Labour Law [LL], dated 2005 as last amended in 2014 by Law No. 75/2014
Consolidated version available in Serbian
Date:4 Dec 2023;
view website »
Act on Peaceful Settlement of Labour Disputes, 2004 as last amended with Law No 104/2009
Date:4 Dec 2023;
(view in NATLEX »)
Size of enterprises excluded (≤): 20
Exclusion only applicable to collective dismissals: see definition of collective dismissal: art. 153 LL.
However, those enterprises are not excluded from the regulation on individual dismissal.
Workers' categories excluded: none
Art. 2: "provisions of this law shall apply to employees of public bodies, territorial autonomy bodies and local self-government and public services, unless the law stipulates otherwise".
Act on Public servants (2005) refers to the application of the general labour law unless it is stipulated otherwise.
Ongoing discussions on the modernization of the Labour Law in order to reflect EU Law.
FTC regulated: Yes
Valid reasons for FTC use: objective and material reasons
Art. 37 LL: labour relations shall be entered into for a period that is set in advance in the following cases: seasonal jobs, project-based work, increase volume of work that will last for a definite term, etc.
Maximum number of successive FTCs: no limitation
Art. 37 LL: no maximum number of successive FTC, but maximum duration of labour relations for a definite term of 24 months.
Maximum cumulative duration of successive FTCs: 24month(s)
Art. 37 LL. The interruption between two FTCs should be longer than 30 days
Maximum probationary (trial) period (in months): 6 month(s)
Art. 36 LL.
Obligation to provide reasons to the employee:
Yes
Art. 180 LL.
Art. 179 refers to "a just cause relating to his/her working ability, behavior and employer's need" and provides an exhaustive list of 9 instances when termination of employment by the employer is authorized.
Art. 18 LL: general provision on non discrimination.
Art. 183 LL: list of prohibited grounds for dismissal.
* Workers' representatives: art. 188 LL: no dismissal during the term of office.
* No dismissal during pregnancy, maternity leave, absence for childcare or special care of the child: art. 187 LL.
Notification to the worker to be dismissed: written
Art. 185 LL.
Notice period:
Art. 189 LL foresees a notice period only for those employees dismissed for lack of performance, i.e. qualifications and skills.
Notice period is minimum 1 month and maximum 3 months depending on the "duration of the insurance period" (period for which the employee has paid contributions for the retirement insurance), as follows:
- 1 month for up to 10 years of insurance period;
- 2 months for 10-20 years of insurance period;
- 3 months over 20 years of insurance period.
tenure ≥ 6 months:
tenure ≥ 9 months:
tenure ≥ 2 years:
tenure ≥ 4 years:
tenure ≥ 5 years:
tenure ≥ 10 years:
tenure ≥ 20 years:
Pay in lieu of notice: Yes
Art. 189 LL: only in case of dismissal due to lack of performance ( i.e. qualifications and skills), as there is no notice period when the dismissal is based on economic reasons or on the worker's conduct.
Notification to the public administration: No
Notification to workers' representatives: No
Exception: Trade union must be notified in case of dismissal of trade union member: art. 181 LL.
Approval by public administration or judicial bodies: No
Approval by workers' representatives: No
Definition of collective dismissal (number of employees concerned):
At least:
1) 10 employees out of a total of 20 to 99 staff employed for an indefinite term, over a period of 30 days;
2) 10% of employees, out of a total of 100 to 299 staff employed for an indefinite term, over a period of 30 days;
3) 30 employees out of at least 300 staff employed for an indefinite term, over a period of 30 days;
4) 20 employees notwithstanding of the number of employees, over a period of 90 days.
Art. 153 LL.
Prior consultations with trade unions (workers' representatives): Yes
Art. 154 and 156 LL.
Notification to the public administration: Yes
Art. 155 and 156 LL.
Notification to workers' representatives: Yes
Art. 156 LL.
Approval by public administration or judicial bodies: No
Approval by workers' representatives: No
Priority rules for collective dismissals (social considerations, age, job tenure): No
No criteria listed.
Art. 155 LL only refers to criteria as one of the elements to be communicated to the workers' representatives for consultation.
Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes
Art. 155 and 156 LL.
Priority rules for re-employment: Yes
Art. 182 LL: preferential right to re-employment for 6 months.
Severance pay:
The provision on severance pay (art. 190) has been deleted from the 2005 Labour Law.
tenure ≥ 6 months: 0 month(s)
tenure ≥ 9 months: 0 month(s)
tenure ≥ 1 year: 0 month(s)
tenure ≥ 4 years: 0 month(s)
tenure ≥ 5 years: 0 month(s)
tenure ≥ 10 years: 0 month(s)
tenure ≥ 20 years: 0 month(s)
Redundancy payment:
Art. 158 LL established a minimum statutory payment to be paid prior to terminating an employment contract on the grounds that "due to technological, economic or organizational changes a particular job becomes redundant or volume of work be reduced".
The amount of redundancy payment is to be set out in the contract but shall not be less than the sum of 1/3 of the monthly salary for each full year of service for the first ten years and 1/4 of the salary for each full year of service after 10 years of employment.
tenure ≥ 6 months: 0 month(s)
tenure ≥ 9 months: 0 month(s)
tenure ≥ 1 year: 0.33 month(s)
tenure ≥ 2 years: 0.66 month(s)
tenure ≥ 4 years: 1.33 month(s)
tenure ≥ 5 years: 1.66 month(s)
tenure ≥ 10 years: 3.3 month(s)
tenure ≥ 20 years: 5.83 month(s)
1) Dismissal based on the worker's conduct or capacity: no statutory severance pay.
(The provision on severance pay for capacity-based dismissal (art. 190) has been deleted from the 2005 Labour Law.)
2) Economic dismissal (individual and collective): redundancy payment.
Compensation for unfair dismissal - free determination by court: No
Art. 191 LL.
Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):
Damages in lieu of reinstatement:
- max. 18 months' salary when the employee does not wish to be reinstated or
- max. 36 months upon request or the employer or when case the existing circumstances suggest that the continuation of labor relations is not possible.
Art. 191, ParagraphParagraph 4-5 LL.
Reinstatement available: Yes
Art. 191 ParagraphParagraph 1-2 LL.
Note that, when reinstatement is ordered, the employer shall also pay compensation for the lost salary and other emoluments which the employee is legally entitled to.
Competent court(s) / tribunal(s): ordinary courts
Art. 21 of the Law on Organization of Courts (2002): the municipal court has jurisdiction to hear termination of employment disputes at first instance.
Existing arbitration: Yes
Termination of employment disputes can be settled through arbitration: Art. 194 LL and art. 30 Act on Peaceful settlement of Labour Disputes.
Length of procedure: 6month(s) (statutory)
Art. 195 LL.
* The legal proceedings may be initiated 30 days after the decision has been served to the employee.
* The dispute before the court shall be terminated 6 months after initiation of the proceedings at the latest.
* In case of amicable settlement through arbitration, the decision shall be passed within 10 days :art. 194 LL.