It is not certain that employers who have had years of problems with a lack of seasonal labor will be able to hire workers through the "permanent seasonal worker" model this summer, because the law that will regulate this issue has only reached a draft, which the Ministry of Labor put up for public discussion this week until April 20th.
The aim of the law is to reduce unemployment and regulate the labor shortage during the tourist season by introducing the category of permanent seasonal worker. This would allow employees to remain in their same jobs outside the tourist season, receive compensation and contributions even when they are not working, while employers would receive a permanent workforce, even for parts of the year with a lower workload.
According to the Draft Law, the compensation would be paid by the state through the Employment Agency, and employers would contribute to pension and disability insurance.
From the Ministry of Labor, headed by the Minister Naida Nišić, said in November last year that this law would be adopted by the end of January 2025, so that Montenegro would be ready for the upcoming summer tourist season and would have seasonal workers prepared by March, which did not happen. Then, in January this year, it was announced that 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.”
"Vijesti" is awaiting answers from the Ministry of Labor on when the Law on Permanent Seasonal Workers will come into force and whether its implementation will begin during this summer season, as well as how much it will cost the Employment Service to pay compensation for "permanent seasonal workers".
According to the draft law, employers can hire unemployed people registered with the Employment Service, pensioners and students as "permanent seasonal workers" in jobs in the tourism, hospitality, trade, construction and agriculture sectors. An employment contract will be signed for permanent seasonal jobs for a minimum of six months and a maximum of eight months.
The Employment Service will pay permanent seasonal workers (except pensioners) compensation at the end of the season, which they will receive until the next season, and during the off-season period, the employer will pay their taxes and contributions to pension and disability insurance.
According to the draft law, the compensation that “permanent seasonal workers” would receive from the Institute during the break between two seasons would amount to 120% of the calculated value of the coefficient in accordance with general labor regulations, excluding taxes. According to the Government’s decision, this coefficient is 90 euros, which means that the compensation amounts to 108 euros. The average salary in Montenegro is currently around 1.000 euros, of which around 190 euros goes to taxes and contributions.
The draft further defines that if a "permanent seasonal worker" refuses to sign a new employment contract for the following season, he will have to return the money paid to the Institute for compensation and to the employer for contributions.
The draft specifies when a seasonal player can justifiably refuse to sign a new contract for the following season.
"A justified refusal of an offer to conclude an employment contract for the next season is considered to be a health condition, according to the findings of an authorized specialist doctor, treatment, moving outside of Montenegro, temporary inability to work due to pregnancy, maternity or parental leave," the draft law specifies.
In addition, if the employer does not offer the seasonal worker a new contract in the following season, he or she will have to return to the Institute all the money paid for compensation.
A "permanent seasonal worker" may lose the right to compensation if the employer who hired him becomes a permanent employee, if he is employed by another company, if he loses his ability to work, if the inspection determines that his work violates the law, if he is absent due to serving a prison sentence, if he loses his residence in accordance with a special law, when he reaches the age of 67...
In order to protect permanent seasonal workers, the Draft Law also states that if they work for a company for more than eight months a year, they will automatically receive a permanent job.
“An employer cannot establish an employment relationship for seasonal jobs in accordance with this law if he has terminated the employment contract in the previous six months, based on the cessation of the need to work in those jobs, in accordance with general labor regulations.
"After the period for which the permanent seasonal worker has established an employment relationship has expired, the employer is obliged to deregister him as an employed person, and then register him for PIO for an extended period. After the period in which the permanent seasonal worker has exercised the right to PIO for an extended period, the employer is obliged to deregister him, and then register him as a permanent seasonal worker for the following season.
"The aim of the law is to provide legal security for seasonal workers by introducing the institute of "permanent seasonal worker", enabling continuity of employment in seasonal activities and improving social security through the obligation of employers to register permanent seasonal workers for pension and disability insurance in an extended period for the period when they are actually not working. This law also imposes an obligation on employers to offer permanent seasonal workers employment in the following season, which encourages security in the labor market for both the employee and the employer. In addition, the law provides for fiscal benefits and pension and disability insurance in an extended period for permanent seasonal workers, which contributes to increasing the attractiveness of seasonal work and reducing the informal economy," the explanatory memorandum to the Draft Law states.
Fines for employers from 200 to 1.000 euros
The draft law also stipulates penalties for employers who fail to register seasonal workers, fail to offer contracts for the following year, and fail to respect working conditions, so companies will pay fines of 500 to 1.000 euros, while responsible employees can pay from 200 to 1.000 euros.
Fines for entrepreneurs range from 150 to 1.000 euros, while individuals would have to pay from 50 to 500 euros for violations.
"A fine will be imposed if a person fails to conclude an employment contract for permanent seasonal work, fails to offer a permanent seasonal worker the conclusion of an employment contract for performing work in the following season, fails to register and deregister a permanent seasonal worker from mandatory social insurance, fails to conclude an employment contract for permanent seasonal work in accordance with Article 8, or concludes an employment contract for permanent seasonal work for a period longer than eight months, not counting the days of extended PIO," the Draft states.
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