Employment Conditions in Serbia

The employment contract may include a probation period of up to six months. Before it expires, either party may terminate with at least five working days’ notice; if the employer terminates, it must give appropriate reasons for that.

If the employee does not demonstrate the required abilities, employment ends when the agreed probation period expires, unless it has already been terminated earlier with at least five working days’ notice. Outside probation, termination must follow the full procedure set out in the end of employment section.

A fixed-term contract must have an objective, time-limited reason and generally cannot exceed 24 months with the same employee, whether continuous or interrupted. A break of less than 30 days does not restart the 24-month period.

Longer fixed terms are permitted for specific cases, including:

• Replacing an absent employee
• Project work with a defined end date
• Employment tied to a foreign national’s work permit
• Newly established employers, for up to 36 months
• Employees approaching retirement

If these rules are breached, or the employee continues working for at least five working days after the contract expires, the employment relationship converts to indefinite employment.

• During employment: The contract may define work the employee cannot do in their own name or for others without the employer’s consent, valid only where the employee gains particularly important knowledge, contacts or business information at work.
• After employment: A post-termination non-compete may last at most two years and is valid only if the contract provides monetary compensation for the restraint. The law sets no minimum amount or formula, so the compensation must be agreed between the employer and employee.

For copyright works created in the course of employment, the employer holds the exclusive economic exploitation rights for five years from completion (unless agreed otherwise), with the employee entitled to special remuneration depending on the results.

For software and databases created on the job, the employer is the permanent holder of the economic rights unless the contract says otherwise.

Employers must adopt a rulebook on work organisation and job systematisation (pravilnik) defining organisational units, roles, job descriptions and required qualifications.

Employers with ten or fewer employees are exempt.

Employers must keep prescribed employment records, including working-time records and a daily overtime record, and must keep each employment contract (or a copy) at the place where the person works.

The fine brackets for record-keeping and related breaches are set out in the hours of work section.

On a transfer of business, employment contracts move to the successor automatically, with acquired terms preserved for at least a year, as detailed in the employee rights section.