Serbia : main features of the recent labor law reform

Following much heated debate both inside and outside the parliament building, including a general strike, the Serbian Parliament on July 18 2014 adopted the latest reform to the labor law, which came into force on July 29 2014. Required by the IMF in exchange for further financial support, the reform voted in by parliamentarians loosen temporary work contracts and modify provisions concerning paid leave, dismissals procedures, compensation payments and conditions to extend collective agreements.
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Flexible employment. The maximum duration of fixed term employment contracts has been extended from12 to 24 months whilst in specific cases this can be longer.For example, a fixed term employment contract for a first time employee in a company that has been established for less than 1 year before the offer of employment can be set at 36 months. Project completion employment dates can last until the completion of the project regardless of the duration.Fixed term employment contracts can be set for up to 5 years for unemployed workers with 5 years or less before retirement age.

Transferring from on job to another. An employer no longer needs to write an amendment to an employee work contract in order to transfer an employee to a different but appropriate post in order to complete essential work.Such transfers can last for up to 45 days in any 12month period. During the transfer period the employee can maintain his/her original salary if it exceeds the equivalent for the new post.

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