Termination & Severance Rights in Montenegro (Otpremnina)
Employment terminations due to redundancy or mutual business cessation in Montenegro are regulated under Article 174 of the Labor Law (Zakon o radu):
- Statutory Minimum Severance (Otpremnina):
- The employer must pay severance of at least one-third (1/3) of the employee's average monthly net salary for each full year of service with the employer.
- Mandatory Statutory Floor: Total severance pay cannot be less than three (3) average monthly net wages of the employee (or three national average wages, whichever is higher).
- Mandatory Notice Period: At least 30 calendar days written notice, unless a longer period is specified in the collective agreement.
Statutory Regulatory Framework: Compliant with the Law on Personal Income Tax (Evropa Sad), Law on Corporate Profit Tax, Labor Law of Montenegro, and regulatory decrees issued by the Revenue and Customs Administration (UPC) and REGAGEN.