In Serbia, the Labor Law dictates notice periods for employment termination, with variations depending on who initiates the termination and the circumstances.

Notice Period Initiated by the Employee

Employees have the right to terminate their employment contract with at least 15 days' written notice to the employer before their desired end date. However, a collective agreement or individual employment contract can stipulate a longer notice period, up to a maximum of 30 days.

Notice Period Initiated by the Employer

The requirement for a notice period depends on the reason for termination:

• No mandatory notice period: Employers are not legally obligated to provide a notice period in most cases of termination initiated by them, such as redundancy due to economic reasons.
• Notice period required: However, a notice period of between 8 and 30 days is necessary if the employer terminates due to the employee's failure to fulfill their duties or lack of qualifications. The specific duration within this range depends on the employee's pension insurance contribution period.

In Serbia, the Labor Law dictates severance pay entitlements for employees under certain circumstances.

Mandatory Severance Pay

Severance pay is mandatory for employees terminated due to technological, economic, or organizational changes within the company, as per Article 158 of the Labor Law.

Severance Pay Calculation

The minimum amount of severance pay cannot be less than one-third of the employee's average gross salary (over the last three months prior to severance payment) for every full year of employment with the employer, according to Article 158 of the Labor Law. However, the employer's general act or employment contract may stipulate higher severance pay amounts, but it cannot be lower than the statutory minimum.

Instances Where Severance Pay is Not Due

Severance pay is not due in cases of resignation by the employee, termination for valid reasons related to the employee's conduct or performance (Article 179 of the Labor Law), or termination during a fixed-term contract (unless stipulated otherwise within the contract).

Important Considerations

Employers are required to pay severance before employment termination takes effect, as per Article 158 of the Labor Law.

In Serbia, employment contracts can be terminated in several ways. These include mutual agreement, expiration of a fixed-term contract, resignation by the employee, and termination by the employer. Termination by the employer can be for cause, based on valid reasons related to the employee's conduct or performance, or for economic reasons, due to financial, structural, or technological changes within the company.

Valid Grounds for Termination

If an employer in Serbia wishes to terminate an employee, they must have a valid, documented reason. For cause, this reason must be related to the employee's conduct or performance as outlined in the Serbian Labor Law. For redundancy, the employer must demonstrate genuine economic, technological, or structural changes necessitating job cuts.

Termination Letter

The employer must provide a written termination letter clearly stating the grounds for termination, clearly referencing relevant sections of the Labor Law if for cause.

Employee Rights

Employees have the right to dispute unjustified terminations through the labor inspectorate or courts. Additional protections may apply to pregnant employees, union representatives, or employees on sick leave, as specified in the Serbian Labor Law.