law at a glance serbia

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EmploymEnt law ovErviEw 2017

Serbia

i. GEnEral 01ii. hirinG practicEs 03iii. EmploymEnt contracts 04iv. workinG conditions 06V. Anti-DiscriminAtion LAws 08vi. social mEdia and data privacy 10vii. authorizations for forEiGn EmployEEs 11 viii. tErmination of EmploymEnt contracts 12iX. rEstrictivE covEnants 15X. riGhts of EmployEEs in casE of a transfEr of undErtakinG 16Xi. tradE unions and EmployErs associations 17Xii. othEr typEs of EmployEE rEprEsEntativE BodiEs 19Xiii. social sEcurity / hEalthcarE / othEr rEquirEd BEnEfits 20

Table of contEnts

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• TheLabourActimposescertainobligationsincase ofa“changeofemployer”,bothforthepredecessor andsuccessoremployer,which,byvirtueofan explicitprovisionoflaw,encompassesonlystatus changes,e.g.mergersandspin-offs.

3. LegalFramework

Labour Act (Zakon o radu, “Official Gazette of theRepublic of Serbia”, nos. 24/2005, 61/2005, 54/2009,32/2013and75/2014).

Employment of Foreigners Act (Zakono zapošljavanjustranaca,“OfficialGazetteoftheRepublicofSerbia”,no.128/2014).

Act on Conditions for Secondment of Employees to Temporary Work Abroad and their Protection, (Zakonouslovimazaupućivanjezaposlenihnaprivremeniraduinostranstvoinjihovojzaštiti“OfficialGazetteofRS”,no.91/2015).

Occupational Safety and Health Act (Zakon obezbednosti i zdravljunaradu,“OfficialGazetteof theRepublicofSerbia”,no.101/2005and91/2015).

Prevention of Harassment at Work Act (Zakon osprečavanju zlostavljanja na radu, “Official Gazette oftheRepublicofSerbia”,no.36/2010).Prohibition of Discrimination Act (Zakon o zabranidiskriminacije, “Official Gazette of the Republic ofSerbia”,no.22/2009)

Whistleblowers Act(Zakonozaštitiuzbunjivača,“OfficialGazetteoftheRepublicofSerbia”,no.128/2014).

Strike Act (Zakonoštrajku,“OfficialGazetteoftheFederalRepublic of Yugoslavia”, no. 29/1996, and “OfficialGazetteoftheRepublicofSerbia”,no.101/2005–otherlaw,and103/2012–ConstitutionalCourtDecision).

Pension and Disability Insurance Act (Zakon openzijskom i invalidskom osiguranju, “Official Gazetteof the Republic of Serbia”, nos. 34/2003, 64/2004 –Constitutional Court Decision, 84/2004 – other law,85/2005,101/2005–otherlaw,63/2006-ConstitutionalCourtDecision,5/2009,107/2009,101/2010,93/2012,62/2013,108/2013,75/2014and142/2014).

Health Insurance Act (Zakonozdravstvenomosiguranju,“Official Gazette of the Republic of Serbia”, nos.


i. GEnEral

1. IntroductoryParagraph

InSerbia,thereisahierarchyoflabourregulations,withtheLabourActatthetop.Theremayalsobeanindustrialcollective agreement applicable to all employers andemployeesinaparticularindustry.

Acompanymayhaveanindividualcollectiveagreementconcludedbetweentheemployerandtherepresentativetradeunion.Companiesthatdonothaveanindividualcollective agreement, usually regulate employment-relatedissuesbyageneralenactmentcalledWorkRules.

Written employment agreements must be concludedwitheachemployee.TheLabourActprovidesforcertainmandatoryelementsofanemploymentagreement.

TheWorkRulesortheindividualcollectiveagreement,aswellasindividualemploymentagreements,mustallbeconsistentwiththeLabourActandmaynotprovideforlessfavourableworkconditionsandemployeerightsthanwhatareguaranteedbytheLabourAct.Inaddition,individual employment agreements may not providefor lessfavourabletermsthan isprovided intheWorkRules or, as the casemaybe, the individual collectiveagreement.

2. KeyPoints

• Inhiringprocedure,theemployermayask questions/requireevidencedirectlyrelevantfor performanceoftheparticularjobthatthe candidateisapplyingfor.• Themaximumdurationofdefinite-term employmentagreementsis24months,whilein exceptionalcasesdefinite-termemploymentcan lastevenlonger.• Full-timeworkinghoursare40hoursperweek.• AforeignnationalwhointendstoworkinSerbia mustobtainaresidenceandaworkpermit.• TheLabourActrecognisestwotypesofworkers’ organisations:tradeunionsandworkers’councils. Anemployers’associationmaybeestablishedby employerswhoemployaminimumof5%ofthe totalnumberofemployeesinaspecificindustryor territorialunit.

www.leglobal.org

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107/2005, 109/2005 - correction, 57/2011, 110/2012- Constitutional Court Decision, 119/2012, 99/2014,123/2014and126/2014-ConstitutionalCourtDecision,106/2015and10/2016–otherlaw).

Employment and Unemployment Insurance Act (Zakono zapošljavanju i osiguranju za slučaj nezaposlenosti,“OfficialGazetteoftheRepublicofSerbia”,nos.36/2009,88/2010and38/2015).

Professional Rehabilitation and Employment of Persons with Disabilities Act(Zakonoprofesionalnojrehabilitacijiizapošljavanjuosobasainvaliditetom,“OfficialGazetteoftheRepublicofSerbia”,nos.36/2009,and32/2013).

Compulsory Social Insurance Contributions Act(Zakonodoprinosimazaobaveznosocijalnoosiguranje,“OfficialGazette of the Republic of Serbia”, nos. 84/2004,61/2005,62/2006,5/2009,52/2011,101/2011,7/2012,8/2013,47/2013,108/2013,6/2014,57/2014,68/2014–otherlaw,5/2015–adjustedRSDamounts,112/2015and5/2016–adjustedRSDamounts).

4. NewDevelopments

Secondment of Employees to Temporary Work Abroad

ThenewActonConditionsforSecondmentofEmployeestoTemporaryWorkAbroadandtheirProtectionbecameapplicableon13January2016.TheSecondmentActdoesnotbringdrasticchangestotheprocedureforsecondmentofSerbianemployeesabroad.SerbianemployerswillcontinuetobeobligedtonotifytheMinistryofLabourofeachsuchsecondment.Comparedtotheearlierlegislationenactedin1998,thenewlegislationexpandstheemployer’sobligationsinrelationtoforeignsecondmentandincreasesfinesincaseofbreach.


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Beforehiringanemployee,theemployerisentitledtoaskfromthecandidatetoprovidethedocumentsandotherevidenceonfulfilmentofconditionsfortheworkontheparticularworkpost.Besidesthegeneralworkabilityrequirement(whichassumesthatanemployeeisover15yearsofage),specialrequirementsmaybedeterminedatthediscretionoftheemployer,dependingonthetypeofjob.Thesespecialrequirementsmustnotbediscriminatory.

Theemployermaynotrequirethecandidatetoprovideanydocumentsorevidencethatarenotdirectlyrelevantforperformanceoftheparticularjobthatthecandidateisapplyingfor.Theemployerisspecificallyforbiddento:

• requesttheinformationonfamily/maritalstatus andfamilyplanning;• toconditionthecandidatewithapregnancy test(exceptwhenitismedicallyjustified,dueto performanceofthejobactivitieswhichareproven tobeharmfultothehealthofapregnantwomen andachild);• requireacertificateofnon-conviction/clean criminalrecord(anexceptionisprovidedifthere isajustifiedinterestbasedonastatute,asitisthe casewithemploymentofpublicservants).


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ii. hirinG practicEs


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1. MinimumRequirements

Beforehiringanemployee,theemployerisentitledtoaskfromthecandidatetoprovidethedocumentsandotherevidenceonfulfilmentofconditionsfortheworkon theparticularworkpost.Besides thegeneralworkability requirement (which assumes that anemployeeis over15 yearsof age), special requirementsmaybedeterminedatthediscretionoftheemployer,dependingonthetypeofjob.Thesespecialrequirementsmustnotbediscriminatory.

Theemployermaynotrequirethecandidatetoprovideanydocumentsorevidencethatarenotdirectlyrelevantforperformanceoftheparticularjobthatthecandidateisapplyingfor.Theemployerisspecificallyforbiddento:

• requesttheinformationonfamily/maritalstatus andfamilyplanning;• toconditionthecandidatewithapregnancytest (exceptwhenitismedicallyjustified,dueto performanceofthejobactivitieswhichareproven tobeharmfultothehealthofapregnantwomen andachild);• requireacertificateofnon-conviction/clean criminalrecord(anexceptionisprovidedifthereis ajustifiedinterestbasedonastatute,asitisthe casewithemploymentofpublicservants).

2. Fixed-term/Open-endedContracts

Employment agreements may be concluded for anindefinite or definite period of time. If no term isspecifiedintheemploymentagreement,itisconsideredtobeanindefinite-termemploymentagreement.

AccordingtotheLabourAct,adefinite-termemploymentagreementcanbeenteredonlyinalimitednumberofcases. Definite-term employment may be establishedforperformingwork foradurationpre-determinedbyobjectivereasons,justifiedbythedeadlineforexecutionofacertainworkproject,ortheoccurrenceofaspecificevent, and may not extend beyond the existence ofthosereasons.

Themaximumdurationofdefinite-termemploymentis24months.Inspecificcasesdefinite-termemploymentcanlastlonger:

• Definite-termemploymentwithanewlyestablished employercanbeconcludedforupto36months (wherebyanewlyestablishedemployerisan entityestablishednotmorethanoneyearpriorto thecommencementdateoftheemployment).In anycase,thedurationofworkshouldbepre- determinedbyobjectivereasons,asstatedabove, andshouldnotlastbeyondtheexistenceofthose reasons;• Foreignersestablishdefinite-termemployment whichlastsuntilexpiryoftheirworkpermit;• Projectworkcanlastuntilprojectcompletion;• Incaseofthereplacementofatemporarilyabsent employee,untilthereturnofsuchemployee.

Unemployed persons who will reach retirement agewithin five years may enter into a definite- termemployment agreement for up to the entire five-yearperiod.

Ifadefinite-termemploymentagreementisconcludedcontrary to theprovisionsof the LabourAct,or if theemployeecontinuestoworkfortheemployerforatleastfivebusinessdaysaftertheexpiryofthetimeperiodforwhichtheagreementwasconcluded,itwillbedeemedthat an indefinite-term employment relationship hasbeenestablished.

3. TrialPeriod

Employment agreements may be concluded for anindefinite or definite period of time. If no term isspecifiedintheemploymentagreement,itisconsideredtobeanindefinite-termemploymentagreement.

AccordingtotheLabourAct,adefinite-termemploymentagreementcanbeenteredonlyinalimitednumberofcases. Definite-term employment may be establishedforperformingwork foradurationpre-determinedbyobjectivereasons,justifiedbythedeadlineforexecutionofacertainworkproject,ortheoccurrenceofaspecific

iii. EmploymEnt contracts


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event, and may not extend beyond the existence ofthosereasons.

Themaximumdurationofdefinite-termemploymentis24months.Inspecificcasesdefinite-termemploymentcanlastlonger:

• Definite-termemploymentwithanewlyestablished employercanbeconcludedforupto36months (wherebyanewlyestablishedemployerisan entityestablishednotmorethanoneyearpriorto thecommencementdateoftheemployment).In anycase,thedurationofworkshouldbepre- determinedbyobjectivereasons,asstatedabove, andshouldnotlastbeyondtheexistenceofthose reasons;• Foreignersestablishdefinite-termemployment whichlastsuntilexpiryoftheirworkpermit;• Projectworkcanlastuntilprojectcompletion;• Incaseofthereplacementofatemporarilyabsent employee,untilthereturnofsuchemployee.

Unemployed persons who will reach retirement agewithin five years may enter into a definite- termemployment agreement for up to the entire five-yearperiod.

Ifadefinite-termemploymentagreementisconcludedcontrary to theprovisionsof the LabourAct,or if theemployeecontinuestoworkfortheemployerforatleastfivebusinessdaysaftertheexpiryofthetimeperiodforwhichtheagreementwasconcluded,itwillbedeemedthat an indefinite-term employment relationship hasbeenestablished.

4. NoticePeriod

Terminationbyanemployee-Theminimumnoticeperiodincaseofterminationofemploymentbyanemployeeis15days.Longernoticeperiodsmaybedeterminedbytheemployer’sgeneralenactment(WorkRulesorIndividualCollectiveAgreement)orbytheemploymentagreement,butitmaynotexceed30days.

Terminationbyanemployer-TheLabourActstipulatesmandatorynoticeperiodsonlyintheeventofdismissalduetoalackofknowledgeandskillsnecessaryforperformingacertainfunction,orfailuretoachievetheexpectedworkresults(professionalinadequacyorunderperformance).Thedurationofthenotice

periodistobedeterminedbytheemployer’sgeneralenactmentand/oremploymentagreement,dependingontheemployee’syearsofinsuredservice,whichmaynotbelessthaneightnorlongerthan30days.Theemployeemay,inagreementwiththeemployer,ceasetoworkbeforetheexpiryofthenoticeperiod,butisentitledtocompensationofsalaryintheamountdeterminedbytheemployer’sgeneralenactmentand/oremploymentagreementuntilexpiryofthenoticeperiod.


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iv. workinG conditions

1. MinimumWorkingConditions

Minimum working conditions are set by the LabourActasmandatory.Inparticular,Serbianlegislationsetsthe minimum terms and conditions of employment,whichinclude, interalia:minimumwage,annual leaveduration,paidleave,salaryincreasebasedonthelengthofservice,salarycompensation,severancepay(bothincase of retirement and redundancy), and terminationgrounds. More favourable working conditions maybe providedby collective agreements,work rules andemploymentagreements.

2. Salary

Theemployerisobligedtopaysalaryatleastonceamonth.TheLabourActguaranteesequalpayforequalwork.

Salarystructuresarecomplicatedandconsistofthefollowingmandatoryelements:

• Basicsalary;• Increasedsalarypayablefor:workonapublic holiday(110%ofthebasicsalaryfortherelevant numberofhours),nightwork(26%ofthebasic salaryfortherelevantnumberofhours),pastyears ofemploymentwiththecurrentemployer(0.4% ofthemonthlybasicsalaryforeachcompleted yearofemploymentwiththecurrentemployer), andovertimework(26%ofthebasicsalaryforthe relevantnumberofhours);• Theperformance-basedelementofsalary,payable ifaperformancenormprescribedbyanapplicable collectiveagreement/workrules/employment agreementisexceeded.

Amealallowanceandannualvacationallowancearealsomandatorypayments,butthelawdoesnotprescribetheminimumamount.Thesepaymentsaretaxedassalary.

Theemployerisalsoobligedtopayfuneralexpensesintheeventofdeathoftheemployeeoramemberofhisorherimmediatefamily.

TheLabourActguaranteestheminimumamountofsalary,whichisdeterminedatthenationallevel,basedonparameterssetbytheSocio-EconomicCouncilofRepublicofSerbia.Currently,therateoftheminimumsalaryisRSD121net(approx.EUR1)perworkinghour.

3.MaximumWorkingWeek

Full-timeworkinghoursare40hoursperweek.Asarule,theworkingweeklastsfivedays,butthemaximumof40hoursperweekmayalsobestretchedthroughalongerperiod,dependingontheemployer’sbusinessneeds(e.g.asix-dayworkingweek).AccordingtotheLabourAct,a30-minutebreakforfull-timeemployeesisastatutoryobligationandincludedinfull-timeworkinghours.

4. Overtime

Work in excessof full-timehours is deemedovertimework - it may be ordered in exceptional cases only,and triggers a salary increase. Senior employees andmanagement are not exempt from the overtimeregime, i.e.theirovertimeisalsosubjecttoadditionalcompensation.

Overtimeworkmaynotexceedeighthoursperweek.Anemployeecannotworkmorethan12hoursperdayincludingovertime.

5. Holidays

Ineachcalendaryear,theemployeeisentitledtoannualleaveofaminimumdurationof20workingdays.

Theemployerhastoprovideanincreaseofthestatutoryminimumof20workingdaysholidaybasedon(i)theemployee’scontributiontowork,(ii)workingconditions,(iii)workexperience,and(iv)theprofessionalqualificationsoftheemployee.Theemployerisfreetodeterminethenumberofdays,whichattachtoeach(aminimumofoneworkingdaypercriterion).


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Theemployeeisentitledtouseannualleaveafteronemonthofcontinuousworkwiththeemployer.

Theemployeeisentitledtoone-twelfthofhis/hertotalannualleaveentitlementforeachmonthofworkinthecalendaryearinwhich:(i)he/shecommencedwork;or(ii)his/heremploymentisterminated.

Annualleavemaybeusedatonce,ifthatdoesnotdisturbtheworkprocess,orintwoormoreinstalments.Annualleavemaybeusedinmorethantwoinstalmentsonlyiftheemployeeagreesso.Theemployerdecidesonthescheduleofannualleave,dependingontheneedsoftheworkprocess,withthepriorconsultationoftheemployee.Theentireholidayentitlementmustbeconsumeduntil30Juneofthefollowingyearoritisforfeited.

6. Employer’sObligationtoProvideaHealthyandSafeWorkplace

Ineachcalendaryear,theemployeeisentitledtoannualleaveofaminimumdurationof20workingdays.

Theemployerhastoprovideanincreaseofthestatutoryminimumof20workingdaysholidaybasedon(i)theemployee’scontributiontowork,(ii)workingconditions,(iii)workexperience,and(iv)theprofessionalqualificationsoftheemployee.Theemployerisfreetodeterminethenumberofdays,whichattachtoeach(aminimumofoneworkingdaypercriterion).

Theemployeeisentitledtouseannualleaveafteronemonthofcontinuousworkwiththeemployer.

Theemployeeisentitledtoone-twelfthofhis/hertotalannualleaveentitlementforeachmonthofworkinthecalendaryearinwhich:(i)he/shecommencedwork;or(ii)his/heremploymentisterminated.

Annualleavemaybeusedatonce,ifthatdoesnotdisturbtheworkprocess,orintwoormoreinstalments.Annualleavemaybeusedinmorethantwoinstalmentsonlyiftheemployeeagreesso.Theemployerdecidesonthescheduleofannualleave,dependingontheneedsoftheworkprocess,withthepriorconsultationoftheemployee.Theentireholidayentitlementmustbeconsumeduntil30Juneofthefollowingyearoritisforfeited.


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1. BriefDescriptionofAnti-DiscriminationLaws

Protection of employees against discrimination andharassment at work is guaranteed by the SerbianConstitution (Ustav Republike Srbije, “Official Gazetteof the Republic of Serbia”, no. 98/06), the LabourAct, as well by the special anti-discrimination andanti-harassment laws (specifically, the Prohibition ofDiscrimination Act, Act on Prevention of Harassmentat Work, Act on Prevention of Discrimination againstPersonswithDisabilities,GenderEqualityAct).

2. ExtentofProtection

Serbianregulationsprohibitanytypeofdiscrimination,either direct or indirect, towards employees orpersons seeking employment, based on their: gender,origin, language, race, colour, age, pregnancy, healthconditionordisability,nationalorigin, religion,maritalstatus, family responsibilities, sexual orientation,politicalorotheropinion,socialorigin,propertystatus,membership in political organizations, trade unionsor any other personal characteristic. Discrimination isprohibitedinrelationto:theconditionsforrecruitmentandselectionofemployeecandidates;workconditionsand employment-related rights; education, trainingand professional development; promotion at work;terminationofemployment.

Making a preference or exclusion in respect to aparticularjob,basedonapersonalcharacteristic,shallnotbeconsideredasdiscriminationonlyifthatpersonalcharacteristicrepresentstherealanddecisiveconditionfor performance of that particular job, and that thepurposeofsuchunequaltreatment isreasonable(e.g.employing only personswithout physical disability forthepositionofsecurityofficer).

Direct discriminationmeans that an employee (or anemployee candidate) is treated less favourably thananotheremployee(oranemployeecandidate),merelydue to some personal characteristic (e.g. when anemployerrefusestohireacandidatejustbecauseheisahomosexual,orwhentheemployerdetermineshigher

salaries only for male employees who perform thesametypeofworkasotherfemaleemployees).Directdiscriminationisabsolutelyprohibited.

Indirectdiscriminationexistswhenaseeminglyneutralrule (requirement, condition, criterion or practice)putsanemployee(oracandidate) ina lessfavourableposition, due to some of his personal characteristics,compared to other employees (or a candidates) whodo not have those personal characteristics (e.g.whenthecondition foremploymentonsomeadministrativeposition is the possession of a driver’s license, whichisnotnecessaryforperformanceofthejob−itwouldrepresent a discriminatory provision against personswithdisabilitywhooftendonothavedriver’slicense,butarecapableofperformingadministrativetypeofwork).Aneutral rulewhichhasanadverseeffecttowardsanemployee(oranemployeecandidate),duetosomeofhis personal characteristics, would not be consideredas discriminatory if there is a legitimate objective forthe introduction of such rule, and themeans used toachievethatobjectiveareappropriateandnecessary.

Affirmative action is stipulated in the SerbianConstitution and anti-discrimination laws as thepossibility to undertake special measures to achievereal equality, protection and progress of personswhoare inanunequalposition,byputtingtheminamorefavourablepositioncomparedtotheotherpersonswhoare inthesameorsimilarsituation(e.g.promotionofemploymentofnationalminorities inordertoachievediversity).SuchaffirmativeactionshouldbeinitiatedbytheStateanditisnotconsideredasdiscrimination.

Protectionagainst retaliation - Inaccordancewith theProhibitionofDiscriminationAct,puttingapersoninanadversepositionmerelydue tohis initiative to reportdiscrimination, is also considered as discrimination.In addition, the Whistleblowers Act stipulates thatwhistleblowers must not be put in a less favourablepositionwithrespecttoawiderangeofrights(includingemployment,workconditions,earnings,terminationofemployment,etc.)duetohavingdisclosedinformation.

V. Anti-DiscriminAtion LAws

3. ProtectionsAgainstHarassment

UndertheHSWAct,employershaveadutytocontrolallworkplacehazards, includingbullying,harassmentandother undesirable behaviour, which affects employeehealthandsafety.

Under the ERA, workplace bullying and harassmentprovide a basis for an employee to raise a personalgrievancewheretheemployeecanshowthattheyweredisadvantaged as a consequence of the employer’sactions(orinaction).

ExtremeformsofharassmentcanconstituteanoffenceundertheHarassmentAct1997andresultinconvictionandupto2yearsimprisonment.

4. Employer’sObligationtoProvideReasonableAccommodations

The employer is required to provide a suitable workposttoadisabledemployee.Onlyiftherearenosuchposts can the employer make the disabled employeeredundant.

According to the Professional Rehabilitation andEmploymentofPersonswithDisabilitiesAct,employerswith20-49employeesmustemployatleastonepersonwithdisability, thosewith50employeesmustemployat least two persons with disability, and one personwith disability for every additional 50 employees. Tofulfil thisobligation, theemployermaybe required toadjust work conditions (e.g. to technically adapt theworkplace, provide special work tools, facilities andequipment) in accordancewith theemployee’shealthstateandcapacities.Alternatively,insteadofemployingthe prescribed number of persons with disabilities,employermaycontributetoaspecialfundbypaying50%ofaveragesalaryinRepublicofSerbiaforeachpersonwith disability it did not employ, or pay a specifiedamount based on an agreement with a company forprofessionalrehabilitation.

5. Remedies

Theemployee(orthepersonseekingemployment)whowasexposedtodiscriminationisentitledtoinitiatecourtproceedingsatanytime,withthepurposeofpreventingfurther discriminatory treatment, eliminating theconsequences of the suffered discrimination, andcompensating any damages suffered in connectionto the discriminatory treatment. The employee mayinitiateamediationprocedurebeforetheCommissionerfor Protection of Equality, prior to initiating courtproceedings.

Incaseofmobbing,therearetwodifferentsituations.Iftheemployeebelieveshewasexposedtoharassmentby another employee who is not his direct/indirectsuperior, the employee is required to initiate themediation procedure at the employer as a first step.The statute of limitation for initiating the mediationprocedure is six months from the last action, whichrepresents harassment. If the mediation fails, theemployee is entitled to initiate the court procedure.If theemployeebelieveshe isexposed toharassmentbyanotheremployeewho isasuperior,theemployeeis entitled to immediately initiate court proceedings(withinsixmonthsfromthelastactionwhichrepresentsharassment),withoutpreviouslyinitiatingthemediationprocedurebeforetheemployer.Inthecourtproceedings,the employee may request prohibition of furtherharassment, elimination of the consequences causedby the suffered harassment, as well as compensationofanydamageoccurred inconnectionto thesufferedharassment.


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1. Cantheemployerrestricttheemployee’suseofInternetandsocialmediaduringworkinghours?

Theemployerisentitledtorestricttheemployee’suseof Internet and social media during working hours,providedthatsuchrestrictionsdonotinterferewiththeperformanceoftheemployee’sworktasks.Inordertobeenforceable,theserestrictionsshouldbestipulatedby a general policy of the employer and/or individualemploymentagreements.

2.Employee’suseofsocialmediatodisparagetheemployerordivulgeconfidentialinformation

Serbian regulations are silent about the responsibleuseofsocialmediaatworkplace.Theemployerisfreeto regulate this issueby itsgeneralenactmentand/orindividual employment agreements. Irresponsible useof internet/social media (which includes disparagingtheemployerordivulgingconfidentialinformation)mayserveasagroundforindividualdismissal,providedthatsuchbehaviourcanbesubsumedunderabreachofworkdiscipline from the employer’s general enactment ortheindividualemploymentagreement.Inanycase,theemployermayclaimcompensationofdamagefromtheemployee, provided that the employer can prove andquantify the damage occurred as the consequence ofemployee’sirresponsibleuseofinternet/socialmedia.

vi. social mEdia and data privacy


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In general, a foreign national who intends towork inSerbiabasedonanemploymentagreementoranout-of-employmentagreementhastoobtain(i)atemporaryresidence permit, which must be obtained within 90daysfromthedateofentryintoSerbia;and(ii)aworkpermit. The sameapplies to foreign staff seconded toSerbia. Certain exceptions apply to directors, otherrepresentatives and members of company bodies, iftheyarenotemployedwith theSerbian subsidiary. Inthat case, they need to obtain a temporary residencepermitandworkpermitonlyiftheyresideinSerbiaforlongerthan90dayswithinasix-monthperiod,countingfrom the day of the first entry. There are someotherexceptions to the work permit requirement such as:attendance of business meetings or performance ofbusiness activities for the purpose of establishing thebusinessinSerbia;andworkoninstallations,assemblyor repair of machinery or provision of training forwork onmachinery or equipment in accordancewitha business cooperation agreement. These exceptionsapply if theforeignerdoesnotstay inSerbiaformorethan90dayswithinasix-monthperiodcounting fromthedateoffirstentryintoSerbia.

TheEmploymentofForeignersActdistinguishesamongseveraldifferenttypesofworkpermits, includinginteralia:

• Apersonalworkpermit,whichcanbeissuedto aforeignerhavingapermanentresidencepermit, aforeignerwhoisanimmediatefamilymemberof aSerbiancitizen,oraforeignerwhoprovesacertain degreeofSerbianorigin(thistypeofworkpermit enablesfreeaccesstotheSerbianlabourmarket);• Anemploymentpermit,requiredforworkunder anemploymentrelationship,aswellasfor workinanout-of-employmenttypeofagreement (e.g.serviceagreement).Theemploymentpermit isconditionedbyalabourmarkettestconductedby theNationalEmploymentService,whichhasto confirmthatnoSerbiannationalorpersonholding apersonalworkpermitinSerbiafulfilsthe requirementsfortherelevantworkpost(inpractice thisisarubber-stampingrequirement);

• Aworkpermitforsecondment(secondmentis possibleifthesecondeehaspreviouslyworkedfor his/heremployerforatleastoneyear);• Aworkpermitfortemporaryassignmentor relocationofaforeigneremployed(orotherwise engaged)byaforeignemployertoitsSerbian subsidiary/branch/representativeoffice,whichis availabletoforeignerswhohavebeenengaged bytheirforeignemployersforatleastoneyearin thecapacityofaspecialist,supervisor,ormanager;• Aworkpermitforindependentprofessionals, whichenablesworkinSerbiaofforeign entrepreneursandcompanyownersregistered abroad,basedonanagreementwiththeSerbian recipientofservices;• Apermitforworkinthecapacityofanentrepreneur registeredinSerbia,orasole/controlling shareholderofacompanyregisteredinSerbia(in thelattercasecertainexceptionsfromtheobligation toobtainaworkpermitapplydependingonthe durationofstayandthetypeofagreementthe foreignerhaswiththeSerbiancompany).

vii. authorizations for forEiGn EmployEEs


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viii. tErmination of EmploymEnt contracts1. GroundsforTermination

An employment agreement is terminated in followingcases:

• Byexpiryofdefinite-termemployment1;• Whentheemployeeturns65yearsofageand completesatleast15yearsofinsuredservice, unlesstheemployerandtheemployeeagree otherwise;• Bymutualconsentoftheemployerandemployee;• Incaseofunilateralterminationbytheemployeror theemployee;• Attherequestofparentsor,asthecasemaybe, guardiansofanemployeeyoungerthan18yearsof age;• Atanemployee’sdeath;• Inothercasesasmaybeprescribedbystatute.

The Labour Act prescribes additional cases in whichemploymentrelationshipscanbeterminatedregardlessof thewill of theemployeeand/or theemployer, andmerelybytheoccurrenceofoneofthefollowingfacts:

• Lossofemployee’sworkability(fromthedayof deliveryofafinalresolutionissuedbythecompetent authoritywherebysuchlosshasbeendetermined);• Prohibitionfortheemployeetoperformcertain jobsstemmingfromastatute,orimposedbya finaldecisionofacourtorothercompetentbody, providedthattheemployermaynotprovidehim/ heranalternativejob;• Intheeventthattheemployeemustbeabsentfrom workforlongerthansixmonthsduetoservinga prisonsentence;• Intheeventthattheemployeemustbeabsent fromworklongerthansixmonthsduetoserving othertypesofsentence(e.g.asafetymeasure prohibitingtheemployeetoperformcertainwork, oranothertypeofsentenceinaccordancewiththe CriminalCode);• Windingupoftheemployer(e.g.liquidation).

2. CollectiveDismissals

Pursuant to the Labour Act, the employer is obligedto prepare a redundancy programme in cooperationwith the National Employment Service (“NES”) andthe representative trade union (if any), if, due totechnological,economicororganisationalchangewithintheperiodof30days,itplanstoterminate:(i)10ofitsemployees,provideditemploysmorethan20andfewerthan100employeesonanindefinite-termbasis;(ii)nofewerthan10%ofitsemployees,provideditemploysnofewerthan100andnomorethan300employeesonanindefinite-termbasis;or(iii)atleast30ofitsemployees,provided it employsmore than 300 employees on anindefinite-termbasis.Aprogramme isalso required intheeventthattheemployerplanstoterminateatleast20 of its employees within a period of 90 days, dueto technological, economic or organisational change,regardlessofthetotalnumberofitsworkforce.

The purpose of the redundancy programme is tomitigatetheeffectsofcollectivedismissal.TheLabourAct imposes a strictly formal procedure for collectivedismissal,whichencompassescompliancewithcertainstepsandcooperationwithNESandtherepresentativeunion.

3. IndividualDismissals2

TheemployermayunilaterallyterminateanemploymentrelationshipforalimitednumberofgroundsasspecifiedintheLabourAct,whichareasfollows:

• Lackofknowledgeandskillsnecessaryfor performingacertainjob,orfailuretoachievethe expectedworkresults(professionalinadequacyor underperformance);• Iftheemployeehasbeenconvictedforcommitting acriminaloffenceatworkorinrelationtoworkby acourtdecisionbroughtinacriminalprocedure;

1Anexceptionappliesinthecaseofapregnantemployee,andemployeesonmaternityleave,childcareleaveandspecialchildcareleave,inwhichcaseadefinite-termemploymentagreementshallbeextendeduntiltheexpiryoftherighttoleave.2TheLabourActprovidesthattheemploymentofcertaincategoriesofemployeemaynotbeunilaterallyterminatedbytheemployer:apregnantemployee,andemployeesonmaternityleave,childcareleaveandspecialchildcareleave.


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• Failuretoreturntoworkwithin15daysfromthe dayofexpiryofunpaidleaveordormancyof employment;• Breachofworkdutiesoftheemployee’sfault– thefollowingspecificbreachesrepresentgrounds forterminationarestipulatedintheLabourAct:

• Negligentorcarelessexecutionofworkduties; • Misuseofpositionorexceedingauthorisation; • Inappropriateandirresponsibleuseofwork funds; • Non-useorinappropriateuseoftheprovided meansorequipmentforpersonalprotectionat work.

The list of breachesofworkduty that represent validgrounds for termination may be expanded by theemployment agreement, and/or employer’s generallabour-relatedenactment:WorkRules(Pravilnikoradu),or,asthecasemaybe,acollectiveagreement.

1) Disrespect of work discipline – The followingspecific violations which may represent grounds fordismissal are stipulated in the LabourAct,but the listmaybeexpandedbyanemploymentagreement,and/oremployer’senactment:

• Iftheemployeeunjustifiablyrefusestoperform dutiesandexecuteordersoftheemployerin accordancewiththelaw;• Iftheemployeefailstosubmitamedicalcertificate oftemporaryinabilitytowork(sickleave)in accordancewiththeLabourAct(i.e.withinthree daysfromtheoccurrenceinlinewithhealth insuranceregulations,orwithinthreedaysfrom cessationofthereasonsduetowhichtheemployee wasunabletodeliverthecertificateearlierprovided thattheemployeelivesalone);

• Iftheemployeemisusessickleave;• Iftheemployeecomestoworkundertheinfluence ofalcoholorotherintoxicatingsubstances,or usesalcoholorotherintoxicatingsubstancesduring workinghours,whichhasormayhaveanimpacton jobperformance;• Iftheemployee’sconductconstitutesanactof perpetrationofacriminaloffenceatworkor

inrelationtowork,regardlessofwhethercriminal proceduresagainsttheemployeehascommenced ornot;• Iftheemployeeprovidesincorrectinformation crucialfortheestablishmentofemployment;

2) Ifanemployeewhoworksonjobswithanincreasedlevelofrisk(forwhichthejobdemandsaspecificlevelof health) refuses to undergo assessment of his/herhealthability;

3) If the employee disrespects work disciplineprescribedbyanenactmentof theemployer,or if theemployee’sconductissuch,thathe/shecannotcontinuetoworkwiththeemployer;

4) Ifduetotechnological,economicororganisationalchange performance of a particular job becomesunnecessary or the work load becomes reduced(redundancy);

5) If theemployee refuses toenter intoanannex totheemploymentagreementincertaincasesdeterminedbytheLabourAct3.

The termination procedure is formal, and differsdependingonthespecificgroundsfortermination.

a. is sEvErancE pay rEquirEd?

Severancepayismandatoryonlyincaseofterminationdue to redundancy. The statutory minimum ofseverance is calculated as the sum of one third (1/3)of employee’s reference salary (average gross salaryfor the three months preceding the month in whichseveranceispaid)foreachfullyearofhisemploymentservicecompletedat:(i)theemployer;plus(ii)anylegalpredecessoroftheemployer(incaseithadundergonea status change, e.g. merger, split off, spin off); plus(iii)anyotherpartyrelatedtotheemployerwithinthemeaningoftheCompanies’Act.

Theemployeeisalsoentitledtostatutoryseveranceinthecaseofterminationduetoretirement.TheLabourAct imposes theminimalamountof severanceas twoaveragesalariesintheRepublicofSerbia.

3Theseinclude:(i)transfertoanothersuitableworkpost(i.e.apostthatrequiresthesametypeandlevelofprofessionalqualificationastheonestatedintheemploymentagreement);(ii)relocationtoanotherplaceofworkwiththesameemployer,providedthatthespecificrequirementssetbytheLabourActhavebeenmet(e.g.distance);(iii)assignmentofanemployeetoworkwithanotheremployer(undertheconditionsprescribedbytheLabourAct);(iv)providingemploymentmeasuresincaseofredundancy(transfertoanotherposition,workwithanotheremployer,part-timeworkbutnot lessthanonehalfoffullworkingtime,etc.),and(v)achangeoftheagreedamountofsalary,elementsfordeterminingworkperformanceorotherearningsarisingfromemployment.


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4.SeparationAgreements

An employer and employee may agree to terminateemployment at any time. No severance payment ismandatory in case of termination by agreement, butstimulativecompensationpackagesareoftenagreedinpractice.Anysuchcompensationissubjecttopayrolltaxandmandatorysocialcontributions.

a. is a sEparation aGrEEmEnt rEquirEd or considErEd BEst practicE?

ASeparationAgreementisrequiredincaseofterminationbasedonmutualconsent.Also,SeparationAgreementis considered a preferable alternative to unilateraldismissal,havinginmindthatmutualterminationisthesimplestandthemosttimeefficientwayoftermination,and it minimizes the risk of the termination beingchallengedbeforethecourtbytheemployee.

B. what arE thE standard provisions of a sEparation aGrEEmEnt?

StandardprovisionsofaSeparationAgreementare:theterminationdate,definitionofstimulativeseverance(ifany), settlement of outstanding payments, handoveroftheon-goingwork,retrievalofemployer’sproperty,regulation of post-termination covenants (e.g. releasefromthepost-terminationnon-compete).

c. doEs thE aGE of thE EmployEE makE a diffErEncE?

Theemployee’sageisirrelevant.

d. arE thErE additional provisions to considEr?

Ineachcaseofmutualtermination,beforesigningtheagreementon termination, theemployer isobliged tonotifytheemployee inwritingthatnounemploymentbenefits can be claimed following a consensualtermination.

5.Remediesforemployeesseekingtochallengewrongfultermination

Theemployeemayinitiatelitigationforwrongfuldismissalwithin60daysfromthedateofdeliveryofthedecisionontermination.

Iftheemployeesuccessfullychallengesthelegalgroundfortermination,thecourtmayordertheemployer:

• toreinstatetheemployee,andcompensatethe employeefordamagesconsistingofallunpaid salariesbelongingtotheemployeefromtheday ofunlawfulterminationofemploymentuntilreturn towork(excludingrewards,bonusesandother earningsbasedontheemployee’scontributionto theemployer’sbusinesssuccess),aswellasall relatedtaxesandsocialsecuritycontributions, lessanyincomegeneratedbytheemployeefrom workduringtheperiodoftermination-ifthe employeerequestsreinstatement;or• topaytoemployeedamagesintheamountof upto18salariesheearnedinthemonthspreceding termination(dependingontheemployee’syearsof service,yearsofageandsupportedfamily members),lessanyincomegeneratedbythe employeefromworkduringtheperiodof termination-insteadofbeingreinstatedtowork.

Thecourtmayrefusetoreinstatetheemployeetoworkin spite of the employee’s request to that effect, if theemployer proves circumstances that justifiably indicatethatcontinuationoftheemploymentwiththeemployeeisnotpossible,takingintoaccounttheinterestsofbothparties. In this case, the court shall award damages totheemployeeinthedoubleamountreferredtounderb)above-i.e.upto36referencesalaries.

Ontheotherhand,ifthegroundforterminationisfoundtobejustifiedbutthedismissalisdeclaredunlawfulsolelyforproceduralbreach,thecourtwillnotacceptemployee’srequest to be reinstated, butmay award the employeecompensation of damages in the amount of up to sixsalariestheemployeeearnedinthemonthprecedingtheterminationofemployment,lessanyincomegeneratedbytheemployeefromworkduringtheperiodoftermination.

In addition, upon initiation of the labour dispute, theemployee could request from the labour inspection tosuspendterminationofemploymentandtoreturnhimtoworkuntilthefinalendofthelabourdispute.


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iX. rEstrictivE covEnants

1. DefinitionofRestrictiveCovenants

Each covenant under an employment agreement,whichlimitstheemployee’sabilitytoperformacertainbusinessactivityorcertainjobs,ortoassociatewithaspecificcircleofpeople(duringoraftertheterminationofemploymentatthecurrentemployer) isconsideredasarestrictivecovenant.

2. TypesofRestrictiveCovenants

A. non-compete cLAuses

Under the Labour Act, a non-compete clause can bestipulatedintheemploymentagreementprovidedthatthe particular employment enables the employee toacquirenew,highlyimportanttechnologicalknowledge,widecircleofbusinesspartners,orimportantbusinessinformation and secrets. The non-compete clauseshouldspecifythetypesofjobsinwhichtheemployeemaynotbeengagedwithouttheemployer’sconsent,aswellastheterritorialapplication.Theperiodofvalidityof anon-compete clausemaycover theperiodof theemploymentwiththeemployer,andmayextendforuptotwoyearsfollowingterminationoftheemployment.Inorderforapost-terminationnon-competeprohibitiontobeapplicable,theemployershouldpaytotheemployeecertain fair compensation (the lawdoesnotprescribetheamountofthiscompensation,butemployershouldpay the amount that the employee could reasonablyexpecttoearnunderregularcircumstancesinabsenceoftheprohibitionofcompetition).

b. non-soLicitAtion of customers

The terms and limitations for enforcement of thisrestrictive covenant are not defined by the law.However, a non-solicitation clause may be stipulatedintheemploymentagreement,inwhichcaseitwillbeenforceableunderthetermsandconditionsdefinedintheemploymentagreement.

c. non-soLicitAtion of empLoyees

The terms and limitations for enforcement of thisrestrictive covenant are not defined by the law.However, a non-solicitation clause may be stipulatedintheemploymentagreement,inwhichcaseitwillbeenforceableunderthetermsandconditionsdefinedintheemploymentagreement.

3. EnforcementofRestrictiveCovenants—processandremedies

A breach of non-compete clause, or any otherrestrictive covenant, enables the employer to requestcompensation of damages before the court. Theemployer should be able to prove and quantify thedamage, which occurred as a consequence of thebreachof therestrictivecovenantby theemployee.Acontractualpenalty(i.e.alump-sumpayableregardlessoftheamountofactualdamages)maybestipulatedintheemploymentagreement.

4. UseandLimitationsofGardenLeave

Duringthenoticeperiod,theemployerisobligedtoallowtheemployeetoperformhisworkdutiesuntiltheeffectivedayoftermination.However,theemployerandtheemployeemayagreethattheemployeeceasestoworkbeforetheexpiryofthenoticeperiod,duringwhichperiodhewouldreceivecompensationofsalaryintheamountdeterminedbytheemployer’sgeneralenactmentand/ortheemploymentagreement(i.e.tousegardenleave).Thismeansthattheemployercannotunilaterallydecidethattheemployeestopsworkingbeforetheexpiryofthenoticeperiod(andpayinlieuofnotice),buttheemployeewouldhavetoagreewithit.Iftheemployeedoesnotagreetousegardenleave,theemployerisentitledtorefertheemployeetouseannualleave(byissuingaresolutiononannualleaveatleast15daysbeforethedayofcommencementoftheannualleave),providedthattheemployeehasunuseddaysofannualleave.


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X. riGhts of EmployEEs in casE of a transfEr of undErtakinG1.Employees’Rights

SerbiahasstillnotadoptedEUregulationsregardingthetransferofundertakings,norhasenactedanyseparateitem of legislation regulating this area. Therefore,transfer(includingsaleorlease)ofassetsdoesnotleadtoautomatictransferofemployees.

The LabourAct imposes certain obligations in case ofa“changeofemployer”,bothforthepredecessorandsuccessor employer, which, by virtue of an explicitprovisionoflaw,encompassesonlystatuschanges,e.g.mergersandspin-offs.

2.RequirementsforPredecessorandSuccessorParties

In cases of a “change of employer”, the Labour Actrequiresthatthepredecessorandsuccessoremployersjointly notify the representative trade union in thecompany at least 15 days prior to the change aboutthefollowing:(i)dateofchange,(ii)reasonforchange,and(iii)legal,economicandsocialconsequencesofthechangetoemployees,andthemeasurestobetakentomitigateanynegativeconsequencesforemployees.

Thelawfurtherprovidesthatthecollectiveagreementor,asthecasemaybe,theWorkRulesofthecompanymustcontinuetoapply forat leastoneyear followingthechange,unlesstheyexpireearlierundertheirowntermsor should the tradeunionagree toenter intoanew collective agreement with the company. Finally,the Labour Act requires the predecessor employer tonotify,priortothecompletionofthechange,employeesin writing about the transfer of their employmentagreementstothesuccessoremployer.Ifanemployeefailstoacceptthetransferorrespondwithinfiveworkingdays from receipt of the notification, the predecessoremployer is entitled to terminate their employmentagreement.


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Xi. tradE unions and EmployErs associations1. BriefDescriptionofEmployeesandEmployersOrganizations

TheSerbianConstitutionandtheLabourActguaranteethefreedomoftradeunionassociation.TheLabourActrecognises two types of workers’ organisations: tradeunionsandworkers’councils.

An employers’ association may be established byemployerswhoemployaminimumof5%of the totalnumberofemployeesinaspecificindustryorterritorialunit.

2.RightsandImportanceofTradeUnions

Trade unions are defined by law as autonomous,democratic and independent organisations ofemployees, based on freedom of membership, thatrepresent,advocate,promoteandprotectprofessional,labour, economic, social, cultural and other individualandcollectiveinterestsofemployees.

The influence of trade unions depends on the size oftheir membership, since only representative tradeunionsmay be involved in collective bargaining. Also,thesizeofatradeunioncanberelevantforthescopeofapotentialstrike,organisedbyatradeunionwithinacompany.

3.TypesofRepresentation

Themostcommonformofemployeerepresentationisa tradeunion.Thereare twomajor tradeunionswithnationwide coverage: “Nezavisnost” and “Samostalnisindikat”.Othertradeunionsexistonanindustrylevelandwithinindividualcompanies.

Employees may also organize in workers’ councils(withinanorganisationwithmorethan50employees).However, this type of employee body exists only onpaperandvirtuallydoesnotexistinpractice.

4.NumberofRepresentatives

Each tradeunion solely determines thenumberof itsrepresentativeswiththeemployer, inaccordancewiththetradeunion’sinternalenactment.Eachtradeunionorganizedat theemployer is obliged todeliver to theemployer the decision on the election of the tradeunion’s president and members of internal bodies,within eight days from the trade union’s registration,orfromthedateoftheelectionofthemembersofthetradeunion’sbodies.

5.AppointmentofRepresentatives

Each tradeunion solely determines thenumberof itsrepresentativeswiththeemployer, inaccordancewiththetradeunion’sinternalenactment.Eachtradeunionorganizedat theemployer is obliged todeliver to theemployer the decision on the election of the tradeunion’s president and members of internal bodies,within eight days from the trade union’s registration,orfromthedateoftheelectionofthemembersofthetradeunion’sbodies.

Elections for themembersof thetradeunion’sbodiesand employees’ representatives at the employer aremadeamongthetradeunionmembers(whoareatthesametime employed at the employer), in accordancewithprovisionsofthetradeunion’sinternalenactment.Theemployermaynot influence theelectionof tradeunion’srepresentatives.

6.TasksandObligationsofRepresentatives

The trade union, through its representatives at theemployer,representstheemployment-relatedinterestsofitsmembers.Theunionhastherighttobeinformedbytheemployeroneconomic,labour,andsocialissuesof importance for the status of the employees, i.e.union’s members. The trade union’s representative,authorized by a union member, may initiate courtproceedingsagainst theemployer forviolationof thatmember’srights.

The trade union’s representatives may be entitled topaidleavefortheperformanceoftheirunionfunctions,under the terms provided by the Labour Act or theagreementconcludedwiththeemployer.Theemployermaynotterminatetheemployee,or inanyotherwayput him in an unfavourable position, because of hisstatus or activities as a representative of employees,unionmembershiporparticipationinunionactivities.

7.Employees’RepresentationinManagement

In Serbia, representation of employees in company’smanagementisnotcommoninpractice.However,theActonPublicCompanies(Zakonojavnimpreduzećima,“OfficialGazetteoftheRepublicofSerbia”,no.15/2016)stipulates the mandatory participation of employeesin management. The supervisory board of the publiccompany (i.e. a company established by the State orlocal government) is to have one member electedamongtheemployeesofthepubliccompany.


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Workers’ councilsmaybeestablishedatanorganisationwithmorethan50employees.Aworkers’councilisentitledtoprovideitsopinionand“participateinthedecision-making”oftheeconomicandsocialrightsofemployees.Thestatutedoesnotfurtherelaborateonthemodeofthisparticipation,soonecouldarguethatsuchparticipationisexhaustedbynotificationandreceiptoftheopinion,whichisnotbinding.

Xii. othEr typEs of EmployEE rEprEsEntativE BodiEs

Health and safety representatives -Theemployeesmayelectoneormorerepresentativesformattersofoccupationalhealthandsafety.TherepresentativesmayformaCommitteeincasethereareatleastthreeelectedrepresentatives.Theemployerisobligedtoinformtherepresentatives/theCommittee)onallhealthandsafetyrelatedissues.


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Xiii. social sEcurity / hEalthcarE / othEr rEquirEd BEnEfits1.LegalFramework

TheSerbianmandatorystatutorysocialsecuritysystemincludesthefollowingschemes:

• PensionandDisabilityInsurance;• HealthInsurance;• UnemploymentInsurance.

The contributions for these insurance schemes areimposedasmandatory.Besidesmandatoryinsurances,companiesmayopttovoluntarilyorganiseparticipationinadditionalsocialsecurityschemesfortheiremployees.

2.RequiredContributions

Salary issubjecttopayrolltaxandmandatorypensionand disability, health and unemployment insurance(together, “mandatory social contributions”), payableby the employer on a withholding basis. The lawdistinguishes betweenmandatory social contributionslevied on the employee, and mandatory socialcontributions levied on the employer. However, allmandatorysocialcontributionsareactuallywithheldandpaidbytheemployer.Thedifferenceisonlyrelevantinaccountingterms:contributionsleviedontheemployerarenotpartof thegross salary,whichconstitutes thebasisformandatorysocialcontributions.Theaggregatecombined rateofallmandatory social contributions is37.8%(outofwhich19.9%isleviedontheemployee,and 17.9%. is levied on the employer). The basis formandatory social contributions is the amount of theemployee’s gross salary (which consists of net salary,payrolltax,andmandatorysocialcontributionsleviedontheemployee),andiscappedatfivetimestheaveragesalaryinSerbia.

3.Insurances

Salary issubjecttopayrolltaxandmandatorypensionand disability, health and unemployment insurance(together, “mandatory social contributions”), payableby the employer on a withholding basis. The lawdistinguishes betweenmandatory social contributions

levied on the employee, and mandatory socialcontributions levied on the employer. However, allmandatorysocialcontributionsareactuallywithheldandpaidbytheemployer.Thedifferenceisonlyrelevantinaccountingterms:contributionsleviedontheemployerarenotpartof thegross salary,whichconstitutes thebasisformandatorysocialcontributions.Theaggregatecombined rateofallmandatory social contributions is37.8%(outofwhich19.9%isleviedontheemployee,and 17.9%. is levied on the employer). The basis formandatory social contributions is the amount of theemployee’s gross salary (which consists of net salary,payrolltax,andmandatorysocialcontributionsleviedontheemployee),andiscappedatfivetimestheaveragesalaryinSerbia.

4.RequiredMaternity/Sickness/Disability/AnnualLeaves

matErnity lEavE comprises pregnancy leave andchildcare leave.Pregnancy leavestartsnoearlier than45 days and no later than 28 days prior to the duedate and lasts for three months from the childbirth.Pregnancyleaveisfullypaidbythestate.Childcareleavebeginsuponexpiryof thepregnancy leave.Pregnancyleaveandchildcare leavecombinedmay last forupto365 days. Childcare leave has the same treatment aspregnancy leave and is fully paid (the employer paysthecompensationandthenobtainsarefundfromthestate).Anemployeecannotbevalidlyterminatedwhilepregnantandwhileonmaternity(pregnancy/childcareorspecialchildcare)leave.

sickness AnD DisAbiLity LeAVe -Incaseofsicknessordisabilityleave(together,“sickleave”),employeesareentitledtoacompensationofsalary.Thiscompensationamounts to 65% of the employee’s average salarycalculated over the period of 12 months precedingthesickleave,incaseofillnessorinjurynotrelatedtowork,and100%ofemployee’saveragesalarycalculatedover the period of 12months preceding the leave, ifthe leave is caused by professional illness or injury.Employer isobliged topaycompensationof salary forthefirst30daysofsickleave,whereasthestaterefunds

theemployerforthepayfortheperiodinexcessof30days.Therearenolimitationswithrespecttothetotaldurationofsickleaveorthetotalnumberofsickleaves.

annual and paid lEavE – In each calendar year,the employee is entitled to annual leave inminimumdurationof20workingdays.Besidesannual vacation,employees are also entitled to a total of fiveworkingdaysofpaidleaveperyearforwedding,childbirthbyaspouse,seriousillnessofanimmediatefamilymember,aswellastoadditionalfivedaysincaseofdeathofanimmediate familymemberand twodays forvoluntaryblood donation. During annual and paid leave, theemployee is entitled to compensationof salarywhichamounts to 100% of the employee’s average salarycalculatedovertheperiodof12monthsprecedingtheannual/paidleave.

5.MandatoryandTypicallyProvidedPensions

TheemployersinSerbiausuallyprovideonlymandatorypensions (organized by the state) to their employees.Voluntary pension schemes are still amarginal type ofemployeeinsurance.


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BDKAdvokati is a full-service lawfirmwithoffices inBelgrade (Serbia), Podgorica (Montenegro) and BanjaLuka(BosniaandHerzegovina).Thefirmwasestablishedin2004andquicklyreachedthetop-tierinSerbia.Fromtheoutset,thefirmhasalsobeenactiveintransactionsandlitigationtakingplaceintheneighbouringmarketsof Montenegro, and Bosnia and Herzegovina. ThisexperiencewasstrengthenedwiththeopeningofofficesinPodgoricain2009andBanjaLukain2013.

With threeoffices in the region,distinctpracticesandindustrysectorsandatotalof27specialistfeeearners,weareable toofferclients topexpertiseandpremierservicestandards.Wearerecognisedandrecommendedby themost reputable international directories of thelegalprofession,suchasChambersandPartners,Legal500andIFLR,whileBDKpartnersarerankedamongtheleadinglawyersintheirareasofexpertise.

BDK’s Employment Practice is headed by Ana Jankov,andconsistsofatotaloftwoattorneysatlawdevotedfull-time to employment matters, and two seniorpartners. BDK’s employment practice spans fromeverydaysupporttoemployersindraftingemploymentagreements and internal employment-relatedenactmentsandadviceonsensitiveterminationissuesandpost-acquisitionrestructuring,todraftingcomplexmanagementagreementsandincentivearrangements.

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law at a glance serbia

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