Employ Candidates Compliantly in Serbia

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  1. Overview: Serbia
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global HR Compliance in Serbia

If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Serbia Guide below will help you understand the nuances of labor legislation in the country.

When the company is planning to enter a new foreign market of Serbia and has a need to employ a local national there, the first question to answer is how it is going to make local hires.

We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.

This solution helps you employ your global sales force in Serbia as well as in other countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.

Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.

So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Serbia instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.

Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.

Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Serbia .

We are experts in global workforce employment in Serbia, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Serbia.

See Hiring and Firing Workforce in Serbia Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Serbia or would like to get more details.

Hiring and Firing Workforce in Serbia Guide

# Employment Contracts

Employees may legally enter into employment contract with their employers starting from when they are 15 years old. Employment contracts may be given for an unlimited period of time or for a limited term with the total duration of not more than of 2 years. Contracts of employment must be concluded in writing in Serbian and must be handed to employees before they commence work. Employees are entitled to an automatic translation of their definite term contract into an unlimited term contract if they continue to work in the company for more than 5 working days after their contracts have expired. The same is the case if the contracts were originally entered into in ways that do not conform with the specifications of the labor act.

# Minimum statutory employment rights

# Hours of work
The statutory maximum hours an employee may work a week is 40 hours. Employers are required to compensate for every single time employees work in excess of the statutory maximum hours. During each work day, employees are entitled to take a 30-minute break. Employees must be allowed to take no fewer than 12 hours of rest period on a daily basis and at least 24 hours per week. Employees who do night shift work are not permitted to work more than one-week in a row except by their consent in writing.

# Probation period
New employees may be put on probation for up to 6 months period counting from their first day at work. An employer and employee have the right to end contracts of employment before the end of probation period provided they give the other party a prior notice of 5 working days.

# Annual leave
Employees are entitled to a minimum of 20 days’ vacation every calendar year. Annual vacation must be paid in full by the employers in addition to vacation allowance they must provide to their employees. Annual vacation may be extended by a certain number of days, subject to terms of employment contract, individual collective agreement, or work rules.

# Parental leave
Female employees have the right to 365 days of paid maternity and childcare leave for the birth of their first 2 children, and 2 years of paid leave for their third and fourth childbirth. New mothers of multiple births (three or more babies) are entitled to 2 years of paid leave for childbearing. Adoptive parents are entitled to up to 8 months of paid leave. Throughout a maternity and childcare leave, employees are entitled to receive maternity benefit that is equal to at least their average base salary in the preceding 12 months.

A new father has the right to use his partner’s maternity leave if she is not able to use the leave for justifiable cause (such as death, illness, child abandonment, etc.). Employees on maternity leave cannot be dismissed until they have completed their leave.

# Sick leave
Employees are entitled to take paid sick leave whenever they are ill and the number and duration of that considerably depend on the number of times they are sick per year and the length of time it takes them to recover each time they are sick. Sick leave is usually paid by both employers and the state, depending on the duration of the sick leave. Employers are responsible for providing sick leave benefits throughout the 1st 30 days of the leave, and afterwards the state takes up the responsibility.

During the 1st 30 days of sick leave, employees whose illness is not work related are entitled to 65 percent of their average earnings in the previous 12 months from their employers. Those whose illness is work related are entitled to 100 percent of their average earnings in the previous 12 months.

# Overtime
Under the circumstances specified by the law, employees are allowed to work overtime on employers’ request. Whatever happens, employees are not permitted to work more than 4 hours of overtime a day or more than 8 hours a week. Employees are entitled to compensation for every hour they over the normal working hours:

  1. for work at holidays: min. 110% of the basic salary;
  2. for overtime: min. 26% of the basic salary.

# State minimum salary
As of Sept 27, 2017, the minimum wage an employee may receive in Serbia is 249.69 EUR per month.The minimum wage is 24,822 dinars per month (minimum wage is fixed at an hourly rate – 143 dinars).

# Employment termination
Employees have as much legal right as the employers to unilaterally terminate an employment contract. Employees can unilaterally terminate their contracts of employment by giving the employers 15 to 30 days of prior notice. Employers are obligated to provide their employees with 8 to 30 days of advance notice if they decide to dismiss them for reasons of incompetence. Employers may terminate their employees contract without any prior warning if the termination is not by reason of incompetence. Termination resulting from reasons other than employees’ lacklustre performance may be effected without any prior notice. Employees are entitled to severance pay in case of redundancy.

Acumen International can help you fast-track your possibilities of entering and expanding your business in Serbia by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.

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