The Government of Montenegro in Podgorica has adopted a Draft Law offering domestic seasonal workers financial assistance in the period between seasons and extended insurance coverage.

However, the tourism sector is crying out for foreign workers and is demanding the urgent introduction of a more efficient work permit system like the one used in Croatia.

The Balkan labor market is undergoing tectonic changes. A chronic labor shortage has forced all countries in the region to find innovative solutions. The Government of Montenegro recently adopted at its session the Draft Law on Permanent Seasonal Jobs. Although many may initially think that this document was written to facilitate the import of foreign workers, the reality is different. The legal framework is primarily designed to retain the domestic workforce in sectors such as tourism, hospitality, trade, agriculture, and construction.

But Montenegrin tourism operators are well aware that the domestic labor pool is not sufficient even with the best incentives. That is why they are increasingly demanding the application of the proven Croatian model for the larger-scale import of foreign workers.

What exactly does the new Montenegrin law bring?

Put simply, the institute of a permanent seasonal worker means that a worker does not lose all rights the moment the tourist season ends and hotels close. According to the new proposal, permanent seasonal jobs are those whose volume temporarily increases depending on the season, and they may be performed continuously for a maximum of eight months within one calendar year.

Persons registered as unemployed, pension beneficiaries, and persons with student status are entitled to this type of contract. When the season ends, the employer is obliged to deregister the worker and then register them for mandatory pension and disability insurance for an extended period, but only if the worker has previously accepted the employer’s offer to work in the next season and concluded an amendment to the contract with them.

It is important to emphasize that the basis for these contributions is not the actual salary the worker had, but the lowest monthly basis prescribed by law. On the other hand, during this dormant period, the worker receives financial assistance from the state through the Employment Office amounting to 120 percent of the calculation value of the coefficient, with a clear note that pension beneficiaries are explicitly excluded from the right to this financial compensation. The goal is to suppress undeclared work and ensure workers’ livelihood during the winter months.

One of the things that might surprise you is the strict obligation of loyalty. The employer must offer the worker a contract for the next season at least 30 days before the current contract expires. If the worker unjustifiably refuses the contract for the next season, the employer may seek reimbursement of contributions, and the Employment Office may seek reimbursement of the paid financial assistance. If the worker enters into employment with another employer, their right to financial assistance ceases, and the employer may seek reimbursement of the paid contributions.

The worker may be released from this obligation only in exceptional cases, such as moving outside Montenegro, illness, or maintaining a pregnancy. Penalties for legal entities that violate the provisions of this law are quite rigorous and range from 500 to 10,000 euros.

The gap between the law and real needs

This brings us to the key problem Montenegro is currently facing. The intention of the Montenegrin government is noble because it is trying to encourage local people to stay and work in their own country. However, the plain truth is that Montenegro lacks tens of thousands of workers. The tourism sector clearly communicates that without accelerated and simplified import of foreigners, they cannot ensure a stable season. That is precisely why Montenegrin entrepreneurs point to the solutions from the Foreigners Act applied in Croatia as the ultimate model.

The Croatian model as salvation for tourism

Unlike Montenegro, which is still struggling with bureaucratic obstacles, Croatia has adapted its rules to the mass import of labor from third countries. Croatian rules have brought significant progress through online submission of applications, such as the labor market test. Although this is not full digitalization because part of the procedures still goes through police administrations, the system is considerably more fluid.

The Croatian system works in such a way that the employer submits certain work permit applications electronically, and the Croatian Employment Service electronically delivers its opinion to the Ministry of the Interior. A foreign worker truly does not have to be physically present in Croatia during the initial processing of paperwork. However, once the application is approved, a third-country national generally must obtain a biometric residence permit, which requires arrival and physical presence, with the exception of seasonal permits up to ninety days. Montenegrin hoteliers and restaurateurs are now putting pressure on their government to adopt this framework, which would shorten waiting times of several months.

Additionally, the Croatian model facilitates procedures for seasonal workers who return year after year, offering the flexibility that employers in the Balkans necessarily need to maintain competitiveness.

The Draft Law on Permanent Seasonal Jobs may be a good first step in regulating the chaotic labor market in Montenegro. Providing off-season financial support and extended insurance to workers for work lasting only a few months is a measure that any trade unionist would welcome. However, the real solution lies in accepting harsh economic reality. As Croatia understood long ago and implemented in law, the local labor pool throughout the Balkans has simply dried up due to demographic trends and emigration to wealthier countries of the European Union.

For Montenegrin tourism to survive and continue to grow, the Government in Podgorica will have to very quickly supplement its laws and open the doors wide to foreign workers, relying on the successful and faster Croatian model. Without efficient administration for importing labor from the Far East or neighboring countries, many exclusive hotels and restaurants on the Adriatic coast could remain without workers this summer, and therefore with their doors closed.