In April 2026, the Montenegrin Parliament passed a set of amendments to the Labor Act, which took effect on 23 April 2026. The changes are driven primarily by the harmonization of Montenegrin legislation with EU standards, with the EU Pay Transparency Directive serving as the main reference point.
The most consequential changes for employers concern pay transparency. Salary ranges must be stated in job postings, and contractual clauses preventing employees from discussing their earnings are no longer permitted. Employees may ask to be informed about what their peers in equivalent roles earn on average, and employers are under an obligation to make their workforce aware of this entitlement every year. A gender pay gap reporting regime will be introduced for companies with 100 or more employees, with obligations set to take effect progressively from 2031.
On the operational side, employers are now able to deliver formal employment documents, such as warnings and termination notices, via email, putting an end to the difficulties long associated with in-person service of documents. The rules on working outside the office have also been updated. In situations of force majeure, employers can temporarily redirect staff to work remotely for up to 30 days without the need for a formal contractual amendment.
Among the broader changes, fathers gain the right to up to 10 days of paid leave upon the birth of a child, and the Labor Act now extends employment-related entitlements to same-sex partners on equal footing with married couples.
Existing collective agreements must be brought into conformity with the new rules by 23 April 2027.
These comprehensive amendments require careful attention from employers to ensure full compliance, and reflect Montenegro’s continued progress in aligning with EU standards and strengthening employee rights.
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