Law on Employment of Foreigners

The new Law on Employment of Foreigners, adopted on November 25, 2014 by the Assembly of the Republic of Serbia, has entered into force on December 4, 2014.

By enactment of the new Law on Employment of Foreigners, the Republic of Serbia has practically made one more step forward in the European integration process in the area designated as a labour movement freedom. Above mentioned regulation has also harmonized with the provisions of WTO’s General Agreement on Trade and Services , which is intended for its members, as well as with requirements set by WTO’s members in the course of accession process of the Republic of Serbia to the WTO.

The new Law has harmonized the previous Law on Conditions on Employment Relationship Establishment with Foreigners from 1978. with meanwhile adopted amendments on the series of regulations in related fields. Due to the uniformity of the regulation, the Law has made positive atmosphere for foreign investment.

Previously applicable Law provided the obligation, only for foreigners who are establishing the employment relationship in the Republic of Serbia, to obtain the approval for establishment of the employment relationship (so-called Work Permits). In accordance with that, huge number of foreigners, who factually performed the work in Serbia, did not have an obligation to obtain Work Permit. New Law provides the obligation for wider range of foreigners to obtain the Permits for Work. In principle, every foreigner who realizes labour rights shall be obliged to obtain the Work Permit (therefore, not only in the case of establishment of employment relationship).

The new Law has also introduced so-called Labour Market Test – previous verification if there are domestic citizens on the National Employment Service’s evidence who fulfill the conditions for entry into employment at the certain workplace.

The last novelty provided by the new Law is an obligation to provide equal treatment between foreigners and domestic citizens, when it comes to the employment conditions, salary payments, dismissal conditions and acquiring of social benefits.

New Law has separately provided the EU citizens employment manner. Transitional and final provisions explicitly prescribe that these articles shall be applicable as soon as the Republic of Serbia acquires full membership in the European Union.

Employment of the foreigners shall realize if foreigner owns:

1) Approval for Temporary Residence, regardless of duration of the temporary residence, or Approval for Permanent Residence;

2) Permit for Work.

Temporary residence of the foreigner, in terms of Law on Foreigners, shall mean:

1) Temporary Residence up to the 90 days;
2) Temporary Residence up to the one year;
3) Permanent Residence.

The Law provides two types of Permits for Work:

1) Personal Work Permit;
2) Work Permit, under which differ following subtypes:

  1. Work Permit for Employment;
  2. Work Permit for Addressed Persons;
  3. Work Permit for Movement within Company Registered Abroad;
  4. Work Permit for Independent Professional;
  5. Work Permit for Self-employment.

Cases under the b), c), and d) with common term referred to as Work Permit for Special Employment Cases.

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