Labor Law in Serbia

Labor law in Serbia has been prescribed in accordance with the standards of European continental labor law. Accordingly, the Serbian Labor Law prohibits child labor, forced labor and prescribes standards, which are also in international conventions. The Labor Law in Serbia prescribes the minimum working conditions that an employee must fulfill. The employer must provide at least these conditions in the employment contracts as well as in internal regulations.

Work in the employment relationship

Employment relationship

An employment contract may be for a fixed period of time, or for an indefinite period of time. Employment relationships established for an indefinite period of time may have a probationary period of maximum 6 months. The minimum duration of the probationary period based on an employment contract for an indefinite period is not prescribed by Labor Law in Serbia.

Fixed-term employment contract

A fixed-term employment contract can be concluded for a maximum period of 2 years. The minimum duration of the probationary period is not prescribed by Labor Law in Serbia in a fixed-term employment contract. If the employee remains working for the employer for at least five working days after the expiry of the contract term, the employment relationship is considered to have been formed for an indefinite period of time.

Work outside the employment relationship

Labor Law in Serbia has prescribed that work outside the employment relationship is based either on the conclusion of a contract for the provision of a temporary service (service contract or contract for work), or on the contract for the performance of occasional jobs.

A service contract is a type of contract where an employee is hired to perform a specific task. The contractual relationship ends as soon as the work is done.

The contract for performing occasional (ofter seasonal) jobs can last a maximum of 120 working days in a calendar year. The Employer may re-enter the same contract for the performance of occasional jobs once the expiration of the contract is no longer in force.

Reasons for termination of the employment contract

The employment contract is terminated:

after the expiration of the term for which the employment contract was concluded;
when the employee reaches the age of 65, has worked for at least 15 years, unless the employer and the employee agree otherwise;
after a mutual agreement between the employee and the employer;
after termination of the employment contract by the employer or the employee;
at the request of the parent or legal guardian of an employee under the age of 18 (employment may be established by a person who has reached the age of 15 if his/her parents or legal guardians give their consent to this);
due to the death of an employee;
following the loss of the employee’s ability to work;
by a decision of a court or other authority, if the employee is prohibited from performing a certain tasks;
when the employee is required to be absent from work for more than six months due to a prison sentence;
if the employee has been imposed a security, educational or protective measure that lasts longer than six months.

Termination of employment by written agreement

According to Labor Law in Serbia, the employment may be terminated on the basis of a written agreement between the employer and the employee.

Before signing the termination agreement of the contract, the employer is obliged to inform the employee in writing about the consequences of exercising the right in case of unemployment.

An agreed termination is favorable from the employer’s point of view for several reasons:

the employer is not obliged to explain and justify the termination of employment with any evidence;
agreed termination releases the obligation to pay severance pay and is therefore a convenient way to avoid any obligations that would otherwise apply if the employee was dismissed;
there is no notice period.

The declaration of the employee’s will to terminate his employment excludes the subsequent possibility for the employee to initiate legal proceedings for unlawful dismissal.

Cancel of employment by notice of the employee

The employee has the right to cancel the employment contract. According to Labor Law in Serbia, the notice of termination of the employment contract must be submitted by the employee to the employer in writing at least 15 days before the last working day (notice period).

Termination of work by dismissal

The employer may terminate the employment contract:

if the employee does not achieve the work results or does not have the required knowledge and skills;
if the employee has been convicted of a criminal offense at work or in connection with work;
if the employee fails to return to work for the employer within 15 days of the expiration of the period of suspension;
if the employee acts negligently;
if the employee abuses his/her position or exceeds his/her authority;
if the employee uses the work equipment in a purposeless and irresponsible manner;
when the employee fails to use or misuses the provided means or equipment for personal protection at work;
if the employee commits another violation of the employment contract;
if the employee refuses to perform his/her duties and carry out the employer’s instructions in accordance with the law;
if the employee fails to present an evidence of temporary incapacity (in case of illness);
if the employee abuses the right to leave due to temporary inability to work;
due to coming to work under the influence of alcohol or other intoxicants;
if the employee has provided false information that was crucial for the establishment of the employment relationship
if the employee, working in high-risk occupations where a special medical examination has been established as a special condition of work, refuses to undergo a medical examination
if the behavior of employee is such, that he cannot continue to work for the employer;
if the employee is no longer necessary to the employer due to technological, economic or organizational changes;
if the employee refuses to conclude an annex to the contract (the employer may offer the employee a change in the agreed working conditions).

Steps

Upon termination of the employment of a dismissed employee, the employer is obliged to pay the employee severance pay, which may not be less than one third of the employee’s salary for each completed year of work with the employer. The amount of severance pay shall be determined by a general act or an employment contract, provided that it cannot be less than the sum of one-third of the employee’s salary for each completed year of work with the employer. The Labor Law in Serbia prohibits an employee from severance pay if he has concluded an agreement with the employer on the termination of the employment relationship.