Montenegro is on the verge of adopting one of the most important laws to improve its labor market – the Law on Permanent Seasonal Workers. The draft law, which is expected to be finalized by the end of January next year with the help of German experts, introduces comprehensive changes to the labor market, particularly in the tourism and construction sectors.
What the law brings:
- Rights and responsibilities of permanent seasonal workers – Workers will work for six months during the season, and during the remaining six months, they will have the right to financial support and paid contributions.
- Electronic registration and deregistration – The process of registering workers will be simplified, allowing employers to quickly and easily register seasonal workers.
- Subsidies for employers – There will be incentives for employing domestic workers and more flexible models for hiring foreign workers.
- Sunday work – Permanent seasonal workers will be allowed to work on Sundays during the tourist season, avoiding issues with the law, which currently prohibits Sunday work.
Positive experiences from Croatia:
The Law on Permanent Seasonal Workers has already proven effective in Croatia, where this model ensured labor stability in tourism and construction. Workers gained security, while employers faced fewer administrative obstacles. Montenegro is building on these experiences, adapting the law to its domestic needs.
A broader picture for Montenegro:
This law is part of a broader government strategy for labor market reform, which also includes amendments to the Law on Foreigners. Alongside easier employment of domestic workers, the new law will speed up the issuance of work permits for foreign workers, streamline administrative procedures, and extend the duration of work permits.
Minister Naida Nišić emphasizes that the key goal of the law is to reduce the shadow economy and encourage unemployed individuals to retrain for jobs in tourism and construction. “This law is the result of in-depth analyses and consultations with employers, workers, and international experts. We want to ensure that Montenegro has a stable labor market, particularly in the sectors that are the backbone of our economy,” said Nišić in a media statement. The minister has garnered significant support from the business community for this reform.
Benefits for tourism and construction:
The tourism sector, which employs tens of thousands of workers during the summer months, will greatly benefit from this law. Better regulation of seasonal work will reduce pressure on employers and enable higher-quality service for tourists. Similarly, the construction sector, another key industry, will have the opportunity to legalize temporary work and gain more security in hiring workers.
Subsidies: The key to success:
To ensure the law’s success, the government plans to introduce subsidies for employers hiring domestic workers, as well as financial support for workers to cover their contributions during inactive months. This will help balance the needs of the economy with workers’ rights.
What’s next:
The Law on Permanent Seasonal Workers is not just a technical measure; it’s a reform that will change the rules of the labor market. Montenegro is laying the groundwork for sustainable development in tourism and construction while providing security for workers. Minister Nišić and her team have shown their readiness to tackle these challenges, giving hope that the summer of 2024 will bring visible progress in employment and the resolution of the chronic labor shortage.
If successfully implemented, this law will not only improve working conditions but also strengthen the economy as a whole. Montenegro is on the brink of changes that will bring stability to all players in the labor market.
