Background Checks

Background checks are legal in Serbia but must comply with the Law on Personal Data Protection, which aligns with the EU’s GDPR. Employers must obtain explicit written consent from candidates before conducting any checks.

Common checks include:

• Criminal records
• Education and employment history
• Credit/financial fraud checks
• Social media (only if relevant to the job)
• Personal verification (e.g., fingerprinting)

Restrictions

Employers must avoid:

• Collecting irrelevant or excessive data
• Discriminatory practices (e.g., based on race, ethnicity, political views)
• Deceptive methods of obtaining information

Verification and New Hire Reporting

Employers must complete the following steps to legally register a new hire:

• Register the employee with the Central Registry of Compulsory Social Insurance (CROSO) no later than one day before the employee starts work.
• Submit a hiring report to the National Employment Service (NES), which includes:
• Job title and classification
• Type of contract (fixed or indefinite)
• Start date
• Working hours and salary

Failure to register employees properly can result in fines and penalties for the employer.

Onboarding Process & Documentation

Collecting Required Documentation:

Upon hiring a new employee, Serbian employers must collect and verify the following documents:

• Personal identification (e.g., ID card or passport)
• Tax identification number (PIB) and citizenship certificate
• Social security number
• Proof of qualifications (e.g., diplomas, licenses, certificates)
• Medical certificate (if required for the role)
• Bank account details for salary payments

For foreign employees, additional documents include:

• Work and residence permit
• Labor market test results (if applicable)
• Proof of legal stay in Serbia

Providing Employee Rights and Obligations:

Employers are legally required to inform new hires about:

• Employment contract terms (must be signed before the first day of work)
• Internal rulebooks or collective agreements that apply
• Workplace safety rules
• Working hours, rest periods, and leave entitlements
• Salary structure and payment schedule
• Disciplinary procedures and grievance mechanisms

This information is typically provided through:

• A written employment contract
• An employee handbook or internal regulations
• A welcome orientation session

Healthcare

Serbia operates a mandatory public health insurance system, administered by the National Health Insurance Fund (RFZO). All employees must be registered with the RFZO through their employer.

Key Features of the Mandatory System:

• Coverage: Provides access to public healthcare services nationwide, including general practitioners, specialists, hospitals, and emergency care.
• Funding: Financed through mandatory social security contributions, deducted from employees’ gross salaries and matched by employers.
• Eligibility: All formally employed individuals are automatically enrolled; coverage extends to dependents under certain conditions.

Limitations of the Public System:

While the public system ensures essential healthcare access, it is often criticized for:

• Long waiting times for specialist care or diagnostic procedures
• Inconsistent quality across public institutions
• Limited availability of advanced treatments or modern facilities

Private Health Insurance as a Supplementary Benefit:

To address these gaps, many employers offer private health insurance as an optional benefit. These plans are:

• Contracted through private insurers
• Often include access to private clinics and hospitals
• Provide faster service, shorter wait times, and more personalized care

Coverage can range from basic outpatient services to comprehensive packages including hospitalization, diagnostics, and specialist consultations.

Retirement

Serbia maintains a mandatory state pension and disability insurance system, forming the backbone of retirement security for most workers.

Mandatory Pension System:

• Contributions: Both employers and employees contribute a percentage of the gross salary to the Pension and Disability Insurance Fund.
• Eligibility: Individuals qualify for a state pension upon reaching the statutory retirement age and fulfilling the required years of service.
• Pension Amount: Calculated based on the length of the contribution period and the average salary earned during the working life.

Voluntary Pension Schemes:

Although not widespread, private supplementary pension funds are available and can be offered by employers as an additional benefit. Key features include:

• Voluntary participation by employers and employees
• Tax incentives for contributions up to a certain limit
• Flexible investment options and long-term savings potential

While not yet a standard across all sectors, voluntary pension contributions are increasingly seen as a valuable tool for enhancing long-term financial security.

Social Security

At this time, Vensure does not have social security details available.

Employment Contract Details

Serbian labor law primarily recognizes two main types of employment agreements for full-time work:

Indefinite-Term Contracts:

This is the standard form of employment with no specified end date. It is used for permanent roles and core business functions. There is no legal limit on the duration of such contracts.

Fixed-Term Contracts:

These are used for employment that is limited to a specific period, task, or project. Common use cases include seasonal work, project-based roles, temporary increases in workload, or replacing an absent employee:

• Maximum Duration is generally limited to 24 months
• Longer durations are permitted in specific cases, such as:
  • Projects financed by international financial institutions
  • Employment of individuals over the age of 65
  • If an employee continues working for at least five working days after the expiration of a fixed-term contract, the contract is automatically deemed to have converted into an indefinite-term agreement

Essential Clauses:

• Identification of Parties: Full names and addresses of both the employer and the employee
• Start Date: The date on which the employee begins work
• Job Title and Description: A clear definition of the position, including main duties and responsibilities
• Workplace: The location where the work will be performed
• Working Hours: Specification of whether the role is full-time or part-time, and the distribution of working hours (e.g., weekly schedule)
• Compensation: Details of the base salary, any performance-related bonuses, and other forms of remuneration
• Payment Schedule: Frequency and method of salary payments (e.g., monthly)
• Annual Leave: Entitlement to paid annual leave, with a legal minimum of 20 working days per year
• Contract Duration: Whether the contract is indefinite or fixed-term (with the end date specified for fixed-term contracts)
• Notice Period: The required notice period for termination by either party
• Reference to Collective Agreements or Internal Acts: If applicable, the contract should reference any collective bargaining agreements or internal rulebooks that govern employment relations

Probation Period

In Serbia, the duration of a probationary period depends on the terms outlined in the employment contract, but it may not exceed six months.

Visas

Types of Visas:

• Business Visa (Type C): Short-stay visa for business purposes, valid for up to 90 days within a 180-day period
• Temporary Stay Visa (Type D): Long-stay visa for temporary residence, allowing stays longer than 90 days, typically up to 1 year, for business-related activities

Eligibility Criteria:

To be eligible for a business visa to Serbia, applicants must:

• Have a valid passport with at least two blank pages and valid for at least 90 days beyond the intended period of stay.
• Provide evidence of business purpose, such as an invitation letter from a Serbian business partner or an official business event.
• Demonstrate financial stability to support themselves during their stay in Serbia.
• Have no restrictions to enter Serbia under Serbian immigration laws.

Visa Application Process:

• Gather Required Documents: Ensure you have compiled all necessary documentation, including:
  • Valid passport
  • Completed visa application form
  • Passport-sized photographs
  • Invitation letter from a Serbian employer or partner
  • Proof of travel insurance covering the duration of your stay
  • Visa fee payment receipt
• Additional documents as per specific consulate requirements
• Submit Your Visa Application: Applications can be submitted at the nearest Serbian consulate or embassy:
  • Schedule an appointment with the relevant consulate or embassy
  • Submit your application form along with all required documents
  • Attend an in-person interview if required
• Wait for Processing and Decision: Visa processing times typically take between 15 to 20 business days. Additional documents or information may be requested.
• Receive Your Visa: Once approved, collect your passport with the stamped visa from the consulate. Verify the visa details for accuracy before traveling.

Independent Contractors

Independent contractors (freelancers or self-employed individuals) are not covered by the same legal protections as employees under Serbian labor law. However, their engagement is governed by the Law on Obligations and relevant tax and social security regulations.

Key Legal Distinctions:

Contractual Basis: Independent contractors work under civil law contracts (e.g., service contracts or work contracts), not employment contracts.

No Employment Rights: Contractors are not entitled to:

• Paid leave
• Sick pay
• Overtime compensation

Severance or notice periods:

Taxation: Contractors are responsible for their own tax filings and social contributions unless otherwise agreed. Misclassification of employees as contractors can lead to penalties.

Control and Independence: A true contractor relationship must reflect independence in how, when, and where the work is performed. If the relationship resembles employment (e.g., fixed hours, employer-provided tools, supervision), it may be reclassified as employment by authorities.

Paid Time Off

Employees in Serbia are entitled to a minimum of 20 working days of paid annual leave per calendar year, following six months of continuous employment with the same employer.

• Accrual: Before reaching six months, employees accrue leave at a rate of 1/12 per month
• Usage: Leave can be taken in parts, but at least two consecutive weeks must be used during the calendar year
• Carryover: Unused leave may be carried over but must be used by June 30 of the following year
• Compensation: During annual leave, employees receive pay equal to their average salary over the previous 12 months

Public Holidays

• New Year’s Day
• New Year Holiday
• Orthodox Christmas
• Serbia National Day
• Labor Day (2 days)
• Orthodox Easter Holiday (2 days)
• Armistice Day

Bereavement

Employees are entitled to five days of paid leave in the event of the death of a close family member, including a parent, spouse, or child.

Maternity Leave

Mothers are entitled to 365 days of maternity leave for the first and second child.

• Start Date: Leave begins 28 to 45 days before the expected due date.
• Compensation: Paid by the Republic Health Insurance Fund, based on the employee’s average salary over the previous 12 months, capped at five times the national average wage.
• Third Child: Leave extends to 24 months.
• Lactation Break: If returning to work early, mothers are entitled to a 90-minute paid lactation break during the workday.
• Miscarriage or Stillbirth: Entitles the mother to three months of paid leave.

Paternity Leave

Fathers (or partners) are entitled to five days of paid paternity leave following the birth of a child. This leave is fully paid by the employer

Parental Leave

Parental Leave Transfer: In certain cases, the partner may take over the remaining maternity leave.

Adoptive Parents:

• Entitled to eight months of leave if the child is under five years old.
• If the child is under three months old, leave extends until the child reaches 11 months of age.

Sick Leave

Employees are entitled to paid sick leave when temporarily unable to work due to illness or injury.

• Notification: Employees must notify their employer as soon as possible, typically within three days.
• Medical Certificate: Required to justify the absence.
• Compensation:
  • 65% of the average salary for regular illness (paid by the employer for the first 30 days).
  • 100% of salary if the illness or injury is work-related.
  • After 30 days, compensation is paid by the state health insurance fund.

Termination Requirements

At this time, Vensure does not have termination requirement details available.

Notice Period

Under Serbian labor law, both employers and employees are required to observe specific notice periods when terminating an employment contract:

Employer-Initiated Termination:

• Standard dismissal: A minimum of 8 days’ notice must be provided.
• During probation: The notice period is reduced to 5 days.

Employee-Initiated Resignation:

• Employees must provide at least 15 days’ written notice before leaving their position.

Collective Redundancies or Layoffs:

• In the case of layoffs due to economic, organizational, or technological changes, a 30-day notice period is required.

Severance Pay

Severance pay in Serbia is only mandated in cases of termination due to redundancy (i.e., layoffs). The minimum severance amount is calculated as follows:

• Formula: 1/3 of the employee’s average monthly salary over the last 3 months × number of full years of service with the employer

This payment is intended to provide financial support during the transition period and must be paid no later than the employee’s final working day.

Unemployment Insurance

To qualify for unemployment benefits in Serbia, an individual must:

• Be registered with the National Employment Service (NES) as unemployed
• Have been insured for unemployment for at least 12 months within the last 18 months
• Be actively seeking employment
• Not have lost their job due to misconduct or voluntarily resigned without just cause

Benefit Amount and Duration

• The monthly unemployment allowance ranges from a minimum of RSD 22,390 ($218.44 USD) to a maximum of RSD 51,905 ($506.39 USD) depending on the individual’s previous earnings
• Benefits are typically paid for up to 12 months
• In special cases—such as when the individual is within two years of retirement—benefits may be extended to 24 months

Application Process

• Applications must be submitted to the National Employment Service within 30 days of termination of employment
• Required documentation includes:
  • Proof of termination (e.g., employment contract termination notice)
  • Identification documents
  • Employment history and insurance records

Anti-Discrimination Practices

Serbian labor law explicitly prohibits discrimination in all aspects of employment based on a wide range of personal characteristics. These protections apply throughout the entire employment lifecycle, including:

• Recruitment and hiring
• Terms and conditions of employment
• Access to training and professional development
• Promotion and advancement
• Termination of employment

Employers must ensure equal treatment and opportunities regardless of an individual’s:

• Race or ethnic origin
• Religion or belief
• Gender or sexual orientation
• Disability
• Age
• Political opinion
• Social origin
• Marital or family status
• Financial status
• Trade union membership
• Any other personal characteristic

Employers are legally obligated to implement policies and practices that promote equality and prevent discrimination. This includes:

• Ensuring fair recruitment and selection processes
• Providing equal access to training and promotion
• Maintaining a workplace free from harassment or bias

Employees who believe they have experienced discrimination have the right to seek redress through:

• Internal grievance procedures
• The Labor Inspectorate
• Judicial proceedings

In legal proceedings, the burden of proof may shift to the employer, requiring them to demonstrate that no discriminatory conduct occurred.

Workplace Safety Standards

Employers in Serbia have a legal obligation to ensure a safe and healthy working environment for all employees. This duty is defined under the Law on Occupational Safety and Health, which was significantly updated in 2023 to align with EU standards. Non-compliance can result in substantial fines and legal liability.

Core Employer Obligations Include:

Conducting Risk Assessments: Employers must perform a comprehensive risk assessment for every job role and workplace. This must be documented in a formal Risk Assessment Act, prepared by a certified professional.

Implementing Preventive Measures: Identified risks must be eliminated or minimized through engineering controls, administrative procedures, or protective equipment.

Appointing Safety Personnel:

• Safety and Health Advisors are mandatory in high-risk sectors and must meet strict educational and professional criteria.
• Safety and Health Associates are required in all other sectors and must have relevant higher education qualifications.

Providing Personal Protective Equipment (PPE): Employers must supply all necessary PPE free of charge and ensure it is used correctly.

Mandatory Medical Examinations: For certain roles, especially those involving physical or hazardous work, employers must arrange and pay for regular health checks.

Training and Education: All employees must receive initial and ongoing training on occupational safety, tailored to their specific job duties. Special emphasis is placed on high-risk roles.

Incident Reporting and Investigation: Employers must establish procedures for reporting, documenting, and investigating workplace injuries and near-misses. All incidents must be recorded in an electronic register maintained by the relevant authorities.

Workplace Conditions: Employers must maintain safe physical conditions, including:

• Adequate lighting and ventilation
• Sanitary facilities
• Emergency exits and fire safety systems

Remote Work Safety: For the first time, the law explicitly covers remote and work-from-home arrangements. Employers must ensure safe working conditions, provide necessary equipment, and assess risks even outside the traditional workplace.

• Insurance for Commuting: Employers are now required to insure employees for accidents occurring during commutes, including those working remotely.

Workers’ Compensation

Employers are required to provide a safe and healthy working environment under the Law on Occupational Safety and Health (updated in 2023). They must conduct risk assessments, implement safety measures, and provide training to prevent workplace injuries. All employees must be registered with the Central Registry of Compulsory Social Insurance (CROSO), which enables access to compensation benefits.

Coverage and Eligibility:

• Workers are entitled to compensation if they suffer:
  • Injuries at work
  • Occupational diseases
  • Injuries occurring during commuting, if directly related to work

The compensation system covers both temporary and permanent disabilities, as well as death benefits for the worker’s family in fatal cases.

Types of Compensation:

Depending on the severity and nature of the injury, employees may receive:

• Paid sick leave: Typically 100% of the average salary for the previous 12 months, paid by the employer for the first 30 days, and by the state thereafter
• Medical treatment costs: Covered by the Republic Health Insurance Fund
• Disability pension: For permanent loss of working capacity, provided through the Pension and Disability Insurance Fund
• Rehabilitation and retraining: For employees who can no longer perform their previous job
• Family compensation: In case of death, the family may receive a survivor’s pension and funeral expenses

Reporting and Claims Process:

• The injury must be reported immediately to the employer
• The employer is obligated to document the incident and notify the relevant labor and health authorities
• A medical evaluation is conducted to determine the extent of the injury and eligibility for benefits

Labor Law Sanctions

Unlawful Termination of Employment: Employers who dismiss employees without following proper procedures—such as failing to provide written notice or a chance to improve performance—can face reinstatement orders, compensation claims, and fines.

Violation of Probation Period Rules: A recent Supreme Court ruling requires employers to notify employees in writing of performance issues and give them time to improve, even during probation. Ignoring this can lead to legal disputes and penalties.

Non-Compliance with Occupational Safety Laws: Under the new Law on Occupational Safety and Health (2023), employers must conduct workplace risk assessments. Failure to comply can result in administrative fines and temporary shutdowns.

Discrimination and Harassment: Employers found guilty of workplace discrimination or harassment may face civil liability, fines, and reputational damage. This includes failure to prevent or address such behavior.

Failure to Register Employment Contracts: Not registering employment contracts with the relevant authorities can lead to fines and inspections by the Labor Inspectorate.

Violation of Working Time and Overtime Rules: Employers who exceed legal limits on working hours or fail to compensate overtime properly may be fined and required to pay back wages