Dismissal and Severance Pay in Serbia
The Serbian Labour Act (Official Gazette RS 24/05, 95/18) governs dismissal, notice periods and severance pay. Serbia prescribes minimum rights which may be improved by collective agreement.
Notice periods in Serbia
Notice periods depend on tenure with the same employer: up to 1 year – 15 days; 1-10 yrs – 1 month (30 days); 10-20 yrs – 2 months (60 days); over 20 yrs – 3 months (90 days). The employer may pay a buyout instead of the notice period. Employees declared redundant have special protections.
Severance pay – amount and conditions
The right to severance pay in Serbia arises upon dismissal due to technological redundancy or reorganisation. The minimum is 1/3 of average gross monthly pay per year worked with the same employer. The total may not be less than 2 average salaries nor more than 8 average salaries, unless a collective agreement or separate agreement provides otherwise.
Dismissal protection and extraordinary dismissal
The Serbian Labour Act (Art. 187) prohibits dismissal of employees on sick leave, pregnant women, and employees on maternity/childcare leave. Special protection applies to trade union representatives. Extraordinary dismissal (without notice) is allowed for cases of serious duty violations listed in Article 179. The deadline for filing a lawsuit for unlawful dismissal is <strong>60 days</strong> from learning of the rights violation.
Frequently Asked Questions
What is a mutual termination agreement in Serbia and how does it differ from dismissal?
A mutual termination agreement (Art. 177 Labour Act) means both parties agree to end the employment. The employee has no right to severance or unemployment benefits unless the agreement provides otherwise. Employees should be cautious as this waives many protections.
Is an employee entitled to severance when a fixed-term contract expires?
No. Upon expiry of a fixed-term contract, employment ends without severance, unless a collective agreement or employment contract provides otherwise.
How does technological redundancy work in Serbia?
An employer planning to dismiss more than 10 employees must submit a redundancy plan to the National Employment Service and consult with employees. Affected workers receive severance and the right to unemployment benefits.