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 19 – Social Policy and Employment Bilateral screening: Chapter 19 PRESENTATION OF MONTENEGRO Brussels, 11-13 March 2013

2. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT PRESENTATION TITLE: EMPLOYMENT RELATIONSHIPS PhD Vesna Simovic Assistant to the Minister of Labour Ministry of Labour and Social Welfare E-mail: vesna.simovic@mrs.gov.me

3. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT CONTENTS:  Topic 1: Working hours and holidays  Topic 2: Night-time work  Topic 3: Employment for an indefinite time period Topic 4: Shorter working hours  Topic 5: Protection of young people at work  Topic 6: Assignment of employees  Topic 7: Collective redundancy  Topic 8: Protection of employees when changing employers

4. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT 1. WORKING HOURS AND HOLIDAYS Directive 2003/88/EC CONSTITUTION OF MONTENEGRO: - Everyone shall have the right to limited working hours and paid vacation (Article 64) LABOUR LAW – Working Hours: -Full-time working hours shall be 40 hours a week (Article 44): -Part-time working hours: up to ¼ of full- time working hours (Article 46) -Shorter working hours (due to harder working conditions): up to 36 hours a week (Article 47) -Working hours beyond full-time working hours (written decision and notifying the Labour Inspection): 10 hours a week, except in exceptional cases (Art. 49, 50 and 52) -Written decision on the schedule of working hours (Article 53) -Rescheduling of working hours -(Article 54)

5. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT LABOUR LAW (LL) - Entitlement to Annual Leave:  REST BREAK DURING WORKING TIME – shall be counted into the full-time working hours (Article 59): -30 minutes (for full-time employees) -- 15 minutes (for employees who work longer than four and shorter than six hours a day) -45 minutes (for employees who work longer than full-time working hours)  DAILY REST PERIOD: a minimum rest period of 12 consecutive hours between two consecutive working days. (Article 61)  WEEKLY REST PERIOD: at least 24 consecutive hours; used on Sunday, as a rule; if the employee works on the day of his/her weekly rest period, the employer shall provide him/her a rest period of at least 24 consecutive hours during the following week.  employees under 18 years of age: 2 consecutive days, one of which has to be Sunday. (Article 62)

6. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT  ANNUAL LEAVE (Art. 63 -71)– an employee may not waive the right to it, and he/she may not be denied the right to it  duration: at least 20 working days; employees under 18 years of age: 24 working days; PWD: 26 working days; employees working for shorter working hours: 30 working days  It shall be realized in proportion to the time period spent at work: 1/3 for each month of work with an employer if his/her employment commences or terminates during that calendar year.  A temporary working disability due to illness, paid leave, maturity leave, recess during official and religious holidays and absence due to responding to requests of state authorities shall be considered as time spent at work for the purpose of achieving the right to an annual leave.  It may be used in two parts  If an employee has not used his/her annual leave or a part of annual leave in the calendar year due to: absence from work in accordance with the regulations on health insurance, maternity or parental leave, leave from work for the purpose of providing child care and special child care, he/she shall be entitled to use that leave until 30th June of the following year  Entitlement to compensation for damage for unused annual leave

7. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT 2. NIGHT-TIME WORK Directive 2003/88/EC LABOUR LAW (Article 56): Work performed between 10 p.m. and 6 a.m. the following day Night-time work shall constitute a special work condition. An employee who works for at least three hours of his/her working hours during night, or an employee who works at least a third of his/her full annual working hours during night, shall be entitled to special protection, in accordance with regulations regarding protection at work. If, according to an opinion of a relevant health authority, an employee’s health condition could be aggravated due to this work, the employer shall deploy the employee to an adequate day-time work. An employer that has work organized in shifts shall provide switching of shifts so that an employee does not work during night (night shift) for more than one working week continuously.

8. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT 3. Shorter Working Hours Directive 97/81/EC LABOUR LAW (Article 47): shorter working hours: up to 36 hours in a week, proportionally to the detrimental effect to employee's health or working ability, For: employees working on a position that is extremely difficult, arduous and detrimental to health The work positions shall be defined by systematization act in accordance with collective agreement. An employee with shorter working hours shall have the same rights based on employment as an employee with full-time working hours. An employee working on a position that is extremely difficult, arduous and detrimental to health shall not work over time on such tasks, or conclude a contract of employment for such positions with another employer.

9. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT 4. Fixed-Term Employment D 1999/70/EC and D 91/383/EEC LABOUR LAW (Art. 24, 25, 26): As a rule, a contract of employment shall be concluded for an indefinite time period. For a fixed term: for the purpose of performing jobs whose duration is predetermined for objective reasons or due to occurrence of unforeseeable circumstances or events. Limitation: An employer may not conclude one or more fixed-term contracts of employment with the same employee if their duration, continuously or with interruptions, is longer than 24 months (interruption of less than 60 days shall not be considered an interruption) Exception: if it is necessary for the purpose of substituting a temporary absent employee, performance of seasonal jobs or work on a specific project until the completion of the project, in accordance with the law and collective agreement. An employee who has concluded a fixed-term contract of employment shall have the same rights, obligations and responsibilities arising from and based on employment for the duration of the contract as an employee who has concluded a contract of employment for an indefinite period of time

10. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT 5. PROTECTION OF YOUNG PEOPLE AT WORK (15-18 years of age) Directive 94/33/EC CONSTITUTION OF MONTENEGRO (Article 64, paragraph 3) and LABOUR LAW (Article 103): young people shall have special protection at work -LABOUR LAW: -For establishing employment relationship: consent from the parents, adoptive parents or guardians, ( is necessary -For establishing employment relationship: consent from the parents, adoptive parents or guardians, if such work does not compromise his/her health, moral and education, or provided that such work is not prohibited by law (findings from a relevant health authority is necessary ) (Article 17) -Deployment of employees: may not work -Deployment of employees: may not work on positions where mostly very difficult physical work is performed, on positions performed underground or under water, or positions which may be harmful and increase risk for their health and life. (Article 104) -Working hours: prohibition of night-time work and overtime work (Article 106) -Annual leave: at least 24 working days (Article 65, paragraph 2) -Weekly rest period: 2 consecutive days, one of which has to be Sunday (Article 62, paragraph 6)

11. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT 6. Agency for Temporary Assignment of Employees (Labour Law: Art. 43-43g) Conditions for the Agency: Capacity of a legal person Conducting assignment affairs as its sole activity License for work ASSIGNMENT: 1. Agreement: Agency - employer beneficiary 2. Contract of employment for temporary performance of jobs: Agency - employee Contract of employment: for a fixed term or for an indefinite time period In terms of exercising the rights, The Agency shall be the employer – exception: regulations regulating protection of health, protection at work and special protection of particular categories of employees.

12. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Assignment Agreement CONTENTS: the number of employees assigned to the beneficiary; the time period during which the employee is assigned; the place of work; the duties the employee will perform; application of the measures of protection at work place where the employee is to perform the jobs; the method and the time period within which the beneficiary has the obligation to submit pay slip to the Agency, as well as the regulations applied by the beneficiary in determining salaries; responsibility of the Agency if the employee assigned to work fails to fulfil his/her obligations MAY NOT BE CONCLUDED for the purpose of: substitution of employees during strike, in accordance with the law, with the beneficiary where the strike is on; assignment of an employee to perform jobs for which the beneficiary had terminated contracts of employment on the grounds of redundant employees in the last 12 months; performance of jobs within the scope of the activity of the Agency, and performance of jobs in other cases established by a collective agreement which is binding for the beneficiary.

13. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT OBLIGATIONS OF THE AGENCY: Introduction with the content of the agreement (delivery upon the request of the employee) Introduction with risks at work, conducting training Payment of salary Indemnification OBLIGATIONS OF A BENEFICIARY: Measures of protection at work Notifying the trade union on reasons for engagement of assigned employees

14. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT 7. TERMINATION OF THE NEED FOR WORK OF AN EMPLOYEE (Labour Law: Art. 92, 93, 94) -Obligation of informing the trade union and Employment Agency and giving opinion by the same: If an employer determines that, due to technological, economic and restructural changes, in the period of 30 days, there will be the termination of the need for work of employees for an indefinite time period, and for at least: 10 employees with an employer employing more than 20, and less than 100 employees who are employed for an indefinite time period; 10% of employees with an employer employing at least 100, and maximum 300 employees who are employed for an indefinite time period; 30 employees with an employer employing more than 300 employees who are employed for an indefinite time period, an employer that determines that there will be the termination of the need for work of at least 20 employees in the period of 90 days, regardless of the total number of employees. Contents of the notification: reasons for termination of the need for work of employees; the number and the category of employees who are employed for an indefinite time period; the criteria for determining the employees for whose work the need has terminated; the number and the category of employees for whose work the need has terminated; period within which employment measures will be implemented; the criteria for calculation of the amount of severance pay. )

15. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Criteria for determining the redundant employees: -Quality of performing works -The contribution of the employee in the work, in accordance with the collective agreement -Rights of employees: -Deployment to another appropriate position with the employer; -Deployment with another employer, with consent of the employee; -Professional training, retraining and additional training; -Right to a severance pay (at least 1/3 of his/her average monthly pay less the taxes and contributions in the previous six months for each year of employment with the employer, or 1/3 of the average monthly pay less the taxes and contributions in Montenegro, if this is more favourable for the employee.) -It may not be lower than three average monthly pays less the taxes and contributions -Persons with disability:  at least 24 average salaries, if the disability was caused by an injury outside work or an illness;  at least 36 average salaries, if the disability was caused by an injury at work or a professional disease.

16. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT 8. Rights of Employees when Changing Employer (and change of ownership over capital) Directive 2001/23/EC LABOUR LAW: Article 87: In case of a change in status, or a change of employer, in accordance with the law, an employer successor shall overtake employees from the employer predecessor and shall respect all the rights and obligations of the employees under the contract of employment in force on the day of the takeover. An employer predecessor shall inform the employee of the takeover in writing not later than five days prior to the takeover. An employer successor shall conclude a contract of employment with the employees within five days as of the takeover, which may not contain lesser scope of rights for the employee than the rights determined by the contract of employment with the employer predecessor, for the duration of the obligations under the collective agreement taken over. An employer predecessor shall terminate contract of employment with an employee who refuses to conclude a contract of employment or does not declare about acceptance of conclusion of contract of employment with the employer successor.

17. Chapter 19: Social Policy and Employment M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 19: SOCIAL POLICY AND EMPLOYMENT Article 90: An employer successor shall apply the collective agreement of the predecessor for at least one year from the day of change of the employer, unless prior to that deadline: the validity period of the collective agreement with the employer predecessor expires; a new collective agreement is concluded with the employer successor Article 89: An employer predecessor and an employer successor shall, prior to the change of employer, notify the representative trade union of: the date of the change of employer; reasons for the change of employer; legal, economic and social consequences of the change of employer to the positions of the employees and measures for their mitigation. An employer predecessor and an employer successor shall, prior to the change of employer, in cooperation with the representative trade union take measures with the aim of mitigating social-economic consequences to the position of the employees.

18. Thank you for your attention. QUESTIONS