Changes To The Contract
Employer may change the employment contract only if an employee agrees, after given written notice containing reasoning for changes, deadline to respond and legal remedies available to the employee in case he/she refuses the change. The law lists cases in which employer can request changes to the contract, and only in those cases employer can terminate the contract if employee refuses the proposed amendments. Refusal of any other change to the contract cannot lead to the dismissal of an employee.
Change In Ownership Of The Business
A change in ownership of the business by transfer of shares or assets does not the impact employment contracts of employees within the company. Serbian law explicitly regulates protection of employees only in cases of corporate status changes (e.g. mergers, split-offs, and spin-offs).
The EU Directive relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses, or parts of undertakings or businesses is not applicable in Serbia, nor is the local legislation fully harmonised with its provisions. We expect further steps toward harmonisation with the EU rules in the future.
Social Security Contributions
Social security contributions include pension and disability, health insurance, and insurance for unemployment. The cost of social security contributions should be borne by the employer and by the employee. The aggregate social security contribution amounts (both the employer’s and employee’s contributions) are calculated, withheld from salary, and paid by the employer.
Accidents At Work
Employer must implement health and safety measures for each work position in order to ensure a safe working environment for its employees.
In case of any fatal, collective, or severe injury at work, or injury due to which the employee is unable to work for more than three consecutive working days, as well as on any dangerous situation that could endanger the safety and health of employees, employer is obliged to immediately, and no later than within 24 hours, notify the labour inspection and the police Regarding minor injury at work, employer is obliged to notify labour inspection no later than 5 working days.
The new Law on Health and Safety, adopted in 2023, introduces an online Register of Injuries at Work, where all injuries at work must be reported by the employer. When the injury is reported, the competent doctor submits his/her findings and opinion on the injury. After this, competent health insurance organization submits assessment of injury at work in the Register. The Register is yet to be established.
The employer is also obliged to pay compensation of damage for injury at work to the employee.
Discipline And Grievance
The list of behaviours which represent disrespect of work discipline is determined generally in the Labour Law and may be further elaborated in the CBA or Employment Rules and employment contract.
If the employer considers that there are certain extenuating circumstances or that disrespect of discipline is not of such nature that it should lead to dismissal, the employer may impose one (1) of the disciplinary measures.
The Labour Law does not envisage any specific grievance procedure but provides for various mechanisms for protection of employees’ rights (e.g. court proceedings, additional protective mechanisms in case of revealing information on violation of regulations, violation of human rights).
Harassment/Discrimination/Equal pay
Protection through internal procedures and court proceedings is provided to employees who were harassed at work, in line with the specific law.
The Labour Law protects employees from any form of discrimination in terms of hiring, working conditions, trainings, promotions, and dismissal. It even defines acts of discrimination by the employer as a misdemeanour for which the monetary penalty is prescribed.
Employees are guaranteed equal salary for the same work or work of the same value. Work of same value means work for which the same level of education is required – i.e. qualification, knowledge, and abilities, in which the same work contribution has been achieved with equal responsibility.
Compulsory Training Obligations
The employer is obliged to provide the employee with education and professional trainings when the work process or new manner and organisation of work require it. On the other side, employees are obliged to attend such educational and professional trainings. The costs are borne by the employer.
Further compulsory training obligations refer to training for safe and healthy work and fire protection training of employees.
Offsetting Earnings
The employer may collect the monetary claim against the employee by withholding of the amount from the salary only on the basis of a final court decision, in cases determined by law or with the consent of the employee.
Based on the final court decision and in cases determined by law, the employer may offset maximum of one-third of the monthly salary (or compensation of salary) of the employee, unless otherwise stipulated by the law.
Payments For Maternity And Disability Leave
Employees are entitled to the compensation of salary during maternity and childcare leave. This compensation cannot be paid to both parents at the same time. Compensation of salary depends on how long the mother worked during the period of 18 months before the start of maternity leave and on how much her income was during that time. The amount paid to an employee cannot be higher than three average salaries in Serbia. The costs are borne by the Republic Health Insurance Fund.
For sick leave, employees are entitled to a certain percentage of the average salary in previous 12 months (but not less than minimum salary): in case of non-work-related injury or illness 65%, and 100% in the case of work-related injury or illness. The costs are borne by the employer For first 30 days of sick leave, and as of the 31st day by the state fund, unless the sick leave is caused by the work-related injury when the cost is borne fully by the employer.
Compulsory Insurance
The social security system in Serbia is based on the mandatory public pension, health, and unemployment insurance.
Absence For Military Or Public Service Duties
Employment related rights and obligations of an employee are suspended during military service and public service if it requires the employee to temporarily stop working for the employer. An employee has the right to return to work within 15 days from the day of completion of the service.
Employee is entitled to a salary compensation for military or public service in the amount of average salary for the 12 preceding months, in accordance with the general act and employment contract. Employer has the right to request refund of the salary compensation from the authority to which the employee responded.
Works Councils or Trade Unions
Employees of an employer with more than 50 employees may form work council.
Employees can also form trade union organisation and action without any prior approval, but with mandatory registration of the union.
There are three levels of trade unions in Serbia (i) trade union within the employer; (ii) trade union in the branch, group, sub-group, or business activity and (iii) trade union for the area of territorial autonomy, local self-governance and territory of Serbia.
Trade unions can be either representative trade unions or non-representative trade unions. The representative trade union within the employer is a trade union which encompasses minimum 15% of total number of employees within the employer, and as such has some additional rights (e.g. to participate in collective bargaining, to participate in the redundancy procedure etc).
Employees’ Right To Strike
The Constitution of the Republic of Serbia guarantees employees’ right to strike. The specific of this right and the procedure is provided by the Law on strike.
Employees On Strike
The strike committee and the representatives of the bodies to which the strike was announced are obliged, from the day of the announcement of the strike and during the strike, to try to resolve the dispute amicably.
The strike committee and employees participating in the strike are obliged to organise and lead the strike in a way that does not endanger the safety of persons and property and human health, prevents immediate material damage, and allows work to continue after the strike is over. They cannot prevent the employer from using funds and means to carry out its activities and they must not prevent employees who do not participate in the strike from working.
An employee on strike holds basic employment rights, except for the right to salary.
Employers’ Responsibility For Actions Of Their Employees
Employer is responsible for actions of its employees. In case the damage is done to the third party intentionally, or due to ultimate negligence by the employee, the employee has to refund the amount of damage to the employer paid to damaged party.