Serbia Labor Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Labor Law (2005)
  • Social Security Law (2005)
  • Health Insurance Law (2005)
• Legal Characteristics:
  • Aims to protect employee rights and promote workplace fairness.
  • Stipulates minimum wage, working hours, vacation time, and social security benefits.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts (up to 24 months)
  • Indefinite-term contracts
• Contractual Provisions:
  • Must include job description, compensation, working hours, benefits, and termination terms.
  • Must be written in Serbian.
• Language and Currency:
  • Contracts must be in Serbian.
  • Salaries must be expressed in Serbian dinars (RSD).

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day.
• Rest Days and Breaks: At least one rest day per week, 30-minute break after 6 hours of work per day.

Vacation Policy

• Annual Leave: Minimum of 20 days of paid annual leave per year.
• Public Holidays: 14 statutory public holidays.
• Special Leave:
  • Sick leave: 30 days of paid sick leave, with 65% of salary paid by the employer.
  • Maternity leave: 1 year of paid maternity leave, with 100% of salary paid by the employer.
  • Paternity leave: 5 days of paid paternity leave for fathers after the birth of a child.

Employee Dismissal and Contract Termination

• Notice Periods:
  • Employer: 1-3 months, depending on years of service.
  • Employee: 15 days.
• Severance Pay:
  • In case of redundancy, equivalent to 1/3 of the employee's annual salary plus 1/4 of the salary for each year worked.
• Unfair Dismissal Protection:
  • Employees are protected against unfair dismissal in certain circumstances, such as discrimination or breach of labor law.

Tax Laws

• Personal Income Tax:

  • Salary Range (RSD)	Tax Rate
    2,470,644.00 - 4,941,288.00	10%
    4,941,288.00 and above	15%

• Social Security Contributions:

  • Employer: 23.65%
  • Employee: 15.15%

Health Insurance

• Insurance Policy:
  • Employers and employees must participate in the universal healthcare scheme.
• Insurance Coverage:
  • Basic medical services, hospitalization, and prescription drugs.

Compensation and Benefits

• Minimum Wage: RSD 40,020 per month.
• Compensation Structure:
  • Base salary
  • Bonuses
  • Allowances

Work Permits and Visas

• Permit Requirements:
  • Non-EU citizens require a work permit.
• Application Process:
  • Application made by the employer to the Serbian Employment Agency.

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Serbia.
• Common Provisions:
  • Restrict employees from using or disclosing confidential information after leaving employment.
  • Restrict employees from working for competitors after leaving employment.

Training and Development

• Legal Requirements:
  • Employers must provide safety training to employees.
• Government Support:
  • Government provides training and development programs to enhance employee skills.

Workplace Diversity and Inclusion

• Legal Requirements:
  • Discrimination based on race, gender, religion, or other protected characteristics is prohibited.
• Enforcement Measures:
  • Employers must establish policies and procedures to prevent discrimination.

Remote Work Policy

• Legal Framework:
  • Remote work is legal in Serbia.
• Tax and Insurance Implications:
  • Tax and social security implications of remote work depend on the specific circumstances.

Authoritative Website Addresses

• Serbian Employment Agency: https://www.nsz.gov.rs/