Resignation must be submitted in writing to the employer.

Minimum notice period is 30 calendar days, unless the employment contract or collective agreement specifies a longer period.

Employees are generally not entitled to statutory severance pay upon voluntary resignation.

• Employees are entitled to payment of accrued but unused annual leave up to the date of termination or the former employer is required to issue a certificate confirming the use of annual leave. If, due to the employer's fault, the employee is unable to use their leave, they are entitled to financial compensation based on the duration of the unused leave and their salary at the time the compensation is paid.

• Any outstanding wages, bonuses, or contractual benefits earned before resignation must be paid.

• Serious violation of work duties by the employee

• Repeated or severe breaches of labor discipline

• Criminal offenses affecting the employment relationship

• Fraud, gross negligence, or conduct harming the employer’s business

• Other reasons specified under the Labor Law that justify immediate dismissal

Termination must be communicated in writing, clearly stating the grounds for dismissal.

In cases of termination with cause, the employer may terminate immediately, so no standard notice period applies.

Employees dismissed with cause are generally not entitled to statutory severance pay.

Employees are entitled to payment for accrued but unused annual leave and any unpaid salary or bonuses earned up to the termination date.

Termination must be communicated in writing, clearly stating the reason for dismissal.

Minimum notice period is 30 calendar days, unless the employment contract or collective agreement specifies a longer period.

• Employees terminated without cause are entitled to severance pay, calculated based on the length of service.

• Typically, the severance amount is equivalent to 1 month’s salary per year of service, though the exact calculation can vary depending on the employment contract or collective agreement.

• Payment for accrued but unused annual leave up to the termination date.

• Any unpaid wages, bonuses, or contractual entitlements earned prior to termination.

Mutual termination agreements occur when both the employer and employee agree to end the employment relationship on mutually acceptable terms. This type of termination is voluntary and consensual, and it is recognized under the Montenegrin Labor Law, which allows parties to agree on conditions, timing, and benefits upon termination.

The agreement must be in writing and signed by both parties.

The notice period can be agreed upon freely by the employer and employee; it does not have to follow statutory minimums.

Severance is negotiable in mutual termination agreements. The parties may agree on a specific amount or formula, often based on length of service, but there is no mandatory statutory minimum unless agreed in the contract.

• Payment for accrued but unused annual leave.

• Any outstanding wages, bonuses, or contractual benefits earned prior to termination.

• Additional benefits (e.g., extended health coverage, references, or financial incentives) can be included if mutually agreed.

Generally, no statutory notice is required if the contract expires on its agreed end date. The employment automatically terminates unless the parties agree to renew or convert it into an open-ended contract.

Employees are not entitled to statutory severance pay when a fixed-term contract ends normally, unless otherwise agreed in the employment contract or collective agreement.

• Payment for accrued but unused annual leave.
• Any unpaid wages, bonuses, or contractual benefits earned up to the end of the contract.

The employer must provide written notice, generally following the same notice period rules as termination without cause (minimum 30 calendar days), unless the contract specifies a shorter period.

Employees may be entitled to pro-rata severance if early termination occurs without cause, depending on the employment contract or collective agreement.

• Payment for accrued but unused annual leave.
• Any outstanding wages, bonuses, or contractual entitlements earned prior to termination.
• Any additional benefits specifically agreed in the employment contract for early termination scenarios.

Employers must pay all outstanding wages, accrued but unused annual leave, and any other contractual entitlements no later than the employee’s last working day or within the next regular payroll cycle.

Failure to make timely final payment may result in administrative fines for the employer and potential interest claims by the employee under Montenegrin labor law.