Global HR Compliance in Serbia

Employing people in Serbia requires companies to follow the country’s Labour Law, applicable collective agreements and statutory rules governing employment contracts, working hours, leave, employee protection and termination. These requirements apply throughout the employment relationship, from the initial offer to the final salary payment.

For international companies, the main challenge is often applying Serbian employment requirements to internal policies developed elsewhere. A standard employment contract, probation clause, performance management process or termination procedure used in another country may not satisfy Serbian law.

Acumen International manages HR compliance in Serbia as part of its Global Employer of Record (EOR) services. We support international companies employing local and foreign professionals through appropriate local employment arrangements, without requiring the client to establish its own Serbian employing entity.

Our responsibilities include employment contracts, statutory onboarding, employment records, leave administration, contractual changes, disciplinary procedures and termination administration. The client company directs the employee’s professional work and business activities.

Last reviewed: November 2026

Employment Law and HR Compliance Requirements in Serbia

Serbia’s principal employment legislation is the Labour Law (Zakon o radu), which establishes the rights and obligations of employers and employees.

The law regulates employment contracts, working hours, remuneration, annual leave, occupational protections, disciplinary procedures, termination and severance.

Other legislation governs areas such as occupational health and safety, discrimination, social insurance, immigration and temporary agency employment.

Employment conditions may also be affected by collective agreements and an employer’s internal employment rules.

Hierarchy of employment obligations

Employers must distinguish between statutory minimum rights and additional entitlements established through collective agreements, internal rules or individual contracts.

An employment contract cannot lawfully provide less favourable conditions than the applicable statutory requirements.

Where an applicable collective agreement establishes more favourable employee rights, those requirements must also be considered.

For example, an employer may offer more annual leave than the statutory minimum, but cannot simply substitute a less generous entitlement because its international HR policy provides fewer days.

Collective agreements in Serbia

Serbian law recognises three principal categories of collective agreements:

• General collective agreements.
• Special collective agreements covering particular sectors or territories.
• Collective agreements concluded with individual employers.

The applicability of a collective agreement depends on its scope and the relevant legal conditions.

Employers may also regulate certain employment matters through internal work rules (pravilnik o radu), where permitted by law.

An international company should establish which rules apply before finalising employment terms.

Official reference: Government of Serbia – Labour Law and employment rights.

Employment Contracts in Serbia

An employment contract must be concluded in writing before the employee begins work.

The contract must contain the required statutory particulars and reflect the actual employment arrangements.

Mandatory employment terms

These include:

• Employer and employee identification.
• Job title and description of duties.
• Required qualifications, where applicable.
• Place of work.
• Employment commencement date.
• Duration of employment, where fixed-term.
• Working hours.
• Basic salary and relevant remuneration terms.
• Applicable payment arrangements.
• Other terms required under Serbian legislation.

The contract must be consistent with the applicable Labour Law, collective agreement and employer rules.

Indefinite employment contracts

Employment for an indefinite period is the standard arrangement under Serbian law.

The employment relationship continues until it ends through a legally recognised ground or procedure.

Fixed-term employment contracts

Fixed-term employment is permitted where objective circumstances justify a limited duration, such as a defined project, temporary operational requirement or replacement.

The general maximum duration is 24 months with the same employee, subject to statutory exceptions.

Successive fixed-term contracts must be assessed against the applicable rules.

Using repeated fixed-term agreements without an appropriate legal basis can create employment compliance risks.

Probationary employment

A probationary period may be agreed for up to six months.

During probation, either party may terminate the employment relationship under the applicable statutory conditions, with a notice period of at least five working days.

Where the employer terminates employment during probation, the decision must be appropriately justified.

Part-time employment

Part-time employees are entitled to the applicable statutory employment protections.

Certain rights and payments may be calculated proportionately to working hours, while other rights apply irrespective of whether the employee works full-time or part-time.

Alternative Forms of Work Engagement

Serbian law permits certain forms of engagement outside a standard employment contract.

These arrangements are subject to specific legal restrictions and should not be treated as interchangeable alternatives to employment.

Temporary and occasional work

Temporary and occasional work agreements are permitted for qualifying activities that do not exceed 120 working days within a calendar year.

The legislation also restricts the categories of individuals who may be engaged under these arrangements.

Service contracts

Service contracts may be used for qualifying activities outside the employer’s business operations.

They should not be used indiscriminately to replace employment contracts for ongoing operational positions.

Supplementary work

A person already employed full-time by another employer may undertake supplementary work within the statutory limits.

The permitted engagement generally cannot exceed one-third of full-time working hours.

Professional training

Specific contractual arrangements are available for qualifying vocational training and professional development.

These must satisfy the conditions established by law.

Temporary agency employment

Serbia separately regulates employment agencies that assign workers to user businesses.

The Law on Agency Employment establishes requirements affecting the agency, the user business and the assigned employees.

International companies using an EOR or other third-party employment arrangement must consider whether the proposed activities fall within these rules.

Acumen International assesses the appropriate employing arrangement as part of its Global Employer of Record services.

For companies engaging independent professionals, our guide to converting independent contractors to employees in Serbia examines the separate tax independence test and employment classification considerations.

Working Hours and Overtime in Serbia

Standard working hours

Full-time employment generally consists of 40 hours per week.

The normal working week is usually distributed across five working days, although different arrangements may apply depending on the nature of the work.

Employers must establish working schedules and maintain the required records.

Overtime limits

Serbian law permits overtime in defined circumstances, including unexpected increases in workload, force majeure and urgent work that must be completed within a deadline.

The general limits are:

Employers must maintain daily records of overtime.

Overtime cannot be used without regard to the statutory conditions and working time limits.

Overtime pay

Employees are entitled to an increased salary for qualifying overtime.

The statutory minimum supplement is 26% of the relevant basic salary.

More favourable rates may apply under collective agreements, internal rules or employment contracts.

Night work

Work performed between 22:00 and 06:00 is generally considered night work.

Employees are entitled to the applicable statutory protections and salary supplements.

Where night shifts are organised, the employer must comply with the rules concerning shift rotation and employee consent.

Working time redistribution

Serbian law permits the redistribution of working hours in qualifying circumstances.

Redistributed working time is subject to separate statutory conditions and should not automatically be treated as ordinary overtime.

Employers must apply the relevant reference periods and working time restrictions.

Rest Breaks and Weekly Rest

Employees are entitled to statutory rest periods during and between working days.

Rest during the working day

An employee working at least six hours per day is generally entitled to a minimum 30-minute break.

The break is included in working time.

Different break entitlements apply to shorter or longer daily working periods.

Daily rest

Employees are generally entitled to at least 12 consecutive hours of rest within a 24-hour period, subject to statutory exceptions.

Weekly rest

Employees are generally entitled to at least 24 consecutive hours of weekly rest, alongside the applicable daily rest entitlement.

Employers must account for these requirements when organising shifts, overtime and weekend work.

Annual Leave in Serbia

Employees are entitled to a statutory minimum of 20 working days of paid annual leave per calendar year.

The applicable collective agreement, employer rules or employment contract may provide additional days.

Determining annual leave entitlement

Additional annual leave may reflect criteria such as:

• Length of service.
• Working conditions.
• Qualifications.
• Job responsibilities.
• Other criteria established by the applicable employment rules.

The employer must calculate entitlement according to the statutory provisions, including proportional leave where applicable.

Taking annual leave

Annual leave must be administered in accordance with the Labour Law.

Employees cannot generally waive their statutory annual leave entitlement in exchange for ordinary salary payments.

Compensation for unused annual leave is permitted in the circumstances established by law, including termination of employment.

Unused annual leave on termination

Where employment ends and the employee has unused annual leave, the employer must calculate the applicable financial compensation.

The calculation is based on the statutory rules and the employee’s relevant remuneration.

This obligation must be considered when preparing final payroll.

Public Holidays and Paid Leave

Serbia recognises statutory public holidays and other qualifying absences.

Public holidays

Employees are entitled to the applicable non-working public holidays.

Where an employee is required to work on a qualifying public holiday, the Labour Law provides for an increased salary.

The statutory minimum supplement for working on a non-working public holiday is 110% of the basic salary.

Paid personal leave

Employees may qualify for paid leave in circumstances including:

• Marriage.
• Childbirth of a spouse.
• Serious illness of an immediate family member.
• Death of an immediate family member.
• Voluntary blood donation.

The Labour Law establishes the applicable entitlements and minimum protections, with further provisions possible under collective agreements and employment contracts.

Unpaid leave

Employers may grant unpaid leave under the applicable statutory rules.

The employment and social insurance consequences must be considered before approving the arrangement.

Sick Leave and Salary Compensation

Serbian law provides for salary compensation during qualifying temporary incapacity for work.

The amount depends on the reason for the absence and the applicable legal conditions.

Ordinary illness or injury

For qualifying sickness or injury unrelated to work, the statutory minimum compensation is generally 65% of the relevant average salary.

Work-related injury or occupational disease

Where incapacity results from a qualifying work-related injury or occupational disease, compensation is generally calculated at 100% of the relevant salary basis.

Employer and health insurance responsibilities

The employer generally bears the cost of qualifying sickness compensation during the first 30 days.

For longer absences, the compulsory health insurance system may assume financial responsibility under the applicable rules.

The employer must maintain the necessary documentation and administer payroll and reimbursement procedures correctly.

Managing sickness absence

HR compliance includes:

• Recording the absence.
• Obtaining the required medical documentation.
• Applying the correct compensation rate.
• Calculating the relevant salary basis.
• Managing statutory reporting.
• Maintaining employment protections during absence.

Employers should avoid applying absence-management policies that conflict with Serbian statutory rights.

Maternity, Paternity and Childcare Leave

Serbian employment legislation provides specific protections for pregnancy, childbirth and childcare.

Maternity leave

Maternity leave may begin no earlier than 45 days and must generally begin 28 days before the expected date of childbirth.

The statutory maternity leave period continues after childbirth, with associated childcare leave provisions.

Childcare leave

For the first and second child, maternity and childcare leave together generally extend to 365 days.

Longer entitlements may apply in qualifying circumstances, including certain subsequent births.

Rights of fathers

Fathers may exercise certain leave rights under the statutory conditions.

These include circumstances in which the mother cannot exercise the relevant entitlement and other situations provided by law.

Employment protection

Employees benefit from specific protections during pregnancy, maternity leave, childcare leave and special childcare leave.

Employers must consider these protections before making decisions affecting employment status, contract duration or termination.

The applicable compensation arrangements are governed by the relevant employment and financial support legislation.

Acumen International manages leave-related employment administration and associated payroll requirements through its employee benefits services.

Mandatory Employee Benefits and Employment Payments

Serbian employment law establishes several payments and entitlements beyond ordinary basic salary.

These must be distinguished from voluntary benefits offered by the employer.

Mandatory salary supplements

Employees may qualify for increased remuneration for:

• Overtime.
• Night work.
• Work on qualifying non-working public holidays.
• Other circumstances specified by law or applicable employment rules.

Commuting expenses

Employees may be entitled to reimbursement of qualifying travel expenses between their residence and workplace.

The calculation depends on the applicable statutory provisions and employment arrangements.

Meal allowances

Serbian law provides for meal-related employment payments, with the relevant amount and method of calculation determined through applicable employment rules.

Annual leave allowance

The Labour Law recognises an annual leave allowance, often referred to as regres.

Unlike Slovenia, Serbia does not establish a universal statutory minimum amount equivalent to a full monthly minimum wage.

The applicable amount is determined through the relevant collective agreement, employer rules or employment contract.

Retirement severance

Employees retiring under the applicable conditions are generally entitled to statutory severance of at least two average salaries in Serbia, calculated under the relevant rules.

Supplementary benefits

Employers may also provide private health insurance, additional paid leave, performance bonuses, professional development, wellbeing programmes and other benefits.

These arrangements should be documented and administered consistently with the applicable tax and employment rules.

Employee Protection and Anti-Discrimination Requirements

Serbian employment legislation prohibits discrimination and provides protections for specified categories of employees.

Protected characteristics

Employers must not unlawfully discriminate in employment on grounds protected by Serbian legislation.

These include characteristics such as sex, pregnancy, disability, age, nationality, religion and other protected circumstances.

Pregnancy and parental protection

Employees benefit from additional protection during pregnancy, maternity leave and qualifying childcare-related absence.

Employees with disabilities

Employers must comply with the applicable rules concerning the employment and protection of persons with disabilities.

Trade union and employee representation

Employees are protected against unlawful treatment arising from trade union membership or qualifying representative activities.

Workplace harassment

Employers must address the applicable requirements concerning harassment, workplace dignity and protection from abuse at work.

HR policies should reflect the relevant Serbian legislation rather than relying solely on an international code of conduct.

Disciplinary Procedures in Serbia

An employer considering disciplinary action must identify the applicable legal grounds and follow the required procedure.

A breach of work duties or workplace discipline does not automatically justify immediate dismissal.

Written warnings

For certain disciplinary grounds, the employer must issue a written warning before terminating employment.

The warning must identify the relevant allegations, facts and evidence.

The employee must be given the statutory opportunity to respond.

Under the Labour Law, the response period is generally at least eight days from receipt of the warning.

Evidence and documentation

The employer should maintain records supporting the alleged breach.

These may include:

• Relevant employment contract provisions.
• Applicable internal policies.
• Attendance or working time records.
• Written communications.
• Performance documentation.
• Employee explanations.
• Previous disciplinary measures.

Alternative disciplinary measures

Depending on the circumstances, Serbian law permits certain measures short of dismissal.

These may include temporary suspension without pay, financial penalties within statutory limits or a warning that dismissal may follow further misconduct.

The measure must comply with the applicable statutory conditions.

Employment Termination in Serbia

Serbian law permits employment termination only on recognised legal grounds and subject to the relevant procedures.

The applicable requirements differ according to the reason for termination.

Termination by mutual agreement

Employer and employee may agree in writing to terminate the employment relationship.

The employer must comply with the statutory information requirements concerning the employee’s rights arising from unemployment.

A mutual termination agreement should not be used to disguise an involuntary dismissal.

Resignation by the employee

An employee may resign by providing written notice.

The statutory minimum notice period is generally 15 days.

An employment contract or applicable employer rules may establish a longer period, up to 30 days.

Employer-initiated dismissal

Recognised grounds may include:

• Failure to achieve required work results.
• Lack of the necessary knowledge or abilities.
• Breach of work duties.
• Breach of workplace discipline.
• Certain legally recognised circumstances affecting continued employment.
• Technological, economic or organisational redundancy.
• Other grounds expressly established by law.

The employer must follow the procedure applicable to the particular ground.

Performance-related dismissal

Where dismissal concerns inadequate work results or insufficient professional capability, the employer must satisfy the relevant statutory requirements.

These can include providing written information about deficiencies, instructions for improvement and a reasonable opportunity to improve performance.

A specific statutory notice period may also apply.

Misconduct-related dismissal

For qualifying misconduct or disciplinary grounds, the employer must follow the applicable warning and response procedure.

A generic contractual provision allowing immediate termination does not override statutory requirements.

Redundancy and Severance Pay in Serbia

Redundancy may arise where technological, economic or organisational changes reduce or eliminate the need for particular work.

The employer must establish the legitimate grounds and comply with the applicable procedure.

Statutory redundancy severance

The minimum redundancy severance is generally:

One-third of the employee’s relevant average monthly salary for each completed year of qualifying employment.

The calculation generally uses the average salary paid during the three months preceding the severance payment.

Qualifying service with predecessor or affiliated employers may also need to be included.

Example of severance calculation

An employee has six completed years of qualifying service and an average monthly salary of RSD 180,000.

The minimum severance calculation would be:

RSD 180,000 × 1/3 × 6 = RSD 360,000

The actual entitlement must be assessed against the relevant employment history, contract and applicable rules.

Payment timing

Statutory redundancy severance must be paid before the employment contract is terminated on redundancy grounds.

Collective redundancy

Where the number of proposed redundancies reaches statutory thresholds, the employer may be required to prepare a redundancy programme.

This involves additional procedural obligations, including consultation and engagement with the relevant bodies.

Restrictions following redundancy

Serbian law restricts the employer’s ability to recruit another person to the same position following a redundancy dismissal.

The applicable restriction and any priority rights must be considered before replacing the role.

Protected Employees and Unlawful Dismissal

Certain employees receive additional protection against dismissal.

These include employees during:

• Pregnancy.
• Maternity leave.
• Childcare leave.
• Special childcare leave.

Serbian law also restricts dismissal based on protected characteristics, trade union membership and qualifying employee representative activities.

A dismissal that does not comply with the statutory requirements may be challenged before the competent authorities or courts.

Consequences can include reinstatement, compensation and other remedies under the applicable rules.

The employer must therefore assess the legal grounds, employee circumstances, supporting evidence and procedural requirements before issuing a termination decision.

HR Compliance for Foreign Employees in Serbia

Foreign nationals employed in Serbia may require appropriate residence and work authorisation.

The employment arrangement must comply with both Serbian labour legislation and the applicable immigration rules.

Employment contracts for foreign nationals

Foreign employees are generally entitled to the relevant employment protections under Serbian law.

The contract must also be consistent with the employee’s immigration status and authorised work.

Single residence and work permits

Serbia operates a single permit system combining residence and work authorisation for eligible foreign nationals.

Permits can be issued for up to three years, depending on the approved circumstances.

Changes during employment

Changes to the employing entity, role or other relevant conditions may affect the employee’s immigration authorisation.

The appropriate requirements must be assessed before implementing the change.

Acumen International combines local employment administration with global mobility and immigration services for eligible international hires.

Read our article on Global Employer of Record with immigration support for more on the relationship between employment and work authorisation.

HR Compliance During Business Restructuring

Employment obligations may become particularly important during mergers, acquisitions, workforce reductions and changes to international operating arrangements.

Business transfers

Certain changes of employer can trigger statutory obligations concerning continuity of employment and employee rights.

Employers may need to inform or consult employee representatives and preserve applicable employment conditions.

Contractual changes

Changes to employment terms may require a formal annex to the employment contract.

Serbian law establishes procedures for offering contractual amendments and addressing an employee’s response.

International workforce consolidation

A company employing professionals across several countries must account for differences in termination rules, employee protections and statutory benefits.

Serbian employment obligations cannot be replaced simply by applying the parent company’s home-country policies.

HR due diligence

Employment due diligence should examine:

• Employment contracts and amendments.
• Collective agreement obligations.
• Working time and overtime records.
• Leave balances.
• Payroll and statutory payments.
• Contractor arrangements.
• Pending employment disputes.
• Termination and severance exposure.
• Immigration compliance.

Acumen International supports eligible employment administration and workforce transitions through its international EOR services.

How Acumen International Manages HR Compliance in Serbia

Acumen International supports international companies employing professionals in Serbia through appropriate local employment arrangements.

Employment contracts and onboarding

We manage employment documentation, statutory registration and local onboarding requirements.

Employment policy compliance

We help apply the relevant Serbian employment rules to working hours, leave, contractual terms and HR administration.

Leave and benefits administration

We manage statutory leave entitlements, qualifying salary compensation and agreed employee benefits.

Employment changes

We administer contractual amendments and other formal changes to the employment relationship.

Disciplinary and termination administration

We manage the formal employment procedures associated with eligible disciplinary actions, employee departures and redundancy.

Payroll coordination

We manage salary calculations and statutory payments as part of the employment relationship.

Immigration coordination

We provide employment-related immigration support for eligible foreign nationals.

International account management

Clients work through a centralised service relationship for employment requirements in Serbia and other markets.

Our Global Employer of Record services combine local employment administration with international workforce management across more than 190 countries.

Frequently Asked Questions About HR Compliance in Serbia

What is the main employment law in Serbia?

The Labour Law (Zakon o radu) governs the principal rights and obligations of employers and employees, including contracts, working time, leave, remuneration and termination.

Are written employment contracts mandatory?

Yes. Employment contracts must be concluded in writing before the employee begins work.

What is the maximum duration of a fixed-term contract?

The general limit is 24 months with the same employee, subject to statutory exceptions.

What is the maximum probationary period?

A probationary period may be agreed for up to six months.

What is the standard working week?

Full-time employment generally consists of 40 hours per week.

How much overtime can employees work?

The general limit is eight hours per week, with a maximum of 12 hours of work per day including overtime.

What is the minimum overtime premium?

The statutory minimum overtime salary supplement is 26% above the relevant basic salary.

How much annual leave must employees receive?

Employees are generally entitled to at least 20 working days of paid annual leave per calendar year.

Is an annual leave allowance mandatory?

Serbian law recognises an annual leave allowance. The amount is determined through the applicable employment rules rather than a universal statutory minimum equivalent to Slovenia’s regres.

What is the minimum resignation notice period?

The statutory minimum is generally 15 days, with a longer period of up to 30 days possible under the applicable employment terms.

Is redundancy severance mandatory?

Yes. The statutory minimum is generally one-third of the employee’s relevant average monthly salary for each completed year of qualifying employment.

Can an employer dismiss an employee without warning?

The requirements depend on the dismissal ground. Certain disciplinary dismissals require a written warning and an opportunity for the employee to respond.

Can Acumen International manage HR compliance without the client establishing a Serbian entity?

Yes, for eligible employment arrangements. Acumen manages local employment administration through an appropriate EOR model, subject to Serbian legal requirements.

Manage HR Compliance in Serbia with Acumen International

Serbian employment law establishes detailed requirements for employment contracts, working time, employee benefits, disciplinary procedures and termination.

For international companies, the practical challenge is ensuring that local employment decisions meet these requirements while remaining consistent with wider business objectives.

Acumen International manages HR compliance in Serbia through its Global Employer of Record services, covering employment documentation, statutory onboarding, leave, benefits, contractual changes and termination administration.

We support local and foreign employees while your company directs their professional activities.

Explore our Global Employer of Record services, employee benefits services and global mobility solutions.

Contact Acumen International to discuss your employment and HR compliance requirements in Serbia.

Official Sources

• Government of Serbia – Labour Law and other laws regulating employment
• Serbian Labour Law – Consolidated English text
• Serbian Labour Law – Serbian consolidated text
• Ministry of Labour – Employee rights and employer obligations
• Welcome to Serbia – Foreign national employment
• Serbian Central Registry of Compulsory Social Insurance