The General Collective Bargaining Agreement Extended for One Year

The General Collective Bargaining Agreement (GCBA), which was introduced as a temporary agreement in March 2014 and applies terms into the employment relationship of all employees in Montenegro, has been extended for one additional year, until the end of June 2019.

Details

In June 2018, representatives of the government, representative trade unions, and the Employers’ Union of Montenegro agreed to extend the GCBA for one more year, until June 30, 2019. The GCBA went into effect in March 2014 and was initially scheduled to last for two years. The application of the GCBA is mandatory in Montenegro for all employers, and pursuant to the Labor Law, it stipulates minimum standards for various rights, including the length of paid leave; the criteria for increasing annual leave, salary levels, and salary increases; and conducting disciplinary proceedings.

Some employers have criticized the GCBA as being insufficiently clear and containing certain disputable provisions that some employers have interpreted as giving them powers to impose annexes to employment contracts and provide additional grounds for termination of employment. Despite these shortcomings, the GCBA has been renewed for one additional year.

Comment

The GCBA provides more detailed rights, obligations, and responsibilities than the Labor Law, so—despite its flaws—extending its duration is considered important to ensure the right to work as guaranteed by the Constitution of Montenegro.

Written by Milena Jakšić Papac in cooperation with Karanović & Nikolić and Roger James of Ogletree Deakins