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Montenegro

An ILO EPLex composite of 0.608 places Montenegro among strong-protection jurisdictions on the 0-1 scale.

ILO EPLex B-READY 2025 OECD EPL
0.608 ILO EPLex composite (0–1)
OECD EPL β†’

Montenegro's statutory protection against unfair dismissal is strong - an ILO EPLex composite of 0.608 on the 0–1 scale, stronger than 96% of the 95 rated countries. Data is compiled from 3 official sources (ILO EPLex, World Bank B-READY 2025, OECD EPL), covering statutory notice periods, severance pay, and dismissal procedures.

Montenegro - the verdict

Montenegro's statutory protection against unfair dismissal is strong - an ILO EPLex composite of 0.608 on the 0–1 scale, stronger than 96% of the 95 rated countries.

0.608
ILO EPLex composite (0–1)
96th
percentile, protection
2.78/6
OECD EPL strictness
63.5/100
B-READY labor quality

Sources: ILO EPLex Β· World Bank B-READY 2025 Β· OECD EPL. Higher = stronger statutory protection.

How we calculate this percentile

We sort every country with a published ILO EPLex composite score (95 in total) from lowest to highest. Montenegro's position in that sorted list gives its percentile: round((countries at or below its score Γ· 95) Γ— 100). A higher percentile means stronger statutory dismissal protection relative to the full 95-country set, not a comparison to any single peer country.

Montenegro maintains strong statutory dismissal protections, scoring 0.608 on the ILO EPLex composite (2020) - among the higher levels worldwide. The OECD EPL overall index is 2.78/6.0, ranking #15 of OECD-covered countries. B-READY 2025 labor regulation quality is 63.5/100. Statutory notice rules apply across 7 tenure tiers.

What the Data Shows for Montenegro

Europe. Covered by 3/3 tracked datasets. The most recent ILO EPLex composite score is 0.608 out of 1.0 (2020), summarizing statutory termination rules into a single index. B-READY 2025 labor score: 63.5/100, moderate. The OECD EPL overall strictness index is 2.78/6.0, where higher values indicate stricter rules on individual and collective dismissal.

Statutory notice periods in Montenegro scale with tenure across 7 tiers, reaching 1 month at 20 years of service. Severance pay can reach 6.67 months of salary at 20 years, while redundancy-specific pay is 6.67 months. The maximum probation period allowed by law is 6 months, defining how long employers can assess workers under reduced protection. Dismissal process: fast, ~0.4 weeks. No 3rd-party approval required for individual dismissal.

Formal labor dispute resolution takes a moderate timeline, averaging 5.5 months. A moderate share of firms, 7.0% in the World Bank's survey, report experiencing a labor dispute. Employer social contributions add a comparatively light cost layer, 0.0% of salary. The EPLex redress/reinstatement sub-indicator is 0.795/1.0, reflecting how strong remedies are when a dismissal is ruled unlawful. 6 peer comparisons below.

How to read the three measurement scales

These figures draw on three different measurement traditions, so read each one on its own terms before comparing across countries. The ILO EPLex composite condenses statutory termination rules into a single index from zero to one, where higher numbers mean stronger legal protection against dismissal. The World Bank Business Ready 2025 labor score runs from zero to one hundred and blends the quality of regulation with how well public services and dispute processes actually work in practice. The OECD employment protection index uses a zero to six scale and only covers member economies, but it offers the longest historical series, which makes it the better choice for tracking reform over time. A country can score strictly on paper yet still process dismissals quickly, so always weigh the statutory index against the practical estimates. Where a country appears in fewer than all three datasets, treat the missing measures as not yet collected rather than as a sign of weak protection, and revisit this page when new releases are published because indicators can shift year over year.

Data Sources

3

ILO / WB / OECD coverage

Region

Europe

Geographic grouping

Latest Year

2025

Most recent indicator update

Montenegro vs. every rated country

Where Montenegro's ILO EPLex composite sits among all 95 countries with a composite score.

Montenegro - ILO EPLex composite

Worker-protection strength against unfair dismissal (0–1 scale)

0.61 Top 4% higher than 96% of 95 rated countries

0.00–0.10: 0 rated countries (0%). Below this entry. 0.10–0.20: 1 rated countries (1%). Below this entry. 0.20–0.30: 8 rated countries (8%). Below this entry. 0.30–0.40: 26 rated countries (27%). Below this entry. 0.40–0.50: 39 rated countries (41%). Below this entry. 0.50–0.60: 15 rated countries (16%). Below this entry. 0.60–0.70: 6 rated countries (6%). This entry sits in this band. 0.70–0.80: 0 rated countries (0%). Above this entry. 0.80–0.90: 0 rated countries (0%). Above this entry. 0.90–1.00: 0 rated countries (0%). Above this entry. Montenegro 0.00 1.00 EPLex composite score, bucketed by value

Each bar is a band; taller bars hold more rated countries. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.

Source ILO EPLex composite (0–1 scale) Β· 2020

Montenegro EPLex composite 60.8%

Out of a 1.0 maximum. Higher = stronger statutory protection against dismissal.

ILO EPLex (2020)
0.608
out of 1.0 Β· Rank #5
B-READY 2025
63.5
out of 100 Β· Rank #68
OECD EPL
2.78
out of 6.0 Β· Rank #15

ILO EPLex

Termination Protection Breakdown (2020)

Prohibited Grounds for Dismissal
1.000
Probation Period
0.760
Procedural Requirements
0.500
Notice Periods
0.207
Severance Pay
0.449
Redundancy Pay
0.215
Redress / Reinstatement
0.795

Scale: 0 = no protection · 1 = maximum protection. Source: ILO EPLex 2020.

Max probation period: 6 months

Notice Periods by Tenure

Tenure Notice Period
6 months 1 month
9 months 1 month
2 years 1 month
4 years 1 month
5 years 1 month
10 years 1 month
20 years 1 month

Source: ILO EPLex ILO EPLex Notice period is the legally mandated advance notice before termination

Severance and Redundancy Pay by Tenure

Tenure Severance Redundancy
6 months 3 mo 0 mo
9 months 3 mo 0 mo
2 years 3 mo 3 mo
4 years 3 mo 3 mo
5 years 3 mo 3 mo
10 years 3.33 mo 3.33 mo
20 years 6.67 mo 6.67 mo

Values in salary-months. Source: ILO EPLex. Severance = individual dismissal. Redundancy = collective/economic dismissal.


B-READY 2025

Labor Regulation Quality

Regulation Quality
75.0
out of 100
Public Services
69.7
out of 100
Efficiency
45.7
out of 100
Notice Required
Yes
Severance Required
No
Weeks to Dismiss
0.4
Weeks Severance
1.8
Firms in Disputes
7.0%
Months to Resolve
5.5
Social Contributions
0.0%
3rd Party for Dismissal
Not required

Source: World Bank Business Ready 2025 World Bank Business Ready 2025 Pillar scores are 0-100 (higher = better regulation quality)


Frequently Asked Questions

What are the employment protections in Montenegro?

ILO EPLex termination protection composite score: 0.608/1.0 (2020); World Bank B-READY labor regulation quality: 63.5/100; OECD EPL overall: 2.78/6.0; 7 notice period tiers defined by law; 7 severance/redundancy pay tiers. (3 sources.)

How does Montenegro compare to the OECD average?

OECD EPL 2.78/6.0 (above the ~2.3 average).

What notice period and severance pay does Montenegro require?

up to 1 month notice (20 years); severance up to 6.67 months (20 years); notice mandated; severance not mandated.

What data sources cover Montenegro's employment laws?

3 sources: ILO EPLex; World Bank B-READY 2025; OECD EPL.

How strict are dismissal protections in Montenegro?

EPLex 2020: moderately strict (0.608/1.0); max probation 6mo; 3rd-party approval not required; dismissal ~0.4 weeks.

How does Montenegro handle labor disputes?

disputes resolve in ~5.5mo; 7.0% of firms report one; social contributions 0.0% of salary; EPLex redress indicator 0.795/1.0.

What to do with this

Use Montenegro's scores as a comparison benchmark, not legal advice.

  • Montenegro sits above 96% of rated countries on statutory dismissal protection (ILO EPLex 0.608/1.0) - see exactly where it lands among all 95. View the rankings
  • The three indices measure different things on different scales, compare Montenegro side by side with another country before drawing a conclusion. Compare Montenegro
  • Read Montenegro against its regional peers, the Europe averages reveal the structural pattern. Europe overview

These indices reflect the law as written, not how it is enforced, recent amendments, or the facts of any individual case. For a real decision, confirm the current statute and consult a qualified employment lawyer, see our disclaimer.

Related

Data sourced from official OECD, ILO, and World Bank employment-protection datasets. See our methodology for details. Retrieved and formatted by PlainEmploy Editorial

Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from OECD, ILO, and World Bank labor market databases. Consult a qualified professional before making decisions based on this data.

Primary sources: ILO EPLex, World Bank B-READY, OECD EPL.

PlainEmploy is rendered directly from the OECD Employment Protection Legislation indicators, the ILO EPLex database, and the World Bank B-READY labor pillar, no number is typed in by an editor. This country's composite scores and comparisons are computed directly from the underlying OECD/EPLex/B-READY tables, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2026-07-06.