Montenegro’s Government has approved a draft Law on Whistleblower Protection aimed at establishing a dedicated legal framework for reporting irregularities, protecting whistleblowers and defining institutional responsibilities. The bill was adopted on 26 June 2026 and is aligned with EU Directive 2019/1937 as part of Montenegro’s obligations under the country’s EU accession Chapter 23.
The proposed legislation regulates the reporting of misconduct, whistleblower rights, obligations of organisations and protection measures against retaliation across both the public and private sectors.
Draft Law Establishes Rules for Reporting Irregularities
The Government has stated that the purpose of the legislation is to create a safe and reliable reporting system for identifying wrongdoing. As of 21 July 2026, the measure remained a parliamentary proposal and had not yet entered into force. The future framework is expected to introduce requirements for organisations to establish structured reporting mechanisms rather than relying on informal procedures or basic communication channels.
Three Reporting Channels Defined Under European Framework
The European whistleblower protection model is based on three reporting routes: internal reporting within an organisation, external reporting to a competent authority, and public disclosure under specific conditions. Protection is not limited only to employees. Depending on circumstances, it can also apply to job applicants, contractors, shareholders, members of management bodies and individuals whose employment or business relationship with an organisation has ended.
This wider scope is relevant for Montenegro’s major investment and infrastructure projects, where business structures often include investors, developers, contractors, subcontractors, consultants and public institutions. A person reporting corruption, procurement irregularities, environmental violations or safety breaches may not necessarily work directly for the organisation responsible for the issue.
Companies Expected to Strengthen Internal Compliance Systems
Internal reporting mechanisms will require more than simply creating a contact point for complaints. Organisations will need clearly designated responsible persons or departments, confidentiality procedures, processes for receiving and evaluating reports, deadlines for follow-up actions and systems for preserving evidence. The handling of reports will also require separation between legitimate investigations and attempts by management to identify individuals who submitted allegations.
Protection Against Retaliation Becomes Key Legal Requirement
The proposed framework places significant emphasis on preventing retaliation against whistleblowers. Potential retaliatory actions may include dismissal, demotion, reduced working hours, exclusion from projects, negative references, harassment or non-renewal of contracts. Companies could face legal exposure even if they have formal whistleblowing policies in place, if managers take action against individuals suspected of submitting reports.
Major Employers and Regulated Sectors Face Immediate Compliance Impact
The European directive generally requires internal reporting channels for private-sector organisations with 50 or more workers, while regulated sectors may face additional requirements. The final thresholds and transition periods in Montenegro will depend on the adopted national legislation. Larger employers and regulated businesses are expected to prepare for formal reporting systems, documented procedures and oversight mechanisms.
The sectors facing the most immediate impact include financial institutions, state-owned enterprises, construction companies, tourism operators and businesses involved in public procurement. These organisations may use reporting systems to identify issues such as procurement fraud, conflicts of interest, false invoices, sanctions-related violations, workplace harassment and unsafe working conditions before they develop into criminal proceedings or public disputes.
Investigations Must Protect Both Reporters and Accused Persons
The proposed system requires safeguards for both whistleblowers and individuals who are the subject of reports. Confidentiality does not represent a presumption of wrongdoing, and investigations must be conducted with independence, appropriate access to personal data and documented decision-making procedures. Uncontrolled searches of company communications or personal data in response to allegations could create additional legal risks for organisations.
Legislation Linked to Anti-Corruption Law Amendments
The whistleblower protection bill is also connected with amendments to the Law on Prevention of Corruption, which were approved by the Government on the same day. Creating a separate legal framework for whistleblower protection is intended to clarify individual rights, while requiring coordination among the courts, the Agency for Prevention of Corruption, prosecutors, labour authorities and sector regulators.
Companies Begin Preparing Compliance Procedures
Businesses are expected to review existing reporting systems and assess who has access to complaints, how conflicts of interest are managed and whether procedures cover contractors and former employees. Areas requiring alignment include employment contracts, disciplinary procedures, data protection notices and internal investigation protocols. The effectiveness of the reform will depend on whether individuals reporting serious irregularities can receive institutional protection and an appropriate response without needing to disclose allegations publicly first.
