The long-awaited reform to Montenegro’s “permanent seasonal worker” model remains stuck in legislative and administrative limbo, according to reporting from Vijesti. The initiative, which has been discussed for years, aims to create a legal and fiscal framework that would allow employers in tourism, agriculture and hospitality to retain workers year after year without the complexities of repeated seasonal contracts. The reform is seen as essential for stabilising the labour market and reducing the chronic shortage of skilled workers in Montenegro’s most important economic sectors.
Despite broad political agreement that reform is necessary, progress has been slow. Ministries have repeatedly announced drafting cycles, consultations and upcoming legislation, yet no final framework has been implemented. Employers argue that the delays create uncertainty and force them to rely on short-term contracts, foreign labour and emergency measures. The lack of predictability pushes many skilled workers to seek more stable employment abroad, particularly in Croatia, Slovenia and Western Europe.
The stagnation reflects deeper systemic issues. Labour-market policies in Montenegro often struggle to align with rapid shifts in employer needs, especially in tourism where demand fluctuates dramatically across seasons. Government agencies face capacity constraints, legal drafting processes are slow, and inter-ministerial coordination is inconsistent. As a result, even reforms that enjoy consensus move forward at an uneven pace.
The absence of a permanent seasonal worker model has macroeconomic implications as well. Labour shortages in tourism reduce service quality, limit capacity in peak periods and push companies to raise wages sharply, which in turn accelerates price growth in accommodation and hospitality. The lack of workforce stability also restricts Montenegro’s ability to position itself in higher-value tourism segments that depend on year-round professional staff.
Vijesti’s reporting highlights growing frustration among employers who argue that Montenegro risks falling behind regional competitors. Countries such as Croatia and Greece have already introduced more flexible labour frameworks to support tourism expansion. Without similar reforms, Montenegro’s competitiveness may erode even in areas where it has natural advantages.
Ultimately, the stalled reform underscores the need for a more agile policy environment. Montenegro’s economic development depends not only on investment and infrastructure but equally on labour-market alignment. Without timely legislative action, the country may struggle to sustain growth in its most important export sector.
