	Global Employment Law Guide
	Serbia
	(Europe) Firm JPM & Partners Contributors Jelena Gazivoda Andrea Cvetanovic Jelena Nikolic Updated 21 Feb 2024
What are the different categories of employment status (for example, employee, worker, self-employed individuals, etc)?	There is no difference between employees and workers, i.e. white-collar employees and blue-collar workers. Therefore, persons engaged under employment contracts are considered as employees, regardless of the job position they are engaged in. Pursuant to the law, the legal representative of the company can execute either an employment contract or an agreement on rights and obligations. In the case of executing the agreement on rights and obligations, the legal representative does not establish employment relations and the said agreement is terminated once the legal representative is dismissed from the function. Aside from the aforementioned, the Labor Law stipulates an additional basis for the engagement of personnel outside employment, i.e. without establishing employment relations, as follows: Agreement on temporary and periodical jobs; Service agreement; Agreement on professional education and improvement; Agreement on additional work.
Are there different types of employment contracts (for example, fixed-term, indefinite)?	Yes. Employment can be established for a definite or indefinite period. The law prescribes the maximal duration of the employment for a definite period of 24 months, as well as cases in which it can be prolonged. If the employment contract does not stipulate whether it is executed for a definite or indefinite period, it is considered as if the employee established employment for an indefinite period of time. Employment relations can also be established with part-time (35 hours per week or less) and full-time working hours (from 36 to 40 hours per week). An employment contract can be executed in order to perform work from home, i.e. outside the business premises of the employer. Aside from the mandatory elements of the employment contracts, employment contracts for work from home, i.e. outside the business premises of the employer must contain additional mandatory provisions such as the manner of monitoring the work of the employee, work equipment that is provided by the employer and employers obligation to install and maintain such equipment, etc. The employer may engage home staff in which case there is a possibility for 50% of the salary to be expressed through provided meals and accommodation. In cases when a person is establishing employment for the first time, as a trainee, employment relations can be established for a period of 1 year, depending on the kind and level of education of the trainee. The contract can be executed for a longer period of time if such possibility is stipulated by a separate law.
What requirements need to be met in order for an employment contract to be valid?	The employment contract has to be executed prior to the commencement of work in written form and with a person older than 15 years of age. For persons who are older than 15 and younger than 18 years of age, prior approval of their parents, guardians or adoptive parents has to be obtained. In addition, such persons cannot be engaged in a job position that could be harmful to their health, morals or education. In case a person does not commence work on the day stipulated by the employment contract, it is considered as if the contract was never executed (unless there is a justified reason for not commencing work on the agreed date). The law stipulates mandatory elements of the employment contract. However, the lack of mandatory elements does not affect the validity of the contract. Even if the parties do not execute an employment contract, if the employee commences work, it is considered as if the employment relation was established.
Are part-time employees afforded the same rights as full-time employees?	Yes.
Can employment contracts be assigned?	Yes. Employees may be assigned to work for another employer in case the need for their work temporarily ceased to exist if the business premises were leased, or in case the business cooperation agreement was executed. The consent of the employee is required only in cases when the other/new place of work is more than 50km away from the initial one, as well as in cases when the assignment lasts longer than one year.
What rights do employees have (to object, to severance), if any, when the company they work for is transferred as a going concern?	The employment agreements cannot be transferred within the sale of assets. Namely, in order for the employees to commence work for the other/new employer, their employment at the previous employer has to be terminated in order for the new one to be established. However, they are not obliged to execute the employment contract with the new employer. The possibility of transfer of the employment contracts exists only in case of status change. The employees are provided with the annex to the employment contract and they have a deadline of 5 working days to accept or refuse the offer. In case the employee refuses for his employment contract to be transferred to the new employer, the previous employer may terminate his employment without the obligation to perform payment of severance pay.
Do you have statutory rights for employees on change of control of an employer? If so, please give the statute.	No.
In what circumstances can employers unilaterally change the terms of employment, and what remedies (if any) are afforded to an employee?	The Employer is allowed to regulate the rights and obligations of the employees by general act of the company (duration of annual leave, compensation of expenses, termination procedure, etc.). In the said case, provisions of the employment contract invoke the general act of the company, meaning that work conditions can be amended by amending the general act, without the consent of the employees. However, in certain cases, amendments made by the general act require for employee to execute an annex to the employment contract, i.e. to provide his consent (transfer to another job position, change of the elements for determining salary and other receivables, etc.). In case an employee refuses to sign such an annex, the employer may unilaterally terminate his employment. Pursuant to the law, the employer may unilaterally transfer the employee to another job position based on the resolution. The transfer has to be temporary, i.e. it cannot last longer than 45 working days during the calendar year and the employee has to be provided with the working conditions that are more favorable for him.
Is your jurisdiction an employment-at-will jurisdiction? What are the employer’s termination rights?	No. The Republic of Serbia is not an employment-at-will jurisdiction. The termination procedure is quite formal, meaning that the employer has to provide reasoning for each case of employment termination. The employment agreement may be terminated only on the grounds prescribed by the Labor Law (breach of a work duty/discipline, redundancy, etc). The legality of the termination depends also on the fact whether the employer conducted the termination procedure in line with the law or not.
Are there remedies for dismissal without cause or wrongful termination?	Yes. The employee may challenge the legality of the termination before the competent court within 60 days starting from the day the employee received the resolution on termination, i.e. within 60 days starting from the moment the employee became aware of the violation of his rights. The employee may request to be returned to work or damage compensation up to 18 monthly salaries instead (18 x the employee’s salary for the last month of his employment). In addition, the employee may request compensation for damage for the lost salaries, which amount is decreased for the amount of income the employee gained based on work engagement after employment termination. In case the employer manages to prove that the request of the employee to be returned to work is not justified, the employer can be obliged to compensate the damage to the employee up to 36 monthly salaries instead (36 x the employee’s salary for the last month of his employment). In addition, the employee has the right to claim all pecuniary receivables deriving from employment within 3 years starting from the day the claim occurred.
Are there protections for whistleblowers?	Yes. Protection of whistleblowers is stipulated by the Law on Protection of the Whistleblowers.
Do employees have a right to privacy? If so, what are the remedies for a breach?	Yes. Pursuant to the Constitution of the Republic of Serbia, Labor Law, and Law on Personal Data Protection employees are entitled to right to privacy. Breach of privacy represents a misdemeanor or even criminal offense for which the employer, as well as the responsible person at the employer, can be liable. Moreover, the employee may claim the damage compensation before the competent court.
Are employees afforded any anti-discrimination protection?	Yes. The Constitution of the Republic of Serbia, as well as the Labor Law and the Law on Prohibition of Discrimination, prescribe the prohibition of discrimination. Breach of prohibition of discrimination not only represents a misdemeanor, but it also gives the employee a possibility to claim compensation for damage before the competent court.
Are there statutory rights to vacation, medical leave and parental leave? Have there been any changes to leave benefits in the past 12 months? Is there any proposed legislation that employers should be aware of that will impact leave benefits?	Yes. The Labor Law prescribes statutory rights to vacation leave, medical leave and parental leave. The employees are entitled to a minimum of 20 working days of vacation that shall be increased based on the criteria prescribed by the law. In terms of medical leave, depending on the basis for temporary inability to work, i.e. whether it is due to reasons related to work (e.g. injury at work) or not, the payment of compensation for damage is made by the employer or the competent state authority. Also, in the case when the temporary inability to work is caused by a disease that is not work-related or due to an injury outside of work, the employee is entitled to compensation of salary in a lower percentage. Pursuant to the Labor Law, as well as other legislation, employees are entitled to paid leave during pregnancy, maternity leave, childcare leave and special childcare leave. In cases stipulated by the law, a father can use maternity leave, childcare leave and special childcare leave instead of a mother, meaning that it cannot be used by both parents at the same time. The competent state authority provides compensation of salary during parental leave. Labor Law also prescribes cases in which one of the parents, adoptive parents, foster parents and guardian are entitled to paid leave or the right to work with half-time working hours. In addition, one of the parents, adoptive parents, foster parents and guardian is entitled to unpaid leave until the child turns 3 years of age. There have been no changes with regard to the leave benefits in the past 12 months. In addition, there is no proposed legislation that employers should be aware of that will impact leave benefits.
Are restrictive covenants recognized and, if so, what are reasonable restrictions as to geography, duration and scope of activity?	Yes. Pursuant to the Labor Law, an employment contract can stipulate the restriction/ban of competition clause in case the employee may acquire, new, particularly important technological knowledge, a wide circle of business partners or significant business information and secrets. It can be valid during employment, in which case no additional compensation needs to be paid. However, in case the employment contract stipulates that it is binding upon employment termination as well, the employer is obliged to perform payment of the agreed compensation. The Ban of competition clause can be in force upon employment termination for a period of a maximum of 2 years. Depending on the business activity of the employer, the geographical validity of the clause can be determined either by the general act of the company or the employment agreement.
Can employees be terminated for refusing to sign a restrictive covenant? What serves as consideration for a restrictive covenant?	No. The employee cannot be terminated for refusing to sign a restrictive covenant. Therefore, restrictive covenants are usually agreed upon when establishing employment relations. The law does not prescribe a minimal or maximal amount of consideration/compensation, meaning that the parties are free to agree/negotiate on the said amount by the employment contract. Please note that the consideration/compensation is paid only in case the restriction is binding upon employment termination.
Does your jurisdiction require contributions to a pension or retirement scheme?	Yes. The employer is obliged to calculate and pay mandatory contributions for pension and disability insurance. Contributions for pension and disability insurance are paid both at the expense of the employee and the employer. Retirement scheme is not mandatory.
Are certain benefits mandated by your jurisdiction?	Yes. The employer is obliged to perform payment of social contributions for pension and disability, health insurance and insurance in case of unemployment. Contributions for pension disability and health insurance are paid at the expense of both the employee and the employer, while the contributions for unemployment are paid only at the expense of the employee.
Is it permitted to have a mandatory retirement age in your jurisdiction?	No. However, the employer may unilaterally terminate the employment of the employee once the employee turns 65 years of age and has at least 15 years of service. In other cases, the termination due to retirement has to be initiated by the employee.
Is it possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age?	The person who is retired can establish employment relations, in which case he has the same rights as any other employee. The only difference is that the employer is not obliged to pay contributions for insurance in case of unemployment.
Can an employer make the COVID-19 vaccine mandatory for its employees? Are there exceptions that an employer must make? If an employee simply does not want to get the vaccine (without another reason like disability or religious reason), can an emp...	No. There is no legal ground in Serbian legislation on which the employer could rely to make vaccines mandatory. Therefore, an employer could not terminate the employee’s employment on the respective basis.
Can an employer require that employees return to work in the office (absent government order to shut down)? If an employee refuses to return to the office, can the employer terminate the employee’s employment?	Yes, the employer can require that employees return to work at the workplace and in the work environment in which safety and health measures at work have been implemented in accordance with applicable regulations in the field of safety and health at work. The employer can terminate the employee’s employment if an employee refuses to return to the office, provided that the above-mentioned measures have been implemented.

Global Employment Law Guide

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What are the different categories of employment status (for example, employee, worker, self-employed individuals, etc)?

There is no difference between employees and workers, i.e. white-collar employees and blue-collar workers. Therefore, persons engaged under employment contracts are considered as employees, regardless of the job position they are engaged in.

Pursuant to the law, the legal representative of the company can execute either an employment contract or an agreement on rights and obligations. In the case of executing the agreement on rights and obligations, the legal representative does not establish employment relations and the said agreement is terminated once the legal representative is dismissed from the function.

Aside from the aforementioned, the Labor Law stipulates an additional basis for the engagement of personnel outside employment, i.e. without establishing employment relations, as follows:

Agreement on temporary and periodical jobs;
Service agreement;
Agreement on professional education and improvement;
Agreement on additional work.

Are there different types of employment contracts (for example, fixed-term, indefinite)?

Yes. Employment can be established for a definite or indefinite period. The law prescribes the maximal duration of the employment for a definite period of 24 months, as well as cases in which it can be prolonged. If the employment contract does not stipulate whether it is executed for a definite or indefinite period, it is considered as if the employee established employment for an indefinite period of time.

Employment relations can also be established with part-time (35 hours per week or less) and full-time working hours (from 36 to 40 hours per week).

An employment contract can be executed in order to perform work from home, i.e. outside the business premises of the employer. Aside from the mandatory elements of the employment contracts, employment contracts for work from home, i.e. outside the business premises of the employer must contain additional mandatory provisions such as the manner of monitoring the work of the employee, work equipment that is provided by the employer and employers obligation to install and maintain such equipment, etc.

The employer may engage home staff in which case there is a possibility for 50% of the salary to be expressed through provided meals and accommodation.

In cases when a person is establishing employment for the first time, as a trainee, employment relations can be established for a period of 1 year, depending on the kind and level of education of the trainee. The contract can be executed for a longer period of time if such possibility is stipulated by a separate law.

What requirements need to be met in order for an employment contract to be valid?

The employment contract has to be executed prior to the commencement of work in written form and with a person older than 15 years of age. For persons who are older than 15 and younger than 18 years of age, prior approval of their parents, guardians or adoptive parents has to be obtained. In addition, such persons cannot be engaged in a job position that could be harmful to their health, morals or education.

In case a person does not commence work on the day stipulated by the employment contract, it is considered as if the contract was never executed (unless there is a justified reason for not commencing work on the agreed date).

The law stipulates mandatory elements of the employment contract. However, the lack of mandatory elements does not affect the validity of the contract.

Even if the parties do not execute an employment contract, if the employee commences work, it is considered as if the employment relation was established.

Are part-time employees afforded the same rights as full-time employees?

Yes.

Can employment contracts be assigned?

Yes. Employees may be assigned to work for another employer in case the need for their work temporarily ceased to exist if the business premises were leased, or in case the business cooperation agreement was executed. The consent of the employee is required only in cases when the other/new place of work is more than 50km away from the initial one, as well as in cases when the assignment lasts longer than one year.

What rights do employees have (to object, to severance), if any, when the company they work for is transferred as a going concern?

The employment agreements cannot be transferred within the sale of assets. Namely, in order for the employees to commence work for the other/new employer, their employment at the previous employer has to be terminated in order for the new one to be established. However, they are not obliged to execute the employment contract with the new employer.

The possibility of transfer of the employment contracts exists only in case of status change. The employees are provided with the annex to the employment contract and they have a deadline of 5 working days to accept or refuse the offer. In case the employee refuses for his employment contract to be transferred to the new employer, the previous employer may terminate his employment without the obligation to perform payment of severance pay.

Do you have statutory rights for employees on change of control of an employer? If so, please give the statute.

No.

In what circumstances can employers unilaterally change the terms of employment, and what remedies (if any) are afforded to an employee?

The Employer is allowed to regulate the rights and obligations of the employees by general act of the company (duration of annual leave, compensation of expenses, termination procedure, etc.). In the said case, provisions of the employment contract invoke the general act of the company, meaning that work conditions can be amended by amending the general act, without the consent of the employees.

However, in certain cases, amendments made by the general act require for employee to execute an annex to the employment contract, i.e. to provide his consent (transfer to another job position, change of the elements for determining salary and other receivables, etc.). In case an employee refuses to sign such an annex, the employer may unilaterally terminate his employment.

Pursuant to the law, the employer may unilaterally transfer the employee to another job position based on the resolution. The transfer has to be temporary, i.e. it cannot last longer than 45 working days during the calendar year and the employee has to be provided with the working conditions that are more favorable for him.

Is your jurisdiction an employment-at-will jurisdiction? What are the employer’s termination rights?

No. The Republic of Serbia is not an employment-at-will jurisdiction.

The termination procedure is quite formal, meaning that the employer has to provide reasoning for each case of employment termination.

The employment agreement may be terminated only on the grounds prescribed by the Labor Law (breach of a work duty/discipline, redundancy, etc). The legality of the termination depends also on the fact whether the employer conducted the termination procedure in line with the law or not.

Are there remedies for dismissal without cause or wrongful termination?

Yes. The employee may challenge the legality of the termination before the competent court within 60 days starting from the day the employee received the resolution on termination, i.e. within 60 days starting from the moment the employee became aware of the violation of his rights.

The employee may request to be returned to work or damage compensation up to 18 monthly salaries instead (18 x the employee’s salary for the last month of his employment).

In addition, the employee may request compensation for damage for the lost salaries, which amount is decreased for the amount of income the employee gained based on work engagement after employment termination.

In case the employer manages to prove that the request of the employee to be returned to work is not justified, the employer can be obliged to compensate the damage to the employee up to 36 monthly salaries instead (36 x the employee’s salary for the last month of his employment).

In addition, the employee has the right to claim all pecuniary receivables deriving from employment within 3 years starting from the day the claim occurred.

Are there protections for whistleblowers?

Yes. Protection of whistleblowers is stipulated by the Law on Protection of the Whistleblowers.

Do employees have a right to privacy? If so, what are the remedies for a breach?

Yes. Pursuant to the Constitution of the Republic of Serbia, Labor Law, and Law on Personal Data Protection employees are entitled to right to privacy.

Breach of privacy represents a misdemeanor or even criminal offense for which the employer, as well as the responsible person at the employer, can be liable. Moreover, the employee may claim the damage compensation before the competent court.

Are employees afforded any anti-discrimination protection?

Yes. The Constitution of the Republic of Serbia, as well as the Labor Law and the Law on Prohibition of Discrimination, prescribe the prohibition of discrimination.

Breach of prohibition of discrimination not only represents a misdemeanor, but it also gives the employee a possibility to claim compensation for damage before the competent court.

Are there statutory rights to vacation, medical leave and parental leave? Have there been any changes to leave benefits in the past 12 months? Is there any proposed legislation that employers should be aware of that will impact leave benefits?

Yes. The Labor Law prescribes statutory rights to vacation leave, medical leave and parental leave.

The employees are entitled to a minimum of 20 working days of vacation that shall be increased based on the criteria prescribed by the law.

In terms of medical leave, depending on the basis for temporary inability to work, i.e. whether it is due to reasons related to work (e.g. injury at work) or not, the payment of compensation for damage is made by the employer or the competent state authority. Also, in the case when the temporary inability to work is caused by a disease that is not work-related or due to an injury outside of work, the employee is entitled to compensation of salary in a lower percentage.

Pursuant to the Labor Law, as well as other legislation, employees are entitled to paid leave during pregnancy, maternity leave, childcare leave and special childcare leave. In cases stipulated by the law, a father can use maternity leave, childcare leave and special childcare leave instead of a mother, meaning that it cannot be used by both parents at the same time. The competent state authority provides compensation of salary during parental leave.

Labor Law also prescribes cases in which one of the parents, adoptive parents, foster parents and guardian are entitled to paid leave or the right to work with half-time working hours. In addition, one of the parents, adoptive parents, foster parents and guardian is entitled to unpaid leave until the child turns 3 years of age.

There have been no changes with regard to the leave benefits in the past 12 months. In addition, there is no proposed legislation that employers should be aware of that will impact leave benefits.

Are restrictive covenants recognized and, if so, what are reasonable restrictions as to geography, duration and scope of activity?

Yes. Pursuant to the Labor Law, an employment contract can stipulate the restriction/ban of competition clause in case the employee may acquire, new, particularly important technological knowledge, a wide circle of business partners or significant business information and secrets.

It can be valid during employment, in which case no additional compensation needs to be paid. However, in case the employment contract stipulates that it is binding upon employment termination as well, the employer is obliged to perform payment of the agreed compensation. The Ban of competition clause can be in force upon employment termination for a period of a maximum of 2 years.

Depending on the business activity of the employer, the geographical validity of the clause can be determined either by the general act of the company or the employment agreement.

Can employees be terminated for refusing to sign a restrictive covenant? What serves as consideration for a restrictive covenant?

No. The employee cannot be terminated for refusing to sign a restrictive covenant. Therefore, restrictive covenants are usually agreed upon when establishing employment relations.

The law does not prescribe a minimal or maximal amount of consideration/compensation, meaning that the parties are free to agree/negotiate on the said amount by the employment contract.

Please note that the consideration/compensation is paid only in case the restriction is binding upon employment termination.

Does your jurisdiction require contributions to a pension or retirement scheme?

Yes. The employer is obliged to calculate and pay mandatory contributions for pension and disability insurance.

Contributions for pension and disability insurance are paid both at the expense of the employee and the employer.

Retirement scheme is not mandatory.

Are certain benefits mandated by your jurisdiction?

Yes. The employer is obliged to perform payment of social contributions for pension and disability, health insurance and insurance in case of unemployment.

Contributions for pension disability and health insurance are paid at the expense of both the employee and the employer, while the contributions for unemployment are paid only at the expense of the employee.

Is it permitted to have a mandatory retirement age in your jurisdiction?

No. However, the employer may unilaterally terminate the employment of the employee once the employee turns 65 years of age and has at least 15 years of service.

In other cases, the termination due to retirement has to be initiated by the employee.

Is it possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age?

The person who is retired can establish employment relations, in which case he has the same rights as any other employee.

The only difference is that the employer is not obliged to pay contributions for insurance in case of unemployment.

Can an employer make the COVID-19 vaccine mandatory for its employees? Are there exceptions that an employer must make? If an employee simply does not want to get the vaccine (without another reason like disability or religious reason), can an emp...

No. There is no legal ground in Serbian legislation on which the employer could rely to make vaccines mandatory. Therefore, an employer could not terminate the employee’s employment on the respective basis.

Can an employer require that employees return to work in the office (absent government order to shut down)? If an employee refuses to return to the office, can the employer terminate the employee’s employment?

Yes, the employer can require that employees return to work at the workplace and in the work environment in which safety and health measures at work have been implemented in accordance with applicable regulations in the field of safety and health at work. The employer can terminate the employee’s employment if an employee refuses to return to the office, provided that the above-mentioned measures have been implemented.

Global Employment Law Guide

Serbia

Global Employment Law Guide

Serbia

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