Montenegro is an ideal destination for employers looking to expand their presence in the Balkan region. However, for employers looking to hire talent in Montenegro, the process can be lengthy and stressful.
Looking to hire easily in Montenegro? Consider working with an Employer of Record (EOR) that will facilitate efficient hiring, streamline payroll, and guarantee compliance.
This article will guide you through the benefits of using an EOR to hire employees in Montenegro.
Why Hire Talent from Montenegro?
Well-known for its bustling tourism industry, Montenegro is also quickly becoming an economic powerhouse in the Balkans. Montenegro’s appealing tax system, rapid growth, high English proficiency, and strategic location has drawn in employers looking to grow their remote workforce with skilled workers, especially in the IT sector.
Cost is also a significant advantage for employers looking to Montenegro for talent. Thanks to a lower cost of living, employers can offer great salaries to top talent in Montenegro, while saving on their bottom line compared with salaries in Western Europe and North America. This provides employers with a good opportunity to reduce costs while still recruiting exceptional talent.
How to Legally Hire Employees from Montenegro
There are three primary ways to hire talent from Montenegro: hiring them as an independent contractor, setting up a local entity, or going through an EOR. Hiring independent contractors in Montenegro is common, but it often comes with the risk of misclassification.
Setting up a local entity is a lengthy and complex process that requires expertise in the local labor laws and regulations.
In contrast, an EORalready has a local legal entity in place, offering a seamless, streamlined hiring process. As such, EORs provide a legal framework for hiring. With such simple hiring processes, you’ll be able to focus on creating a positive working relationship and work environment with your employees.
What Does an Employer of Record Do?
Essentially, an EOR specializes in employing people on behalf of the company. EORs take care of payroll, taxes, benefits, and ensure that the company and the employee are fully compliant with all legal regulations and labor laws.Using an EOR will significantly minimize the paperwork and processes associated with hiring employees from Montenegro. An EOR provides an efficient and compliant way for organizations looking to recruit global talent and hire from abroad. It assists businesses in managing the intricacies of local labor laws and handling administration, like payroll, documentation, and adhering to tax obligations.
Contracts and Documentation
Montenegro has a set of unique requirements for employment contracts. For example, the majority of employment contracts in Montenegro are indefinite. While fixed-term contracts are allowed, they are only possible if specific conditions are met, and they may not exceed 36 months.Employment contracts in Montenegro must be written in Montenegrin and must include specific information, such as workplace, type of employment, job role, salary, benefits, working hours, probation period, and notice period.
An EOR will ensure that employment contracts meet all the requirements in Montenegro. Local expertise from an EOR in Montenegro will guarantee compliance and a smooth hiring process.
Insurance and Benefits
Using an EOR to hire employees in Montenegro will guarantee that employees have proper insurance coverage and the necessary benefits required by local laws and regulations. This includes healthcare and unemployment benefits.
An EOR will also take care of supplemental benefits for employees, like dental, vision, life insurance, and retirement savings plans. In a competitive remote work landscape, it pays to offer employees benefits to increase retention and attract top talent.
Paid Time Off, Leave, and Public Holidays
Employees in Montenegro are entitled to an annual leave of 24 days. This number increases after a year of service.New mothers are entitled to 98 days of paid maternity leave, and new fathers are allowed to take paid parental leave until the child’s first birthday. Montenegrin employees are also entitled to five days of paid sick leave per year.
Montenegro observes 13 public holidays, in which employees are entitled to the day off.
- January 1: New Year’s Day
- January 2: Day After New Year’s Day
- January 6: Orthodox Christmas Eve
- January 7: Orthodox Christmas
- April 16: Orthodox Good Friday
- April 17: Orthodox Easter Monday
- May 1: Labor Day
- May 2: Labor Day (2nd day)
- May 21: Independence Day
- May 24: Independence Day Holiday
- July 13: Sovereignty Day of Montenegro
- July 14: Sovereignty Day of Montenegro Holiday
Keeping track of different types of leave and public holidays in Montenegro is challenging. An EOR will take care of this and more.
Tax Obligations
Employers in Montenegro pay taxes and social security contributions, such as pension, disability insurance, and unemployment insurance. Taxes are often an exhausting process, even when hiring locally. An EOR will handle the logistics and guarantee that payroll is processed in accordance with the regulations in Montenegro.
Employer Responsibilities
While the EOR takes care of all legal and HR procedures, like contracts, payroll, and taxes, the employer also has some responsibilities. The employer takes care of recruitment, interviewing, onboarding, and employee relationship management.
The employer should also learn about the working culture in Montenegro. This will help create a positive and welcoming work environment that encourages communication and inclusivity.
Advantages of Working with an Employer of Record
Using an EOR in Montenegro will save time, reduce costs, and minimize compliance risks. Setting up an entity in a foreign country comes with a lot of stress. An EOR is already set up to hire employees abroad, making it a seamless and efficient process.
EOR’s have access to local knowledge and advisors with extensive experience in Montenegro. Local knowledge helps employers work through the intricate local HR processes and regulations. Also, working with an EOR saves costs and ensures a positive employee experience with streamlined HR support.
Choosing the Right Employer of Record
When it comes to choosing the right EOR, employers should consider a range of factors.
- Local knowledge and experience: When working with an EOR in Montenegro, you want to make sure they have local knowledge of employment laws and experience in the country. Working with an EOR with a positive reputation in Montenegro ensures compliance.
- Range of services: Check whether the EOR offers all the services you need. administering benefits, filing taxes, compliance and governance, and legal support.
- Data security: In a remote work environment, protecting intellectual property is vital. When choosing an EOR to partner with, make sure that it has a specific agreement on information security. Montenegro adheres to the European Union General Data Protection Regulation (GDPR), so choose an EOR that is compliant with the regulation.
Borderless — The EOR For You
If you’re looking to hire an employee in Montenegro, an EOR is the right solution. With Borderless, we make the hiring process a breeze. While you connect with your employees, we’ll do the heavy lifting to guarantee compliance and make hiring a seamless, stress-free process.
Book a demo to see how we can streamline hiring employees from Montenegro.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
