Publications • 21. 01. 2026.

For More Professional Hospitals, Schools and Public Institutions: Our key recommendation for the Law on Public Institutions

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Public institutions founded by the state employ 30,170 people, accounting for more than half of all employees in central-level public administration. According to the Open Data Portal, there are 324 public institutions in Montenegro. Despite their significance, employment and labour relations in public institutions remain a largely neglected area, most often governed either solely by general labour regulations or by inadequate legislation that fails to acknowledge their unique relevance to advancing the public interest, delivering public services, and, more broadly, establishing a merit-based and transparent system.

The extent to which this area has been neglected is illustrated by the fact that it was only with the adoption of the current Public Administration Reform Strategy 2022-2026 that an official record of the number of employees was established, covering public institutions at both the central and local levels. The Strategy also identified the absence of a unified normative framework governing public institutions that provide public services to citizens and legal entities in the fields of health care, education, culture, sport, social and child protection, pension and disability insurance, etc. Simultaneously, it recognised that Montenegro, unlike neighbouring countries, does not have a dedicated Law on Public Institutions, but rather regulates this area in part through so-called “sectoral laws” in the field of social activities. In response, the Strategy foresees preparation of a dedicated analysis of public institutions, drafting of a Law on Public Institutions, and introduction of mandatory human resources planning within this segment of the public sector.

Following the adoption of the Analysis with Identified Challenges and Recommendations on the Need to Establish a Normative Framework for Public Institutions, the Government of Montenegro proceeded with drafting the Law on Public Institutions. In this analysis, we outline potential approaches to improving the current draft of the law, drawing on previous experience in this field and on identified shortcomings in recruitment procedures, human resources planning, and the protection of rights, as documented in the Risk Map of Corruption and Undue Influence in Public Sector Recruitment (https://mapa-rizika.me). The analysis is divided into two key chapters: the first identifies the main legal gaps and ambiguities in this area, while the second sets out the principal avenues for improvement.