<START>
25 March 2019 05:44 am
*MFIC – WHITE BOOK
More flexible Labour Law necessary
*
Podgorica, (MINA-BUSINESS) – Foreign investors believe that, in order to improve its business environment, Montenegro has to deregulate its labour market, have a more flexible Labour Law and take measures aimed at tackling the informal economy.
The ninth edition of the White Book, which was presented in Podgorica this week, says that the Labour Law should be more flexible.
"In particular, employer should have more flexibility in terminating the employment contract as current conditions for termination of contract are rather strict and are not suitable for market economy," the investors say.
They say that the employer are required to conclude employment contract with indefinite term, which is in practice extremely difficult to terminate, as termination requires a lengthy and complicated procedure, further complicated by judicial practice which is rather lenient towards employees.
"Therefore, employers are forced to keep employees even if they are not performing their work obligations, which can have direct negative effect on business results of a company as well as on the employment rates in the country," says the White Book, published by the Montenegrin Foreign Investors' Council (MFIC).
The investors argue that past work compensation should also be amended as employer should not be obliged to pay compensation for past work conducted for previous employers.
<END>