All citizens whose employment was terminated (former employees if they have been working at least for one year are entitled to the financial compensation by National Employment Service (NES). Depending on the time spent in employment, former employees have the right to a financial compensation for a period from 3 to 24 months.
National Employment Service has applied an incorrect method of calculating this financial benefit, which has led to the lower payments than the one beneficiary is entitled to by law.
Amount of financial benefit cannot be lower than 80 or higher than 160 percent of the minimum wage in accordance with the regulations on employment for the month in which the payment is made.
In accordance with the Labor Law, Social and Economic Council of the Republic of Serbia has the jurisdiction to determine the amount of the minimum wage. If the decision to determine minimum wage is not made within 10 days from the start of negotiations, decision will be made by the Government of Serbia. The minimum wage is determined by labor time, for a period of at least six months.
Misinterpretation of the provisions for determining the amounts of the minimum wages by NES has led to the fact that the beneficiaries of financial compensation were paid less compensation than the law stipulates, which caused hundreds of lawsuits in this matter.
NES’s current view is that the starting point for calculating the financial compensation is gross minimum wage, while bith the Basic Court in Novi Sad and the Appellate Court in Novi Sad have expressed the view through their decisions in this matter that the net financial compensation for unemployed cannot be lower than 80% or higher than 160% of the minimum wages, after it was reduced by contributes for pension and disability insurance.