Labour law in Serbia

1.1. The Employment Contract

General conditions

The Labour Law ("Official Gazette of the Republic of Serbia," Nos. 24/2005, 61/2005, 54/2009, 32/2013, 75/2014, 13/2017, 113/2017, and 95/2018) requires that employees must: 

• be a minimum 15 years of age; and 
• fulfil requirements relating to performance of the particular job, as set out in the Labour Law and in the employer’s rulebook on the organisation and systematisation of jobs (e.g. vocational attainment). 

Persons under the age of 18

The employment of persons under the age of 18 requires written consent from their parents, adoptive parents or guardians. Such work must not pose a threat to their health, morals and education nor be prohibited by law. According to the Labour Law, the employment of a person under the age of 18 is possible only if the competent body for health protection confirms that the underage person is capable of performing the job and that the job is not harmful for his health.

Written form required

Employment must be based on an employment contract agreed between the employee and the employer. An employment contract must be in writing before the employee starts working and should include the following:

1. name and registered office of the employer; 
2. employee’s personal name and his permanent or temporary residence; 
3. type and level of qualification, or education of the employee necessary for carrying out the job for which the employment contract is concluded; 
4. job title and job description; 
5. place of work; 
6. type of employment (indefinite or definite period); 
7. duration of the employment contract for a definite period and the reasons why such employment was concluded; 
8. date of commencement of work; 
9. working hours (full-time, part-time or reduced); 
10. monetary amount of basic salary at the date on which the employment contract was concluded; 
11. elements for determining basic salary, work performance, salary compensation, increased salary and other income of the employee; 
12. deadlines for payment of salary and other income to which the employee is entitled; and
13. duration of daily and weekly working hours.

The employment contract may also stipulate other rights and duties. All matters not stipulated by the employment contract will be governed by the Labour Law, the collective agreement or the labour rulebook, providing that the collective agreement or labour rulebook are not contrary to the Labour Law. 

According to the Labour Law an employer who employs more than ten employees is obliged to issue a rulebook on the organisation and systematisation of jobs.  

When starting work the employee must present the employer with the documents that state that the requirements for employment are fulfilled. 

The employer is not allowed to demand data regarding the employee’s family/marital status and intentions with regard to family planning, nor can it require any results for pregnancy tests as a pre-condition to employment unless it concerns jobs in which there is a significant risk to the health of the woman and the child as determined by the competent health authority. 

The establishment of an employment relationship may not be dependent on the candidate terminating the employment contract with the employer.  

Term of the employment

An employment contract must be for an indefinite or definite period. However, where this is not specified in the contract an employment contract is deemed to be for an indefinite period. 

Employment established for a definite period shall automatically become employment for an indefinite period if the employee continues working for at least 5 working days upon the expiry of the fixed period employment. 

If the employer fails to sign the employment contract with the employee, the employee shall be considered as employed for an indefinite period.

Annex to the employment contract

The employer may change the stipulated work conditions by adding to the employment contract annexes on the following situations: 

1. in order to transfer an employee to another appropriate job, as required by the process and the organisation of work;
2. in order to transfer the employee to another workplace with the same employer;
3. in order to assign the employee to an appropriate job with another employer;
4. if the employer has enabled the redundant employee to exercise the specific rights as prescribed by the Labour Law;
5. in order to change elements on which basis the basic salary, working performance, salary compensation, increased salary and other income is determined; or
6. in other situations prescribed by the law, labour rulebook/collective agreement and employment contract.

An appropriate job position is defined as a job that requires the same kind and degree of professional qualification as stipulated in the employment contract. 

If the employee refuses to accept the changes (items 1) to 5)) by annex to the contract, the employer shall be entitled to terminate the employee’s employment contract.

Choice of law / Jurisdiction clause

The choice of law is not possible and, in general, it is not be possible to agree on another jurisdiction than the Serbian jurisdiction.

The Labour Law also provides for a possibility of performing jobs outside of the employer's premises.  

The employment relationship for performing activities outside the employer's premises includes remote work and work from home. Even though the Labour law recognises a difference between these two possibilities, there is no real difference in how they are regulated.  

Working outside of the employer’s premises must be specified in the employment contract or the annex thereof. The employer is obliged to provide, install and maintain equipment that the employee uses for work outside of the employer’s premises and must reimburse the employee for any expenses incurred. An employer may contract jobs outside his premises that are not dangerous or hazardous to the health of the employee and other persons, and do not endanger the environment.  

When the employee is working outside of the employer’s premises, the employer is obliged to ensure safety and health at work in cooperation with the employee, whereby the employer is obliged to determine the conditions for safe and healthy work, means of work, work process and preventive measures for safe and healthy work. 

1.2. Contracts that do not constitute employment

In addition to the employment contract, Labour Law provides for the following two types of contracts under which services can be rendered: 

• contract of work for temporary and occasional jobs;  
• service contract; 
• contract on professional training and development; 
• supplementary employment agreement. 

Contract of work on temporary or occasional jobs 

The employer may choose to engage in a contract of temporary or occasional work (work that by its nature does not exceed 120 working days in a calendar year) with: (i) an unemployed person, (ii) a part-time employed person (employment up to full time), or (iii) the user of an old-age pension. 

Service contract

The employer is also entitled to enter into a service contract for services that are not within the scope of the employer’s business including, for example, the independent production or repair of assets or independent, manual or intellectual work that does not fall within the scope of the employer’s day-to-day activities. When making such a contract, the employee shall have the right to a pension, disability insurance and health insurance, which shall be paid by the employer.  

According to the Law on Mandatory Social Contributions, the employer is obliged to pay the same contributions for pension and disability insurance as for employees on regular employment contracts. However, the personal income tax rate is higher than in case of an employment contract. 

A contract on professional training and development may be concluded for the purpose of completing an internship or taking a professional examination when this is prescribed by law or regulations as a specific requirement for independent work in the profession. This kind of contract is stipulated in written form. 

The employer may provide financial compensation and other rights to individuals undergoing professional training or development in accordance with the law, company regulations, or the professional training and development agreement.  

An employee working full time for one employer may enter into a supplementary employment contract with another employer for up to one-third of their full-time working hours. 

The supplementary employment contract specifies the right to financial compensation and other rights and obligations related to the work. This kind of contract is stipulated in written form.

1.3. Employment of foreigners

Work and residence permit 

Foreign employees may only enter into an employment contract and be in proper employment if they obtain a work permit and a permanent or temporary residence permit. As of 1 February 2024, the two permits shall be integrated into one permit, with an online application procedure and a shorter processing period.  

Exceptions

Foreign employees may only enter into an employment contract and be in proper employment if they obtain a work permit and a permanent or temporary residence permit. As of 1 February 2024, the two permits shall be integrated into one permit, with an online application procedure and a shorter processing period.  

1. if the foreign national is the owner, founder, representative or member of a legal entity's body registered in Serbia, in accordance with the law, and if he is not employed in that legal entity;
2. if the foreign national is staying in Serbia in order to make business contacts or have business meetings and, without earning any money in Serbia, performs other business activities relating to the preparation of a foreign employer to start working in Serbia;
3. if the foreign national is a lecturer or researcher who participates in organised professional meetings or research projects or performs work in order to present or implement various scientific and technical achievements, as well as his accompanying staff;
4. if the foreign national personally performs temporary educational, sports, artistic, cultural and other similar activities, that is, he resides in Serbia due to a scientific, artistic, cultural or sport event organised by authorised organisations, state bodies or bodies of the autonomous province and local units of self-government, organisational and technical staff as well as his accompanying staff;
5. if the foreign national is assigned to work in Serbia based on an agreement in relation to the purchase of goods, the purchase or lease of machines or equipment, the delivery, installation or repairs of such machines or equipment, or training to work on said machines; or
6. if the foreign national independently or for the needs of a foreign employer is staying in Serbia for the purpose of equipping and exhibiting equipment and exhibits at trade and other fairs and exhibitions

1.4. Special rules for executives?

Exceptions for managers or directors 

Managing directors and other managers may enter into two types of contracts: (i) an employment contract and (ii) contract on the rights and obligations of a managing director (management contract).   

When entering into a management contract, the parties are free to agree on the terms of engagement, as the strict rules of the Labour Law do not apply to this type of contract, other than to determine that a director is entitled to remuneration and other rights, obligations and responsibilities in accordance with such contract. 

The director may establish the employment relationship for an indefinite period or have the employment relationship tied to the term of appointment

2.1. Minimum wage

According to the Labour Law, wages and how they are calculated shall be determined by the labour rulebook/collective agreement or by the employment contract. However, wages shall not be set at less than the official minimum wage.  

Decision on minimum wage

The Labour Law defines the minimum wage as net amount and that it shall be set per working hour. Minimum wage is determined by the decision of the Social-Economic Council not later than 15 September of the current year and it shall be applied as of 1 January of the next year.  

According to the Decision on the minimum wage amount for 2023 (“Official Gazette of Republic of Serbia” no. 88/2017), the minimum wage is RSD 230.00 (net) per working hour. According to the Decision on the minimum wage amount for 2024, the minimum wage shall be RSD 271.00 (net) per working hour. 

Reduction of wages

If the employer wishes to pay minimum wage it must stipulate in the labour rulebook/collective agreement or employment contract the cases in which the minimum wage shall replace the stipulated salary. After expiry of six months, the employer must inform the representative of the trade union on the reasons for continuing to pay minimum wage. 

3.1. Standard working hours and breaks

Weekly standard working hours

An employee´s standard weekly working hours are 40 hours a week. Employees under the age of 18 may not work more than 35 hours a week. 

Daily standard working hours

A working week usually has five working days and the employer must decide on the distribution of working time in a working week. As a rule, a working day lasts eight hours.

Breaks

All employees shall have a right to a break in a working day.

Included in working time

The employer shall set the schedule of paid breaks in a typical working day. However, breaks may not be taken at the beginning or end of a working day and shall be included in the total working hours of the day.  

Employees working at least six hours daily shall have the right to at least 30-minute break per working day. 

Employees working more than four and less than six hours daily shall have the right to at least 15-minute break per working day. The employees working over 10 hours daily shall be entitled to a break of a minimum of 45 minutes during the working day. 

3.2. Minimum rest periods

Daily rest periods

An employee has the right to a daily rest period of at least 12 hours within 24 hours.

Weekly rest periods

An employee has the right to a weekly break of at least 24 hours, to which the daily rest period is added. And, if it is necessary for him to work during his weekly break, he shall be given an additional 24-hour break in the following week.

Employees who are unable to use the above-mentioned rest period due to the fact that the work is performed in different shifts or due to the redistribution of working hours shall be entitled to a weekly rest period of at least 24 hours continually.

3.3. Maximum allowed working hours

Redistribution of standard working time

According to Labour Law, the employer may reschedule the working hours where so required by the nature of the business activity, work organisation, better utilisation of the means of work, more rational use of working hours, and the execution of a specific task within the set time limits. 

The average weekly working hours of an employee within 6 months in the course of a calendar year must not exceed 40 working hours . In any case, the working time in the course of a week may not be longer than 60 hours. The surplus of working hours in one period shall be balanced out by time off in the other period. Only those working hours that exceed the threshold of 40 working hours per week on average within the period of six months shall be paid extra as overtime. 

Collective agreement may stipulate that the redistribution of working hours may last longer than 6 months, but no longer than 9 months.  

3.4. Overtime work

According to Labour Law, employees shall perform overtime work at the employer’s request in the following cases:

• in the event of a force majeure;
• if there is a sudden increase in the extent of work; and 
• in other cases in which it is necessary to finish work within a time limit that has not been anticipated.

Maximum hours of overtime work

Employees must not work overtime for more than eight hours per week. Employees shall not work more than 12 hours daily, including overtime work. 

Special restrictions for certain groups of employees

The Labour Law affords special protection for employees working overtime, e.g. under-aged employees, female employees and single parents. 

Compensation for overtime work

Each hour of overtime work shall be paid at a rate higher by at least 26% than the hourly base salary.  

3.5. Working during the weekend 

Any employee shall have the right to a weekly break of at least 24 hours and, if the employee must work during his weekly rest, he is entitled to a minimum of 24 hours’ break during the following week (see 3.2 above). The weekly break is usually taken during the weekend, but not necessarily. Therefore, working during the weekend is not paid extra, but at the usual rate for the base salary. 

3.6. Premiums for night-work and work on public holidays

Any employee shall have the right to a weekly break of at least 24 hours and, if the employee must work during his weekly rest, he is entitled to a minimum of 24 hours’ break during the following week (see 3.2 above). The weekly break is usually taken during the weekend, but not necessarily. Therefore, working during the weekend is not paid extra, but at the usual rate for the base salary. 

3.7. Sanctions for not complying with working time legislation

The Labour Law provides that a labour inspector may file a motion for the instigation of offence proceedings if he finds that an employer and/or responsible person has failed to act in accordance with the law. 

Penalties

Labour Law provisions indicate that any employer shall pay a fine for not complying with working time rules. The fines are as follows: 

• RSD 600,000 to 2 million (from approximately EUR 5,300 to EUR 17,050) per offence if the employer is a legal entity; and 
• RSD 300,000 to 500,000 (from approximately EUR 2,560 to EUR 4,260) per offence if the employer is an entrepreneur.  

Court proceedings

The employee, labour inspection or other competent authority may initiate court proceedings.

Minimum holiday entitlement

Any employee shall have the right to annual leave each calendar year for a number of days as specified in the labour rulebook/collective agreement or the employment contract. They annual leave shall not be shorter than 20 working days. This legal minimum increases based on the following: 

• contribution to work,
• work conditions,
• work experience,
• employee’s professional qualification, and
• other criteria as stipulated in the general act and the employment contract.

An employee shall be entitled to take annual leave in a calendar year after a month of continuous employment as of the start of his employment with the employer. Continuous work shall also include a temporary impediment to work, as according to healthcare regulations, and paid leave. An employee is entitled to 1/12 of the annual leave for each month of work in a calendar year in which the employment started or ended.

In the event of termination of employment, the employer shall pay compensation for unused annual leave (damage compensation) to the amount of the average salary for the previous 12 months, proportionate to the number of days of unused annual leave for the employee who did not use the annual leave in whole or in part.

The employer shall set the schedule of annual holidays according to the needs of its business and after consulting with the employees. The employer may change the time for taking annual leave if this is necessary for operational reasons. However, such alteration must be made at least five working days prior to the day determined for the start of annual leave.

The annual leave may be used at once or in two or more parts, if so agreed with an employee.

If an employee uses the annual leave in parts, the first part shall be used in a period of at least two consecutive working weeks during the calendar year, while the remainder shall be used by June 30th of the following year at the latest.

An employee who did not wholly or partially use the annual leave in a calendar year due to pregnancy leave, maternity leave and leave for a special care of a child may use the whole annual leave until June 30 of the following year.

While taking annual leave, any employee shall be entitled to receive wage compensation in accordance with the Labour Law.

Annual leave has to be used

An employee may not waive the right to annual leave, nor may such right be denied to him, nor may it be replaced with financial compensation, except in the case of termination of employment in accordance with the Labour Law. 

The Labour Law classifies sick leave as paid leave and the employee is entitled to salary compensation.  

The employer is obligated to pay salary compensation in case of the employee’s temporary incapacity to work for a period of up to 30 days: 

Disease/injury

• to the amount of 65% of the average salary paid in the last 12 months up to the onset of the incapacity to work – in the event that the incapacity to work is caused by illness or injury outside work (but in any case not less than the minimum salary stipulated in the Labour Law); 

Accident at work

• to the amount of 100% of the average salary paid in the last 12 months up to the onset of the incapacity to work – if the incapacity to work is caused by a work-related illness or injury (but in any case not less than the minimum salary stipulated in the Labour Law). 

Medical certificate

According to Labour Law, any employee shall present to his employer, within three days from the beginning of his incapacity for work, a medical certificate showing the expected duration of incapacity to work. In the case of serious illness, members of the employee’s immediate family or other members of his household shall present to the employer the certificate mentioned above. If the employee lives alone, he shall present the certificate to the employer within three days of the sickness or incapacity ending. 

If the employer has any doubts about the reasons for absence from work, it may file a request with the competent public health authority that the state of the employee’s health be assessed. 

Aside from the regular circumstances in which the employment is terminated (expiry of the period it was concluded for or reaching the age of retirement, etc.), the employment can also be terminated: 

1) by agreement between the employee and the employer; 

2) by termination of employment contract by the employee; 

3) by termination of employment contract by the employer. 

6.1. Termination by agreement between the employee and employer 

An employment relationship may terminate on the ground of agreement in writing between the employer and the employee. 

Before signing the agreement, the employer is bound to notify the employee in writing on the consequences that may ensue in the procedure for acquiring unemployment benefits. 

6.2.  Termination of employment contract by the employee  

An employee can terminate the employment contract with the employer upon a notice period of at least 15 days. The notice must be given in writing.

A bylaw or employment contract may determine a longer notice period, but it shall not be longer than 30 days. 

6.3. Termination of employment contract by the employer 

6.3.1 Reasons for termination of employment by the employer

According to Labour Law, the employer may terminate the employment contract for reasons that can be divided into the following groups: 

Reasons relating to the employee’s work ability and his conduct, as follows: 

1. if he does not achieve the work results or does not have the necessary knowledge and skills to perform his duties; 
2. if he is convicted of a crime at work or related to work (final and binding court decision); 
3. if he does not return to work for the employer within 15 days as when the period of stay of employment or leave for special care of a child or another person expires.  

If the employee on his own fault commits a breach of work duty, as follows: 

1. if he is negligent or reckless in performing his work duty; 
2. if he abuses his position or exceeds his authority; 
3. if he uses the means of work unreasonably and irresponsibly; 
4. if he does not use or uses inappropriately allocated resources and equipment for personal protection at work ; or 
5. if he commits other breaches of his work duty as determined by the collective agreement/employment rulebook or employment contract. 

If the employee does not comply with work discipline requirements, as follows:  

1. if he without reason refuses to perform work and execute the orders of the employer in accordance with the law; 
2. if he does not submit a certificate of temporary incapacity for work as required by the Labor Law; 
3. if he abuses the right to leave due to temporary incapacity to work; 
4. if he comes to work under the influence of alcohol or other intoxicating substances or uses alcohol or other intoxicating substances which have or may have an impact on the work performance during working hours; 
5. if he gave incorrect information that was critical for concluding the employment contract; 
6. if the employee working at a high-risk jobs refuses to undergo a health check, even though working on such job requires specific health requirements; 
7. if he does not respect work discipline as prescribed by an act of the employer, or if his conduct is such that he cannot continue to work for the employer. 

If there is a valid reason relating to the employer's needs, as follows:  

1. if, as a result of technological, economic or organisational changes, the need to perform a specific job ceases, or there is a decrease in workload (redundancy); or 
2. if he refuses to conclude the annex to the employment contract pursuant to the Labour Law. 

Invalid reasons 

In general, an employer may not terminate the employment contract of an employee for the following reasons: 

1. a temporary absence from work due to illness, accident or occupational diseases; 
2. use of maternity leave, absence from work for childcare and absence from work for special care of a child; 
3. military service; 
4. sex, language, nationality, social origin, religion, politics or other belief or any other personal characteristic of an employee  
5. membership in a political organisation or trade union; 
6. If the employee is acting in the capacity of employee representative, in accordance with the Law; or 
7. the employee addresses a trade union or a body competent for the protection of labour rights in accordance with law, general act and employment contract.

6.3.2 Procedure for the termination of employment by the employer

The procedure for the termination of employment by the employer depends on the reasons for the termination. The employment is terminated by way of a termination notice that must be rendered in writing and delivered to the employee in person, either at the place of work or the place of residence. If the employer cannot deliver the termination notice in person, it must make an official note in writing thereof, and place the termination notice on the bulletin board. In this event, the termination notice will be considered delivered after the expiry of 8 days.  

The employment will be considered terminated on the day of the delivery of the termination notice, unless otherwise specified by the law or the termination notice itself. 

The termination notice must include a reasoning and instructions on the legal remedy. 

Lack of work results, knowledge or skills

When the reason for employment termination is the employee’s failure to achieve the required work results or lack of knowledge or skills, the employer may terminate the employment only if it has previously given written notice regarding deficiencies in the employee’s work, if it has provided guidance and an appropriate deadline to enhance and improve work, and only if the employee does not improve his work within the given deadline.  

The employee has a right to a notice period, which, in this case, cannot be less than 8 days and longer than 30 days, depending on the duration of pension and disability insurance. The notice period begins as of the day following the day in which the termination notice has been delivered to the employee. The employee can, in accordance with the agreement with the employer, stop working before the expiry of the notice period. The employee will still have a right to salary compensation until the end of the notice period. 

Breach of work duty and work discipline

When the reason for employment termination is a breach of a work duty or work discipline, the employer is obliged, prior to the employment termination, to warn the employee in writing on the reasons for the termination of employment and to allow the employee at least eight days to respond to such warning. The warning notice must stipulate the grounds for employment termination, the facts and evidence that show the existence of the reason for employment termination and the deadline for answering the warning notice. If the employee is a member of a trade union and obtains the trade union’s opinion on the warning notice, the employer is obliged to consider such an opinion. After expiry of the above period, the employer is free to terminate the employment contract. The employer may terminate the employee’s employment contract within 6 months from the day the employer learned of the facts of the grounds for termination, but, in any case, not later than within 1 year from the occurrence of the facts of the grounds for termination. In case of a breach of work obligation or non-compliance with work discipline, if it believes that there are mitigating circumstances or that the breach of work obligation or non-compliance with work discipline is not of such nature that the employment relationship should be terminated, the employer may – instead of terminating the employment contract – impose one of the following measures: 

1) temporary suspension from work without salary compensation for a period of 1 to 15 working days; 

2) a monetary fine of up to 20% of the employee's base salary for the month in which the monetary fine is imposed, for a period of up to three months, which is executed by deduction from the salary, based on the employer's decision on the imposed measure; 

3) a warning with a notice of termination, stating that the employer will terminate the employment contract without further warning if the same breach of work obligation or non-compliance with work discipline is repeated within the next 6 months. 

When the reason for employment termination is technological, economic or organisational changes (i.e. redundancy), the employer must create a redundancy programme in the following cases:  

• if, within a 90-day period, the employer finds that there will be no more need, due to technological, economic or organisational changes, for the work of 20 employees, regardless of the total number of employees; 
• if, within a 30-day period, the employer finds that there will be no more need, due to technological, economic or organisational changes, for the work of employees engaged for an indefinite period of time in companies with the following numbers of employees:  

(iv) 10 employees of an employer who employs more than 20 and less than 100 employees who are engaged for an indefinite period of time;  

(v) 10% of the employees of an employer engaging a minimum of 100 and a maximum of 300 employees who are engaged for an indefinite period of time;  

(vi) 30 employees with an employer employing more than 300 employees who are engaged for an indefinite period;  

The redundancy programme draft must be forwarded to the representative trade union organised in the employer’s company and to the National Employment Office in order to obtain their opinions. This must be done no later than 8 days as of the day the redundancy programme draft is finalised. The trade union must provide its opinion on the redundancy programme draft within 15 days of receiving it. 

The National Employment Office must provide the employer with proposal for measures to prevent or decrease redundancies, i.e. provide retraining, additional training, self-employment training and other measures for the new employment of the redundant employees within 15 days of receiving the programme draft 

The employer must consider the trade union’s opinion and the measures proposed by the National Employment Service and inform them of the redundancies within 8 days. 

The purpose of the redundancy programme is to determine criteria for establishing the redundant employees (whereas with the elimination of job positions, all employees are immediately redundant), providing measures for finding new employment for employees and determining resources necessary for solving the social and economic position of redundant employees. 

In case of employment termination for reasons of redundancy, an employer may not employ new employee in the redundant job position for three months as of the day of employment termination. The redundant job must first be offered to the employee who was dismissed due to redundancy. 

If the employment contract is terminated due to redundancy the employer shall pay severance pay as set by the labour rulebook/collective agreement or employment contract. The severance pay cannot be lower than the sum of one third of the employee's average gross salaries, paid for the last three months of employment preceding the month in which severance pay is paid, for each full year of employment with the employer. 

6.4. General protection against termination of employment

Action against infringement of an employee’s rights

An employee may take action with a competent court against any resolution infringing his rights. The time limit for taking such action shall be 60 days from the date on which the resolution was delivered or the infringement became known.  

Any monetary claim based on a breach of employment rights shall become unenforceable three years after the date on which the breach occurred.  

6.5. Employees with special protection against termination of employment

Protected groups

The employment termination resolution is null if, at the date of passing the resolution, the employer was aware of the existence of the grounds for using pregnancy leave, maternity leave, or leave for the special care of a child, or if the employee, within 30 days of termination of employment, informs the employer of the existence of these circumstances and submits the appropriate certificate from an authorised physician or other competent authority.  

Also, an employer may not terminate employment, or put an employee in a disadvantageous position in any other way, because of his status or activities as an employees’ representative, trade union member, or because of his participation in trade union activities.

Disabled persons

As for disabled persons, the employer is obliged to make it possible for any disabled employee to perform work suited to his working capability. Also, the employer shall find another suitable job for any employee who is compromised by his disability in his job. Only if the employee refuses to accept such a job may the employer serve an employment termination resolution. If the employer cannot provide the disabled employee with a job suitable for his working capability, then such employee shall be considered as redundant. 

No effect on employment relationships without special agreement

A change of employer should be in accordance with the provisions of the Labour Law. In addition, special collective agreements, as well as individual collective agreements, may apply to a particular change in employer. 

In the event of a status change, and/or a change in employer, the successor employer shall take over from the predecessor employer the labour rulebook/collective agreement and all contracts of employment that are valid on the day of the transfer. 

The successor employer shall be bound to apply the labour rulebook/collective agreement for at least a year from the day of the change of employer unless if, prior to the expiry of that time limit, the following happens:  

• the validity period of the collective agreement applying to the previous employer expires; and/or 
• a new collective agreement with the successor employer has been entered into.  

The previous employer and the successor employer shall be bound to notify the representative trade union of the employer, 15 days before the change of employer, on:  

• the date or proposed date of the change in employer;  
• the reasons for the change of employer;  
• the legal, economic and social consequences of the change in employer in respect to the status of employees, and the measures for easing such consequences.  

The previous employer and the successor employer shall be bound, within 15 days before the change of employer and in cooperation with the representative trade union, to take measures in order to anticipate the social and economic consequences for the employees of the change in employers.  

Should no representative trade union exist for the employer, the employees shall be entitled to be directly notified of the change of employer as stated above.  

8.1. Trade unions and staff representatives

Work council  

Under the Labour Law, the employees of an employer who has more than 50 employees may form a council of employees. The council of employees should give opinions and participate in decisions regarding the economic and social rights of employees, in accordance with the law and the labour rulebook/collective agreement.  

Trade union

Employees must be allowed the freedom to organise trade unions and carry out trade union activities. In order to become a signature party to collective agreements, the trade union must be regarded as representative of the employees. 

The trade union is considered to be representative if: (i) it is established and acts according to the principles of freedom of trade union organising and actions; (ii) it is independent from state organs and employers; (iii) it is financed predominantly from membership fees and other independent sources; (iv) a minimum of 15% of the total number of employees employed by the employer are members of such trade union; (v) a minimum of 15% of the total number of employees employed by that employer are members, for the representative trade union, in an industry branch, industry group, industry subgroup or business; and (vi) it is listed on the Trade Union register. 

Association of employers

The Labour Law states that employers that employ a minimum of 5% of the total number of persons employed in a specific branch, group, subgroup or line of business, and/or on the specific territory, may establish an association of employers. In order to become a signature party to a collective agreement, the association of employers must be regarded as representative, in accordance with the Labour Law. 

The association of employers is considered to be representative if: (i) it is listed in the register in conformity with the Labour Law and the Bylaw on Registration of Association of Employers; and (ii) if it’s constituted of a minimum of 10% of the total number of employers in a branch, group, subgroup or line of business, and/or on the specific territory, , and under the condition that such employers employ a minimum of 15% of the total number of employees in a branch, group, subgroup or line of business, and/or on the specific territory.

The association of employers is considered to be established by registration in the registry of associations of employers, as kept by the Ministry of Labour.  

Paid leave for trade union representatives

A collective agreement or an agreement between an employer and trade union may stipulate that a trade union representative is entitled to paid leave in proportion to the number of trade union members. If this matter is not regulated, the trade union representative is entitled to:  

• 40 paid working hours per month if the trade union has at least 200 members and one additional paid working hour per month per each additional 100 trade union members; or 
• proportionally fewer paid working hours if the trade union has less than 200 members. 

If there is no collective agreement or agreement between the employer and trade union, the president of the branch of member of trade union body is entitled to 50% of the aforementioned paid working hours. 

8.2. Collective Agreements

A collective agreement, in conformity with the law and other regulation, regulates the rights, duties and responsibilities stemming from employment relationship, the procedure of amending and supplementing a collective agreement, mutual relations of parties to the collective agreement, and other matters of importance to employees and employers. 

A collective agreement may be concluded as a general agreement or a special agreement with an employer. 

A general collective agreement may be entered into by the representative association of employers and the representative trade union for the territory of the Republic of Serbia. A special collective agreement for a branch, group and/or industry may be agreed on by the representative labour union and the representative association of employers formed for a branch, group and/or industry. A special collective agreement for the territory of an autonomous territorial unit and local self-government may be concluded by the representative association of employers and the representative labour union formed for the territory of an autonomous territorial unit and local self-government. An individual collective agreement may be concluded between the representative labour union organised within the employer’s company and the employer.

General or special collective agreements are implemented directly and bind all employers who were, at the time of execution of the collective agreement, members of the association of employers-participants of the collective agreement. These collective agreements also bind the employers who have subsequently become members of the association of employers-participants of the collective agreement as of the day of joining the association of employers. The collective agreement binds the employers for 6 months following the withdrawal from the association of employers-participant of the collective agreement. 

The collective agreement may be subsequently accessed by an employer  (i.e. association of employers that is not a signatory of the collective agreement, a member of the association of employers-participants of the collective agreement). 

A collective agreement at the company level also binds those employees of the employer who are not members of the trade union that signed the collective agreement. 

A collective agreement is concluded for a period of up to 3 years. After the expiry of the time limit, the collective agreement ceases to be valid unless the participants of the collective agreement agree otherwise, within 30 days at the latest, prior to expiry of the term of validity of the collective agreement. The collective agreement can always be terminated before the expiry by way of agreement between all participants, or by cancellation in the manner stipulated by such agreement. In the event of cancellation, the collective agreement shall be applicable at most for 6 months from the day of submitting the notice of cancellation. 

Courts - time limits

An employee may take action with a competent court against any resolution infringing his rights. The time limit for filing action shall be 60 days from the date on which the resolution was delivered or the infringement became known. 

Any monetary employment claim shall become unenforceable after three years from the date it became due. 

Any employee may file an action before a court having jurisdiction for the employer’s registered offices or for the area where the employer performs its business activities. 

Peaceful settlement of labour disputes 

The Law on Peaceful Settlement of Labour Disputes (“Official Gazette of the RoS” Nos. 125/2004, 104/2009 and 20/2018) sets out the rules and procedure for the settlement of disputes in the field of labour relations.

Mediation in accordance with the Labour Law

A labour rulebook/collective agreement or employment contract may stipulate a procedure for the settlement of any dispute between the employer and an employee. 

An employee and his employer may resort to arbitration for the settlement of any dispute. The arbitrator is appointed by the parties and must be a specialist in the field that is the subject matter of the dispute. 

Republic Agency for the Peaceful Settlement of Labour Disputes

The Republic Agency for the Peaceful Settlement of Labour Disputes was created in 2004. This agency has the right to participate in resolving individual and collective labour disputes. 

General background

The system of social security and social insurance covers pension and disability insurance, health insurance and unemployment insurance. 

10.1. Contributions for social insurance

Contributions are paid by the employees and the employers to the same amount: 

• Pension insurance: employee 14% and employer 10%;  
• Health insurance: each contribute 5.15%. 

For unemployment insurance, only the employee pays the contributions, which are paid at the rate of 0.75%. 

10.2. State pension

The general retirement age in accordance with the Labour Law is 65 years of age and 15 years of pension and disability insurance.

Retirement age for men

Retirement age for men: 65 years of age and at least 15 years of pension and disability insurance, or at least 60 years of age (in 2023 and to be increased in the following years) and 40 years of pension and disability insurance, or at least 45 years of pension and disability insurance regardless of age. 

Retirement age for women

Retirement age for women: 63 years of age (in 2023 and to be increased in the following years) and at least 15 years of pension and disability insurance, or at least 59 years of age and 40 years  pension and disability insurance (in 2023 and to be increased in the following years), or at least 45 years of pension and disability insurance regardless of age.  

Private pension systems

Private pension arrangements were introduced by the new law on pension and disability insurance, as adopted in April 2003 and by the Optional Pension Fund and Pension Scheme Law, which came into force in 2005.

10.3. Unemployment benefits

Unemployment benefits

The state supports unemployed people with benefits that depend on the particular conditions of unemployment. 

Unemployed persons are entitled to an allowance that cannot be lower than RSD 22,390 (approx. EUR 185) or higher than RSD 51,905 (approx. EUR 430) per month. They are entitled to this for a maximum of 12 months and, in exceptional cases, for 24 months if the unemployed person fulfils the conditions for retirement within 2 years. This allowance cannot be less than 80% and more than 160% of the minimum wage as determined for the month in which the payment of allowance was made, as in accordance with the law. During the period when they receive the above allowance, the beneficiaries are also entitled to statutory health insurance. 

The number of contributions paid to unemployed people is established by the applicable Law on Mandatory Social Contributions.