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With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, The Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

This article publishes the key points of labor & employment compliance by September 2025 in Serbia. 

01 Overview of the Labor Law System

1.Legal System

Serbia operates under a civil law system.

2.Resources and Agencies

The Labor Law is the main and general act regulating the field of employment and labor, providing a comprehensive legal framework for labor-related matters.

The administration of Serbian Labor Law is entrusted to the Ministry of Labor, Employment, Veteran and Social Policy on a several levels, through its regional and departmental bodies and internal sectors – Labor Inspectorates, National Employment Agencies, HSE Administration.

02 Employment Qualifications and Classification

1.Employment Age

In Serbia, an employment relationship may be established with a person who is at least 15 years old. However, for individuals under the age of 18, employment is allowed only with the written consent of a parent, adoptive parent, or guardian, and provided that such work does not endanger the minor’s health, morals, or education, nor involve work prohibited by law.

The retirement age is 65 for men and 63 years and 10 months for women.

2.Qualifications for Employment

The Labor Law prescribes that conditions for performing specific jobs may be determined by law or by the employer’s internal rulebook on organization and systematization of jobs.

3.Classification of Employment

Serbian labor legislation recognizes several models of work engagement: the classic employment relationship (based on an employment contract), outsourcing, as well as engagements outside the employment relationship (such as temporary and occasional jobs, service contracts, or professional training and development programs).

4.Foreign Workers

Under the Law on Employment of Foreigners, foreign nationals may be employed in Serbia provided that they hold either: a long-term visa based on employment, a temporary residence permit under certain conditions, permanent residence, or a unified residence and work permit.

03 Recruitment and Employment Contracts

1.Background Examination

In general, background checks or screenings of potential employees are not a standard practice in Serbia. There are no explicit legal restrictions on conducting them, but employers must comply with the principles of non-discrimination and data protection.

2.Contract Types

Based on the relevant criteria, Serbian labor legislation distinguishes the following types of employment contracts:

? Indefinite-Term Employment Contract;

? Fixed-Term Employment Contract;

? Full-Time Employment Contract;

? Part-Time Employment Contract.

3.Probationary Period

The probationary period is regulated in the Serbian Labor Law in a single provision. It is optional, must be expressly stipulated in the employment contract, and may last for up to six months – which also represents the customary duration in practice. During the probationary period, the employment contract may be terminated both before and on the day of expiration of the agreed term.

04 Working Standards

1.Remuneration and Statutory Benefits

The minimum wage is set at the national level (not by provinces or cities) by the Social-Economic Council, or by the Government if the Council fails to reach a decision. It is determined as an hourly rate before taxes and contributions and adjusted annually. 

2.Social Security and Employment Taxes

Under Serbian law, employers are obliged to calculate and pay mandatory social security contributions for each employee, which cover pension and disability insurance, health insurance, unemployment insurance, and insurance against work-related injuries and occupational diseases.

3.Working Hours

The Labor Law sets maximum limits on working hours. Overtime work is permitted but cannot exceed eight hours per week, and total working hours (including overtime) cannot exceed 12 hours per day. Any work beyond the standard 40-hour workweek qualifies as overtime and must be compensated with an increased salary.

4.Rest and Leave

Under the Labor Law, employees in Serbia are entitled to the following minimum rest periods:

? A break of at least 30 minutes during daily working hours (15 minutes for shifts between four and six hours; 45 minutes for shifts longer than 10 hours);

? A daily rest period of at least 12 consecutive hours;

? A weekly rest period of at least 24 consecutive hours.

05 Occupational Health and Special Protection

1.Occupational Health and Security

Employers are required to implement health and safety measures for each workplace, including conducting a written risk assessment for all work posts, appointing a health and safety officer, adopting internal rules (if employing more than ten workers), and maintaining relevant records. Employers must also insure employees against work-related injuries and occupational diseases.

2.Special Protection

Serbian labor and occupational health legislation provides special protections for certain groups of employees to ensure their safety, health, and well-being at work. Under the Law on Occupational Safety and Health, specific measures apply to young workers, pregnant employees, breastfeeding mothers, and employees with occupational diseases or disabilities.

06 Personal Information and Privacy

1.General Rules

mployers must implement appropriate technical and organizational measures to ensure the security and confidentiality of employees' personal data. The Law on Personal Data Protection mandates that personal data be processed only when there is a valid legal basis, which includes:

? Compliance with legal obligations (e.g., tax reporting, social security contributions);

? Performance of an employment agreement;

? Employees’ consent, where required, for specific data processing activities.

2.Transnational Transfer

Employers may transfer employees’ personal data to other countries or international organizations only if certain conditions are met to ensure adequate protection of the data. Transfers to countries or organizations that provide an adequate level of protection do not require prior authorization. This includes countries that are parties to international data protection conventions, recognized by the EU as providing sufficient protection, or with which Serbia has concluded specific treaties.

07 Anti-Discrimination and Anti-Harassment

1.General Rules

Discrimination is explicitly prohibited under the Labor Law, both in its direct and indirect form. The prohibition applies to all stages and aspects of the employment relationship.

2.Protective Characters

Direct and indirect discrimination against job seekers and employees is prohibited on the basis of a wide range of protected characteristics, including: sex, birth, language, race, skin color, age, pregnancy, health status or disability, national origin, religion, marital status, family obligations, sexual orientation, political or other beliefs, social background, financial status, membership in political organizations or trade unions, as well as any other personal characteristic.

08 Internal Policies

1.Applicability

In accordance with the Labor Law, rights, obligations, and responsibilities arising from employment are regulated by the Work Rules (general internal act of the employer applicable to all employees) or by the employment contract, provided that certain conditions are met.

2.Validity

Under Labor Law, an employer’s internal acts (such as the Rulebook on Employment) may be adopted without prior approval or consent from employees, trade unions, public authorities, or other third parties, except in cases where a representative trade union has been established with the employer. In such a case, the employer is obliged to submit the Rulebook on Employment to the trade union within seven days of its adoption. Therefore, the rulebook is valid without the union’s consent.

3.Whistleblowing

The Law on the Protection of Whistleblowers  governs whistleblowing procedures, the rights of whistleblowers, and the obligations of both public and private entities to ensure adequate protection.

09 Transactions

1.Employment Relationship

In the event of a change of employer due to a merger, acquisition, or transfer of assets, employees’ existing employment contracts continue under the successor employer. The successor assumes all rights and obligations arising from the predecessor’s general acts and employment contracts, ensuring continuity of positions, remuneration, and other contractual terms.

2.Compensation

Employees are not entitled to any special compensation solely on the grounds of the employer change – in the sense of Labor Law. Their rights and obligations remain unchanged and if the new employer subsequently wishes to change the terms of employment, this must be done in accordance with the general provisions of the Labor Law (e.g., by offering an annex to the employment contract, or by applying regular termination grounds).

10 Termination of Employment

1.Termination Grounds

Serbian labor legislation is generally protective of employees. Accordingly, an employer may not terminate an employment contract at will, but only on the basis of specific statutory grounds prescribed by the Labor Law.

2.Termination Procedure

Serbian law strictly limits the grounds for dismissal and defines “cause” as statutory reasons only. Termination under the most common grounds is subject to mandatory procedures, which must be meticulously followed to ensure validity. Unlike in some other jurisdictions, “payment in lieu of notice” is not recognized under Serbian law; instead, the statutory notice and procedural requirements must be observed. With the exception of collective redundancies, no prior approval or participation of authorities or third parties is required.

3.Termination Protection

There are several types of protection against dismissal. Employees are protected from dismissal during:

? Pregnancy;

? Maternity leave;

? Childcare leave;

? Special childcare leave.

4.Severance and Compensation

Severance pay is not mandatory for all types of termination. It is only required in cases of redundancy, where the severance amount must be at least one-third of the employee’s average salary (from the previous three months) for each full year of service. If employment is terminated for other reasons, there is no legal obligation for severance pay.

5.Wrongful Termination

A termination may be considered unlawful if the employer unilaterally terminates the employment agreement for any reason other than those prescribed by Labor Law (as explained above), or if the prescribed procedure was not followed in cases where such a procedure is required.

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality

Confidentiality obligations are not regulated under Serbian Labor Law. In practice, these matters are commonly addressed through contractual clauses within employment contacts or through separate agreements. Given the frequent changes of employers and the dynamic nature of the labor market, confidentiality obligations are of significant practical importance and are widely implemented. Such obligations typically extend beyond the duration of the employment contract.

2.Non-Compete and Non-Solicitation

Non-competition clauses are expressly recognized under Serbian Labor Law. An employment agreement may prohibit an employee from engaging in specific jobs or activities without the employer’s prior consent during the course of employment. Such clauses are relatively common in practice. However, a post-termination non-compete obligation may only be agreed upon if, through their work with the employer, the employee acquires new and particularly significant technological knowledge, a broad network of business partners, or knowledge of important business information and trade secrets.

12 Work Representation and Trade Unions

1.Work Representation

The freedom of trade union organization in Serbian law enjoys constitutional protection. This right, guaranteed by the Constitution, is further elaborated in the Labor Law, which stipulates that employees are ensured the freedom of trade union organization and activity without prior approval, but with mandatory registration in the relevant register, thereby granting unions legal entity status.

2.Trade Unions

Serbian legislation recognizes different types of trade unions including:

? Workplace Trade Union;

? Industry, Group, or Sectoral Trade Union;

? Regional Trade Union;

? National Trade Union.

13 Dispute Resolution

1.Procedures & Enforcement

Labor disputes are adjudicated within the regular court system, as Serbia does not have specialized labor courts. The competent court of first instance is the Basic Court, which decides in civil chambers. Territorial jurisdiction is determined either by the employer’s registered seat or the place where the employee performs work under the employment contract. Proceedings follow civil procedure rules, with certain labor-specific adjustments.

2.Waiver & Enforcement

Under Serbian Labor Law, employees cannot validly waive statutory rights in advance, and any provision of an employment contract or separate agreement attempting to do so would be null and void.

However, once a right or claim has already arisen, the employee may enter into a settlement agreement with the employer, whereby contractual rights or potential claims can be waived or modified, provided that the agreement is voluntary, clear, and does not undermine fundamental statutory protections.

14 Others

1.Latest Development & Trends

From a investor’s perspective, one of the most relevant recent developments is the introduction of the Unified Residence and Work Permit, which significantly simplifies the employment of foreign nationals.

2.Cultural and Religious Considerations

Serbia does not present significant cultural or religious specificities that would affect business relations, and international investors generally find the environment straightforward and accommodating.

* To avoid ambiguity, this article should not be regarded as legal advice.

Authors

Vuk Dra?kovi? is a senior partner and the head of Employment, M&A and Corporate & Commercial practice at Dra?kovi? Popovi? & Partners. He has in-depth legal expertise for 20 years in employment, commercial & corporate and M&A law in Serbia and in Montenegro. 

Nenad Sad?akovi? is a senior associate at Dra?kovi? Popovi? & Partners. His main focus in on corporate & commercial, infrastructure, regulatory and employment. 

Milo? Andrejevi? is the head of Data Protection and a key partner in Employment department at Dra?kovi? Popovi? & Partners. His main focus in on employment law, immigration, data protection and dispute resolution. 

Translator

Zhou Hao, Master of Laws, Associate at Anli Partners. Areas of expertise: Labor Law, Dispute Resolution, ESG Compliance.