“All wealth is the product of labor” – John Locke.

Simply put, the significance of Labor Law is in defining the employer-employee relationship in one country. Therefore, the role of the Labor Law is to offer protection to both the employee and the employer, but also to provide clear rules for both parties concerning their rights and obligations.

What we have in Montenegro today is a strong need for drafting a new Labor Law. The current contains a number of uncertainties and is not specific in its provisions. That is why AmCham Montenegro’s Labor Relations Committee has undertaken the initiative to gather the business community and provide the Government of Montenegro, as well as the Social Council, with a united stand on the employers’ perspective in respect to drafting the new Labor Law.

During the roundtable held on Monday, November 17, all relevant business associations in Montenegro: the Chamber of Economy of Montenegro, Montenegrin Employer’s Federation, Montenegro Business Alliance and Montenegrin Foreign Investors Council signed a Memorandum of Understanding with AmCham Montenegro. The Memorandum defines the main issues that should be resolved by the new Labor Law. The Minister of Labor and Social Welfare, Mr. Predrag Bošković, was familiarized with the initiative and elaborated on the current position of the Government concerning the labor legislation.

Signing of the Memorandum of Understanding

As a result of this initiative, the existence of a unique platform representing the united voice of employers will result in the following:

In other words, the importance of having a consensus within the business community for improving the labor legislation in Montenegro is essential for creating a better and more stable business environment. Finally, the common goal is to draft a new Labor Law, which should be the main legislative document stipulating the rights and obligations of employers and employees in Montenegro.