Labor law advises

How to employ, how to let go in republic of Serbia

Current situation in the Republic of Serbia brings many difficulties for employers regarding employment of the workforce, but even more difficulties are found in the dismissal of employees. Novelties in the Employment Law largely pertain to the field of regulation of labor relations and defining the legal obligation of the employer to the employee.

Employing workers after the selection goes very easily with a employment booklet, certificate of removal from the previous insurance, an ID listing and with the appropriate contract you're going to the pension and health insurance and approach worker registration on obligatory pension and health insurance that is required to be payed each month, along with workers income. Often the first contracts are of shorter duration (three months) so employer and worker can give time to experience conditions and opportunities in workplace and to convince both sides in the correctness of their choice. Upon expiry of this agreement both parties can re-examine their obligations and after the adjustments new contract or can be made or worker gets notice of withdrawal. Notice of withdrawal after the expiration of the contract is done in PIO service by handover of expired contract for review and with filling out forms for revocation of employee. Notice of withdrawal in this case is automatic. Termination of an employment contract which is still in force or has indefinite duration is a little bit different. The reasons for the cancellation may be multiple and on both sides, the difference is only in the fact that if the employee submits a breach of contract it goes easily with a written statement, but if the employer wishes to terminate the employment contract things go a little bit differently. The reasons for which an employer may terminate an employment contract can be defined in the Rules of procedure, which is obligatory for every company with more than 10 employees, and contains  detailed description of work responsibilities of each employee. The Labor law - TERMINATION OF EMPLOYMENT Article 175, reasons for dismissal by the employer are enumerated  in detail in articles  179th to 191st and employer after written notice and warning to worker in respect of his work and disciplinary obligation is free to give written notice of termination of the employment contract which again goes through the service of the

Pension and health insurance. Termination of the employment contract can be agreeable, when both parties jointly agree on the reasons for leaving. Obligations of the employer regarding employment contract remain in force until their fulfillment and employer is obliged to fulfill all of his debts to the employee 30 days from the date of termination of the employment contract.

Relief to employers in the new Labor Law is in the severance payment to the worker who is made redundant because the severance pay is paid only for the period of service with the current employer. The general advice to the employers is that the contract of employment gives the most detailed view of obligations for both parties which is to be written in a way that respects the Labor Law, and that at the same time protects business interests of companies and employers and the ability to more easily let go workers whose behavior endangers the integrity of the company and affects the business results.