Member Article

The Parliament of the Republic of Serbia adopted the Law on Employment of Foreigners (the “Law”) on 25 November 2014. The Law will come into force on the eighth day following its publication in the “Official Gazette of the Republic of Serbia”, i.e. on 4 December 2014

The Law regulates the employment of foreigners in the Republic of Serbia in a different manner than compared with the currently applicable Law on the Conditions for Employment of Foreign Citizens. This Law, adopted back in 1978 – in a significantly different social and economic environment - requires that only foreigners who enter into an employment agreement in Serbia, need to obtain a work permit. Accordingly, a significant number of foreigners who work in Serbia (such as seconded employees or directors who have not entered into an employment agreement) are currently not obliged to secure a work permit.

On the other hand, the Law regulates the employment of foreigners in a manner that is more in line with current realities. Specifically, it requires a much broader circle of foreigners to possess a work permit.

In general, every foreigner who exercises the right to work in Serbia is obliged to possess a work permit. However, the Law underlines certain exceptions, the most important one being that foreigners who reside in Serbia for less than 90 days within a 6 month period, and who are: (i) shareholders, representatives or members of corporate bodies – and who have not entered into an employment relationship, or (ii) seconded employees who work on the basis of a contract for the purchase of goods, the lease of machines or their installation, delivery, or repair or a combination thereof, or for training purposes, are not required to have a work permit.

The Law distinguishes between two types of work permits:

Personal work permit – issued at the request of a foreigner with permanent residence in Serbia, a foreigner who is a refugee or other special category individual (asylum seeker, human trafficking victim etc.), a foreigner who is an immediate family member of a foreigner with permanent residency or a refugee, a foreigner who is an immediate member of a Serbian citizen, or a foreigner of Serbian origin up to the third generation in continuous line.

Work permit - the Law further distinguishes between three different types of work permits:

Employment permit

An employment permit is issued provided that the employer, before submitting the application, has not terminated employment for the same position based on redundancy, and that the employer could not find an unemployed Serbian citizen with the required qualifications through the National Employment Service, one month before submitting the application.

These conditions shall be further regulated in the bylaws to be adopted by the competent minister within three months following the coming into force of the Law.

Work permit for special cases of employment

A work permit for special cases of employment shall be issued for: (i)seconded employees, (ii) moving employees within a company, and (iii)independent professionals. 

The Law requires that seconded employees must be employed with a foreign employer for at least one year, and that a contract between a foreign employer and a Serbian employer be concluded.

The moving of employees within a company includes the secondment of employees to a branch office or subsidiary in Serbia. Seconded employees must be employed with the foreign employer for at least one year as key personnel (manager, specialist or director), and must perform the same work in Serbia as with the foreign employer. In exceptional circumstances, this type of work permit may be issued to a trainee.

A work permit for independent professionals can be issued to foreigners (self-employed individuals or entrepreneurs who perform activities in Serbia) based on a contract with a Serbian employer. In addition, the Law envisages that a foreigner must have adequate higher education and/or technical qualifications and adequate work experience.

Self-employment work permit

A self-employment work permit relates to the employment of a foreigner in a company in which the foreigner is the only shareholder or a controlling shareholder.

The Law anticipates the possibility that the Government will limit the number of work permits issued, i.e. introduce quotas, in cases of work market disturbance.

Work permits are issued by the National Employment Service, for the same period as the corresponding residency permit. Costs of issuance are borne by the employer.