Hiring guide in Serbia

What should I know about hiring in Serbia?

Legal framework

Types of employment contracts

There are two types of employment contracts — definite and indefinite. Indefinite contracts have no specified end date but are tied to a certain outcome, like completing a particular task or project. Employers can sign multiple fixed-term contracts with the same employees as long as the total duration, including any breaks, doesn’t surpass 24 months.

Content of an employment contract

According to the Employment Act, an employment contract must include several fundamental elements to ensure clarity and legality. Firstly, it should detail the name and address of the employer, providing clear identification of the contracting party.

Likewise, the contract must include the employee’s full name and residential address and should outline the qualifications or educational requirements necessary for the job. 

The contract must also describe the employee’s duties and responsibilities, clarifying their role within the organisation. Additionally, it should specify the location of the workplace, type of employment, commencement date, base salary, and working hours.

Download a free employment contract for Serbia through Native Teams.

Oral, written or electronic employment contracts

This written form of an employment contract is obligatory. So, before the employee starts fulfilling their employment duties, the employment contract must be formally written and finalised.

If the employment contract isn’t in the required written format before the start of employment, it will establish an indefinite employment relationship starting from the employee’s first day of work.

Probationary period

In Serbia, the probation period is decided in the employment contract and can last up to 6 months. Employers use this time to gauge the employee’s performance and conduct, while employees assess the job and company culture.

Working hours

There are three types of employment contracts based on working hours. Full-time work entails working for 40 hours a week, but a company can set shorter hours, down to 36 per week. On the other hand, part-time means working fewer hours than full-time. Part-time employees can also work for other companies to make up full-time hours.

Reduced hours are for jobs that might pose higher health risks to employees, allowing up to 10 hours a week. Typically, the work week spans over 5 days, with 8 hours each day. Employers decide how to schedule these hours.

Night work

Night work involves working between 10:00 p.m. and 6:00 a.m. the next day, and employees get extra compensation for it. If an employee works at night for at least 3 hours a day or a third of the weekly hours, the employer needs to offer daytime work if it’s better for their health, according to a qualified health service agency.

Types of leaves and breaks

Employees in Serbia are granted various forms of leave and breaks. During the workday, employees working at least 6 hours are entitled to a 30-minute break. On a weekly basis, employees must rest for a minimum of 24 hours, with the rest period typically falling on Sundays. 

Moreover, the duration of annual leave is determined by a rulebook or employment contract but must not be less than 20 work days per calendar year. Employees can also take up to five days of paid leave per calendar year for events such as marriage, childbirth, or the serious illness of an immediate family member.

Sick leave is provided to employees who are temporarily unable to work due to illness, work-related accidents, or occupational illnesses.

Public holidays

Employees are entitled to 10 public holidays, which are divided into two groups: national holidays and religious holidays.

National holidays, which are considered non-working days, include New Year’s Day on January 1st and 2nd, National Day on February 15th and 16th, Labor Day on May 1st and 2nd, and Armistice Day on November 11th.

Religious holidays, also designated as non-working days, comprise Orthodox Christmas on January 7th and Orthodox Easter holidays, commencing from Good Friday and concluding on the second day of Easter.

Salary

A mandated decision determines the minimum gross salary figures annually. For the year 2024, the minimal salary per month amounts to RSD 67,566.33 in GROSS and RSD 49,864 NET salary.

To calculate the salary and taxes in Serbia, click here.

Sick leave

If an employee isn’t able to work temporarily, they need to give their employer a medical certificate from a qualified doctor within 3 days. This certificate should include an estimate of how long the employee is expected to be sick.

Parental leave

One parent, whether it’s a biological parent, adoptive parent, foster parent, or legal guardian, can take time off until the child reaches the age of 3. If a child needs special care because of a severe physical or mental condition, one parent can choose to stay home or work half the usual hours after maternity leave and nursing leave until the child turns 5.

Paternity and maternity leave

Female employees are entitled to 365 days of maternity leave, which covers pregnancy, childbirth, and caring for the child. Paternity leave is usually shorter and depends on certain situations. Maternity leave starts at least 45 days before the expected date of childbirth, with a minimum of 28 days before delivery. It lasts until the baby is 3 months old.

Methods of employment termination

Employees can resign by giving written notice following the notice period in their contract. Employers can dismiss employees based on specific reasons, following strict rules outlined in the Act. 

Termination by force of law occurs when a contract’s agreed-upon period ends and when an employee turns 65 with 15 years of social insurance. There are also cases where termination isn’t by choice, like when the employee loses the ability to work, is under arrest, or the law prevents the employee from working.

Ordinary dismissal by employer

Employers can terminate an employment contract if an employee fails to meet work standards or lacks necessary skills. The contract can also be terminated if an employee is convicted of a job-related crime or doesn’t return to work after leave. 

Misconduct, like not following work rules, can also lead to termination. Changes in technology or the company’s needs can also result in contract termination, as can an employee’s refusal to agree to required changes in their contract.

Notice period and challenging the dismissal

If an employee resigns, they must give written notice at least 15 days before leaving, up to a maximum of 30 days. For dismissals due to poor performance or lack of skills, the notice period is set by law or the employment contract, usually between 8 to 30 days, depending on how long the employee has been insured.

During the probation period agreed upon, either the employer or employee can end the contract with at least 5 working days’ notice. When both the employer and employee agree to end the contract together, there’s no need to follow the notice period.

Employees can challenge dismissals in court within 60 days of the decision.

Rights and obligations of unemployed individuals

If an individual has insurance for at least a year in the last 18 months, they can get unemployment benefits. Even if there’s a break in insurance for less than 30 days, they’re still eligible for the benefits.

Financial assistance is available to those facing unemployment under various circumstances. If someone loses their job due to factors like technological changes, economic shifts, or organisational restructuring, or if they lack the necessary skills for the job, they may qualify for benefits. 

The unemployment benefits also extend to elected, appointed, or designated officials if they are terminated without receiving entitled rest or salary compensation. In cases where there is a transfer of ownership rights within the employer’s organisation or a declaration of bankruptcy leading to the cessation of operations, affected individuals are eligible for financial support.

Severance pay

In Serbia, workers have the right to severance pay when they leave their jobs, as outlined in the Employment Act. The main aim is to give financial help to employees leaving their jobs, either until they find a new one or until they can get their pension.

There are two types of severance pay: Termination Severance or Redundancy Severance and Severance Payment for Retirement.

Prohibition of competition

The employment contract can state that employees can’t perform certain work for other companies without their current employer’s permission. This rule usually applies when employees gain confidential insights and make valuable business connections. 

However, depending on the contract, employees might not be allowed to work for competitors for up to two years after they leave their jobs.

Remote working policy

The employment contract provides the framework for monitoring employee performance in remote work arrangements. The specific provisions related to performance monitoring within the employment agreement may vary depending on factors such as the nature of the job, the industry, and the employer’s preferences.

Remote work vs work at a separate workplace

The Employment Law establishes the legal framework and specifies the criteria for both remote work, involving tasks carried out away from the employer’s premises, and work at a different location, where employees work from a site other than the main business premises.

Health and safety at home

As required by the Serbian Occupational Health & Safety Law (OH&S Law), employers must ensure that the workspace and working conditions prioritise the health and safety of remote employees.

What are the advantages of hiring employees from Serbia vs other countries?

Hiring employees from Serbia can offer significant advantages for companies seeking skilled talent at competitive costs. Serbia’s labour costs are lower than many Western European countries and the United States.

Serbian workers master the English language at a proficiency level, easing communication barriers for international businesses.

Beyond the workforce, Serbia’s strategic location in Southeast Europe is advantageous for companies looking to expand into Eastern European and Balkan markets. Its proximity to major European markets can streamline logistics and reduce transportation costs for goods and services.

Why use Native Teams for hiring in Serbia?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.