Introduction

As global hiring becomes the norm, businesses are increasingly engaging talent across diverse legal landscapes. Two such jurisdictions that frequently come up in global workforce strategies are Montenegro and the United States. On the surface, they might seem worlds apart, but understanding their differences - and how they apply to your business - is essential to staying compliant and building trust with your teams.

Whether you're a US company hiring in the Balkans or an EU-based organisation setting up in the States, failing to navigate labour law properly can result in fines, reputational damage, or even forced business exits. Let’s take a closer look at what sets these countries apart - and how HR leaders can adapt with confidence.

Quick Tips

• Always consult a local expert before drafting employment agreements in either country.

• Avoid assuming your standard policies will transfer legally or culturally.

• In Montenegro, trade unions and collective agreements matter. In the US, state-level laws can vary dramatically.

• Monitor working time, overtime, and termination protections - they differ significantly.

• Use onboarding to set clear expectations and avoid misclassification of employees vs contractors.

Employment Contracts: More Protection in Montenegro

In Montenegro, employment is governed by the Labour Law (Zakon o radu), which mandates written contracts outlining key terms such as job duties, salary, and hours. Employees have strong protections, especially concerning dismissal procedures. Fixed-term contracts are limited and must be justified under law.

By contrast, most US employment relationships are considered "at-will," meaning either party can terminate the relationship with minimal notice unless otherwise specified in a contract. While this offers flexibility, it places the onus on employers to document performance concerns and mitigate wrongful termination risks. State-specific requirements can also complicate matters, particularly around final pay, PTO accruals, and termination timelines.

HR teams must ensure that global policies reflect local norms. A Montenegrin employee offered an at-will US-style contract may challenge it legally or report the business to local labour inspectors - something I’ve seen happen when a client reused US templates abroad.

Working Time and Leave: Watch the Hours

Montenegro has clear rules on working time - typically capped at 40 hours per week, with overtime limited and paid at a premium. Employees are also entitled to a minimum of 20 days’ annual leave, plus public holidays.

In the US, there is no statutory annual leave entitlement at the federal level. Most full-time workers receive around 10 paid days off per year, but this is entirely employer-dependent. There’s also no federal cap on working hours, though the Fair Labor Standards Act (FLSA) requires overtime pay for eligible employees over 40 hours per week.

If you operate in both countries, it's critical to create region-specific time tracking and leave systems. One US client learned this the hard way when their Montenegrin team flagged underpaid overtime. We worked with them to build a dual-compliance payroll model and local leave tracker to prevent repeat issues.

Termination and Severance: Structured vs Flexible

In Montenegro, employers must justify terminations with a valid reason such as redundancy or performance, follow consultation rules, and provide notice periods and severance (unless the dismissal is for serious misconduct). Disputes can go to Labour Courts and employers often bear the burden of proof.

In the US, although at-will rules offer flexibility, there are still protections under laws such as Title VII of the Civil Rights Act and state-level wrongful dismissal statutes. Severance is not required by law but often used to mitigate risk.

A client I worked with who was scaling quickly across both locations learned that what felt like “generous severance” in the US was a legal minimum in Montenegro. We supported them in developing culturally appropriate offboarding processes that honoured legal expectations and supported employer brand.

A Real Example: Creating Parallel Policies that Work

Last year, I supported a European SaaS company headquartered in the UK with hiring in both the US and Montenegro. Their biggest challenge? Consistency without legal risk.

We created localised contracts, implemented dual payroll systems, and provided their managers with guidance packs on jurisdiction-specific norms. The result? Smooth onboarding, strong compliance, and zero disputes - even through a round of organisational change six months later.

Final Thoughts

Montenegro and the US sit at different ends of the employment law spectrum. While the US offers flexibility, it also requires careful HR judgment. Montenegro provides employee safeguards that demand proactive planning and detailed documentation. Understanding these differences - and acting on them - is essential.

What’s next for your global people strategy? 

Book a free compliance check-in or HR audit with ThinkGlobal HR. Whether you're expanding into the Balkans, hiring your first US employee, or reviewing cross-border risks, we’re here to help - with insight, clarity, and calm, practical support every step of the way.