Remote Working Legislation, Laws & Regulations in Montenegro

Yes. Work from home and remote work are regulated by the Labour Law ("Official Gazette of Montenegro" nos. 74/19, 8/21, 59/21, 68/21, 145/21, 77/24, 84/24, 86/24, 122/25, 165/25 and 051/26). In particular, the Labour Law expressly regulates the establishment of employment for performing work outside the employer's premises, which encompasses both remote work and work from home using information technology. The Labour Law also separately regulates the arrangement of work outside the employer's premises in cases of extraordinary circumstances. 

In relation to health and safety matters, the Law on Occupational Safety and Health ("Official Gazette of Montenegro" no. 51/26) applies generally to all employees, including those working from home, although it does not contain specific provisions tailored exclusively to remote workers. 

Working from home can be implemented through an employment contract or an annex thereto. Under the Labour Law, an employment relationship may be established for the performance of work outside the employer's premises, provided that the nature of the work permits it and that it is envisaged in the job description for the relevant position. 

The employment contract concluded for work outside the employer's premises must, in addition to the standard content prescribed by the Labour Law, also contain data on: (1) the type of work and manner of organising the work; (2) the schedule of working hours; (3) working conditions and the manner of supervising the work; (4) the use of the employee's own means of work and compensation for their use; (5) compensation of other costs related to performing the work and the manner of their determination; and (6) other rights and obligations. 

If the original employment contract does not envisage work outside the employer's premises, the employer or the employee may propose an annex to the employment contract. Internal policies and collective bargaining agreements may further elaborate on working from home, but the employment contract or its annex remains the essential legal instrument for its implementation.

No, as a general rule. If the employment contract does not already provide for work outside the employer's premises, the employer may only offer the employee an annex to the employment contract proposing the arrangement of remote work. If the employee refuses to conclude the annex, the employee may not suffer adverse consequences as a result of such refusal. 

However, there is an exception in cases of extraordinary circumstances. Under the Labour Law, in the event of an emergency situation (declared epidemic, earthquake, flood, environmental incident, fire, breakdown, etc.), the employer may, for the purpose of continuing operations, ensuring the safe functioning of the work process, and protecting the health of employees and other persons, agree with the employee to work outside the employer's premises without amending the employment contract. If such work outside the employer's premises in emergency circumstances lasts more than 30 days, the employer is obliged to offer the employee an annex to the employment contract. 

Regarding the return to the office, the same principle applies in reverse. If an employee has been working from home under the terms of the employment contract or its annex, the employer cannot unilaterally require the employee to return to the office. The employer would need to propose a new annex to the employment contract to change the place of work back to the employer’s premises. However, unlike the refusal to work from home (which is explicitly protected from adverse consequences under the Labour Law), the refusal to accept an annex relating to reassignment to other appropriate duties due to work process or organisational needs may constitute grounds for termination of the employment contract.

No. An employee cannot force an employer to allow remote work. Under the Labour Law, if the employment contract does not provide for work outside the employer's premises, the employee may propose an annex to the employment contract. However, the employer is not obliged to accept such a proposal. The arrangement of remote work requires the mutual agreement of both parties, formalised through the employment contract or its annex.

It should be noted that the Labour Law provides that the employer may, taking into account the needs stated by the employee in a written request, upon the expiry of unpaid leave, enable the employee to work outside the employer's premises, or change the working hours or working time schedule, if the employer's work process allows it. However, this is at the employer's discretion and does not constitute an enforceable right.

Yes. Under the Labour Law, the employer is obliged to provide appropriate conditions, means and equipment for work to employees who work outside the employer's premises. This obligation is further reinforced by the penalty provisions of the Labour Law: failure to comply constitutes an offence subject to a fine of EUR 2,000 to EUR 20,000 for a legal entity. 

Moreover, the Labour Law requires that the employment contract for work outside the employer's premises must contain data on the use of the employee's own means of work and the compensation for their use. This means that if the employee uses their own equipment, the contract must regulate the compensation arrangements.

Yes. The Labour Law prescribes that the employment contract for work outside the employer's premises must contain provisions regarding: (i) the use of the employee's own means of work and compensation for their use; and (ii) compensation of other costs related to performing the work and the manner of their determination. 

While the law does not specify the exact amount or enumerate specific categories of reimbursable expenses, it mandates that these matters be regulated in the employment contract. The law therefore leaves it to the parties to agree on which specific costs are covered (e.g. electricity, internet, telephone, office supplies) and the manner of their determination. In practice, the amount and manner of reimbursement are typically agreed upon between the employer and the employee in the employment contract or internal employer policies.

No. The Labour Law does not prescribe a specific, standalone work-from-home allowance. The obligation of the employer is limited to ensuring that the employment contract for work outside the employer's premises contains provisions on the compensation for the use of the employee's own means of work and the reimbursement of other costs related to performing the work. Beyond this contractual obligation, there is no statutory requirement for a separate or dedicated work-from-home allowance.

Yes. The employer bears responsibility for the health and safety of all employees, including those working remotely. The Labour Law provides that every employee has the right to occupational safety and health, in accordance with the law, collective agreement and employment contract. The Labour Law also specifically requires the employer to provide appropriate conditions, means and equipment for work to employees working outside the employer's premises. 

Under the Law on Occupational Safety and Health, the employer is obliged to ensure occupational safety and health measures by preventing, eliminating and controlling risks at work, informing and training employees for safe and healthy work. These general obligations apply to all employees regardless of whether they work from the employer's premises or remotely. The employer is also required to prepare a risk assessment document covering all workplaces. 

Furthermore, the labour inspection may prohibit the employer from organising work outside the employer's premises if there is an immediate danger to the life and health of employees or if such work endangers the environment. 

Yes. The Labour Law imposes several additional specific obligations on the employer in connection with work outside the employer's premises:

Under the Labour Law, the employer is obliged to keep records of employment contracts for work outside the employer's premises and to notify the labour inspection thereof. Failure to keep such records and notify the inspection constitutes offences. 

The employment contract for work outside the employer's premises must also specify the working conditions and the manner in which the employer will supervise the work. 

The Labour Law expressly provides that the employee working outside the employer's premises has all rights and obligations arising from and in connection with employment as an employee who works at the employer's premises. This means general rules on overtime, night work, break periods, vacation and other paid leaves continue to apply.

Yes. Mandatory social insurance applies to all employees regardless of the place and manner of work. Under the Labour Law, the employer is obliged to register the employee for mandatory social insurance (health, pension and disability insurance, and unemployment insurance) on the day the employee commences work. This obligation applies equally to employees working from home.

Additionally, under the Law on Occupational Safety and Health, the employer is obliged to insure all employees against work injuries, occupational diseases and work-related illnesses through collective insurance. The premiums for such insurance are borne by the employer and are determined in relation to the level of risk. 

The Law on Pension and Disability Insurance ("Official Gazette of Montenegro" nos. 54/03, 39/04, 61/04…14/26) further confirms that all persons employed by an employer are mandatory pension and disability insurance holders, regardless of the place of work. Employees working from home are therefore fully covered by the pension and disability insurance system on the same basis as employees working at the employer's premises.

Yes. The Labour Law provides that if an employee suffers an injury or damage at work or in connection with work, the employer is obliged to compensate the damage. This provision applies to all employees, including those working from home, as the Labour Law expressly states that an employee who works outside the employer's premises has all the rights and obligations arising from and in connection with employment as an employee who works at the employer's premises. 

Under the Law on Occupational Safety and Health, the employer is obliged to report to the occupational safety and health inspection every fatal, collective, severe or other work injury causing absence from work exceeding three working days, as well as any dangerous occurrence that could endanger occupational safety and health, immediately and no later than 24 hours from the occurrence. 

It should be noted that the Law on Pension and Disability Insurance defines a work injury as an injury that occurs "in direct, causal, spatial and temporal connection with the performance of work on the basis of which the person is insured". This definition is particularly relevant for employees working from home, as establishing the spatial and temporal connection between an injury and work may be more complex in a home environment. Additionally, the same law provides that a work injury also includes an injury sustained on the regular route between the employee's home and the place of work, a provision that loses its practical significance when the employee works from home.

No. There is no provision in the Labour Law that would permit the employer to offset or charge employees for costs saved (e.g. reduced transportation, meal or other costs) as a result of working from home. The Labour Law provides for obligations of the employer to reimburse costs to the employee, not the other way around. Furthermore, the Labour Law guarantees that remote employees have all the same rights and obligations as employees working at the employer's premises, and any unilateral reduction or set-off of remuneration or benefits would be inconsistent with this principle. 

Yes. Under the Labour Law, the employee working outside the employer's premises has the same obligations as any other employee. This includes all general obligations of employees, such as the obligation to perform work conscientiously and diligently, to comply with the employer's internal acts, and to observe rules on occupational safety and health.

Under the Law on Occupational Safety and Health, the employee has the right and the obligation to familiarise themselves with occupational safety and health measures at the workplace and to be trained for their implementation. The employee must also apply prescribed occupational safety and health measures during work, use personal protective equipment as intended, and report any irregularities, deficiencies, hazards or other phenomena at the workplace that could endanger the employee's own safety and health or that of other employees. 

The Labour Law allows the employer to arrange work outside the employer's premises without amending the employment contract in the event of extraordinary situations such as epidemics, earthquakes, floods, environmental incidents, fires, etc. However, this provision is designed as an emergency measure rather than a programme to attract foreign remote workers.

Significantly, the Law on Foreigners (“Official Gazette of Montenegro” nos. 12/18, 3/19, 86/22, 77/24, 3/26 and 33/26) has introduced a dedicated legal framework for digital nomads. The law defines a digital nomad as a foreigner who is employed or performs work electronically for a foreign company or for their own company that is not registered in Montenegro. Digital nomads may obtain a long-stay visa (visa D) for the purpose of residing in Montenegro in the status of a digital nomad, provided they submit proof of performing work electronically for a foreign company and proof of health insurance.

Furthermore, the Law on Foreigners provides for the issuance of a temporary residence permit for digital nomads with a validity of up to two years, which may be extended for a further two years. A new permit may be issued after a cooling-off period of six months following the expiry of the previous digital nomad residence permit. Family members of the digital nomad may also join them in Montenegro for the purpose of family reunification.

These provisions represent a significant legislative effort to attract foreign remote workers and position Montenegro as a destination for digital nomads.

The Labour Law does not contain a specific definition or regulation of "remote work abroad" (i.e. situations where a Montenegrin-based employee works remotely from another country). The Labour Law regulates work outside the employer's premises in general, defining it as encompassing remote work and work from home using information technology, but it does not distinguish between domestic and cross-border remote work. 

The Labour Law does not contain specific provisions regulating the applicability of Montenegrin labour law to employees working remotely from abroad. The general rule under the Labour Law is that it applies to employees working on the territory of Montenegro, as well as to employees sent to work abroad by an employer established in Montenegro. The application of Montenegrin labour law to an employee who independently decides to work from abroad on a temporary basis would need to be assessed on a case-by-case basis.

The Labour Law does not specifically address social security coordination during cross-border remote work. Social security matters are regulated by separate legislation, primarily the Law on Pension and Disability Insurance.

Relevantly, the Law on Pension and Disability Insurance provides that employees sent to work abroad are mandatory insurance holders, unless they are compulsorily insured under the legislation of the host country or unless an international agreement provides otherwise. The same law also covers Montenegrin nationals employed abroad who are not compulsorily insured by the foreign insurance carrier, or who cannot exercise or use pension and disability insurance rights outside the territory of that country, provided they were insured in Montenegro or had permanent residence in Montenegro prior to departure. These provisions may be relevant to cross-border remote work scenarios.

In the interim, bilateral social security agreements concluded by Montenegro with individual countries would govern which social security system applies. The determination would depend on the duration, nature and location of the remote work, and the specific terms of the applicable agreement.

Tax matters are not regulated by the Labour Law and fall outside its scope. The tax implications of short-term remote work abroad would need to be assessed under the Law on Personal Income Tax and the relevant double tax treaties concluded by Montenegro, as well as the domestic tax legislation of the country from which the employee works.

Residence law is regulated by the Law on Foreigners and is not addressed in the Labour Law.

For a Montenegrin employee working remotely from abroad, the employee would need to comply with the immigration and residence requirements of the host country, which may include visa obligations, work permit requirements, and notification obligations depending on the duration and nature of the stay.

For foreign nationals wishing to work remotely from Montenegro, the Law on Foreigners provides a comprehensive framework. The type of permit required depends on the nature and duration of the stay:

A foreigner may stay in Montenegro for up to 90 days within a 180-day period on the basis of a short-stay visa or without a visa, depending on the applicable visa regime. During this period, a foreigner generally cannot work in Montenegro without a work permit or a work registration certificate.

A digital nomad who works electronically for a foreign company may obtain a long-stay visa (visa D) or a temporary residence permit specifically designed for digital nomads, with a validity of up to two years, extendable for a further two years. To obtain this permit, the digital nomad must meet the general conditions for issuing residence permits, including proof of means of subsistence, accommodation, health insurance, and a valid travel document, as well as provide proof of performing work electronically for a foreign company and proof of registration of that company in another country.

A foreigner seeking employment with a Montenegrin employer must obtain a temporary residence and work permit, which is subject to the annual quota system and additional requirements, including a written employment offer from a Montenegrin employer.

Certain categories of foreigners may work on the basis of a work registration certificate for up to 90 days within a one-year period, including founders and members of management bodies, invited professors, and specialists providing services requiring higher education.

Several additional points are noteworthy in the context of remote and mobile working in Montenegro:

The Labour Law expressly provides that an employee who refuses to conclude an annex to the employment contract for work outside the employer's premises may not suffer adverse consequences as a result. This represents a significant safeguard against coercive arrangements.

The penalty provisions of the Labour Law include specific sanctions related to remote work: a fine of EUR 2,000 to EUR 20,000 for a legal entity that fails to provide appropriate conditions, means and equipment for employees working outside the employer's premises, and a fine for failure to offer an annex to the employment contract when emergency remote work exceeds 30 days.