The Ministry of Labor, Employment and Social Dialogue plans to introduce a new employment model from May 1st, which will enable a simpler way of employing workers in seasonal or occasional jobs.
This is proposed in the working version of the draft law on simplified employment in seasonal and occasional jobs in certain industries, which precisely regulates the conditions for such employment, workers' rights, the method of paying taxes and contributions, as well as subsidies that employers can receive.
Vijesti's sources claim that this is not the final version and that certain solutions will most likely be corrected before the final proposal.
It is defined that taxes and contributions for permanent seasonal workers and incentives for their engagement are paid from the state budget.
From the Ministry of Labor, headed by the Minister Naida Nišić In November last year, it was announced that this law would be adopted by the end of January 2025 and "so that we can welcome the next season ready, which means that we will have seasonal workers prepared from March."
Public Hearing
"Vijesti" asked whether this law would be adopted by the end of January, but the ministry did not specify a deadline.
"The draft Law on Permanent Seasonal Workers is currently in the final phase of negotiations between social partners, after which a public debate will be organized, which is crucial in order to further improve the text of the law and involve the interested public. The need to adopt this regulation is reflected in the fact that Montenegro is a tourist destination, which therefore has great economic benefits, especially in the tourism sector. Therefore, the aim is to achieve more efficient employment of domestic labor for the period of performing seasonal work, regulate the legislative framework to enable flexibility in this area, as well as the active participation of all relevant institutions in the implementation of this activity," the Ministry of Labor said.
It was clarified that the engagement of permanent seasonal workers will be limited in time to the period of seasonal needs, with the possibility of exercising rights in the off-season period.
"In addition, the law aims to combat the shadow economy and enable more flexible workforce engagement. This law regulates a simplified method of engaging individuals in seasonal and occasional jobs, which includes electronic registration and more efficient employment of both domestic and foreign workers. The law is expected to contribute to improving the business environment and labor market in Montenegro. The Ministry is making efforts to have the law adopted and ready for implementation by the 2025 tourist season, which will enable significant improvements in the field of seasonal employment," the government department said.
What are seasonal jobs?
According to the draft version, seasonal jobs are specific jobs in the accommodation and food sector, agriculture, forestry and fisheries, and transport. A person can be engaged in jobs on two grounds - as a seasonal worker whom the employer engages for a specific period of time during that season, not longer than nine months, and on another basis, as a permanent seasonal worker whom the employer engages for jobs that are predominantly seasonal, for a period of nine (minimum eight or seven or six, and maximum nine) months during that season, with the obligation to engage in work during the following season as well.
"If the employer has hired a person as a permanent seasonal worker, he or she acquires the right to extended pension and disability insurance for the period from the termination of work engagement in that season until the start of work engagement in the following season. Contributions for the period of extended insurance, calculated on the legally prescribed lowest monthly contribution base, are paid from the budget of Montenegro for the benefit of that person," the document states.
In seasonal jobs, an employer may, as stated in the draft, hire as a seasonal worker a person who is registered with the Employment Agency as unemployed, a pensioner, a pupil or student over 15 years of age, who is a citizen of Montenegro or has approved permanent residence or recognized refugee status and is a foreign citizen with approved permanent residence, recognized refugee status or approved additional protection, as well as a foreign citizen who has been issued a permit for temporary residence and work in Montenegro.
It is specified that an employer can only hire an unemployed person registered with the Employment Agency as a permanent seasonal worker.
"For jobs that need to be performed occasionally and/or on an occasional basis, including seasonal jobs, an employer may, in a simplified and expedited procedure, hire a person for a period that cannot exceed 90 working days during a calendar year," it states.
The need for occasional work engagement may arise in the accommodation and food service sector, the agriculture, forestry and fisheries sector and the transport sector, as well as in the arts, entertainment and recreation sector, the construction sector, the trade sector, the auxiliary service sector and the information and communication sector.
An employer may employ one or more workers in seasonal work for a period that cannot exceed nine months in a calendar year, which is the maximum period for which each of them may be employed under a seasonal employment contract for that year.
"An employer in the construction sector may simultaneously engage up to ten persons in temporary jobs in accordance with this law and an additional 10% of the total number of employees for an indefinite period. It is prohibited to engage a person under the age of 18 in temporary jobs in the construction sector in accordance with this law and in temporary jobs of caring for, preparing food, maintaining the health and personal hygiene of the elderly, people with special needs and children," reads the working version of the draft law, which defines that an employer cannot be an agency for the temporary assignment of employees, which operates in accordance with the law governing labor relations.
Information system
Employees hired under this law will be registered through the information system and records will be kept of them, and this information system will be managed by the Tax Administration. It is also planned that this information system will be established by March 1, and the Tax Administration, the Ministry of Internal Affairs, the competent inspectorates and the Employment Service are required to connect to the Information System in order to download and submit data and documents through this system in accordance with this law no later than April 1, 2025.
The Ministry of Labor will provide incentives for the employment of permanent seasonal workers from the budget in accordance with the planned expenditures for this purpose. In addition to incentives, the budget will also cover contributions for extended insurance of permanent seasonal workers, as regulated by the Labor Law.
Employers are obliged to return the granted incentives if they violate the conditions prescribed by law. Incentives are returned if the seasonal worker's employment ends before the expiration of the agreed term, contrary to the provisions of the contract, if the employer does not offer the same worker a new employment contract for the following season, as provided for by law. An exception is the case when the worker rejects an offer that provides for the same or greater scope of rights compared to the previous contract.
The employee will be deemed to have rejected the offer if he or she does not respond to it within the defined deadline, and the offer must be sent through the official Information System.
Employers who have reduced the number of employees in the six months prior to hiring a seasonal worker, or during their hiring, are not entitled to incentives.
GIZ assistance in drafting laws
The Ministry of Labor said that an interdepartmental working group is working on the drafting of the law, and in order to ensure more efficient work and comprehensive implementation, support has been provided by representatives of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), who, through their participation in the working group, provide expert support during the drafting process.
"The draft law covers various branches of economic activity, but details cannot be disclosed at this time because the law is being adopted in social dialogue, through a joint consensus of all members of the working group. After the working group takes a final position on all issues related to this important regulation, the public will be informed in a timely manner, and will be able to take an active part in it through a public debate," the Ministry of Labor said.
Bonus video:
