Employment Laws in Serbia

Main Sources of Employment Law in Serbia

As businesses set their sights on the tech industry in the Republic of Serbia, it is essential to fully grasp the main sources of employment law in the country. The legal fabric of employment in Serbia is woven with various threads, both domestic and international.

The Labour Law

Foremost among the domestic laws is the Labour Law, which lays out the basic rights, obligations, and responsibilities of both employers and employees. This pivotal piece of legislation serves as the fundamental guiding source for employers in managing their human resources and ensuring a healthy employment relationship. To avoid common legal troubles, it is crucial for tech businesses to thoroughly familiarize themselves with the Labour Law.

Supporting Legislation

Building upon the base of the Labour Law are several additional laws that enrich Serbia's employment legislation. These include:

• The Law on Peaceful Resolution of Labour Disputes
• The Law on Employment and Unemployment Insurance
• The Law on Occupational Safety and Health

These laws serve to address specific areas and scenarios within the employment relationship framework. For example, the Law on Occupational Safety and Health underpins the need for a safe and healthy work environment - an aspect critical to maintaining a productive workforce. A representative trade union can play a pivotal role in forming these collective agreements.

Collective Agreements and Internal Acts

Beyond statutory laws, collective agreements at the industry, company, or national level also form part of the employment law in Serbia. These rules should align with the broader laws and regulations and be explicitly communicated to employees, often via an employee agreement letter.

International Influence

Lastly, employment laws in the Republic of Serbia are also influenced by international conventions. As a member of the International Labour Organization, Serbia has ratified numerous conventions that have further shaped its employment legislation.

In conclusion, understanding the multi-layered landscape of employment laws in Serbia can help tech companies avoid HR compliance mistakes, ensuring a smooth operation for their business while reaping the benefits of Serbia's burgeoning tech talent pool.

Minimum Employment Terms and Conditions in Serbia

Serbia's Labour Law sets out the fundamental terms and conditions of employment that all employers must respect. This establishes the core rights and benefits that employees are entitled to, ensuring fair treatment and fostering a stable working environment and fostering an employment relationship between the employer and employee.

Wage Regulations

Every employee in Serbia has the right to receive compensation for their work. As of 2024, The government plans to increase the monthly minimum wage by 17.8% from 40,000 RSD (€ 341) to 47,154 RSD (€ 402). The exact amount of remuneration may vary based on factors such as the complexity of the job, working conditions, the level of education required, and overall job responsibility. The pay structure and compensation details are often outlined in an agreement between the employer and the employee, ensuring transparency and mutual agreement on the compensation package. It is also crucial to consider the personal income tax when structuring the compensation package.

Working Hours and Rest Periods

In terms of working hours, Serbia operates on a standard 40-hour working week, from Monday to Friday. Any time worked beyond these standard hours is considered overtime, which should not exceed 12 hours per week. For these additional hours, employees are entitled to increased wage rates. Employers who violate these norms may face penalties.

Rest periods are equally as important as working hours. Employees are entitled to a daily rest period of 12 consecutive hours and a weekly rest period of 24 continuous hours, typically on Sundays. These mandatory rest periods are essential for maintaining the health and productivity of employees.

Health and Safety Regulations

Employers in Serbia are also required to ensure the health and safety of their employees in the workplace. This includes providing a safe working environment, ensuring access to medical services, and maintaining adequate safety measures to prevent accidents or occupational diseases. Also, disability insurance should be provided to employees with disabilities. As part of their compliance with Serbian labor law, they should also consider the employment relationship and the need for health insurance. It's worth noting that Serbia is among the countries that offer free healthcare, which can be a significant benefit for employees.

Compliance Measures

For businesses, especially those venturing into hiring remote tech talents in Serbia, maintaining compliance with these minimum terms and conditions is vital to prevent legal troubles. This includes understanding how to manage the termination of employment, how to handle contracted working hours and flexible working hours, and respecting the principle of continuous employment. Through a thorough understanding and proper implementation of these norms, businesses can not only safeguard their operations but also contribute positively to the working experience and enable a better employment relationship for their Serbian employees. The detailed letter of agreement and the correct classification of workers play an instrumental role in ensuring these compliance measures.

Leave Rights in Serbia

Leave rights are a critical aspect of employment laws, contributing significantly to employment relationships, employees' work-life balance and overall job satisfaction. In Serbia, these rights are well-defined and encompass various types of leave, acknowledging different life events and situations that employees may experience.

• Annual Leave: As part of Serbia's commitment to ensuring a healthy work-life balance for its employees, the employment Law stipulates that employees are entitled to a minimum of 20 working days of annual paid leave per calendar year. Employers often create structured leave policies that outline how employees can schedule their annual paid leave. Clarity in these matters can help prevent potential disputes or misunderstandings and can be included in the initial letter of agreement, often based on a collective agreement between the employer and employee.
• Sick Leave: The unpredictability of illness or injury is a reality all workers face. Serbian labor law ensures workers can take necessary time off for health reasons. During this period, employees are entitled to compensation, the amount of which varies based on their years of insurance. Sick leave rights are vital in maintaining the health and well-being of workers, a factor that could be particularly important for tech businesses looking to hire the next tech talent in Serbia.
• Maternity and Paternity Leave: Supporting parents in their journey is an integral part of Serbian leave laws. Maternity leave can extend up to 365 days for one child, offering ample time for mothers to take care of their newborns. Fathers aren't left out either. A paternity leave of 7 days is provided, which can be extended under certain circumstances. Notably, Serbia is among the countries offering free healthcare, making it a supportive environment for new parents.

Discrimination and Harassment

Serbia's Labour Law prohibits discrimination based on race, gender, age, nationality, religion, and other protected characteristics. Harassment, including sexual harassment, is also explicitly prohibited. Employers are obliged to create a working environment free of discrimination and harassment, following the principles of equal opportunity.

Data Privacy and Intellectual Property (IP)

In today's digitally connected world, data privacy and intellectual property (IP) have become significant areas of concern for employers and employees alike. Serbia's regulations provide clear guidelines on how these sensitive issues should be handled in an employment context.

Data Privacy

Serbia's Personal Data Protection Law safeguards the privacy rights of individuals, mirroring many of the protections found in the European Union's General Data Protection Regulation (GDPR). This law governs the collection, processing, and storage of employees' personal data, stipulating that such data must be handled lawfully, transparently, and for a specific purpose. In practice, this means that employers should inform their employees about what data is being collected, why it is being collected, and how long it will be stored.

Moreover, Serbia's law imposes strict guidelines on the cross-border transfer of personal data, an aspect that is particularly relevant for remote tech workers or teams distributed globally. Tech businesses must ensure they comply with these guidelines to avoid legal troubles, including legal and tax risks associated with remote employees working from abroad.

Intellectual Property

Serbia's Intellectual Property Law is designed to protect creations of the mind such as inventions, designs, symbols, names, and images used in commerce. In the context of employment, IP typically refers to the products, processes, or ideas that employees create during their employment.

In most cases, Serbian law stipulates that the rights to these creations belong to the employer, particularly if the creation was made as part of the employee's regular duties or if resources provided by the employer were used. However, these rights and obligations should be clearly outlined in the employment contract to avoid any future disputes. A clear understanding of these aspects of IP can prevent common legal troubles for global businesses.

In conclusion, the protection of data privacy and IP rights is a key responsibility for employers in Serbia, particularly for those in the tech industry. A proactive approach to these aspects of employment law can help create a trustful work environment and foster innovation, which is the key to attracting and retaining top tech talent in Serbia.

Termination of Employment

Employment termination in Serbia can be a complex process, dictated by specific guidelines in order to protect the rights of employees while balancing the needs of employers.

Types of Termination

Termination of employment can occur under various circumstances:

• Mutual Agreement: This is the simplest form of termination, where both the employer and employee agree to end the contract. It's vital to document such agreements, and a letter of agreement serves as a practical tool for this.
• Unilateral Termination: Here, one party decides to end the employment contract. It could either be the employer (dismissal) or the employee (resignation). In both cases, notice periods apply and must be adhered to.
• Redundancy: This occurs when an employee's position becomes superfluous due to business conditions, technical advancements, or economic circumstances. Redundancy must follow a precise procedure, and any misstep can lead to legal complications.

Notice Periods and Severance

The notice period in Serbia varies according to the length of the employment relationship and the reason for termination. Generally, it ranges from 15 to 30 days.

For termination initiated by the employer, especially in the case of redundancy, a severance payment may be necessary. The severance amount depends on various factors such as the length of service and is usually subject to negotiation within legal limits.

Protection against Unfair Dismissal

Serbia's employment laws offer protection against unfair dismissal. Employers must provide a just cause for termination and follow due process. Otherwise, the termination could be deemed unlawful, leading to potential legal troubles.

Employment termination, when handled appropriately, can be a smooth process. However, it requires a comprehensive understanding of the legal landscape and the careful application of these laws. Serbia's robust employment law structure ensures that both the employer's and the employee's interests are safeguarded, maintaining a balance that favors healthy work relationships and contributing to the appeal of Serbia as a strategic location for expanding tech businesses.

Ensure Compliance in Serbia with Skuad

Staying compliant with the employment laws in the Republic of Serbia not only enables your organization to avoid unnecessary and avoidable fines and penalties but also ensures you build an efficient global remote team.

Skuad's Employer of Record platform enables organizations to compliantly hire and onboard independent contractors and employees in over 160 countries, including Serbia. Skuad ensures your organization stays above legal challenges anywhere across the globe.

To learn more, schedule a demo with Skuad.

FAQs

What is the legal age to work in Serbia?

The legal age to work in Serbia is 18. Anyone 18 and above can establish an employment relationship after showing a credible medical certificate that validates their ability to work.

How much is the pension in Serbia?

The annual average pension in Serbia is EUR 224.20.