In Montenegro the notice period is at least 30 days from the day the notice is delivered, whether the employee or the employer ends the contract. An employee who resigns must first have the resignation certified by a notary, a court or the local administration and deliver it to the employer in writing at least 30 days before the last working day. An employee made redundant receives severance pay of at least a third of the average monthly salary for each year worked for that employer, and at least three average salaries, provided they worked there for at least 18 months. A dismissal can be challenged within 15 days of receiving the decision.
The end of employment is governed by the Labour Law (Official Gazette 74/2019), most recently amended in Official Gazette 51/2026 and 103/2026. This guide explains resignation and dismissal, the notice period, severance pay, prohibited reasons for dismissal and how to challenge a dismissal.
How does employment end?
| Way | What applies |
| Resignation by the employee | A written resignation, certified by a notary, a court or the local administration, delivered at least 30 days before the last working day |
| Agreement between employee and employer | A written agreement stating the end date; it takes effect once certified by a notary, a court or the local administration; the employer may, but does not have to, pay severance |
| Dismissal by the employer | Only for reasons set by law, by a decision with reasons and instructions on the legal remedy |
| By operation of law | For example the end of a fixed-term contract, loss of working capacity, or age 67 with at least 15 years of insurance |
- If the employee does not respect the notice period, the employer is entitled to damages in proportion to the unserved period, based on the salary for the month before the resignation.
- The employer and employee may also agree on a different period.
- In a voluntary liquidation of a company the employee receives severance of two average monthly salaries.
How long is the notice period?
- The notice period is at least 30 days from delivery of the notice or of the decision ending the employment.
- During the notice period the employee is entitled to at least four hours off a week to look for a new job.
- If the employer asks the employee to stop working before the notice period ends, the employee keeps the salary and other rights as if they had worked until the end of the notice period.
- The employer can dismiss without notice for unjustified absence of three or more consecutive working days, or five days with breaks within 12 months, violent or insulting behaviour, a crime at work, misuse of a company car or equipment, abuse of sick leave, failing to return to work after unpaid leave and a serious breach of duty under a collective agreement.
- The employer pays all outstanding salary and compensation before the employment ends, and at the latest within 30 days of it ending.
How much is severance pay?
| Situation | Severance pay |
| Redundancy, with no other job or retraining offered | At least 1/3 of the average monthly net salary for each year worked for that employer, and in total at least three average monthly net salaries |
| Redundancy of a person with a disability acquired while working for that employer | At least 12 average salaries, or 36 if the disability results from a workplace injury or occupational disease |
| Refusing a contract annex that reduces the salary | At least three average monthly net salaries in Montenegro |
| Voluntary liquidation of the company | Two average monthly net salaries |
| Termination by agreement | Only if agreed |
- The average salary is the employee's salary net of tax and contributions in the previous six months, or the average net salary in Montenegro if that is more favourable for the employee.
- For redundancy severance the employee must have worked for the employer for at least 18 months, and work for a predecessor employer after a corporate change also counts.
- Example: with an average net salary of 1,200 euros and 12 years of work, severance is at least 4,800 euros (1/3 x 1,200 x 12). With five years of work the formula gives 2,000 euros, but at least 3,600 euros, or three salaries, is paid.
- Employment ends on the day severance is paid, and for six months the employer may not hire anyone else for the redundant post.
- Collective redundancies of at least 20 employees within 90 days require consultations with the trade union lasting at least 30 days and notice to the Employment Agency, and employment cannot end for 30 days after that notice.
When is a dismissal not justified?
An employer cannot dismiss an employee for:
- sick leave, a workplace injury or an occupational disease;
- pregnancy, maternity, parental, adoption and foster leave and leave to care for a child;
- taking paid or unpaid leave or asking for more flexible working arrangements;
- membership of a trade union or political organisation, or personal characteristics such as sex, language, nationality or religion;
- sharing information about their own salary to exercise the right to equal pay;
- filing a complaint or lawsuit against the employer or turning to a trade union or the authorities;
- reporting a suspicion of corruption or harm to the environment.
For some reasons, such as breaching workplace safety rules or giving false information when hired, the employer must first issue a written warning with the reasons, the evidence and a deadline of at least five working days to respond.
How do you challenge a dismissal?
- The dismissal decision must state the legal ground, the reasons and the instructions on the legal remedy; it can be delivered in person, to your address or by email.
- Within 15 days of receiving the decision you file a proposal for peaceful settlement with the Agency for the Peaceful Settlement of Labour Disputes; the employer must take part in that procedure.
- If the dispute is not resolved, you go to court; while the procedure before the Agency is running, the deadlines for court do not run.
- The burden of proving that the dismissal was lawful and justified lies with the employer, and the court can temporarily reinstate the employee if the dismissal is clearly unlawful.
- If the dismissal is found unlawful, the employee is entitled to reinstatement, lost salary and payment of contributions.
The protection of employees who report wrongdoing under the new whistleblower law is explained by RoNa Legal. The minimum and average salary are covered in our article on the minimum wage, maternity leave in our article on child benefit, and a monthly budget in our article on the cost of living.
Frequently asked questions
How long is the notice period in Montenegro? At least 30 days from delivery of the notice, for both the employee and the employer, unless they agree otherwise.
How do I resign as an employee? Write your resignation, have it certified by a notary, a court or the local administration and deliver it to the employer at least 30 days before your last working day.
How much is redundancy severance pay? At least a third of the average monthly net salary for each year worked for that employer, and in total at least three average salaries, provided you worked there for 18 months.
Do I get severance if I resign myself? The law does not provide for severance when the employee resigns. In a termination by agreement the employer may pay it if you agree on that.
Can my employer dismiss me while I am on sick leave or maternity leave? No. Sick leave, maternity leave and parental leave are not a valid reason for dismissal.
How long do I have to challenge a dismissal? 15 days from receiving the decision, by filing a proposal with the Agency for the Peaceful Settlement of Labour Disputes, and then in court.
Sources
The end of employment, the notice period and severance pay are set by the Labour Law (Articles 163 to 180a), as amended by 122/2025 (severance, Article 169a), 165/2025 (protection in case of dismissal, Article 180a) and 51/2026 (prohibited reasons for dismissal, electronic delivery and peaceful settlement of disputes). The information was checked on 25 September 2026. Fijaka is a classifieds platform; this article is not legal advice.