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Law on Labour

In this law you can find information about: Basic provisions; Entry into labor relations; Contract on rights and obligations of directors; Education, vocational training and advanced training; Working hours; Recesses and leaves; Protection of employees; Salary, compensation of salary and other emoluments; Dues to employees in case of bankruptcy procedure; Rights of employees in case of change of employer; Redundancy; Prohibition of competition; Compensation of damage; Suspension of an employee from work; Amendments to the labor contract; Termination of labor relations; Exercise and protection of employee’s rights; Special provisions; Organizations of employees and employers; Collective agreements; Supervision; Penal provisions; Transitional and final provisions. ("Official Gazette RS")

1. Scope

Article 1.

The rights, duties and responsibilities resulting from the labor

relationship, i.e. based on labor, shall be regulated by this law and a special law,

pursuant to ratified international conventions.

The rights, duties and responsibilities resulting from the labor

relationship shall be regulated in the collective agreement and labor contract, and by

the Labor Rulebook only when this Labor Law stipulates so.

Article 2.

Provisions of this law shall apply to employees who work on the

territory of the Republic of Serbia, with a domestic or foreign legal or natural persons

(hereinafter: employer) and employees referred for work abroad by the employer,

unless the Law stipulates otherwise.

Provisions of this law shall apply to employees of public bodies,

territorial autonomy bodies and local self-government and public services, unless the

law stipulates otherwise.

Provisions of this law shall apply to employees who are foreign

nationals and stateless persons who work with employers on the territory of the

Republic of Serbia, unless the law stipulates otherwise.

Article 3.

Collective agreement with employer, pursuant to the law, shall regulate

rights, duties and responsibilities resulting from the labor relationship and mutual

relations of the parties in the collective agreement.

Labor rulebook or labor contract, pursuant to the law, shall regulate

rights, duties and responsibilities resulting from the labor relationship:

1) If a trade union has not been established with that employer or

neither of the trade unions meets the requirements for representativenes or association

agreement has not been made pursuant to this law;

2) If neither of the parties to the collective agreement raises the

initiative to start bargaining process to eventually conclude the collective agreement;

3) If parties to the collective agreement fail to reach consensus to

conclude the collective agreement 60 days after the bargaining process has been

initiated;

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4) If the trade union fails to accept the initiative of the employer for

collective agreement 15 days after the invitation for outset of the bargaining process

for collective agreement has been delivered.

In case referred to in para. 2, point 3) of this Article parties in the

collective agreement shall continue the bargaining process in the spirit of good will.

Labor rulebook shall be enacted by the Managing Board, and in case

there is no Managing Board with a certain employer – the director shall do so, or the

person in charge of legal/regulatory affairs pursuant to the law (hereinafter: director).

With employers who have no capacity of a legal person, the labor rulebook shall be

enacted by the employer or a person empowered by him (hereinafter: entrepreneur).

Labor rulebook shall become invalid on the day the collective

agreement referred to in para. 1 of this Article is concluded.

Article 4.

General and special collective agreements have to comply with the

law.

Collective agreement with the employer, labor rulebook and labor

contract have to comply with the law, and in case of employer referred to in Articles

256 and 257 of this law – with both general and special collective agreements.

2. Definition of certain terms

Article 5.

An employee, pursuant to this law, shall be a natural person in labor

relation with the employer.

An employer, pursuant to this law, is a domestic or foreign legal or

natural person who employs or hires for work one or more persons.

Article 6.

A trade union, pursuant to this law, shall be an independent,

democratic and self-supporting organization of employees that they join voluntarily

for advocacy, representation, promotion and protection of their professional, labor,

economic, social, cultural and other individual and collective interests.

Article 7.

An association of employers, pursuant to this law shall be an

independent, democratic and self-supporting organization of employers that they join

for advocacy, promotion and protection of their business interests pursuant to the law.

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3. Mutual relations of the collective agreement, labor

rulebook and labor contract

Article 8.

Collective agreement and labor rulebook (hereinafter: general

document) and labor contract shall not contain provisions that entitle the employees to

lesser rights or set less favorable working conditions than the rights and conditions

stipulated under the law.

The general document and labor contract may set greater rights and

more favorable working conditions than the rights and conditions stipulated under the

law and other rights not stipulated under the law, unless the law stipulates otherwise.

Article 9.

Should the general document and some of its provisions stipulate less

favorable working conditions than the conditions stipulated under the law, the

statutory provisions of the law shall apply.

Provisions of the labor contract stipulating less favorable working

conditions than the conditions stipulated in the law and general document, i.e. those

that are based on incorrect information provided by the employer on certain rights,

duties and responsibilities of employees – shall be invalid.

Article 10.

A special collective agreement shall not stipulate lesser rights and less

favorable working conditions than the rights and conditions stipulated in the general

collective agreement that is binding for employers who are members of association of

employers that concludes such special collective agreement.

Collective agreement with the employer shall not stipulate lesser

rights and less favorable working conditions for employees than the rights and

conditions stipulated in the general or special collective agreement that is binding for

such employer.

Article 11.

Invalidity of provisions of a labor contract shall be established before

the competent court.

There are no statutes of limitations for the right to establish such

invalidity.

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4. Basic rights and duties

1) Rights of employees

Article 12.

An employee shall be entitled to appropriate salary, safety and

protection of life and health at work, heath care, protection of personal integrity and

other rights in case of illness, impairment or loss of working ability and old age,

material compensation during times of temporary unemployment, as well as the right

to other forms of protection pursuant to the law and general document.

A working woman shall be entitled to special care during pregnancy

and childbirth.

An employee shall be entitled to special protection for child care,

pursuant to this Law.

Employees below the age of 18 and employed disable individuals shall

be entitled to special care.

Article 13.

Employees shall be entitled, directly or via their representatives, to

association, participation in bargaining process for collective agreement, amicable

resolution of collective and individual labor disputes, consultation, information and

expression of their position on important issues in the field of labor.

An employee or a representative of employees shall not, due to his/her

activities referred to in para. 1 of this Article be held accountable or put into less

favorable position, when the working conditions are concerned, if he/she complies

with the law and collective agreement.

Article 14.

A labor contract or decision of employer may stipulate a share of an

employee in the profit generated in a business year, pursuant to the law and general

document.

2) Duties of employees

Article 15.

Any employee shall:

1) Conscientiously and responsibly perform the tasks he/she is

entrusted with;

2) Respect organization of work and business of the employer, as well

as conditions and rules relating to compliance with contractual and other duties

resulting from the labor relations;

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3) Notify the employer on important circumstances that affect or may

affect performance of tasks set in the labor contract;

4) Notify the employer on any kind of potential danger for health and

safety or occurrence of material damage.

3) Duties of employers

Article 16.

Any employer shall:

1) Pay the salary to the employee for the work performed, pursuant to

the law, general document and labor contract;

2) Provide working conditions and organize tasks for securing safety,

life and health protection, pursuant to the law and other regulations;

3) Provide to the employee information on working conditions,

organization of work, rules referred to in Article 15, point 2) of this law and rights and

duties resulting from the occupational regulations and regulations relating to

protection of life and health at work;

4) Provide to the employee to perform tasks set in the labor contract;

5) Ask for advice of trade union in cases stipulated under the law; in

case the trade union has not been set up with that employer, of a representative

designated by employees.

4) Duties of employers and employees

Article 17.

Both employer and employee shall comply with rights and duties

stipulated under the law, general document and labor contact.

5. Prohibition of discrimination

Article 18.

Both direct and indirect discriminations are prohibited against persons

seeking employment and employees in respect to their sex, origin, language, race,

color of skin, age, pregnancy, health status or disability, nationality, religion, marital

status, familial commitments, sexual orientation, political or other belief, social

background, financial status, membership in political organizations, trade unions or

any other personal quality.

Article 19.

Direct discrimination, pursuant to this law, shall be any action caused

by some of the grounds referred to in Article 18 of this law that puts a person seeking

employment or employee in a less favorable situation than other persons in the same

or similar situation.

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Indirect discrimination, pursuant to this law, shall be recognized, in

case an apparently neutral provision, criterion or practice puts or would put a person

seeking employment or employee in a less favorable situation than other persons, due

to a certain quality, status, belief or position of such person referred to in Article 18 of

this law .

Article 20.

Discrimination referred to in Article 18 of this law shall be prohibited

in relation to:

1) Employment conditions and selection of candidates for a certain

job;

2) working conditions and all rights resulting from the labor

relationship;

3) education, training and advanced training;

4) promotion at work;

5) termination of the labor contract.

Provisions of the labor contract establishing discrimination pursuant to

some of the grounds referred to in Article 18 of this law shall be null and void.

Article 21.

Harassment and sexual harassment are prohibited.

Harassment, pursuant to this law, is any unwanted behavior resulting

from some of the grounds referred to in Article 18 of this law aimed at or representing

violation of dignity of a person seeking employment or employee, causing fear or

breeding adverse, humiliating or insulting environment.

Sexual harassment, pursuant to this law, is any verbal, non-verbal or

physical behavior aimed at or representing violation of dignity of a person seeking

employment or employee in the area of sexual life, causing fear or breeding adverse,

humiliating or insulting environment

Article 22.

Differentiation, exclusion or prioritization for a certain job shall not be

considered discriminating when the nature of the work is such or the work is done

under such circumstances that qualities relating to some of the grounds referred to in

Article 18 of this law represent the true and decisive requirement for performance of

such job, and that the purpose aimed at is justified.

Provisions of this law, general document and the labor contract relating

to special protection and assistance to certain categories of employees, particularly

those relating to protection of disabled persons, women on maternity leave and

absence from work for childcare, special childcare and provisions relating to special

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rights of parents, adoptive parents, guardians and foster parents – shall not be

interpreted as discrimination.

Article 23.

In cases of discrimination pursuant to provisions of Articles 18 - 21 of

this law person seeking employment or employee may file for compensation of

damages before the competent court, pursuant to the law.

II. ENTRY INTO LABOR RELATIONS

1. Requirements for entry into labor relations

Article 24.

Labor relations can be entered into with a person above the age of 15

who meets other requirements for work at certain tasks, stipulated under the law, or

Organizational Structure and HR Document (hereinafter: OS&HR)

OS&HR shall establish organizational structure, types of jobs, types

and level of education/training and other special requirements for work at these posts.

OS&HR is enacted by the director, i.e. entrepreneur.

OS&HR need not be enacted by entrepreneur with five or less

employees.

Article 25.

Labor relations with persons below the age of 18 can be entered into

upon written approval of the parents, adoptive parents or foster parents, under the

condition that such work does not jeopardize their health, moral or education, and is

not prohibited under the law.

A person below the age of 18 can enter into labor relations only upon

certificate of the competent health care body substantiating that he/she is capable of

performing such tasks that are stipulated in the labor contract and that these tasks are

not harmful for his/her health.

Cost of medical examination for persons referred to in para. 2 of this

Article that are registered by the National Employment Agency shall be born by that

Agency.

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Article 26.

A candidate shall, when the labor relation is entered into, supply the

employer with documents and other evidence of fulfilling the requirements for the job

in question, as set in the OS&HR.

Employer shall not require the candidate to supply information on

familial or marital status and family planning, or other evidence and documents that

are not directly relevant for performance of job the labor relations are entered into for.

Employer shall not condition the employment by a pregnancy test

unless the job is associated with significant risk for health of woman and her child as

substantiated by the competent health care body.

Employer shall not condition the employment by blank statement on

termination of the of the labor contract to be signed by the candidate in advance.

Article 27.

Employer shall, before effectuation of the labor contract, inform the

candidate about the job, working conditions, rights and duties resulting from the labor

relationship and regulations referred to in Article 15, point 2) of this law.

Article 28.

Disabled persons shall enter into labor relations under the conditions

and in the way stipulated in this law, unless a special law stipulates otherwise.

Article 29.

A foreign national or a stateless person may enter into labor relations

under the conditions stipulated in this law and a special law.

2. Labor contract

Article 30.

Labor relations are entered into by a labor contract.

Labor contract is concluded between employee and employer.

Labor contract shall be deemed concluded when it is signed by the

employee and director, or entrepreneur.

Labor contract can also be effectuated by an employee empowered by

the director, or entrepreneur, pursuant to Article 192 of this law.

Article 31.

Labor contract may be concluded for a definite or indefinite term.

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Labor contract where the term/duration of the Contract is not set shall

be considered a labor contract for indefinite term.

Article 32.

Labor contract shall be concluded in writing before the employee

actually assumes work.

Should an employer fail to conclude the labor contract pursuant to

para. 1 of this Article, it shall be deemed that the employee has entered into labor

relation for indefinite term on the day he/she has assumed work.

Article 33.

Any labor contract shall contain:

1) name and seat of employer;

2) first name and family name of the employee, place of residence, or

address;

3) type and level of education/training;

4) type and description of work he/she will be doing;

5) place of work;

6) mode of employment (for indefinite or definite term)

7) duration of labor contract for definite term;

8) day when the employment commences;

9) working hours (full time, part time or reduced hours);

10) pecuniary amount of basic salary and parameters for establishing

the work performance, compensation of salary, increased salary and other forms of

emoluments;

11) terms for payment of the salary and other emoluments the

employee is entitled to;

12) referral to collective agreement, or labor rulebook currently in

force;

13) duration of daily and weekly working time.

A labor contract may also stipulate other rights and duties.

Rights and duties not covered by the labor contract shall be governed

by pertinent provisions of the law and general document.

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3. Assuming work

Article 34.

Employee shall be entitled to rights and duties resulting from the labor

relationship as of the day he/she assumes work.

Should the employee fail to assume work on the day stipulated in the

labor contract, the labor relation shall be deemed not entered into, unless the person

was prevented from assuming work by justified reasons or unless the employer and

employee have agreed otherwise.

Article 35.

Employer shall furnish a photocopy of the mandatory social insurance

policy to an employee 15 days after he/she has assumed work at the latest.

4. Probation work

Article 36.

Labor contract may stipulate probation work.

The trial work may last for 6 months at most.

During the probation work, the employer and employee may terminate

the labor contract with no less than 5 day notice.

Should an employee fail to substantiate required work and professional

competence during the probation period, the labor relations shall be deemed

terminated with the expiry of the fixed term labor contract

5. Labor relations for definite term

Article 37.

Labor relations shall be entered into for a period that is set in advance

in the following cases: seasonal jobs, project-based work, increased volume of work

that will last for a definite term, etc. during the time of such needs, where such labor

relations for a definite term shall not be prolonged beyond 12 months with or without

interruptions.

The interruption referred to in para. 1 of this Article shall not cover

discontinuation of work for a period less than 30 days.

Labor relations for a definite term for substitution of a temporarily

absent employee shall be entered into by the return of the temporarily absent

employee.

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Labor relation entered into for a definite term shall be transformed into

labor relation for an indefinite term, should the employee continue working 5 days

after expiry of the term for which the labor relation has been entered into.

6. Labor relations for increased risk jobs

Article 38.

Labor contract can be concluded for jobs for which special working

conditions are required only if the employee meets the requirements for work at such

jobs.

An employee may work at jobs referred to in para. 1 of this Article

only upon health certificate for competence for work at such jobs has been issued by

the competent health authority.

7. Labor relations for part-time work

Article 39.

Labor relations may be effectuated for a part-time work, for indefinite

or definite periods.

Article 40.

An employee hired for part time work shall enjoy all rights resulting

from the labor relationship proportionally to the time spent at work, except in cases

when the law, general document and labors contract cover some of the rights

otherwise.

Article 41.

An employee working part-time for one employer may, for the

remaining hours to full-time work, enter into labor relations with another employer to

reach the full-time quota.

8. Labor relations for work done outside the employer’s

premises

Article 42.

Labor relations may be entered into for performing work outside the

employer’s premises, i.e. at home.

In addition to provisions referred to in Article 33 of this law, labor

contract that is concluded pursuant to para. 1 of this Article shall also contain:

1) duration of working time following the work norms;

2) type of jobs and way of organization of work;

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3) working conditions and way of supervising employee’s operations;

4) amount of salary and terms of payment;

5) use of employee’s means of work and compensation for the use

thereof;

6) compensation of other work-related cost and ways to establish

them;

7) other rights and duties.

Article 43.

Work outside the employer’s premises, i.e. at home, shall be performed

by the employee alone, or with members of his/her family, on behalf and for the

account of the employer.

Members of immediate family, pursuant to provisions of para. 1 of this

shall comprise a spouse, children, parents, siblings of the employee or his/her spouse.

Article 44.

Employer may stipulate contractual obligations that the work be done

outside his/her premises, but the alternative premises have to be safe, not harmful for

health of employees or other persons and do not pollute the environment.

9. Labor relations with household help

Article 45.

Labor relations may be entered into for hiring of household help.

The labor contract in terms of para. 1 of this Article may stipulate

payment of a part of salary in kind.

Payment of a part of the salary in kind shall comprise providing of the

board and lodging.

The value of the salary provided in kind shall be expressed in money.

The lowest percentage of salary that has to be calculated and paid in

money shall be set in the labor contract and cannot be below 50% of the total salary of

such employee.

If the salary has been agreed to be partly in money and partly in kind,

during absence from work with compensation, the employer shall pay the monetary

part as the compensation.

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Article 46.

The Contract referred to in Articles 42 and 45 of this law shall be

registered with the local self-government body

The way and procedure for registration of the labor contract for work

to be performed outside the premises of the employer and work of the household help

shall be prescribed by the competent minister (hereinafter: minister).

10. Trainees

Article 47.

Employer may enter into labor relations with a person that is entering

into labor relations for the first time. Such person may be treated as a trainee for the

occupation for which such person has acquired a certain type and level of

education/training, if this has been set as a requirement for work at some jobs in the

law or the OS&HR.

Provision in the para. 1 of this Article shall also apply to persons who

worked less than required for traineeship in the educational level that is required for

the job in question

The traineeship shall last no longer than one year, unless the law

stipulates otherwise.

During the traineeship, any trainee shall be entitled to salary and all

other rights resulting from the labor relationship, pursuant to the law, general

document and labor contract.

III. CONTRACT ON RIGHTS AND OBLIGATIONS OF

DIRECTORS

Article 48.

Director may enter into labor relations for a definite or indefinite term.

Labor relations are based on the labor contract.

Labor relations for a definite period may last until expiry of the term to

which the director has been appointed, or his/her dismissal.

Mutual rights, duties and responsibilities of director who has not

entered into labor relations and his/her employer shall be regulated by a contract.

A person performing the task of a director referred to in para. 4 of this

Article is entitled to compensation for work which can be treated as salary as well as

to other rights, duties and responsibilities pursuant to such Contract.

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The contract referred to in paras 2 and 4 of this Article shall be

concluded between the director and the Managing Board on behalf of the employer; in

case the employer has no managing board, a body shall be officially designated by the

employer to do so.

IV. EDUCATION, VOCATIONAL TRAINING I

ADVANCED TRAINING

Article 49.

Employer shall provide conditions for education, vocational training

and advanced training for his/her employees when the work process requires so, or

when new methods and organization are to be introduced.

Any employee shall train, educate and improve him/herself in the

working process.

The cost of such education, vocational training and advanced training

shall be provided from the funds of the employer and other sources, pursuant to the

law and general document.

In case an employee drops out of the education, vocational training or

advanced training, he/she shall compensate the cost of such training to the employee,

except in case where reasons for such dropping out were justified.

V. WORKING HOURS

1. Full time work

Article 50.

Full time work shall be defined as 40 hours per week, unless this law

stipulates otherwise.

The general document may stipulate shorter working hours than 40

hours per week, but never shorter than 36 hours per week.

An employee referred to in para. 2 of this Article shall be entitled to all

rights resulting from the labor relationship as if he/she were working full time

2. Part-time work

Article 51.

Part-time work, pursuant to this law, shall be defined as work shorter

than full time.

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3. Reduced working hours

Article 52.

Employees who work at particularly difficult, strenuous and health-risk

jobs, as recognized under the law or general document, where in spite of

implementation of all appropriate safety measures and occupational protection of life

and health, means and equipment for personal protection, there is still increased

adverse effect to health of such employee and his/her working ability, the working

hours shall be reduced proportionally to the noxious effect of the occupational

conditions to health and working ability of such employee, up to the maximum of 10

hours per week (high-risk jobs).

The reduced hours shall be set upon expert analysis, pursuant to the

law.

Employees working these reduced hours are entitled to all rights

resulting from the labor relationship as if they were working full time.

4. Overtime

Article 53.

Upon request of employer, an employee shall work longer than his/her

full time in case of force majeure, unexpected increase of the volume of work and in

other instances when it is necessary to finish unplanned work by a set deadline

(hereinafter: overtime).

Overtime cannot last for more than 8 hours per week, or four hours a

day per employee.

Article 54.

On call duty in health institutions, like overtime, shall be covered by a

special piece of legislation.

5. Schedule of working hours

Article 55.

A working week shall consist of five workdays.

Schedule of the working hours within the workweek shall be set by the

employer.

Generally, a workday shall last for eight hours.

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Article 56.

Employer with whom work is performed in shifts, during the nigh or

when the nature of work or organization of work require so – may organize the

workweek and distribution of working hours in a different manner.

Employer shall notify the employee about the work schedule and

changes of the work schedule at last seven days before such change is to be

effectuated.

6. Re-scheduling of working hours

Article 57.

Employer may re-schedule working hours when the nature of business,

organization of work, better use of occupational means, more effective use of working

hours and performance of certain jobs by set deadline require so.

Re-scheduling of working hours shall be accomplished so that the total

working hours of an employee for a six-month period in a calendar year do not

exceed, on the average, the full time working hours.

In case of such re-scheduling, working hours shall not exceed 60 hours

per week.

Article 58.

Re-scheduling of working hours shall not be treated as overtime.

Article 59.

To an employee working pursuant to Article 57 of this law, use of

daily and weekly recesses may be arranged in a different way and at different times,

In cases referred to in para. 1 of this Article the employee is entitled to

a recess of 10 continuous, uninterrupted hours between two workdays, at least.

Article 60.

Re-scheduling of working hours shall not be feasible for jobs for which

reduced hours apply, pursuant to Article 52 of this law.

Article 61.

An employee whose labor relation has been terminated before expiry

of the time for which the re-scheduling is introduced shall be entitled to have his/her

overtime calculated as regular full time work and taken into account for retirement

insurance or paid for as overtime.

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7. Night work and work in shifts

Article 62.

Work performed in the period from 22.00 until 6.00 of the following morning

shall be t night work.

In case an employee working nights no less than three hours per day or one

third of his/her full time hours during one week, the employer shall provide conditions

for such employee to work during the daytime if the competent health authority

advises that such night work may result in deterioration of health of such employee.

Before introducing night work, the employer shall ask advice of trade union

on the security measures and protection of life and health of employees that will be

working nights.

Article 63.

If work is organized in shifts, an employer shall provide change of

shifts, so that no employee works the nightshift continuously for more than one

workweek.

An employee may work longer than a single week nightshift, but only

upon his/her written agreement to do so.

VI. RECESSES AND LEAVES

1. Daily recess

Article 64.

Any employee working full time is entitled to a daily recess of no less

than 30 minutes.

Any employee working more than four and less than six hours a day is

entitled to a daily recess of no less than 15 minutes.

Any employee working more than full time/full working hours,

meaning no less than 10 hours a day is entitled to a daily recess of no less than 45

minutes.

The daily recess cannot be used at the beginning or the end of a

workday.

The recess time, referred to in paras 1-3 of this Article shall be treated

as regular working time.

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Article 65.

The daily recess shall be organized to prevent discontinuation of

operation, if the nature of work does not allow for discontinuation and if it implies

customer service.

Employer shall decide on the schedule of daily recess during the day.

2. Recess between working days

Article 66.

An employee shall be entitled to a recess between two consecutive

workdays of no less than 12 consecutive hours, unless this law stipulates otherwise.

3. Weekly recess

Article 67.

An employee shall be entitled to a weekly recess of no less than 24

consecutive hours.

Generally, the weekly recess shall be used on Sundays.

Employer may designate another day for the weekly recess if the

nature of work and organization of work require so.

Should it be necessary that an employee works during his/her weekly

recess, the employer shall provide for him a weekly recess no less than 24 consecutive

hours during the following week.

4. Annual holiday

1) Earning the right to annual leave

Article 68.

Any employee is entitled to annual holiday pursuant to this Law.

An employer entering into labor relations for the first time or has

discontinuation of labor relations exceeding 30 business days, shall earn the right to

annual holiday after six months of uninterrupted work.

Uninterrupted work time shall include the time of temporary inability

to work pursuant to regulations on health insurance and absence from work with

compensation of salary.

No employee may waive his/her right to annual leave, nor may this

right be denied to him.

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2) Duration of annual leave

Article 69.

In each calendar year any employee is entitled to an annual leave the

duration of which shall be set in the general document and labor contract, but no less

than 20 days.

Duration of any annual leave shall be determined as follows: starting

from the 20 day statutory minimum, the duration is increased by parameters of work

performance, work conditions, work experience, educational level and other criteria

set in the general document and labor contract

Article 70.

When duration of annual leave is calculated, a workweek is defined as

5 working days.

Holidays that are not workdays pursuant to statutory provisions,

absence from work with compensation of salary and temporary inability to work

pursuant to regulations on health insurance shall not be included in the days of annual

holiday.

If an employee is temporarily unable for work during his/her annual

holiday – pursuant to health insurance regulations – he/she shall be entitled to

continuation of his/her annual holiday upon expiry of such inability.

3) Annual leave in case of termination of employment (labor elation)

Article 71.

Employer shall, in case of termination of employment, issue a

certificate substantiating the number of days of the annual leave that he/she employee

has used.

4) Proportional part of annual leave

Article 72.

Any employee shall be entitled to one twelfth of his/her annual leave

for each month of work in that calendar year:

1) If in the calendar year in which he/she has entered the labor

relations for the first rime he/she has not six months of consecutive work;

2) If in the calendar year he/she failed to earn the right to the annual

leave because of termination of employment, pursuant to Article 68, para. 2 of this

law.

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5) Using the annual leave in parts

Article 73.

An annual leave may be used in two parts.

If an employee use his/her annual leave in parts, the first part shall last

no less than three working weeks in the course of a calendar year, and the second part

not later that from June 30th of the following year.

An employee who has met the requirements for annual holiday

pursuant to Article 68 para. 2 of this law, but has not used whole or a part of the

annual holiday in the calendar year because of absence from work for maternity leave,

absence for childcare or special childcare – shall be entitled to using this holiday by

June 30th of the following year.

6) Annual leave of teaching and non-teaching staff

Article 74.

Duration of annual leave of the teaching and non-teaching staff in

educational institutions shall be determined pursuant to the law.

7) Annual leave schedule

Article 75.

Depending on the work needs, the employer shall decide on the time

when employees may use their annual holiday, previously consulting them.

Decision on the annual leave shall be delivered to an employee 15 days

before the holiday leave is to start, at the latest.

Should the employer fail to deliver such decision to any employee, it

shall be deemed that he/she has denied the annual leave to such employee.

Employer may alter the time set for the annual holiday if the needs of

the business require so, five days before the holiday leave is to start, at the latest.

8) Compensation of damages

Article 76.

Should any employee not use the days for his/her annual holiday due to

the fault of the employer, he/she shall be entitled to the compensation of damages in

the amount of the average salary in the last three months set in the general document

and labor contract.

- 21 -

5. Absence with compensation of salary (paid leave)

Article 77.

Any employee shall be entitled to absence from work with

compensation of salary (paid leave) in the total duration of seven business days in the

course of one calendar year in case of marriage, wife giving birth to a child, serious

illness of a member of immediate family and other instances set in the general

document and labor contract.

Duration of paid leave referred to in para. 1 of this Article shall be

set in the general document and labor contract.

In addition to the right to leave referred to in para. 1 of this Article

any employee shall also be entitled to paid leave in the following instances:

1) Five working days in case of death of a member of immediate family;

2) Two days for any instance of voluntary blood donation, including the

donation day itself.

Members of the immediate family, referred to in paras 1

and 3 of this Article shall include a spouse, children, siblings, parents,

adoptive parent, adopted child, guardian and other persons that share the same

household with the employee.

6. Unpaid leave

Article 78.

Employer may also grant a leave without compensation of salary to the

employee (unpaid leave).

During the time of unpaid leave, all rights and duties resulting from the

labor relationship shall be dormant, unless the law, general document and labor

contract do not stipulate otherwise for some of these rights and duties.

7. Dormancy of labor relations

Article 79.

Dormancy of rights and duties resulting from labor and based on labor,

except for those rights and duties for which the law, general document and labor

contract stipulate otherwise, shall be in effect if absence from work is caused by one

of the following:

1) Going to the army, for mandatory military service, or finishing it;

- 22 -

2) Referral to work abroad by the employer or within international

technical or cultural/educational collaboration, into diplomatic, consular and other

representative offices;

3) Temporary referral for work with another employer pursuant to

provisions of Article 174 of this law;

4) Election, or appointment to an office in a governmental body, trade

union or political organization or other public office, the performance of which

requires that he/she temporarily discontinues working for the current employer;

5) Serving the prison sentence, or security measure, educational or

protective measure for up to six months.

Any employee whose rights and duties referred to in para. 1 of this

Article are in the state of dormancy has the right, within 15 days after return from the

military service, of after finishing it, after termination of employment abroad or with

another employer, termination of the office, return from serving the prison sentence,

or security measure, educational or protective measure to return to the former

employer.

6) The rights referred to in para. 1 and 2 of this Article shall also

apply to the spouse of the employee who was referred to work abroad within

international technical or cultural/educational collaboration, into diplomatic, consular

and other representative offices.

.

VII. PROTECTION OF EMPLOYEES

1. General protection

Article 80.

Employee shall be entitled to safety and protection of life and health at

work, pursuant to the law.

Employee shall also comply with all regulations on security and

protection of life and health at work in order to avoid jeopardizing safety and health

of himself as well as safety and health of other employees and other people.

Employee shall notify the employer on any type of potential danger

that may affect safety and health at work.

Article 81.

Employee shall not be allowed to work overtime if the report of the

competent medical authority suggests such work might deteriorate his/her health.

Employee with health problems, established by the competent medical

authority pursuant to the law, shall not be allowed to pursue work that could result in

deterioration of his/her health or consequences dangerous for his/her environment.

- 23 -

Article 82.

Only persons who, in addition to special requirements stipulated in the

OS&HR meet the requirements relating to health, psychophysical abilities and age,

may be employed for jobs associated with increased risk of injury, occupational and

other diseases, pursuant to the law.

2. Protection of personal data

Article 83.

Employee shall be entitled to insight into documents containing his/her

personal data kept with the employer and shall also be entitled to the right to ask for

deletion of the data that are not directly relevant for the work he/she performs, as

wellas for correction of incorrect data.

Personal data relating to an employee shall not be accessible to third

party, except in cases and under conditions stipulated under the law, or if this is

necessary for substantiating rights and duties resulting from the labor relationship or

in relation with the labor.

Only person empowered by the director shall be authorized to collect

personal data of employees, to process and use them and submit to third parties.

3. Protection of adolescents

Article 84.

Employees below the age of 18 shall not work at the following jobs:

1) Involving strenuous physical work, work underground, under water

and at excessive heights;

2) Involving noxious radiation or substances that are toxic,

carcinogenic or causing inherited diseases, as well as risk for health related to cold,

heat, noise or vibrations;

3) Those that may, pursuant to advice of the competent health

authority, increase health and life risks and be harmful in the light of psychophysical

capacities of adolescents.

Article 85.

Employees between the ages of 18 and 21 may work at jobs referred to

in Article 84 points 1) & 2) of this law only upon report of the competent medical

authority substantiating that such work shall not be deteriorating for their health.

Article 86.

The cost of examinations referred to in Article 84, point 3) and Article

85 shall be born by the employer.

- 24 -

Article 87.

Full time working hours for persons below the age of 18 shall not

exceed 35 hours per week or eight hours per day.

Article 88.

Overtime and re-distribution of working hours shall not be allowed for

employees below the age of 18.

Employee below the age of 18 shall not work at night, except:

1) In cases of work in the area of culture, sports, art and advertising

2) When it is necessary to continue work discontinued due to the

action of force majeure, under the condition that such work lasts for a definite period

of time, that has to be urgently finished and the employer has no other older

employees available.

Employer shall, in case referred to in para. 2 of this Article provide

supervision of work of employees below the age of 18 by a person of full age.

4. Maternity care

Article 89.

An employed woman during pregnancy shall not work at jobs that,

pursuant to advice of the competent health authority, may have harmful effect on her

health and health of her child, and particularly not at jobs requiring lifting of weights

or associated with exposure to extreme temperatures and vibrations.

Article 90.

An employed woman shall not work overtime and during the night

during the first 32 weeks of her pregnancy should such work be harmful for her health

and health of her child, based on the advice of competent medical authority.

An employed woman shall not work overtime and during the night

during the last eight weeks of her pregnancy

Article 91.

One of parents with a child of up to three years of age may work

overtime or at night only with his/her own written consent.

A single parent with a child of up to seven years of age or a severely

disabled child may work overtime or at night only with his/her own written consent.

- 25 -

Article 92.

Employer may re-shedule working hours to an employed woman or

employed parent with a child below 3 years of age or severely disabled child only

with written consent of such employee.

Article 93.

Rights referred to in Articles 91 & 92 of this law are also shared by

adoptive parents, foster parents or guardians of children.

5. Maternity leave and leave for childcare

Article 94.

An employed woman is entitled to leave for pregnancy and childbirth

(hereinafter: maternity leave), as well as leave for child care, the total duration of 365

days.

An employed woman may start her maternity leave pursuant to

advice of a competent medical authority 45 days before the delivery term at the

earliest and 28 days at the latest.

Maternity leave shall last until three months after the childbirth.

An employed woman, upon expiry of maternity leave, is entitled to leave for

childcare to expiry of 365 days after the outset of the maternity leave referred to in

para. 2 of this Article.

Father of the child may claim the right referred to in para. 3 of this Article in

case the mother deserts the child, dies or is prevented from caring for the child due to

other justified reasons (serving prison sentence, being severely ill, etc.). The father is

entitled to that right even in case the mother is not employed.

Father of the child may claim the right referred to in para. 4 of this Article.

During the maternity leave and absence from work because of childcare, the

employed woman, or father to the child are entitled to compensation of salary,

pursuant to the law.

Article 94a

An employed woman is entitled to maternity leave and leave for childcare for

third and any subsequent child in the duration of two years.

The right to maternity leave and absence from work for childcare in the total

duration of two years shall also be granted to any employed woman who gives birth to

three or more children from her first pregnancy, as well as to any employed woman

who give birth to one, two or three children, and gives birth to two or more children in

the subsequent delivery.

- 26 -

An employed woman referred to in paras 1 and 2 of this Article, upon expiry

of maternity leave, is entitled to leave for childcare till expiry of two years from the

day her maternity leave referred to in Article 94, para. 2 of this law started maternity

leave

Father to the child referred to in paras 1 and 2 may claim the right to

maternity/paternity leave in cases and under conditions set in Article 94, para. 5 of

this law, and the right to leave for childcare in the duration stipulated in para. 3 of this

Article.

Article 95.

The right to maternity leave in the duration set in Article 94, para. 3 of

this law shall also be granted to any employed woman should her child be stillborn or

dies before expiry of the maternity leave.

6. Leave for special care of child or other person

Article 96.

One of parents to a child in need of special care because of severe

psycho-physical disability, except in cases covered by health insurance regulations, is

entitled to, after the expiry of maternity leave and leave for childcare prolong absence

from work or work half-time up to the age of five of the child, at most.

The right referred to in para. 1 of this Article shall be granted upon

advice of the competent body for evaluation of the level of psycho-physical disability

of the child, pursuant to the law.

During absence from work, referred to in para. 1 of this Article, the

employee shall be entitled to compensation of salary, pursuant to the law.

During half-time work, referred to in para. 1 of this Article, the

employee shall be entitled to salary pursuant to the law, general document and labor

contract, while for the other half up to full time work – compensation of salary

pursuant to the law.

Requirements, procedure and mode of realization of the right to

absence from work for special care of child shall be regulated in greater detail by the

minister in charge of child welfare.

Article 97.

A foster parent or guardian of a child below the age of five shall be

granted the right to absence from work in the duration of eight successive months,

from the day the child is placed into the foster or guardian family, for care of that

child, before the child turns five.

- 27 -

Should the placement into foster or guardian family took place before

the child turnes three months, the foster parent or guardian of that child shall be

entitled to leave from work until the child turns eleven months, for care of that child.

The right referred to in paras 1 and 2 of this Article shall also be

granted to a person to whom, pursuant to adoption regulations, the child has been sent

for adjustment before the official adoption, and when the adoption becomes official,

one of the adoptive parents, as well.

During absence from work for childcare, the person using the right

referred to in paras 1-3 of this Article shall be entitled to compensation of salary

pursuant to the law.

Article 98.

Parent or guardian, or a caregiver of a person disabled by cerebral

palsy, any kind of plegia or muscular dystrophy and other severe diseases, may, upon

advice of a competent medical authority, and upon own request to work shorter hours,

but not shorter than half-time.

Any employee working shorter hours referred to in para. 1 of this

Article shall be entitled to adequate compensation, proportional to the time spent at

work, pursuant to the law, general document and labor contract.

Article 99.

Rights referred to in Article 96 of this law shall also be granted to one

of adoptive parents should the child, in the light of his/her psycho-physical disability

need special care.

Article 100.

One of the parents, adoptive parents, foster parents or guardians shall

be entitled to absence from work until the child turns three.

During absence from work referred to in para. 1 of this Article rights

and duties associated with labor relation shall be dormant, unless some of the rights

have been regulated otherwise by the law, general document and labor contract.

7. Protection of disabled individuals

Article 101.

The employer shall provide a post to match the remaining working

ability of a disabled worker.

The employer shall provide transfer to another, appropriate post for

any employee for whom, pursuant to regulations on old age and disability insurance,

risk of disability in relation to certain post has been recognized.

- 28 -

Article 102.

Employer may terminate the labor contract to any employee who

refuses to accept the post pursuant to Article 101 of this law.

8. Notification of temporary inability to work

Article 103.

Any employee shall, not later than three days after the conditions for

temporary inability to work have occurred, pursuant to health insurance regulations,

furnish the appropriate medical certificate stating the expected duration of the

temporary inability to work.

In case of more severe illness, instead of the employee, the certificate

shall be furnished to the employer by the members of his/her immediate family or

members of his/her household.

Should the employee be living alone, the certificate shall be furnished

three days after discontinuation of the reasons due to which he/she was unable to

furnish the medical certificate.

Physician is obliged to issue the medical certificate referred to in para.

1 of this Article.

Should employer suspect justifiability of the reasons for absence from

work pursuant to para. 1 of this Article, he/she may file to the competent medical

authority to verify health competence of the employee, pursuant to the law.

The mode of issuance and content of such medical certificate on

temporary inability to work pursuant to health insurance regulations shall be regulated

by the minister and minister in charge of health affairs.

VIII. SALARY, COMPENSATION OF SALARY AND

OTHER EMOLUMENTS

1. Salary

Article 104.

Any employee shall be entitled to appropriate salary that is set

pursuant to the law, general document and labor contract.

All employees shall be granted the equal salary for the same work or

the work of same value performed for the employer.

Work of the same value is defined as the work for which the same

educational level, same working ability, responsibility as well as physical and

intellectual works are needed.

- 29 -

Decision of the employer or agreement with employer that fail to

comply with para. 2 of this Article shall be null and void.

In case of violation of the right referred to in para. 2 of this Article the

employee shall be entitled to compensation of damages.

Article 105.

Salary referred to in Article 104, para. 1 of this law shall be composed

of the salary for the work done and time spent at work, salary based on contribution of

the employee to the business achievement of the employer (prizes, bonuses, etc.) and

other emoluments resulting from the labor relations, pursuant to general document

and labor contract.

The salary referred to in para. 1 of this Article shall comprise tax and

contributions paid from the salary.

The salary referred to in para. 1 of this Article shall comprise all

emolument resulting from the labor relationship, except for compensation of expense

of the employee relating to work referred to in Article 118, points 1) - 4) and other

emoluments referred to in Article 119 and Article 120, point 1) of this law.

2. Salary for work performed and time spent at work

Article 106.

Salary for work performed and time spent at work shall comprise basic

salary, part of the salary that is performance related and increased salary.

Article 107.

The basic salary shall be set according to requirements stipulated in the

OS&HR needed for jobs the employee entered into the labor relations for and time

spent at work.

Work performance shall be evaluated according to the quality and

volume of work, as well as attitude of employee to his/her work duties.

The general document shall define parameters for calculation and

payment of basic salary and part relating to performance referred to in paras 1 and 2

of this Article.

The labor contract may set a higher salary than the salary derived from

the parameters stipulated in the general document.

Article 108.

Any employee shall also be entitled to increased salary in the amount set in the

general document and labor contract, as follows:

- 30 -

1) for work at holidays: min. 110% of the basic salary;

2) for work during the night and in shifts, if such work has not been

incorporated into the value of the basic salary: min. 26% of the basic salary;

3) for overtime: min. 26% of the basic salary;

4) for years of service, i.e. for each full year of service: 0.4% of the basic

salary.

If more than one requirements stipulated in para. 1 of this Article, have been

met simultaneously, the percentage of the increased salary shall not be lower than the

sum of these percentages, by each of the criteria.

General document and labor contract may also stipulate other instances in

which an employee is entitled to increased salary.

All calculations of the increased salary shall be based on the basic salary set

pursuant to the law, general document and labor contract.

Article 109.

Trainees shall be entitled to no less than 80% of the basic salary for job

the labor contract has been concluded for, as well as compensation of expenses and

other emoluments, pursuant to general document and labor contract.

Article 110.

The salary shall be paid within terms set in the general document and

labor contract, at least once a month, and not later than the end of the current months

for the previous month.

The salary shall be paid in money only, unless the law stipulates

otherwise.

3. Minimum wage

Article 111.

Any employee shall be entitled to the minimum wage for standard

performance and full working hours, i.e. time equaled with full time.

Should the employer and employee agree on the minimum wage referred to in

para. 1 of this Article, the employer shall pay the wage in the amount set by the

decision referred to in Article 113 of this law for the month in which the payment is

effectuated.

- 31 -

Article 112.

The minimum wage shall be set by a decision of Social-Economic

Council (hereinafter: Social-Economic Council).

Should the Social-Economic Council fail to pass a decision 10 days

after the outset of the bargaining process, the decision of the amount of the minimum

wage shall be set by the Government of the Republic of Serbia (hereinafter:

Government).

The following criteria shall be taken into account when the amount of

the minimum wage is set: cost of living, trends of average salary in the Republic of

Serbia, basic and social needs of employees and their families, unemployment rate,

employment trends at the labor market and general level of economic development of

the Republic of Serbia.

The minimum wage shall be set by the working hour, for a period of

no less than six months, and cannot be lower than the minimum wage set by the

decision referred to in paras 1 and 2 of this Article for the period preceding the period

for which the minimum wage is set.

Article 113.

Decision of the amount of the minimum wage referred to in Article

112 of this law shall be published in the “Offical Gazette of the Republic of Serbia”.

4. Compensation of salary

Article 114.

Any employee shall be entitled to compensation of salary in the

amount of the average salary in the preceding three months, pursuant to general

document and labor contract, for the time he/she has been absent from work during

public holidays, annual holiday, paid leave, military drill and response to the

summons of a public body.

Any employer shall be entitled to reimbursement of the paid

compensation of salary referred to in para. 1 of this Article in case the employee was

absent from work for a military drill or response to the summons of a public body by

that body to which the employee responded, unless the law stipulates otherwise.

Article 115.

Any employee shall also be entitled to compensation of salary during

absence from work due to temporary inability to work for up to 30 days, as follows:

1) minimum 65% of the average salary in the three months preceding

the month in which the temporary inability to work occurred, where it cannot be

lower than the minimum salary set pursuant to this Law, should this inability to work

- 32 -

be caused by illness or injury that was not inflicted at work, unless the law stipulates

otherwise;

2) in the amount of 100% of the average salary in the three months

preceding the month in which the temporary inability to work occurred, where it

cannot be lower than the minimum salary set pursuant to this Law, should this

inability to work be caused by an occupational illness or injury inflicted at work,

unless the law stipulates otherwise;

Article 116.

Any employee shall be entitled to the compensation of salary in the

amount of 60% of the average salary in the three preceding months, where it cannot

be lower than the minimum salary set pursuant to this Law during discontinuation of

work that occurred without any fault of the employee, for 45 days in a calendar year

at most.

Article 117.

Any employee shall be entitled to the compensation of salary in the

amount set in the general document and labor contract during discontinuation of work

that resulted from the order of the competent state authority or competent body of the

employer because of lack of proper security measures to protect life and health at

work that are prerequisites for further work without risk for life and health of

employees and other persons, and in other instances, pursuant to the law.

General document and labor contract may also stipulate other cases in

which employees shall be entitled to compensation of salary.

5. Reimbursement of expense

Article 118.

Any employee shall be entitled to reimbursement of expense pursuant

to general document and labor contract, as follows:

1) for commuting to and from work, in the amount of the cost of

public transport fare;

2) for time spent at business trip in the country;

3) for time spent at business trip abroad, in the minimum amount set

by special regulations;

4) accommodation and meals for work and stay in the field, unless the

employer has provided for free accommodation and meals;

5) meals at work;

6) subsidy for annual holiday.

- 33 -

6. Other emoluments

Article 119.

Employer shall also pay, pursuant to the general document:

1) retirement gratuity for those that retire in the amount of three

average salaries, as the minimum;

2) compensation of funeral expense in case of death of a member of

immediate family to employees, or to members of immediate family in case of death

of an employee;

3) compensation to any employee in case of occupational disease or

injury at work.

Employer may provide Christmas and New Year presents to

employees’ children below the age of 15 to the value of untaxable amount stipulated

under regulation covering income tax.

The average salary referred to in para. 1, point 1) of this Article shall

be the average salary in the Republic of Serbia pursuant to the latest data published by

the national statistics body.

Spouse and children of employee shall be considered members of the

immediate family in terms of para. 1, point 2) of this Article.

Employer may also pay the premiums for voluntary retirement

insurance, collective insurance against accidents and collective insurance against

serious illness and surgery, in order to provide additional quality social protection.

Article 120.

General document or labor contract may also establish the right to:

1) jubilee prizes and solidarity aid;

2) compensation for meals at work;

3) subsidy for annual holiday, and

4) other emoluments.

7. Calculation of salary and compensation of salary

Article 121.

Employer shall furnish the calculation slip with each payment of salary

and calculation of salary.

- 34 -

Employer shall also furnish the calculation statement for a month in

which the payment of salary or compensation of salary has not been effectuated.

The calculation statement referred to in para. 2 of this Article shall also

be accompanied with information that the payment of salary or compensation of

salary has not been effectuated stating the reason for that.

The employer shall furnish the calculation of salary or compensation of

salary statement, referred to in para. 2 of this Article by the end of the month for the

previous month.

8. Records of salary or compensation of salary

Article 122.

Employer shall keep the monthly records on salary and compensation

of salary.

The records shall contain all information on salary, salary after

withholding tax and contribution from salary and deductions from salary for each

employee.

The records shall not contain gaps and deleted spaces and subsequently

entered data.

The records shall be endorsed by the director, or entrepreneur or a

person empowered by them.

The records shall be signed by the employee to whom the payment of

salary or compensation of salary has been made.

9. Protection of salary or compensation of salary

Article 123.

Employer may collect any monetary claim from an employee by

withdrawal of his/her salary only upon valid decision of the court in cases stipulated

under the law or agreement of the employee.

Upon valid decision of the court employer may withdraw up to one

third of the salary or compensation of salary maximum, unless the law stipulates

otherwise.

- 35 -

IX. DUES TO EMPLOYEES IN CASE OF BANKRUPTCY

PROCEDURE

Article 124.

Right to payment of outstanding dues by employer against whom

bankruptcy procedure has been raised (hereinafter: dues), pursuant to this Law, shall

be granted to an employee who has been employed (in labor relations) on the day the

bankruptcy procedure has been raised and person in labor relations in the period for

which the rights stipulated under this Law are claimed.

The rights referred to in para. 1 of this Article shall be claimed

pursuant to this Law, should they not been settled pursuant to the law covering

bankruptcy procedure.

Should the rights referred to in para. 1 of this law be only partially

settled pursuant to the law covering bankruptcy procedure, the employee shall be

entitled to the difference up to the level of the amount set in this law.

Article 125.

Any employee shall be entitled to the payment of:

1) salary and compensation of salary during temporary inability to

work pursuant to health insurance regulations that was payable by the employer

pursuant to this Law, in the last nine months before the bankruptcy procedure was

raised;

2) compensation of damages for unused annual holiday by the fault of

the employer, for the calendar year in which the bankruptcy procedure was raised,

should he/she have been entitled to that right before initiation of the bankruptcy

procedure;

3) retirement gratuity for retirement in the calendar year in which the

bankruptcy procedure was raised should he/she have met the requirements for

retirement before initiation of the bankruptcy procedure;

4) compensation of damages pursuant to court ruling passed in the

calendar year in which the bankruptcy procedure was raised, for injury at work or

occupational disease, should this ruling have become valid before initiation of the

bankruptcy procedure.

Any employee shall also be entitled to payment of contributions for

mandatory social insurance for payments referred to in para. 1, point 1) of this Article,

pursuant to regulations on mandatory social insurance.

Article 126.

Salary and compensation of salary Article 125, para. 1, point 1) of this

law shall be paid in the amount of the minimum salary.

- 36 -

Compensation of damages for unused annual holiday referred to in

Article 125, para. 1, point 2) of this law shall be paid in the amount of the minimum

wage.

Retirement gratuity referred to in Article 125, para. 1, point 3) of this

law shall be paid in the amount of three average salaries in the business sector of the

Republic.

Compensation of damages referred to in Article 125, para. 1, point 4)

of this law shall be paid in the amount set in the court ruling.

Establishing the Solidarity Fund

Article 127.

The Solidarity Fund shall be established for securing the rights referred

to in Article 125 of this law (hereinafter: Fund).

The Fund shall be set up to provide for and pay for claims pursuant to

this Law.

The Fund shall operate in the capacity of a legal entity and as a public

service.

The Fund shall be seated in Belgrade.

Article 128.

The means for establishment and launch of the Fund shall be provided

from the budget of the Republic of Serbia.

The Fund shall start operating on the day it has been entered into the

Register, pursuant to the law.

Fund bodies

Article 129.

The Fund bodies shall be:

1) Managing Board;

2) Supervisory Board;

3) Director.

Article 130.

The Managing Board of the Fund shall be composed of six members:

two representatives of the Government, two representatives of representative trade

unions and two representatives of representatives associations of employers, set up for

the territory of the Republic of Serbia.

- 37 -

Each member of the Fund Managing Board shall have a substitute in

case of absence.

Members of the Managing Board and their substitutes shall be

appointed by the Government for a four-year term, as follows:

1) Representatives of the Government upon advise of the minister;

2) Representatives of trade unions and associations of employers upon

advise of representative trade unions and two representatives of representative

associations of employers, members of Social-Economic Council.

The Managing Board shall elect the President and Deputy President

from the own ranks.

Article 131.

Mode of operation, as well as other issuer relevant for the Managing

Board operations shall be stipulated in the statutes and general document of the Fund.

Article 132.

The Managing Board shall:

1) enact the Statutes and other general documents of the Fund, unless

this law stipulates otherwise;

2) adopt the financial plan and annual financial report of the Fund;

3) appoint the Fund director;

4) perform other duties stipulated under this Law and Fund Statutes.

The Government shall endorse the Fund Statutes, financial plan and

annual financial report of the Fund, as well as decision on appointment of the Fund

Director.

The Managing Board shall submit a report on Fund operations to the

Government not later than March 31st of the current year for the preceding year.

Article 133.

The Supervisory Board of the Fund shall be composed of three

members, as follows: one representative of the Government, one representative of

representative trade unions and one representative of representative associations of

employers set up for the territory of the Republic of Serbia.

Each member of the Fund Supervisory Board shall have a substitute in

case of absence.

Members of the Supervisory Board and their substitutes shall be

appointed by the Government for a four-year term, as follows:

3) One representative of the Government upon advise of the minister;

- 38 -

4) Representatives of trade unions and associations of employers upon

advice of representative trade unions and two representatives of representative

associations of employers, members of Social-Economic Council.

The Supervisory Board shall elect the President and Deputy President

from the own ranks.

Article 134.

The Supervisory Board shall:

1) Supervise financial operations of the Fund;

2) Oversee implementation of the law and other regulations relating to

financial operations of the Fund;

3) Oversee implementation of decisions made by the Managing

Board;

4) Pursue other duties set up in this Law and Fund Statutes.

The Supervisory Board shall submit a report on financial operations of

the Fund to the Government not later than 31st March of the current year for the

previous year.

Article 135.

The Fund Director shall:

1) organize operations and transaction of the Fund and be responsible

for legality of Fund work;

2) represent the Fund;

3) execute decision of the Fund Managing Board;

4) enact the Organizational Structure and HR Document of the Fund

with approval of the Government ;

5) manage the work of Fund employees;

6) perform other duties pursuant to this Law and Fund Statutes.

Article 136.

The Fund employees shall perform administrative and other

professional tasks for the Fund.

Regulations on labor relations for employees of public bodies shall

apply to employees referred to in para. 1 of this Article.

- 39 -

Fund financing

Article 137.

Fund shall generate revenue from the budget of the Republic of Serbia

and other sources pursuant to the law.

Fund revenue shall be used pursuant to this Law.

Article 138.

Should the annual balance of income and expense of the Fund show

that the total generated income exceeds the expense, the difference shall be deposited

to the account of the budget of the Republic of Serbia and be earmarked for

implementation of active employment policy.

Procedure to grant the rights of employees

Article 139.

The procedure to grant the rights referred to in Article 125 of this law

shall be started upon a claim of employee (hereinafter: claim).

The claim shall be filed to the Fund 15 days after receipt of the valid

decision substantiating the right to such claim, pursuant to the law covering the

bankruptcy procedure.

Article 140.

The claim shall be filed on a specially designated form.

The claim shall be accompanied with:

1) Labor contract, or other document on entry into labor relation, and

for persons whose labor relationship has been terminated – the document on

termination of the labor relations;

Document substantiating the right to claim referred to in Article 125,

para. 1, point 1) of this law, pursuant to the law covering the bankruptcy procedure;

2) Evidence substantiating the claim referred to in Article 125, para.

1, points 2) - 4) of this law.

Content of the form referred to in para. 1 of this Article and other

documentation to be submitted shall be prescribed by the minister.

Article 141.

The official receiver, employer and employee shall, upon request of the

Fund, supply all information relevant for decision referred to in Article 142 of this

law 15 days upon receipt of such request, at the latest.

- 40 -

Article 142.

The Fund Managing Board shall decide on the claims by Decision.

The Decision may be contested eight days after receipt of the decision

at the latest.

The minister shall decide on the appeal against the decisions thirty

days after the appeal has been filed at the latest.

The minister’s decision shall be final and only administrative

procedure may be raised against it.

Article 143.

Rights of employees to claims referred to in Article 125 of this law

shall be inalienable, personal and material.

Article 144.

An employee shall lose the right referred to in Article 125 of this law:

1) if the claim referred to in Article 125 of this law has been paid in

the amount and within the time set by this law before execution of the decision

referred to in Article 142 of this law,

2) if he/she has supplied incorrect data relating to fulfillment of the

requirements for eligibility to that right,

3) if he/she has failed to file within the term set in Article 139. paras 2

and 3 of this law.

Restitution of unjustifiably obtained means

Article 145.

The Fund shall order that any employee return all means, paid pursuant

to Articles 125 and 126 of this law, increased by statutory default interest and cost of

the proceedings, should the rights have been granted on the basis of untrue and

incorrect data, i.e. should the employee have failed to notify the Fund on any facts

that may influence eligibility to and granting of the rights stipulated in this law – one

year after the facts that are the basis for restitution of the means have been disclosed.

The employee shall deposit the due amount to the account of the Fund

30 days after receipt of the order to do so at the latest.

- 41 -

Oversight of legality of operation

Article 146.

Oversight of legality of operation of the Fund shall be

conducted by the ministry in charge of labor affairs (hereinafter:

ministry).

X. RIGHTS OF EMPLOYEES IN CASE OF CHANGE OF

EMPLOYER

Article 147.

In case of change of status, i.e. change of employer, pursuant to the

law, the succeeding employer shall take over the general document and labor

contracts from the preceding employer in force on the transfer day.

Article 148.

The preceding employer shall inform the succeeding employer fully

and truly about the rights and duties contained in the general document and labor

contracts that are transferred.

Article 149.

The preceding employer shall notify the employees whose labor

contracts are transferred on the transfer of the labor contracts to the succeeding

employer in writing.

Should any employee refuse the transfer of the labor contract or fails to

agree to it five days after the notification of the transfer referred to in para. 1 of this

Article, the preceding employer may terminate the labor contract to such employee.

Article 150.

The succeeding employer shall apply the general document of the

preceding employer one year after the change of employer, unless before the expiry of

that term:

1) the term to which the collective agreement was concluded with the

preceding employer expires;

2) new collective agreement is concluded with the succeeding

employer.

- 42 -

Article 151.

The preceding employer and succeeding employer shall, 15 days

before the change of employer at the latest, notify the representative trade union of the

employer about the following:

1) date or proposed date of change of employer;

2) reasons for such change of employer;

3) legal, economic and social consequences of change of employer

and measures to mitigate them.

The preceding employer and succeeding employer shall, 15 days

before the change of employer at the latest, undertake measures for mitigation of

social and economic consequences on the position of the employees, in collaboration

with the representative trade union.

Should there be no representative trade union with the employer, the

employees have the right to be directly informed about the circumstances referred to

in para. 1 of this Article.

Article 152.

Provisions of Articles 147-151 of this law shall also apply in cases of

change of ownership of the equity of a company or other legal entity.

XI. REDUNDANCY

Article 153.

Employer shall enact a program to manage the issue of redundancy

(hereinafter: program), should he/she come to the conclusion that due to

technological, economic or organizational changes redundancy of employees

employed for an indefinite term will ensue within the following 30 day term for the

minimum of:

1) 10 employees for employers who has more than 20 and less than

100 staff employed for an indefinite term;

2) 10% employees for employers who has at least 100 and less than

300 staff employed for an indefinite term;

3) 30 employees for employers who has more than 300 staff

employed for an indefinite term.

Such program shall also be enacted by an employer who establishes

that at least 20 employees will become redundant within a 90-day period, due to

reasons stated in para. 1 of this Article regardless of the total number of employees of

that employer.

- 43 -

Article 154.

Employer shall, before enacting such program, in collaboration with

the representative trade union of such employer and national agency in charge of

employment, undertake relevant measures for new employment of the redundant

employees.

Article 155.

Such program shall particularly feature:

1) Reasons for redundancy;

2) Total number of employees with that employer;

3) Number, educational structure, age and duration of service of

employees found redundant and jobs they perform;

4) Criteria for establishing the redundancy;

5) Employment measures, transfer to other jobs, work with other

employers, re-training, additional training, part-time work (but not less than half-time)

and other measures;

6) Means for managing the social and economic position of the

redundant staff;

7) Labor contract.

Employer shall submit the proposal of program referred to in Article

154 of this law and the national agency for employment eight days after the program

proposal has been set at the latest, inviting the advice of the agency.

Program shall be enacted by the Managing Board, and with employers

where no Managing Board has been established, by the director, i.e. entrepreneur.

Article 156.

The trade union referred to in Article 154 of this law shall voice the

opinion on the proposed program 15 days after the proposed program has been

received at the latest.

The national employment agency shall, within the term set in para. 1 of

this Article, submit to the employer proposed measures for prevention or minimizing

the number of terminations of the labor contracts, i.e. provide for re-training,

additional training, self-employment and other measures for new employment of

redundant employees.

Employer shall consider and take into account proposals of the national

employment agency and trade union and inform them about his/her position within an

eight day term.

- 44 -

Article 157.

Absence from work because of temporary inability to work,

pregnancy, maternity leave, childcare and special care of a child shall not be the

criteria for selection of redundant employees.

Article 158.

Employer shall, before termination of the labor contract referred to

in Article 179, point 9) of this law, pay the severance pay in the amount set in the

general document or the labor contract.

The severance pay, referred to in para. 1 of this Article shall not be

lower than the sum of one third of the salary of the employee for each full year of

service (employment) for the first 10 years and one fourth of the salary of the

employee for each year of service after ten years of employment.

Article 159.

The salary, referred to in Article 158 of this law shall be the

average monthly salary of the employee paid in the last three months preceding the

month in which the severance pay is paid.

Article 160.

Any employee to whom the labor contract is terminated because of

his/her redundancy the employer pays the severance pay referred to in Article 158 of

this law shall be entitled to subsidy and right to retirement and disability insurance

and health care, pursuant to employment regulations.

XII. PROHIBITION OF COMPETITION

Article 161.

The labor contract may stipulate the jobs an employee may not

perform on his/her own behalf, or on behalf and for the account of another legal entity

or natural person, without the consent of his/her current employer (hereinafter:

prohibition of competition).

Prohibition of competition may be stipulated only if conditions exist

where an employee may, through his/her work with the employer, acquire new,

specially important technological knowledge, a wide circle of business partners or

acquire knowledge of important business information and secrets.

General document and labor contract shall determine the territorial

limitations of prohibition of competition relative to the type of job to which the

prohibition refers.

- 45 -

Should an employee violate the prohibition of competition, en

employer shall be entitled to claim damage compensation from the employee.

Article 162.

The prohibition of competition in terms of Article 161 of this law and

damage compensation may be extended through agreement between employer and

employee in the labor contract to a period following termination of labor relation,

where such period may not exceed two years after termination of labor relation.

The prohibition of competition of para. 1 of this Article may be agreed

should employer commit himself in the labor contract to pay monetary compensation

to the employee in the set amount.

XIII. COMPENSATION OF DAMAGE

Article 163.

An employee shall, pursuant to the law, be liable for work or workrelated

damages he/she causes to the employer with intent or through gross

negligence.

Should the damage be caused by several employees, each employee

shall be severally liable for the damage he/she caused.

Should particular part of the damage caused by the employee referred

to in para. 2 of this Article may not be determined, it shall be deemed that all

employees are equally liable and shall compensate the damage in equal parts.

Should damage be caused through premeditated criminal offence

committed by several employees, they shall be held jointly liable.

Presence of damage, its extent, circumstances under which it has

occurred, perpetrator and manner of compensation shall be determined by the

employer, pursuant to the general document or labor contract.

The competent court shall rule on the damage if compensation of the

damage is not effectuated pursuant to provisions of para. 5 of this Article.

Any employee who in performance of his/her work or in relation to

such work causes damage to third party intentionally or through gross negligence, and

such damage is compensated by the employer, shall reimburse the employer by the

amount of paid damages.

Article 164.

Should an employee sustain an injury or damage at work or in relation

to work, the employer shall compensate for the damage, pursuant to the law and

general document.

- 46 -

XIV. SUSPENSION OF AN EMPLOYEE FROM WORK

Article 165.

An employee may be temporarily suspended from work:

1) If criminal procedure has been initiated against him for criminal

offence committed at work or in relation to work, or due to violation of work duty that

endangers property of considerable value;

2) If the nature of such violation of work duty or violation of work

discipline or behavior of the employee is such that he/she cannot continue his/her

work with the employer before expiry of the term set in Article 180, para. 1 and

Article 181, para. 2 of this law.

Article 166.

An employee remanded in custody shall be suspended from work as of

the first day of custody and for the duration of custody.

Article 167.

Suspension in terms of Article 165 of this law shall last for three

months at most, and upon expiry of the term the employer shall return the employee

to work or his/her labor contract shall be terminated in case of presence of justified

reasons in terms of Article 179, points 2) - 4) of this law.

Article 168.

During this temporary suspension from work in terms of Articles 165

and 166 of this law, an employee shall be entitled to salary compensation amounting

to one fourth or if he/she supports a family one third of the basic salary.

Compensation of salary during temporary suspension from work in

terms of Article 166 of this law shall be paid at the account of the body ordering

custody.

Article 169.

During the temporary suspension from work, in terms of Articles 165

and 166 of this law, an employee shall be entitled to the difference between the

amount of compensation of salary received pursuant to Article 168 of this law and full

amount of the basic salary, as follows:

1) If criminal proceedings against him are discontinued by valid

decision, or in case of acquittal by valid decision, or if charges against him are

dismissed for reasons other than non-jurisdiction;

2) If the labor contract of the employee is not terminated in terms of

Article 179, points 2) - 4) of this law.

- 47 -

Article 170.

In cases of violation of work duty or violation of work discipline in

terms of Article 179, points 2) and 3) of this law, the employer may, instead of

termination of the labor contract, pronounce a measure of temporary suspension from

work without any compensation of salary, if it is the employer’s belief that the case is

associated with some mitigating circumstances or that the violation of work duty or

violation of work discipline is not so serious as to necessitate termination of labor

relations.

The measure of suspension from work in terms of para. 1 of this

Article may be pronounced for a term of one to three days.

XV. AMENDMENTS TO THE LABOR CONTRACT

1. Change of labor conditions in the contract

Article 171.

Employer may offer amendments to the labor conditions in the contract

(hereinafter: contract annex):

1) For transfer to another corresponding work, needs of the process

and organization of work;

2) For transfer to another place of work with the same employer, in

terms of Article 173 of this law;

3) For referral to work with another employer, in terms of pursuant to

Article 174 of this law;

4) If the redundant employee has been granted the rights referred to in

Article 155, para. 1, point 5) of this law;

5) In terms of Article 33, para. 1. points 10), 11) and 12) of this law;

6) In other cases set in the general document and labor contract.

The corresponding job in terms of para. 1, points 1) and 3) of this

Article shall be any job requiring the same type and level of education/qualification

set in the labor contract.

Article 172.

With the offer for contract annex, employer shall supply in writing the

reasons for such offer, deadline by which the employee has to respond and legal

consequences that may result from refusal of such offer.

Employer shall respond to the offer for a contract annex by the

deadline set by the employer, that cannot be shorter than eight working days.

- 48 -

It shell be deemed that the employee has refused an offer for contract

annex if he/she fails to respond before the deadline referred to in para. 2 of this

Article.

Should an employee accept the offer for his/her contract annex, he/she

shall also preserve the right to contest legality of such contract before the competent

court.

2. Transfer to another work location

Article 173.

An employee may be transferred to another work location:

1) If the business of the employer is such that the work is performed at locations

beyond the seat of the employer or its organizational part;

2) If the distance between the place in which the employee works and place to

which his/her workplace is transferred is less than 50 km, if there is a regular

transportation line that enables timely commuting to and from work and if

reimbursement of cost of the fare in public transport is provided;

Apart from the cases referred to in para. 1 of this Article employee

may be transferred to other work location with his/her consent only

3. Referral to work for another employer

Article 174.

Employee may be temporarily referred to work with another employer

to an adequate job if the need for his/her work has been temporarily discontinued,

business premises have been leased or contract on business collaboration concluded,

as long as the reasons for such referral are in place, for up to one year.

Employee may, with his/her consent, in cases referred to in para. 1 of

this Article and other cases set in the general document or labor contract, be

temporarily referred to work with another employer beyond the one year term, as long

as the reasons for his/her referral are in place.

Employee may be temporarily referred, in terms of para. 1 of this

Article to work at another location if the conditions set in Article 173, para. 1, point 2)

of this law have been met.

Employee shall conclude a labor contract for a definite term with the

employer to whom he/she is referred for work.

Such labor contract shall not stipulate lesser rights than those he/she

has been granted with the employer referring him.

Upon expiry of the term to which he/she has been referred to work

with another employer, the employee is entitled to returning to work with the referring

employer.

- 49 -

XVI. TERMINATION OF LABOR RELATIONS

1. Reasons for termination of labor relations

Article 175.

Labor relations shall be terminated:

1) With expiry of the term to which they have been entered into;

2) When the employee turns 65 and has the minimum of 15 years of

retirement insurance, unless otherwise agreed between employer and employee;

3) By mutual agreement between employer and employee;

4) By cancellation of the labor contract by employer or employee;

5) Upon request of a parent or guardian of an employed minor under

18 years of age

6) With death of the employee;

7) In other cases stipulated under the law.

Article 176.

Labor relations shall be terminated regardless of the wish of employee

or employer:

1) If it is determined in the manner set out in the law that employee

has suffered loss of working ability – as of the date of delivery of valid decision

substantiating such loss of working ability;

2) If, pursuant to provision of the law, i.e. valid court decision or

decision of another body, such employee is forbidden to perform particular jobs and

other jobs are unavailable – as of the date of delivery of the valid decision;

3) If due to serving a prison sentence employee is absent from work

for more than six months – as of the date of commencement of serving of the prison

sentence;

4) If a security, correctional or protective measure of more than six

months has been pronounced to employee and consequently he/she would be absent

from work – as of the date of commencement of application of such measure;

5) In case the employer ceases to work, pursuant to the law.

2. Termination of labor relations by mutual consent

Article 177.

Labor relations may be terminated on the bases of written agreement

between employer and employee.

- 50 -

Before effectuation of such agreement, employer shall notify the

employee in writing about the consequences on the rights granted in case of

unemployment.

3. Termination of employment by employee

Article 178.

Employee shall be entitled to terminate the labor contract with his/her

employer.

Employee shall submit in writing notice on termination of the labor

contract 15 days before the date stated in the notice as the date of termination of

employment, at the latest.

Should termination of employment result from employer’s violation of

duties stipulated under the law, general document and labor contract, the employee

shall be entitled to all rights resulting from the labor relationship, as in the case of

wrongful dismissal.

4. Termination of employment by employer

Article 179.

Employer may terminate the labor contract to an employee for a just

cause relating to his/her working ability, behavior and employer’s needs, as follows:

1) If employee does not perform, i.e. does not have the needed

knowledge and abilities to perform the job on which he/she is employed;

2) If employee through his/her own fails violates the work duties set

in the general document and labor contract;

3) If employee does not comply with the work discipline as stipulated

in the general document i.e. his/her behavior is such as to preclude further work with

the employer;

4) If employee commits a criminal offence at work or in relation to

work;

5) If employee does not return to work with the employer within 15

days from the expiry of the period of unpaid leave of dormancy of employment in

terms of this law;

6) If employee abuses the right to leave for temporary inability to

leave;

7) If employee refuses the annex to the labor contract in terms of

Article 171, para. 1, points 1) - 4) of this law;

8) If employee refuses the annex to of the labor contract in terms of

Article 33, para. 1, point 10) of this law;

9) If due to technological, economic or organizational changes a

particular job becomes redundant or volume of work be reduced.

- 51 -

Article 180.

Employer shall be required to notify the employee on the reasons for

his/her dismissal before termination of the labor contract in case referred to in Article

179, points 1) - 6) of this law and leave at least a five-day term to respond to the

rationale stated in the notification.

The notification referred to in para. 1 of this Article shall contain the

grounds for dismissal, facts and evidence suggesting that the conditions have been

met for the dismissal and response to such notification.

Should there be any mitigating circumstances or if the nature of the

violation of the work duty or violation of work discipline be insufficient for

termination of the labor contract, the employer may inform the employee in such

notification that the labor contract shall be terminated without any previous

notification in case the same or similar violation take place in the future.

Article 181.

Employer shall submit the notification referred to in Article 180 of this

law to the trade union the member of which the employee is.

The trade union shall respond five days after the receipt of the

notification at the latest.

Article 182.

In case of termination of employment to employee, the employer may

not, in case referred to in Article 179, point 9) of this law, employ another person on

the same job prior to expiry of six months from the date of termination of

employment.

If, prior to expiry of the time limit referred to in para. 1 of this Article

the need for the same job arises, the employee to whom the labor relation has been

terminated shall have precedence.

Article 183.

The following reasons for termination of the labor contract, in terms of

Article 179 of this law, shall not be considered justified:

1) Temporary inability to work due to illness, injury at work or

occupational disease;

2) maternity leave, absence for work for childcare or special care of

the child;

3) military service;

4) membership in a political organization, trade union, gender,

language, ethnicity, social origin, religion, political or other belief or any other

personal feature of the employee;

- 52 -

5) activity in the capacity of representative of employees, pursuant to

this Law;

6) filing a complaint to the trade union or competent bodies for

protection of rights resulting from labor relationship pursuant to the law, general

document and labor contract.

5. Procedure when terminating employment

1) Statute of limitations

Article 184.

Employer may terminate the labor contract in terms of Article 179,

points 1), 2), 3), 5) and 6) of this law within a period of three months upon becoming

aware of the facts constituting the grounds for dismissal, i.e. within a period of six

months following the occurrence of the facts constituting the grounds for dismissal.

Employer may terminate the labor contract in terms of Article 179,

point 4) of this law prior to expiry of statute of limitations stipulated under the law for

criminal offence at the latest.

2) Serving the termination of the labor contract notice

Article 185.

A labor contract shall be terminated by serving a pertinent notice, in

writing and always with substantiation and advice on legal remedy.

The notice shall be served in person, in the premises of the employer,

i.e. to the address, or place of residence of the employee.

Should employer be unable to serve the notice in terms of para. 2 of

this Article, he/she shall make a written statement to that effect.

In case referred to in para. 3 of this Article the notice shall be posted

on the bulletin board of the employer and shall be considered served eight days after

such placement.

The labor relations of the employee shall be considered terminated

once the notice has been served, unless stipulated otherwise in this law or the notice.

Employee shall notify the employer in writing, on the day after the

notice has been served, if he/she wants to resolve the dispute before an arbiter, in

terms of Article 194 of this law.

3) Mandatory payment of salary and compensation of salary

Article 186.

Employer shall, in cases of termination of employment, effect all due

payments to the employee, i.e. all outstanding salary, compensation of salary and

- 53 -

other emoluments the employee has been entitled to by the day of termination of labor

relations, pursuant to general document and labor contract.

The employer shall effectuate the payment of the dues referred to in

para. 1 of this Article 30 days after termination of employment, at the latest.

6. Special protection from termination of the labor contract

Article 187.

Employer shall not terminate the labor contract to an employee during

pregnancy, maternity leave, absence for childcare or special care of the child.

Employee referred to in para. 1 of this Article whose labor contract has

been effectuated for a definite term, may have his/her labor relations terminated upon

expiry of such term.

Article 188.

Employer shall not terminate the labor contract, or put in less favorable

position any of the following representatives of employees during the term of office

and one year after expiry of such term, under the condition that the representative of

employees comply with the law, general document and labor contract:

1) member of employee’s council and representative of employees in

the employer’s Managing Board and Supervisory Board;

2) president of trade union with the employer;

3) appointed or elected trade union representative.

Should the representative of employees referred to in para. 1 of this

Article fail to comply with the law, general document and labor contract, the

employer may terminate his/her labor contract.

The number of trade union representatives enjoying protection in terms

of para. 1, point 3) of this Article shall be set in the collective agreement, i.e.

agreement with the employer, depending on the number of members of the trade

union with such employer.

Employer may, with approval of the ministry, terminate the labor

contract of a representative of employees in terms of para. 1 of this Article, should

he/she refuse the job offered pursuant to Article 171, para. 1, point 4) of this law.

7. Notice period and severance pay

Article 189.

Employee whose labor contract has been terminated for lack of

performance, i.e. qualifications and skills in terms of Article 179, point 1) of this law,

has the right and duty to remain at work for no less of one month and no longer than

- 54 -

three months (hereinafter: notice period), depending on the total duration of insurance

period, as follows:

1) a month if he/she has up to 10 years of insurance (period for which

contributions for the retirement insurance has been paid);

2) two months if he/she has 10-20 years of insurance period;

3) three months, if he/she has over 20 years of insurance period;

The notice period starts a day after the decision on termination of the labor

contract has been served.

Employee may, in agreement with competent bodies in terms of Article 192 of

this law, stop working even before expiry of the notice period, where the

compensation of salary shall be paid for the period in the amount set in the general

document and labor contract.

Should employee be summoned for military drill or remaining part of the

military service or become temporarily unable for work during the period he/she is

obliged to stay at work, upon his/her request, the terms shall be interrupted for the

duration of such period, and continued upon his/her resuming work after the military

drill or temporary inability to work has ceased.

Article 190.

In case of termination in terms of Article 179, point 1) of this law, the

labor relations shall be terminated upon effectuation of the severance pay, as follows:

1) in the amount of one salary for up to two years of continuous work

with the employer;

2) in the amount of two salaries for 2-10 years of continuous work with

the employer;

3) in the amount of three salaries for 10-20 years of continuous work

with the employer;

4) in the amount of four salaries for over 20 years of continuous work

with the employer.

8. Wrongful dismissal

Article 191.

If a court passes a valid decision establishing that labor relation to employee

has been wrongfully terminated, the court shall decide that the worker may be readmitted

to work, at his/her discretion.

- 55 -

In addition to the re-admission, the employer shall pay

compensation of damage in the amount of lost salary and other emoluments to which

the employee is entitled pursuant to the law, general document and labor contract. The

employer shall also pay all outstanding contributions for mandatory social insurance

for that period.

Compensation of damages shall be reduced by the amount of

income acquired on the basis of actual work, upon termination of employment.

Should the court rule that the employee suffered wrongful

dismissal, and the employee does not request to be re-admitted to work, the court shall

order that the employer pays the compensation of damage in the maximum amount of

18 salaries the employee would have earned if he/she had worked, relating to the

duration of service and age of that employee, as well as the number of dependants in

the family.

The court may rule in terms of in para. 4 of this Article upon

request of the employer, as well, in case the existing circumstances suggest that the

continuation of labor relations is not possible, taking into account all circumstances

and interest of both parties, where the compensation of damages shall be double the

amount adjusted in terms of para. 4 of this Article.

Both employer and employee may file in terms of para. 4 and 5 of

this Article before the main hearing before the court has been concluded.

XVII. EXERCISE AND PROTECTION OF EMPLOYEE’S

RIGHTS

Article 192.

Decisions on rights, duties and responsibilities deriving from labor

relations shall be made by:

1) director or employee empowered by him in a legal entity;

2) entrepreneur or employee empowered by him when employer does

not have the status of legal entity.

Power referred to in para. 1 of this Article shall be issued in writing.

Article 193.

Any decision on exercising rights, duties and responsibilities

accompanied with pertinent substantiation and advice on legal remedy shall be served

to employee in writing, except in case referred to in Article 172 of this law.

Provisions of Article 185, para 2 - 4 of this law shall also refer to

procedure for serving the decision referred to in para. 1 of this Article.

- 56 -

Protection of individual rights

Article 194.

General document and labor contract may provide for consensual

resolution of disputed issues between the employer and employee.

Disputed issues in terms of para. 1 of this Article shall be resolved by

an arbiter.

The arbiter shall be consensually agreed by the parties in dispute from

the ranks of experts in the field that is the subject of dispute.

The proceedings before the arbiter shall be initiated three days after the

decision has been served to the employee at the latest.

The arbiter shall pass a decision 10 days after amicable resolution of

disputed issues has been filed for, at the latest.

During the arbitration proceedings for termination of the labor

contract, the labor relations shall be deemed dormant.

Should the arbiter fail to pass the decision referred to in para. 5 of this

Article the decision on termination of employment shall become valid.

The arbiter’s decision shall be final and binding for the employer and

employee.

Article 195.

Employee or trade union empowered by the employee may initiate

legal proceedings before a competent court against a decision violating the

employee’s right or upon becoming aware of violation of such right.

The legal proceedings may be initiated 30 days after the decision has

been served or upon becoming aware of violation of such right at the latest.

The dispute before the competent court shall be effectively terminated

six months after initiation of such proceedings at the latest.

Statutes of limitations for claims resulting from labor

relationship

Article 196.

All pecuniary claims resulting from the labor relationship shall expire

three years after they have been created.

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XVIII. SPECIAL PROVISIONS

1. Working without labor relations

1) Temporary and periodical work

Article 197.

An employer may conclude a contract for performance of temporary or

periodical work when such work by nature does not last more than 120 days during a

calendar year with:

1) an unemployed person;

2) employed person that works part-time, up to the full time work

3) beneficiary of old-age pension.

The contract referred to in para. 1 of this Article shall be concluded in

writing.

Article 198.

Employer may conclude a contract for temporary and periodical work

with a member of youth or student co-operative who is under 30 years of age.

2) Special service contract

Article 199.

Employer may conclude a special service contract with a particular

person to perform tasks beyond the scope of activity of the employer, for the purpose

of independent manufacture or repair of a certain item, or independent execution of

certain physical labor or intellectual work.

A special service contract may also be concluded with a person

pursuing artistic or other cultural activities pursuant to the law.

The contract referred to in para. 2 of this Article has to comply with

the collective agreement for persons independently pursuing work in the field of art

and culture, should such collective agreement be concluded.

The contract referred to in para. 1 of this Article shall be concluded in

writing

3) Contract on representation and agency

Article 200.

Employer may conclude a contract on representation and agency with a

particular person.

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The representation and agency agreement shall stipulate the right to

remuneration for representation and agency and other mutual rights, duties and

responsibilities of the person performing the representation and agency work and the

employer, pursuant to the law.

The contract referred to in para. 1 of this Article shall be concluded in

writing.

4) Contract on training and advanced training

Article 201.

Employer may conclude a contract on training and advanced training:

1) with an unemployed person, for traineeship and subsequent

licensing exam when the law or rulebook stipulate such requirement as a prerequisite

for independent work in the line of business;

2) with a person who wants to advance and acquire special knowledge

and qualifications for work in his/her own line of expertise, i.e. to specialize during

the time stipulated in the training, or specialization/residency curriculum.

Employer may provide remuneration and other rights, pursuant to the

law, general document or contract on training and advanced training to the persons

referred to in para. 1 of this Article.

The remuneration in terms of para. 2 of this Article shall not be treated

as the salary pursuant to this law.

The contract referred to in para. 1 of this Article shall be concluded in

writing.

5) Additional work

Article 202.

Employee who works full time with an employer may conclude a

contract on additional work with another employer, up to one third of full time.

The additional work contract shall stipulate the right to remuneration

and other rights and duties derived from such work.

The contract referred to in para. 1 of this Article shall be concluded in

writing.

2. Self-employment

Article 203.

A natural person may pursue his/her business activity independently as

an entrepreneur, pursuant to the law.

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3. Workbook

Article 204.

Employee shall have a workbook, which shall be handed over to the

employer upon employment.

A workbook is a public document.

The workbook is issued by the competent municipal administration

body.

Employer shall return a properly filled-out workbook to the employee

on the day of termination of the labor relations.

No data detrimental to the employee may be entered into the

workbook.

The content of the workbook, how the data shall be entered into the

workbook and how the register of workbooks issued shall be kept shall be prescribed

by the minister.

XIX. ORGANIZATIONS OF EMPLOYEES AND

EMPLOYERS

1. Employee’s Council

Article 205.

Employees of an employer who has more than 50 employees may set

up an Employee’s Council, pursuant to the collective agreement.

The Employee’s Council shall voice opinion and participate in

decision making relating to economic and social rights of employees, in the manner

and under the conditions stipulated in the law and general document.

2. Trade union of employees

Article 206.

Freedom to organize in trade unions and pursue trade union activity

shall be granted to employees, with pertinent entry into the register.

Article 207.

Employee becomes a member of the trade union by signing the

registration form.

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Employer shall deduct the amount of trade union fee from the salary of

the employee upon his/her written authorization to do so, and shall deposit the amount

to the account of the trade union.

Article 208.

A trade union shall supply the employer with the certificate of entry

into the register of trade unions and decision on election of the president and members

of trade union bodies eight days after the day the certificate of entry into the register

of trade unions has been supplied, or on the day the trade union bodies have been

elected.

Article 209.

A trade union shall be informed by the employer on economic and

occupational-social issues relevant for the position of employees, or trade union

members.

Article 210.

An employer shall provide the trade union with technical conditions

and office space as well as access to the data and information necessary for pursuing

trade union activity.

Technical conditions and office space shall be set in the collective

agreement or agreement between the trade union and employer.

Article 211.

Authorized representative of trade union shall be entitled to paid leave

of absence for his/her trade union activity, pursuant to collective agreement or

agreement between the trade union and employer, proportionally to the number of

trade union members.

If the collective agreement or agreement referred to in para. 1 of this

Article have not been reached, the authorized representative of trade union shall be

entitled to:

1) for 40 paid working hours per month if the trade union has no less

than 200 members and one hour per month for each additional 100 members;

2) proportionally fewer hours of paid working hours if the trade union

has less than 200 members.

The collective agreement or agreement referred to in para. 1 of this

Article may stipulate that an authorized representative of the trade union be

completely relieved of the jobs for which his/her labor contract was concluded.

Should the collective agreement or agreement referred to in para. 1 of

this Article not have been concluded, the branch president and member of a trade

union body are entitled to 50% of the paid hours in terms of para. of this Article.

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Article 212.

A representative of trade union authorized for collective bargaining or

appointed member of the collective bargaining team shall be entitled to paid leave

during the bargaining process.

Article 213.

A representative of trade union authorized to represent an employee in

the labor dispute with the employer before an arbiter or court shall be entitled to paid

leave during the representation process.

Article 214.

A representative of trade union absent from work pursuant to Articles

211 - 213 of this law shall be entitled to compensation of salary in the amount of the

basic salary, at least, pursuant to general document and labor contract.

Compensation of salary referred to in para. 1 of this Article shall be

paid by the employer.

3. Setting up of trade unions and associations of employers

Article 215.

A trade union, in terms of Article 6 of this law, may be established

pursuant to general document of the trade union.

Article 216.

Association of employers may be established by employers that

employ no less than 5% of employees of the total number of employees in a certain

branch, group, subgroup or line of business, or territory of a certain territorial unit.

Article 217.

A trade union and association of employers shall be entered into the

register pursuant to the law and other regulations.

The minister shall prescribe the mode of such entry of trade unions and

associations of employers into the register.

4. Representativeness of trade unions

Article 218.

A trade union shall be considered representative:

1) if it has been set up and active on the basis of principles of freedom

of trade union organization and activity;

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2) if it is independent from public bodies and employers;

3) if it is funded mostly from membership fee and own sources;

4) if it has the sufficient number of members on the basis of

registration forms in terms of Articles 219 and 220 of this law;

5) if it is entered into the register pursuant to the law and other

regulations

When representativeness on the basis of number of members is being

established, the priority is given to the last signed registration form for the trade

union.

Article 219.

A representative trade union with an employer shall be one that meets

the requirements set in Article 218 of this law and whose membership comprise no

less than 15% of the total number of employees with that employer.

A representative trade union with an employer shall also be the trade

union in the branch, group, subgroup or line of business comprising no less than 15%

of the total number of employees with that employer.

Article 220.

A representative trade union for the territory of the Republic of Serbia

or unit of territorial autonomy or local self-government, or branch, group, subgroup of

line of business shall also be the one that meets the criteria referred to in Article 218

of this law comprising the membership of no less than 10% of employees in that

branch, group, subgroup of line of business on the territory of a certain territorial unit.

5. Representativeness of association of employers

Article 221.

An association of employers shall be considered representative:

1) if it is entered into the register pursuant to the law;

2) if it has a sufficient number of employees with employers who are

members of association of employers, pursuant to Article 222 of this law.

Article 222.

A representative association of employers, in terms of this law, shall be

an association of employers into which no less than 10% of employers of the total

number of employers in a certain branch, group, subgroup or line of business, or

territory of a certain territorial unit under the condition that such employers employ

no less than 15% of the total number of employees in that branch, group, subgroup or

line of business, or territory of a certain territorial unit.

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6. Establishing representativeness of trade unions and

associations of employers

1) Body competent for establishing representativenesss

Article 223.

Representativeness of a trade union with an employer shall be

established by the employer in the presence of interested trade unions, pursuant to this

Law.

A trade union may file for establishing representativeness to the Panel

for Establishing Representativenss of Trade Unions and Associations of Employers

(hereinafter: Panel):

1) if representativeness has not been established in terms of para. 1 of

this Article 15 days after the request has been filed;

2) if the trade union believes that its representativeness has not been

established pursuant to this Law.

Article 224.

Representativeness of a trade union for the territory of the Republic of

Serbia or unit of territorial autonomy or local self –government, or in a branch, group,

subgroup or line of business shall be established by the minister upon advice of the

Panel, pursuant to this Law.

Article 225.

The Panel shall be composed of three representatives of the

Government, trade union and association of employer appointed for a four-year term.

Representatives of the Government shall be appointed by the

Government upon advice of the minister, while representatives of trade unions and

associations of employers shall be appointed by respective trade unions and

associations of employers – members of the Social-Economic Council.

The ministry shall provide administrative and technical services to the

Panel.

2) Application to establish representativeness

Article 226.

Application to establish representativeness (hereinafter: application)

pursuant to Article 223, para. 1 of this law shall be filed by the trade union to the

employer.

The application shall be supplied with the evidence of fulfilling the

requirements set in Article 218, para. 1, points 4) & 5) and Article 219 of this law.

- 64 -

Article 227.

Application to establish representativeness pursuant to Article 223,

para. 2 and Article 224 of this law shall be filed by a trade union or association of

employers to the Panel.

The application shall be supplied with the evidence of fulfilling the

requirements for representativeness set in Article 218, para. 1, points 4) & 5) and

Article 219 - 222 of this law, and for a trade union with an employer, the evidence on

fulfilling the requirements set in Article 223, para. 2 of this law, as well.

The application shall be supplied with statement of the person

empowered for representation of the trade union or association of employers on the

number of members.

The total number of employees and employers on a territory of a

certain territorial unit, in a branch, group, subgroup or a line of business shall be

determined on the basis of information supplied by the competent statistical body, or

other body keeping the pertinent records.

The total number of employees with an employer shall be determined

according to the certificate issued by the employer.

Employer shall issue such certificate on the number of employees upon

application of the trade union.

3) Procedure upon application

Article 228.

In the procedure for establishing representativeness of a trade union

with an employer representatives of trade union set up with such employer shall be

present.

Employer shall decide on application referred to in Article 226 of this

law employer by his/her decision on the basis of supplied evidence on fulfilling the

requirements of representativeness 15 days after the application has been filed at the

latest.

Article 229.

The Panel shall decide if the application and evidence have been

supplied pursuant to Article 227 of this law.

Upon request of the Panel, the applicant shall supply registration forms

and other evidence on accession of employers to association of employers.

The applicant shall rectify all objections should the application not be

supplied with the evidence in terms of Article 227 of this law.

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The application shall be deemed proper and timely if the applicant

rectifies all objections within the term set in para. 3 of this Article.

Article 230.

Upon advice of the Panel, the minister shall refuse the application:

1) if a trade union with an employer filed the application before filing

to establish representativeness with the employer, i.e. before expiry of the term se in

Article 223, para. 2, point 1) of this law;

2) if the applicant fails to rectify all objections within the term set in

Articleu 229, para. 3 of this law.

Article 231.

Minister shall pass a decision on establishing representsativeness of a

trade union or association of employers upon advice of the Panel, should all

requirements stipulated in this law have been met.

The decision referred to in para. 1 of this Article shall be passed 15

days after the application has been filed or all objections rectified in terms of Article

229, para. 3 of this law, at the latest.

Minister shall pass a decision refusing the application , upon advice of

the Panel, if the trade union or association of employers do not meet the requirements

for representativeness set in this law.

The decision referred to in para. 1 and 3 of this Article may be

contested in an administrative dispute.

Article 232.

Minister may require that the Panel re-consider the application to

establish representativeness eight days after the application has been filed at the latest,

should he/she decide that all facts relevant for establishing representativeness have

not been determined.

The Panel shall proceed pursuant the request referred to in para. 1 of

this Article and submit the final advice to the minister three days after the request for

re-consideration has been received at the latest.

The minister shall comply with the advice referred to in para. 2 of this

Article and pass a decision pursuant to Article 231 of this law.

4) Re-consideration of established representativeness

Article 233.

A trade union, employer and association of employers may file for reconsideration

of established representativeness upon expiry of three years from the

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day the decision referred to in Article 228, para. 2, Article 231, para. 1 and Article

232, para. 3 of this law has been made.

Re-consideration of representativeness of a trade union with an

employer established by decision of the employer may be initiated by the employer,

or application of another trade union with the employer.

Application for re-consideration of representativeness of a trade union

with an employer may be filed by employer with whom a trade union whose

representatives is under re-consideration or by another trade union with the employer.

Application for re-consideration of representativeness of a trade union

in terms of Article 220 of this law may be filed by a trade union established by a

territorial unit, branch, group, subgroup or line of activity for which the trade union

whose representativeness is being reconsidered has been set up.

Application for re-consideration of representativeness of an association

of employers in terms of Article 222 of this law may be filed by an association of

employers established by a territorial unit, branch, group, subgroup or line of activity

for which the association of employers whose representativeness is being

reconsidered has been set up.

Article 234.

Application referred to in Article 233, para. 2 of this law shall be filed

to the employer with whom the trade union whose representativeness is being reconsider

has been set up.

Application and initiative referred to in Article 233, para. 2 shall

contain the name of such trade union, number of the registration document, reasons

for re-consideration of the representativeness and substantiating evidence.

Employer shall, within eight days after receipt of the application

referred to in para. 1 of this Article, or initiative referred to in para. 2 of this Article,

notify the trade union whose representativeness is being re-considered accordingly

asking for substantiating evidence on fulfilling the requirements of representativeness

pursuant to this Law.

Not later than 8 days after the receipt of the notification referred to in

para. 3 of this Article the trade union shall submit the evidence on fulfilling the

requirements of representativeness to the employer.

Article 235.

The application referred to in Article 233. paras 3-5 of this law shall be

filed to the Panel including the name of the trade union or association of employers,

organizational level, number of the registration document, reasons for reconsideration

of representativeness and substantiating evidence.

Not later than eight days after receipt of the application referred to in

para. 1 of this Article the Panel shall notify accordingly the trade union or association

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of employers for which re-consideration of representativeness is requested and ask

them to supply substantiating evidence pursuant to this Law.

A trade union or association of employers, shall submit evidence on

fulfilling the requirements of representativeness to the Panel not later than 15 days

after the receipt of the notification referred to in para. 2 of this Article.

Article 236.

A procedure for re-consideration of representativeness of a trade union

or association of employers shall be conducted pursuant to provisions of Articles 228

- 232 of this law.

Article 237.

Decision on representativeness or loss of representativeness of a trade

union for a certain branch, group, subgroup or line of business or territorial unit, as

well as decision on establishing representativeness and decision of loss of

representativeness of an association of employers shall be published in the “Offical

Gazette of the Republic of Serbia”.

7. Legal and business capacity of trade unions and association

of employers

Article 238.

A trade union and association of employers earn the capacity of a legal

entity on the day of their entry into the register, pursuant to the law and other

regulations.

Article 239.

A trade union, or association of employers, for which

representativeness has been established pursuant to this Law, shall be entitled to:

1) right to collective bargaining and collective agreement on the

respective level;

2) right to participation in collective legal disputes;

3) right to participation in tripartite and multipartite bodies on the

pertinent level;

4) other rights, pursuant to the law.

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XX. COLLECTIVE AGREEMENTS

1. Scope and form of the collective agreement

Article 240.

A collective agreement, pursuant to the law and other regulations,

shall regulate rights, duties and responsibilities resulting from the labor relationship,

procedure for amendments of the collective agreement, mutual relations of the parties

to the collective agreement and other issues relevant for employees and employers.

A collective agreement shall be concluded in writing.

2. Types of collective agreements

Article 241.

A collective agreement may be concluded as general, special and

individual agreement

Article 242.

A general collective agreement and special collective agreement for a

certain branch, group, subgroup or line of business may be concluded for the territory

of the Republic of Serbia.

Article 243.

A special collective agreement may be concluded for the territory of a

unit of territorial autonomy or local self-government.

3. Parties to the collective agreement

Article 244.

A general collective agreement may be concluded by a representative

association of employers and representative trade union set up for the territory of the

Republic of Serbia.

Article 245.

A special collective agreement for a branch, group, subgroup or line of

business may be concluded between the representative association of employers and

representative trade union set up for the branch, group, subgroup or line of business.

A special collective agreement for a territory of a unit of territorial

autonomy and local self-government may be concluded between the representative

association of employers and representative trade union set up for the territorial unit

for which the collective agreement is concluded.

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Article 246.

A special collective agreement for public enterprises and public

services is concluded between the founder or body authorized by the founder and the

representative trade union.

A special collective agreement for persons pursuing free lance activity

in the field of arts and culture (self-employed artists) is concluded between the

representative association of employers and representative trade union.

A special collective agreement for athletes, coaches and sports experts

is concluded between the representative association for sports activity in physical

culture and representative trade union.

Article 247.

A collective agreement with employer for public enterprises and public

services shall be concluded by the founder or the body authorized by the founder,

representative trade union with the employer and employer. Director shall sign the

collective agreement on behalf of the employer.

Article 248.

A collective agreement with employer shall be concluded by the

employer and representative trade union with that employer. The director or

entrepreneur shall sign the collective agreement on behalf of the employer.

Article 249.

Should neither of trade unions, or neither of associations of employers,

meet the requirements of representativeness in terms of this law, trade unions or

associations of employers may enter into association agreement to meet the

requirements of representativeness in terms of this law and participation in the

collective agreement.

Article 250.

If no trade union has been set up with an employer, salary,

compensation of salary and other emoluments of employees may be regulated by an

agreement.

An agreement shall be considered reached once it is signed by the

director, or entrepreneur and representative of the council of employees empowered

by no less than 50% of total number of employees with that employer.

Such agreement shall be superseded by a collective agreement.

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4. Collective bargaining and collective agreement

Article 251.

If more representative trade unions or representative associations of

employers, or trade unions or association of employers that reached an association

agreement in terms of Article 249 of this law participate in bargaining for collective

agreement, the bargaining board shall be set up.

Members of the board referred to in para. 1 of this Article shall be

delegated by trade unions, or associations of employers, proportionally to the number

of their respective members.

Article 252.

In the bargaining process for collective agreement with an employer,

the representative trade union shall collaborate with a trade union with no less that

10% membership of the employees of that employer to enable voicing of the interests

of employees who are members of that trade union.

Article 253.

Representatives of trade unions and employers, or associations of

employers, that participate in the bargaining for collective agreement shall be

authorized by their bodies to conclude the collective agreement.

Article 254.

Parties to collective agreement shall participate in the bargaining

process.

If, during the bargaining process consensus for collective agreement

has not been reached after 45 days from the day of the outset of the bargaining

process, the parties may set up an arbitrage to resolve the disputed issues.

For activities in the general interest, disputes in the bargaining process,

amendments and implementation of collective agreements shall be resolved pursuant

to the law.

Article 255.

Composition, rules of procedure and effects of the arbitrage decision

shall be agreed upon by parties to the collective agreement.

The final decision shall be reached 15 days after the arbitrage has been

set up at the latest.

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5. Implementation of collective agreements

Article 256.

General and special collective agreements shall be implemented

directly and shall be binding on all employers who at the time of concluding the

collective agreement have been members of association of employers – party to the

collective agreement.

Collective agreement referred to in para. 1 of this Article shall also be

binding on employers who subsequently become members of association of

employers – parties to the collective agreement, as of the time of accession to the

association of employers.

Collective agreement shall be binding on employers referred to in para.

1 and 2 of this Article six months after secession from the association of employers –

party to the collective agreement.

Article 257.

Minister may decide that a collective agreement or some of its

provisions be applied to employers who are not members of association of employers

– parties to the collective agreement.

Minister may enact decision referred to in para. 1 of this Article in case

of recognized public interest to do so, particularly:

1) for implementation of economic and social policy in the Republic

of Serbia in order to provide for uniform working conditions that represent the

minimum rights of employees derived from and based on their work;

2) to reduce differences in salary in a certain branch, group, subgroup

or line of business that substantially affect the social and economic position of

employees resulting in unfair competition, under the condition that the collective

agreement the effect of which is extended is binding for employer that employ no less

that 30% of employees in that branch, group, subgroup or line of business.

Minister may pass the decision referred to in para. 2 of this Article

upon request of one of parties to the collective agreement the effect of which is

extended, upon advice of the Social-Economic Council.

Article 258.

Minister may, upon request of employer or association of employers,

decide that the collective agreement referred to in Article 257 of this law in the part

relating to salary and compensation of salary not be applied to some employers or

association of employers.

Employer, or association of employers, may apply for exemption from

the collective agreement with extended effect should they not be able to implement

that collective agreement due to financial and business results.

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Employer or association of employers shall supply the application

referred to in para. 2 of this Article with evidence substantiating their reasons for

exemption from the collective agreement with extended effect.

Article 259.

Minister shall pass the decision on exemption from implementation of

the collective agreement upon advice of the Social-Economic Council.

Article 260.

Minister may revoke the decision on the extended effect of collective

agreement and decision on exemption from implementation of the collective

agreement, in case the reasons in terms of Article 257, para. 2 and Article 258, para. 2

of this law cease to exist.

The decision referred to in para. 1 of this Article shall be enacted

following the procedure for decision on extended effect of collective agreement, i.e.

decision on exemption from implementation of the collective agreement.

The decision referred to in Articles 257 and 259 of this law becomes

invalid with invalidation of the collective agreement, i.e. some of its provisions the

effect of which has been extended or exempted.

Article 261.

The decision referred to in Articles 257, 259 and 260 of this law shall

be published in the “Official Gazette of the Republic of Serbia”.

Article 262.

Collective agreement with an employer shall be binding for employees

that are not members of the trade union – signatory of the collective agreement.

6. Validity and cancellation of collective agreement

Article 263.

Collective agreement shall be concluded for a three-year term.

Upon expiry of the term referred to in para. 1 of this Article, collective

agreement becomes invalid unless the parties to the collective agreement agree

otherwise 30 days before expiry of such collective agreement at the latest.

- 73 -

Article 264.

Validity of collective agreement before expiry of the term referred to

in Article 263 of this law may be cancelled by agreement of the parties or cancellation

in the manner stipulated in this agreement.

In case of cancellation, collective agreement shall be applied six

months after the cancellation at the latest, where the parties shall initiate the

bargaining process 15 days after the cancellation at the latest.

7. Resolution of disputes

Article 265.

Disputed issues in implementation of a collective agreement may be

resolved by arbitrage set up by parties to the collective agreement 15 days after the

dispute has arisen at the latest.

Decision of arbitrage on the disputed issue shall be binding to the

parties.

Composition of arbitrage and rules of procedure shall be covered by

collective agreement.

Parties to collective agreement may claim their rights granted by the

by collective agreement before the competent court.

8. Registration of collective agreements

Article 266.

General and special collective agreements, as well as amendments to

them shall be registered with the ministry.

Minister shall also prescribe content and procedure for registration of

collective agreements.

9. Publication of collective agreement

Article 267.

General and special collective agreement shall be published in the

“Official Gazette of the Republic of Serbia”.

Other collective agreements shall include a provision on publication of

the agreement.

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XXI. SUPERVISION

Article 268.

Supervision over implementation of this law, other labor regulations,

general documents and the labor contracts regulating rights, duties and responsibilities

of employees shall be conducted by labor inspection.

Article 269.

In performing the supervisory duties, a labor inspector shall be

authorized to issue a decision binding the employer to eliminate identified violations

of the law, general document and labor law.

The employer shall inform the labor inspection not later than 15 days

after expiry of the term for elimination of the identified violation on the

implementation of the relevant decision.

Article 270.

A labor inspector shall file for offence proceedings should he/she find

that an employer, or director or entrepreneur, committed an offence by way of

violation of the law or other regulation covering labor relations.

Article 271.

Should a labor inspector find that an employer obviously violated

rights of an employer by way of termination of labor contract and that employee has

initiated a labor dispute, the inspector shall, upon request of the employee postpone

execution of such termination issuing his/her own decision, until valid decision of the

court has been passed.

An employee may file a request in terms of para. 1 of this Article 30

days after initiation of labor dispute at the latest.

The labor inspector shall pass a decision on postponing the execution

of termination of labor contract by employer 15 days after the employee has filed such

request at the latest, if all requirements referred to in para. 1 and 2 of this Article have

been met.

Article 272.

The decision of the labor inspector may be contested with the minister

8 days after the decision has been served at the latest.

Appeal against decision referred to in Article 271 of this law shall not

postpone execution of that decision.

- 75 -

Minister shall pass the final decision 15 days after receipt of the appeal

at the latest.

The final decision referred to in Article 271. para. 1 of this law shall

not be contested in an administrative procedure

XXII. PENAL PROVISIONS

Article 273.

Employer in the capacity of legal entity shall be fined in the amount of

CSD 800,000 to 1,000,000 for the following offences:

1) if he/she violates prohibition of discrimination pursuant to this law

(Articles 18 - 21);

2) if he/she fails to conclude a labor contract or other contract,

pursuant to this law (Article 33 and Article 197 - 202);

3) if he/she fails to furnish a copy of the mandatory social insurance

policy to an employee (Article 35);

4) if he/she fails to pay the salary or minimum wage (Articles 104 and

111);

5) if he/she fails to pay the salary in money, except in case referred to

in Article 45 of this law (Article 110);

6) if he/she fails to pass a program of redundancy problem

management (Article 153);

7) if he/she cancels the labor contract contrary to provisions of this

law (Articles 179 - 181 and Articles 187 & 188);

8) if he/she fails to pay all outstanding salary, compensation of salary

and other emoluments (Article 186);

9) if he/she fails to comply with decision of a labor inspector pursuant

to provisions of this law (Article 271);

10) if he/she prevents a labor inspector to conduct supervision or

prevents such supervision in other ways.

Entrepreneur shall be fined in the amount of CSD 400,000 to 500.000

for an offence referred to in para. 1 of this Article.

A responsible person in a legal entity shall be fined in the amount of

CSD 40,000 to 50.000 for an offence referred to in para. 1 of this Article.

If the offence referred to in para. 1 of this Article inflicts material

damage to an employee or other natural person or legal entity, a protective measure –

prohibition to pursue business – may be pronounced to the employer, pursuant to the

law.

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Article 274.

Employer in the capacity of a legal entity shall be fined in the amount

of CSD 600,000 to 1,000,000 for the following offences:

1) if he/she calls to account a representative of employees proceeding

pursuant to the law and collective agreement (Article 13);

2) if he/she enters into labor relations with a person below the age of

18 contrary to provisions of this law (Article 25);

3) if he/she fails to register a labor contract with the competent selfgovernment

body pursuant to provisions of this law (Article 46);

4) if he/she orders overtime to an employee contrary to provisions of

this law (Article 53);

5) if he/she conducts re-scheduling of work time contrary to

provisions of this law (Articles 57, 59 and 60);

6) if he/she fails to provide day work to an employee who works

nights contrary to provisions of this law (Article 62);

7) if he/she fails to provide change of shift to an employee who works

in shifts contrary to provisions of this law (Article 63);

8) if he/she orders an employee below the age of 18 to work contrary

to provisions of this law (Articles 84, 87 and 88);

9) if he/she orders an employee aged between 18 and 21 to work

contrary to provisions of this law (Article 85);

10) if he/she fails to provide for protection of motherhood and rights

based on childcare and special care of the child or caregiving to other person pursuant

to provisions of this law (Articles 89 - 100);

11) if he/she fails to pay compensation of salary, reimbursement of

expense or any other emolument pursuant to provisions of this law (Article 114 -

120);

12) if he/she fails to issue calculation statement for the salary pursuant

to provisions of this law (Article 121);

13) if he/she fails to keep monthly records of salary and compensation

of salary pursuant to provisions of this law (Article 122);

14) if he/she denies rights to employees resulting from the labor

relationship contrary to provisions of this law (Article 147);

15) if he/she passes a decision on suspension of an employee contrary

to provisions of this law or if he/she suspends an employee for a term longer than

stipulated under this law (Articles 165 - 170);

16) if he/she offers a labor contract annex contrary to provisions of this

law (Articles 171 - 174);

17) if he/she decides on an individual right, duty or responsibility of an

employee without passing a pertinent decision or without serving it to the employee

pursuant to provisions of this law (Article 193);

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18) if he/she fails to comply with decision of a labor inspector pursuant

to provisions of this law (Article 269).

Entrepreneur shall be fined in the amount of CSD 300,000 to 500,000

for the offences referred to in para. 1 of this Article.

A responsible person in a legal entity shall be fined in the amount of

CSD 30,000 to 50,000 for the offences referred to in para. 1 of this Article.

Article 275.

Employer in the capacity of a legal entity shall be fined in the amount

of CSD 400,000 to 600,000 for the following offences:

1) if he/she denies the right to annual holiday to an employee (Article

68 and Article 75, para. 3);

2) if he/she denies the right to re-assume work to an employee who

was granted dormancy of the labor relationship (Article 79);

3) if he/she fails to provide work to match the remaining abilities or

other adequate job (Article 101).

An entrepreneur shall be fined in the amount of CSD 100,000 to

300,000 for the offences referred to in para. 1 of this Article.

A responsible person in a legal entity shall be fined in the amount of

CSD 20,000 to 40,000 for the offences referred to in para. 1 of this Article.

Article 276.

Employer in the capacity of a legal entity or entrepreneur shall be fined

on-the-spot in the amount of CSD 20,000 for the following offences:

1) if he/she fails to provide time for a daily and weekly recesses

pursuant to provisions of this law (Articles 64 through 67);

2) if he/she denies the right to severance pay to an employee pursuant

to provisions of this law (Article 158);

3) if he/she denies the right to notice period or compensation of salary

to an employee pursuant to this Law (Article 189);

4) if he/she fails to return properly filled-out workbook to an

employee (Article 204).

A responsible person in a legal entity shall be fined in the amount of

CSD 5,000 for the offences referred to in para. 1 of this Article.

The fine referred to in paras 1 and 2 of this Article shall be collected

by the labor inspector on-the-spot.

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XXIII. TRANSITIONAL AND FINAL PROVISIONS

Article 277.

Until pertinent by-laws in terms of Articles 46 para. 2; 96, para. 5;103,

para. 6; 204, para. 6; 217, para. 2 and 266, para. 2 of this law, the following

regulations shall remain in force:

1) Rules on the procedure and manner of registering labor contract for

work done outside the employer’s premises and jobs of house help ("Official Gazette

RS", vol. 1/02);

2) Rules on conditions, procedure and manner of exercising the right

to leave for special care of a child ("Official Gazette RS", vol. 1/02);

3) Rules for issuing and content of medical certificate substantiating

temporary inability to work for employees pursuant to health insurance regulations

("Official Gazette RS", vol. 1/02);

4) Workbook Rules ("Official Gazette RS", vol. 17/97);

5) Rules on entry of trade unions into register ("Official Gazette RS",

vols. 6/97, 33/97, 49/00, 18/01 and 64/04);

6) Rules on registration of collective agreements ("Official Gazette

RS", vol. 22/97).

Article 278.

An employer shall, with all employees who have entered into labor

relations by the day of effectuation of this law who still do not have a labor contract

concluded, conclude a labor contract regulating mutual rights, duties and

responsibilities incorporating provisions in terms of Article 33, para. 1 of this law,

except for points 4) - 8).

The contract referred to in para. 1 of this Article shall not imply entry

into labor relations.

Article 279.

Employers who have enacted decision of re-scheduling of working

hours for 2005 by the day of effectuation of this law shall organize working hours of

the employees pursuant to that decision.

Article 280.

Employee who has not used the whole of his/her annual leave for 2004

may use the annual leave for that year pursuant to regulations in force before

enactment of this law, if it is more favorable for him.

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Article 281.

A procedure for termination of a labor contract that was initiated, but

not completed of this law, shall be finalized pursuant to provisions in force by the day

of effectuation of this law.

Article 282.

A procedure establishing redundancies that was initiated, but not

completed of this law, shall be finalized pursuant to provisions in force by the day of

effectuation of this law.

Employee to whom the final decision of a competent body, relating to

discontinuation of the need for his/her work, grants a right based on regulation in

force by the day of effectuation of this law – shall exercise that right pursuant to these

regulations.

Article 283.

Employee to whom right to severance pay in terms of Article 107 of

the Labor Law ("Official Gazette RS", vols. 70/01 & 73/01) has been granted by the

day of effectuation of this law – shall exercise that right pursuant to that law.

Article 284.

Provisions of the collective agreement in force by the day of

effectuation of this law that do not collide with provisions of this law shall remain in

force until a collective agreement pursuant to this Law is not concluded.

Provisions of general and special collective agreement concluded

before December 21st 2001 in force by the day of effectuation of this law, that do not

collide with provisions of this law shall remain in force until a collective agreement

pursuant to this Law is concluded, but not longer that six months after effectuation of

this law.

Article 285.

The Fund bodies, pursuant to provisions Articles 129-136 of this law,

shall be elected 30 days after effectuation of this law at the latest.

Employee to whom the right to claim, pursuant to Article 139, para. 2

of this law, is granted between the day of effectuation of this law and the day of

election of the Fund bodies shall file his/her application after the Fund bodies have

been elected at the latest.

Article 286.

The Labor Law ("Official Gazette RS", vols. 70/01 and 73/01)

becomes invalid on the day of effectuation of this law.

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Article 287.

This law shall come into force on the eighth day following its

publication in the Official Gazette of the Republic of Serbia.

Transitional and final provisions

to the Law on Amendments to the Labor Law

Article 11.

An employed woman who started using her maternity leave

pursuant to Article 94 of the Labor Law ("Official Gazette RS", vol. 24/05) by the day

of effectuation of this law – shall continue exercising the right to maternity and leave

for childcare pursuant to provisions that Article.

The right referred to in para. 1 of this Article shall be granted to the

father of the child, as well.

Article 12.

Provisions of Article 118, points 5) & 6) of the Labor Law ("Official

Gazette RS", vol. 24/05) shall become invalid as of the day of effectuation of this law,

and shall be applied as of January 1st 2006.

Provisions of Article 120, points 2) & 3) of the Labor Law ("Official Gazette

RS", vol. 24/05) shall become invalid as of January 1st 2006.

Article 13.

This Law shall come into force on the day following its publication in

the “Official Gazette of the Republic of Serbia” while provision of Article 4 of this

law shall be applied as of January 1st 2006.

SB/19.07.2005/PT