1. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 2– Freedom Movement for Workers Bilateral screening: Chapter 2 PRESENTATION OF MONTENEGRO Brussels, 7 June 2013

2. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS EMPLOYMENT AND WORK OF FOREIGNERS IN MONTENEGRO Ms ANA LEKOVIĆ Independent Advisor for Legal Affairs Employment Agency of Montenegro ana.lekovic @zzzcg.me

3. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS CONTENTS 1. LEGAL BASIS 2. CONDITIONS OF EMPLOYMENT AND WORK OF FOREIGNERS 3. WORK PERMIT 4. TEMPORARY RESIDENCE FOR THE PURPOSE OF EMPLOYMENT AND WORK 5. RIGHT TO EMPLOYMENT OF FOREIGNERS WITH GRANTED TEMPORARY RESIDENCE FOR PURPOSE OF MERGING WITH FAMILY 6. OBLIGATIONS OF EMPLOYERS WHO EMPLOY FOREIGNERS 7. ANNUAL QUOTAS OF WORK PERMITS 8. EMPLOYMENT AND WORK WITHOUT WORK PERMIT 9. DATA ON ISSUED WORK PERMITS 10. HARMONISATION WITH EU ACQUIS COMMUNITAIRE

4. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 1. LEGAL BASIS Relevant EU acquis communitaire Treaty on Functioning of the European Union (Article 45) Regulation (EU) 492/2011 on freedom of movement of workers within the Union Directive 2004/38/EC on the right of EU citizens and members of their families to move and reside freely within the territory of the Member States

5. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 1. LEGAL BASIS Montenegrin legal acts Law on employment and work of foreigners („Official Journal of Montenegro“, No. 22/08 & 32/11); Law on Foreigners („Official Journal of Montenegro“, No. 82/08, 72/09, 32/11 & 53/11); Law on registers of residence and stay („Official Journal of Montenegro“, No. 13/08, 41/10 & 40/11) ; Regulation on visa regime („Official Journal of Montenegro“, No. 18/09); Regulation on criteria and procedure for determining the number of work permits for foreigners („Official Journal of Montenegro“, No. 69/08 & 61/11); Decision on determining the number of work permits for foreigners in 2013 („Official Journal of Montenegro“, No. 57/12); Regulation on issuing work permits for foreigners („Official Journal of Montenegro“, No. 40/11); Regulation on granting temporary residence and permanent residence and the issuance of travel and other documents to foreigners ("Official Journal of Montenegro", No. 58/09, 62/09 & 13/12); Regulation on visas and visa forms („Official Journal of Montenegro“, No. 64/09).

6. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 2. CONDITIONS OF EMPLOYMENT AND WORK OF FOREIGNERS Foreigner is a person who is not Montenegrin citizen, whether he/she is citizen of another state or person without citizenship. Conditions of work and employment for the citizens of EU Member States are the same as for third countries nationals. Foreigner can be employed or work in Montenegro under the condition that he/she has: Work permit, Approval for permanent residence or temporary residence, and Concluded labour contract or concluded contract for performing services.

7. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 3. WORK PERMIT A work permit is a document by which a foreigner may me employed or work in Montenegro. A work permit is issued by the Employment Agency of Montenegro. Employment Agency of Montenegro is obliged to decide about a request for issuing a work permit, within seven days from the date of application.

8. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 3. WORK PERMIT Types of work permits Personal work permit Permit for employment – Permit for seasonal employment (a form of permit for employment); Permit for work, on which basis are being issued: – Work permit for cross-border services of foreigners, and – Work permit for the movement of foreigners within a foreign company.

9. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 3. WORK PERMIT Personal work permit Personal work permit enables to the foreigner a free access to the labour market, regardless of the state and relations on the labour market. It can be issued to a foreigner who has been granted permanent residence, to a refugee or to a person who has been granted additional protection. This permit is being issued to the request of foreigner for unlimited period, except to the person who has been granted additional protection which is being issued for period up to one year.

10. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 3. WORK PERMIT Permit for employment Permit for employment is a permit on the basis of which an employer concludes labour contract with a foreigner, to perform tasks established by an Act of the job classification. This permit is being issued at the request of the employer, for a period up to one year, with a possibility of extension for a period not exceeding two years. Permit for seasonal employment Permit for seasonal employment, as a form of permit for employment, is being issued to conduct activities in the framework of activities that are seasonal. This permit is being issued at the request of an employer, for a period of up to eight months a year.

11. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 3. WORK PERMIT Work permit A permit with predetermined time intervals, based on which a foreigner performs activities or services for the legal entity or part of a foreign company registered in Montenegro. Types of work permits: Work permit for cross-border activities Work permit for the movement of persons within a foreign company

12. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 3. WORK PERMIT Work permit for cross-border services of foreigners Cross border services are services of foreigners carried out on the basis of a contract concluded between a foreign company i.e. foreigner and a legal entity established in Montenegro, for whom services are performed Cross-border services can provide a foreigner employed by a foreign company which in engaged in providing these types of services. Exceptionally, the cross-border services of foreigners, which require higher education and particular specialist knowledge and experience, can provide even a foreigner who is not employed. To perform such services, legal entity registered in Montenegro is obliged to get, prior to applying for a work permit, and on the basis of written explanation, the consent of the government body responsible for the activity in which service is being provided. This permit is being issued at the request of a legal entity established in Montenegro, for a period up to one year.

13. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 3. WORK PERMIT Work permit for the movement of persons within foreign company Foreign company which has a registered legal entity or a branch in Montenegro, can temporarily move own employee to work in that legal entity or in that branch, provided that the foreigner has been employed in the company at least one year. Foreigners who could be directed, are: executives, managers and specialists. This permit is being issued at the request of a legal entity established in Montenegro, which was founded by a foreign company, i.e. part of a foreign company registered in Montenegro, for a period up to one year and can be extended for not longer than two years.

14. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 4. TEMPORARY STAY FOR THE PURPOSE OF EMPLOYMENT AND WORK An application for temporary residence for the purpose of employment and work, performance of economic and entrepreneurial activity, i.e. seasonal work, is being submitted to the Ministry of Interior, within five working days of the issuance of a work permit. An application is being submitted personally by a foreigner, or a company or an entrepreneur at which a foreigner intends to work. Temporary residence of a foreigner for the purpose of employment and work, performance of economic and entrepreneurial activity, is being issued for a period specified in the work permit. Temporary residence of a foreigner for the purpose of employment and work can be granted for a period of up to eight months in a calendar year.

15. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 5. RIGHT TO EMPLOYMENT OF FOREIGNERS WITH GRANTED TEMPORARY RESIDENCE FOR PURPOSE OF MERGING WITH FAMILY Foreigners who have been granted temporary residence for the purpose of merging with their families are entitled to employment during the period of validity of this permit for temporary residence. Family members of a foreigner with a residence permit in Montenegro (spouse and children under the age of 21) have priority in issuing work permits.

16. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 6. OBLIGATIONS OF EMPLOYERS WHO EMPLOY FOREIGNERS Employer, legal entity, i.e. a part of foreign company registered in Montenegro is obliged to sign a labour contract or contract for performing activities or services with a foreigner, before starting the work. The contract is being concluded after obtaining permit for employment, i.e. work permit and permit for temporary residence of a foreigner, for the purpose of employment and work, performance of economic and entrepreneurial activity, i.e. seasonal work, in line with the Law on Foreigners. The exception applies to a foreigner who has been granted a temporary residence for the purpose of merging with a family, with whom the labour contract is being concluded after obtaining a work permit. An employer is obliged to report a foreigner with whom concludes a labour contract, on compulsory social insurance. Legally employed foreigner is equated with a Montenegrin citizen in exercising the labour rights and rights based on a labour.

17. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 7. ANNUAL QUOTA OF WORK PERMITS (Decission of the Government of Montenegro) Is being established for : Employment of foreigners and Cross-border services of foreigners. Quota for seasonal employment of foreigners is determined within the quota for the employment of foreigners.

18. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 7. ANNUAL QUOTA OF WORK PERMITS Year Quota 200939450 201039450 201127050 201225050 201316500 ANNUAL QUOTA OF WORK PERMITS FOR FOREIGNERS IN PERIOD 2009 - 2013

19. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 7. ANNUAL QUOTA OF WORK PERMITS Total quota for 2013 is 16500 work permits. – At the demand of the Employment Agency of Montenegro, from the previously stated number 1000 work permits could be allocated differently (in relation to point 2 below) for certain purposes, in line with the labour market demands. – Remaining 15500 work permits are divided as follows: 14700 are for employment of foreigners and 800 are for cross-border services. – A quota for seasonal employment was determined within the quota for employment of foreigners, and it stands at 11200.

20. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 7. ANNUAL QUOTA OF WORK PERMITS Foreigners that the work permits are issued to outside the annual quota – 10 categories. (the one having personal work permit; the one who is employed on the basis of an international agreement, on a reciprocal basis; the one conducting teaching in the educational institutions in the language and script of a minority; professional athletes; a family member of Montenegrin citizen who is a foreigner with a permanent residence or refugee-spouse and children until they turn 21; representative of the company or an entrepreneur; labour migrant and directed foreigner-executive, specialist, i.e. manager).

21. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 8. EMPLOYMENT AND WORK WITHOUT WORK PERMIT Foreigners having the right to work without work permit – 22 categories. (foreigners – the founders, members of the management and executive bodies of a company, who are not employed there; members of international missions, academic staff invited to participate in some project of importance for Montenegro; correspondents accredited in Montenegro; those who come to participate in sports competitions; those who participate in organised professional conferences and seminars; business visitors; artists; pupils or students who do the practice on the basis of international agreements; those who act within humanitarian organisations, etc.)

22. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 9. DATA ON ISSUED WORK PERMITS YearNumber of issued work permitsa 201014516 201119455 201220653 2013*8069 * Data valid for 20 May 2013

23. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 9. DATA ON ISSUED WORK PERMITS NATIONALITIES WITH THE MOST ISSUED WORK PERMITS 20122013 Serbia 88463261 Bosnia and Herzegovina 44201869 Russian Federation 29931194 Macedonia 1485537 Kosovo 639307 Croatia 323127

24. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 9. DATA ON ISSUED WORK PERMITS BRANCHES IN WHICH WERE ISSUED THE MOST WORK PERMITS 20122013 Construction44221988 Tourism and hospitality42101408 Trade30951300

25. Chapter 2: Freedom Movement for Workers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 2: FREEDOM MOVEMENT FOR WORKERS 10. HARMONISATION WITH EU ACQUIS COMMUNITAIRE Montenegrin regulations governing the area of employment and work of foreigners have not been harmonised with the relevant EU acquis communitaire. Adequate changes will be made in the Montenegrin legislation in order to enable to the EU citizens and their family members free access, without limitations, to the labour market in Montenegro, in order to fully comply with the principle of free movement of workers. Deadline: until Montenegrin accession to the EU

26. Thank you for your attention. QUESTIONS