Category: Labor

08 May, 2020
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Decree postpones deadline for hiring qualified new employees

At the end of 2019 and at the beginning of this year, the world of IT entrepreneurs saw changes with the adoption of amendments to the Personal Income Tax Act and the introduction of the independence test in order to determine who is actually a lump sum entrepreneur and who is avoiding income tax payments (Independence test).  Namely, the amendments to the Personal Income Tax Act and the Compulsory Social Security Contributions Act set a significantly higher rate for taxes and contributions for entrepreneurs who would be found to have failed the Independence test, and special reliefs were given for […]

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08 May, 2020
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National Assembly bids farewell to state of emergency and (some) emergency measures

Since the introduction of the state of emergency in Serbia on March 15, 2020, the Government issued a number of decrees restricting certain human rights and freedoms, such as freedom of assembly, and providing novel regulatory framework for functioning of the public sector, economy and judiciary during the state of emergency. While the primary goal of those measures was to protect public health, they also had the broader economic protection of citizens in mind, be it employees, unemployed persons or senior citizens.   However, the favorable epidemiological situation in Serbia enabled – and the needs of the economy necessitated – […]

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09 Apr, 2020
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COVID-19 and annual leave – who may use it and when?

The state of emergency, introduced in Serbia on March 15, 2020 due to the COVID-19 pandemic, had a major impact on employment relations.  Many employees have switched to flexible ways of working, meaning working remotely or from home, while others have continued working on-site at their usual place of work. Regardless of whether they work remotely or on-site, employees may wonder how their rights, guaranteed under the Labor Act (“Act”), are affected by the current situation. Specifically, employees may wonder if they are entitled to use annual leave during the state of emergency. The Government stepped in to clarify.   […]

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08 Apr, 2020
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COVID-19 and employment – is there room for full salary compensation?

In the wake of the COVID-19 pandemic and the inevitable economic crisis, authorities are constantly looking for ways to lend a hand to the Serbian economy.  Yet, it is the employment relations that are likely to suffer the most in the state of emergency, as economic effects of the introduced measures routinely spill over to employees, who, in turn, often face salary reductions or layoffs. On the other hand, employees who continued working during the pandemic face another serious threat – the risk of COVID-19 infection.  Aware of this risk, the Government suggested certain financial measures to help employees who […]

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06 Apr, 2020
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Covid-19 pandemic puts Global Labor Regulations to test – Rights of Employees and Employers in Bosnia And Herzegovina

The COVID-19 pandemic has put labor law to the situational sensitivity test. How should the burden of emerging circumstances between employers and employees be shouldered considering that the income of both are at serious risk? Sources of labor law, to some extent, already contain answers to the flood of questions that have arisen. The trick is how to apply them adequately to each circumstance so that they protect the most vulnerable and that the burden of the economic effects of the pandemic, if possible, is equitably distributed. Here we analyze the relevant labor legislation and decisions issued by the authorities […]

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Serbia Unleashes Unprecedented EUR 5.1 Billion Aid Package

On March 31, 2020, the Serbian Government adopted a €5.1 billion program of support measures for the economy (the Serbian Program).  According to the Minister of Finance, Siniša Mali, who announced the measures earlier in the day “[the Serbian Program] is equivalent to half of the State budget and 11% of national GDP”. What makes it a legal rarity is that this is a precedent of ‘Covid-19 EU Association State aid’.  In other words, this is the first case of Covid-19 related measures and aid being introduced in an EU association country based on Article 107(b) and (c) of the […]

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31 Mar, 2020
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The important link between the State and employers in the struggle against the Covid-19 pandemic

The outbreak of the COVID-19 pandemic pushed authorities to take measures to protect public health.  These measures have a growing impact on business activities in all countries affected by the coronavirus.  Furthermore, these measures caused employers to take multiple steps in order to maintain their business continuity. Because of these extraordinary circumstances, massive layoffs and other negative consequences on employees are surely to be expected. Despite all the efforts of the countries to boost their economies, it will be the employees who will be the most affected by the current situation. Thus, employees will suffer both from the pandemic’s potential […]

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26 Mar, 2020
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Employment during COVID-19: the Ministry has spoken

The tentacles of the COVID-19 pandemic have reached all aspects of life in Serbia.  Since the declaration of the state of emergency on March 15, 2020, authorities have been actively introducing economic support measures for both the public and private sectors, in a bid to stem the pandemic’s economic fallout. These measures are a huge shock for businesses in Serbia, but they also affect one of the most vulnerable categories of citizens – employees. Both employees and employers tend to be poorly informed about their own and each other’s rights and duties. To keep it simple and to keep everyone […]

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25 Mar, 2020
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Restriction of movement in Bosnia and Herzegovina – two Entities with a common foe

Many states – if not all – have deemed it necessary to restrict citizens’ rights during the COVID-19 pandemic just to stay afloat. Typically, states opt to limit freedom of movement by placing certain categories of people under what effectively amounts to house arrest and imposing mandatory curfews on the rest, irrespective of age. In that regard, Bosnia and Herzegovina (“BH”) is no exception. While the Council of Ministers of BH declared a “state of natural or other disaster” in recognition of the danger posed by COVID-19, measures that would hopefully slow the advance of the virus were announced by […]

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COVID-19: Compare multiple jurisdictions across the globe with TerraLex

We are pleased to share the TerraLex Coronavirus Business Response Resource Center with you. It is a compilation of business solution resources from TerraLex members, some of the finest and best ranked firms, from around the globe relevant to contracts, labor, business continuity, etc. TerraLex and its members understand that in the rapidly evolving challenges posed by coronavirus and the prospect of recessionary times ahead, businesses are struggling with a variety of issues and looking to their trusted advisors for help. This Resource Center functions just like our cross-border guides. Visitors can select specific topics of interest and specific jurisdictions […]

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16 Mar, 2020
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State of emergency and remote work of employees

Due to the global COVID-19 pandemic , a state of emergency was declared in Serbia on March 15, 2020. This decision had the effect of restricting movement of people in order to prevent further spread of the virus and reduce the number of those infected.  As of March 16, classes at schools and universities have been suspended, and kindergartens have been closed. According to the legal framework of the Republic of Serbia, a state of emergency can last for a maximum of 90 days, with the possibility of extension. In line with these measures, some employers have decided that their […]

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14 Mar, 2020
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Changes in employers business results with regard to impact of COVID-19

Employers may lay off employees only after their businesses suffer losses from COVID-19 pandemic. Employers likely feel threatened by the COVID-19 pandemic and they wish to protect their businesses from the pandemic’s economic effects. To do this on a large-scale, they may choose to lay off employees in order to reduce expenses and potential losses, claiming they have valid economic reasons from Article 179 (5)(1) of the Employment Act. However, from our point of view, laying off employees before losses actually manifest in the company’s business results is against the law. The Serbian Supreme Court of Cassation shares this view. […]

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14 Mar, 2020
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Impact of COVID-19 on employment rights and obligations in Serbia

Impact of COVID-19 on employment rights and obligations in Serbia If you thought that in the text bellow we are going to analyze on which part of a employer-employee hierarchy chain is fair for dangerous virus to take the hardest economic punch, well you are not entirely wrong. But most importantly, it is of the great importance for all of us, whatever you are employer or employee, to act responsibly, accountably and conscientiously.    We have analyzed the provisions of the Employment Act and the Occupational Health and Safety Act, as relevant laws governing this area to provide guidance on […]

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