031, employers with 100 or more employees will be obliged to submit gender pay difference reports to the Social Council of Montenegro, once every 3 years, while employers with 250 or more employees must deliver such reports once a year.

2. Electronic delivery of documents

The longstanding challenges employers have faced with proper personal delivery of documents may now be alleviated, as the Labour Law introduces clear rules governing the use of employees’ email addresses for the delivery of employment-related documents.

Specifically, the Labour law now envisages the following:

• The employment contract must contain the electronic email address of the employee, if the employee owns such an address;
• Employees who own an electronic email address are obliged to notify the employer of any changes to that address within 3 days;
• Employers can choose to deliver the employment contract to employees who own an electronic email address via such email, at the latest on the date of commencement of work;
• Personal delivery of warning letters, resolution and decisions governing the rights and duties of an employee may also be performed electronically to employees who own an electronic email address. Such personal delivery is possible to either the private or official email address of the employee. In order for delivery to be deemed successful, the employer must ensure the evidence on sending the document via email, and the delivery shall be deemed made on the date when the employer received confirmation that the electronic message was delivered to the electronic mailbox of the employee.

• Probation periods

The Labour law now introduces limitations on the duration of the probation period for employees employed for a definite term. The law also explicitly allows for prolongation of the probation period, in case of an employee’s absence from work due to sick leave, or due to parental leave.

Further, definite-term employees can now offer changes to their employment contract in order to transfer from a definite to an indefinite term contract, provided that their probation period has successfully passed. The employer must consider such an offer. In case the employer refuses such an offer, it must notify the employee in writing of the reasons for such refusal, within 30 days.

3. Work from home

The Labour law also redefines rules relating to work from home, specifically envisaging that:

• Work from home can be agreed only if the nature of work allows it, and if this is envisaged in the job description.
• Both employer and employee may offer an annex to the employment contract, by which the job description would be changed in a manner to envisage the possibility for work from home. The employee who refuses such an annex cannot suffer any negative consequences.
• In case of extraordinary circumstances (epidemics, earthquakes, floods, ecological incidents or similar), the employer may direct employees to work from home up to 30 days, without concluding an annex to the employment contract. If work continues beyond this period, an annex must be concluded with the employee.

4. Other notable changes

The Labour law finally introduces other notable changes that must be considered and complied with by the employers.

These changes specifically, inter alia, relate to the following:

1. Employers must:

• use gender neutral language in job advertisements,
• keep separate records on persons with disabilities,
• notify in writing or electronic means the employee of their rights and responsibilities, work conditions, work organisation, health and safety obligations, and provide appropriate evidence of such notification.

1. Family and employment-related rights are now extended to partners in same-sex partnerships. The law also introduces changes in the duration of paid leave due to family reasons.
2. Employment contract must contain additional elements, including duration and conditions of probation period, right to professional training if provided by the employer, and manner of exercising protection rights with the employer, the Agency for Peaceful Settlement of Disputes and with the competent court.
3. Employees can refuse overtime work that does not meet required limitations, without any consequences to their employment status.
4. Mandatory unpaid leave for care of an immediate family member is introduced, as well as the obligation of the employer to consider work from home, a change in working hours or working hours schedule for such employee, if the nature of job processes allows it.
5. The law introduces new rules on parental leave, specifically differentiating leave for fathers.
6. After Montenegro’s accession to the EU, instead of parental leave in duration of 365 days, the new rules on parental leave will apply. Specifically, under such rules, after maternity leave, both parents will be able to use the parental leave for a duration of 14 months from the childbirth date. This right will belong to both parents in equal parts, and they will be able to choose to use it simultaneously or in different periods, whereby both parents must use at least 60 days of parental leave. The employer will also be allowed to provide flexibility in the use of parental leave, until the child reaches two years of age, or to provide a change of work schedule, working hours or allow work from home if the nature of the job processes allows it.
7. The employee cannot seek protection of labour rights before the Centre for Alternative Dispute Resolution anymore – The competence for labour disputes now remains with the Agency for peaceful settlement of disputes and the labour court only.
8. The Labour law now introduces mandatory consultation obligations with trade union or employee representatives, on major matters concerning the employee’s status, business results, salaries, previous overtime work, injuries at work, collective redundancies, restructurings and other changes, as well as in case of changes of systematisation of jobs. Trade unions and employee representatives must be notified of such decisions in advance and must be allowed to attend the meetings with the competent employer’s bodies on such matters.
9. Collective bargaining agreements must be aligned with the new Labour law, within the period of one year.

5. Conclusion

In light of the above, employers in Montenegro should take a proactive and structured approach to compliance by conducting a comprehensive review of their existing employment documentation and internal practices. This should include aligning employment contracts, job advertisements, internal policies, collective bargaining agreements, and HR procedures with the new legal requirements, particularly in the areas of pay transparency, electronic communication, probation arrangements, and flexible work.

In parallel, employers should ensure that HR teams and management are adequately trained, that internal systems are capable of supporting new reporting and information obligations, and that any identified gaps – especially those relating to equal pay and employee rights – are addressed without delay. Early alignment will allow for the mitigation of both legal and financial risks.

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.