Welcome to our #StartYourBusiness blog series, where we provide crucial insights into starting your business in the Republic of Serbia. This guide answers frequently asked questions about Serbian employment law.

Working Hours and Rest Periods

Standard Working Hours:

In Serbia, full-time working hours are generally 40 hours per week. Employers can set shorter hours, but not less than 36 hours weekly.

Daily Breaks:

Employees working at least 6 hours daily are entitled to a 30-minute break. Those working 10 hours or more per day get at least a 45-minute break. Breaks are not considered working time.

Overtime Regulations and Compensation

Overtime Work:

Employees must work overtime during force majeure events, unexpected workload increases, or other urgent situations. Overtime is capped at 8 hours per week and 12 hours per day, including regular hours.

Overtime Pay:

Employers must pay at least 126% of the regular hourly wage for overtime. Overtime cannot be compensated with time off.

Special Payments

Reimbursements:

Employees are entitled to reimbursement for travel expenses, daily allowances for business trips, meals during work, and vacation pay. There is no legal requirement for a 13th salary, Christmas bonus, or similar payments.

Sick Leave

Sick Pay:

Employers must cover sick leave for up to 30 days. The compensation is 65% of the average salary for non-work-related illnesses and 100% for work-related injuries or occupational diseases.

Notification:

Employees must notify their employer of sick leave with a medical certificate within three days of incapacity.

Vacation Entitlement

Annual Leave:

Employees are entitled to at least 20 working days of vacation per year. Employers must establish criteria for additional vacation days based on work conditions, experience, and education.

Fixed-Term Employment Contracts

Duration:

Fixed-term contracts can be up to 24 months. Exceptions apply, such as replacing a temporarily absent employee or newly established companies, where contracts can extend to 36 months.

Probation Period

Regulations:

Probation is not mandatory and must be agreed upon by both parties, lasting up to six months.

Severance Pay

Severance Payments:

Required only for layoffs due to organizational changes. The amount is determined by the Labor Law and must be paid before employment termination.

Notice Periods and Termination

Notice by Employee:

Employees must give written notice, with a notice period between 15 to 30 days.

Notice by Employer:

Mandatory notice periods apply only for terminations due to personal reasons, ranging from 8 to 30 days depending on the employee's social insurance period.

Understanding these key aspects of Serbian labor law will help you navigate employment regulations and ensure compliance when starting your business in Serbia.