Labor & Employment Law Serbia

Other areas of expertise:

In today’s business environment, labor and employment law is one of the most dynamic and important legal areas. Employees are a company’s greatest asset and, at the same time, they fall into the area that is most tightly regulated.

From work rulebooks and employment agreements, through occupational health and safety, to data protection and collective bargaining, employers must ensure all processes comply with the law.

In employment law Serbia, as in the EU, trends show growing legislative focus on protecting employees’ rights, combating discrimination and workplace harassment, and supporting flexible work models such as remote work, cooperation with freelancers, and international labor mobility.

Employers who wish to have stable business operations must recognize that investing in legally sound employment relations represents an investment in long-term growth.

Why Zunic Law for Employment Law?

Decades of experience – our team has a long track record of advising domestic and foreign employers on all aspects of employment law.
End-to-end support – we assist employers at every stage of the employment relationship, from hiring and drafting contracts to resolving court disputes.
Preventive approach – we focus on risk prevention by drafting rulebooks, policies, and training to avoid disputes.
Multidisciplinary – we connect employment law with data protection, tax law, and ESG standards for a comprehensive approach.
Client focus – we tailor solutions to industry specifics, whether IT, manufacturing, retail, or finance.

Our Approach: Practical and Sustainable Solutions

Our goal is to make employment law a tool for stable, predictable operations. That’s why we develop internal acts, policies, and procedures that fit the client’s real-world business model, instead of complicated rules that hinder work.

Beyond classic legal expertise, we include modern tools, trainings, and AI support for compliance monitoring. Our approach covers preventive action through internal audits and risk control, reactive support when a violation has already occurred, and strategic advice on ESG standards and responsible business conduct.

Key Practice Areas in Labor & Employment

Implementing appropriate procedures and policies
Employment subsidies and tax incentives
Employee compliance training
Employment termination
Internal and out-of-court dispute resolution
Employment litigation
Occupational health and safety
Data Protection and Privacy at the Workplace
Collective Labor Relations and Class Action
Employee mobility and secondment
Independent Contractors and Non-Employment Engagement

Below are details by area, with emphasis on concrete outcomes we deliver.

1) Implementing Appropriate Procedures and Policies

Employment contract and rulebooks – we prepare a precisely regulated employment contract, a Work Rulebook, a Rulebook on Organization and Systematization, an Occupational Health and Safety Rulebook, a Personal Data Protection Rulebook, a Rulebook on Community Service, and other internal acts that clearly define the rights and obligations of employers and employees.
Termination of employment – drafting procedures and documentation for lawful terminations while minimizing litigation risk.
Non-compete clauses and non-solicitation clauses – agreements and provisions that protect the employer’s business interests from unfair competition and poaching.
Confidential business information – creating non—disclosure agreements and procedures to protect trade secrets and sensitive company data.
Codes of conduct – regulating ethical standards, professional rules, and employee behavior in line with the company’s values and goals.
Data protection and video surveillance – drafting personal data protection rulebooks and video surveillance policies aligned with privacy regulations.
Transfer of intellectual property rights – agreements ensuring that the work product of employees and contractors becomes the employer’s property.
Internal whistleblowing, anti-harassment, and anti-discrimination – rulebooks and procedures that ensure reporting of irregularities and prevent mobbing and discrimination.
Bring Your Own Device (BYOD) policy – rules for using personal devices for business while safeguarding company data.
Anti-corruption policy – introducing internal mechanisms and procedures that prevent corrupt practices and ensure ethical business.

Result: clearly defined, practically applicable rules that protect both employers and employees, ensure legal compliance, and build a healthy work culture.

2) Employment Subsidies and Tax Incentives

We analyze an employer’s options for using subsidies and tax incentives when hiring new workers.
We prepare and file complete documentation with the National Employment Service and tax authorities.
Structure contracts and internal acts so the employer can use incentives long-term without the risk of subsequent disputes.
Advise on combining local and international employment support programs.
We advise on employees’ opportunities to acquire equity in the company (ESOP).

Result: significantly reduced hiring costs and increased employer competitiveness on the labor market.

3) Employee compliance training

We organize trainings for management, HR, and employees on current employment-law obligations, with topics revolving around: mobbing, discrimination, data protection, workplace safety, and ESG standards.
We apply a practical approach: case studies, simulations, and workshops tailored to the client’s industry.
Specialized management trainings to support decision-making aligned with the legal framework and best legal practices.

Result: higher legal certainty and employee awareness, reduced risk of violations, and improved workplace culture.

4) Employment termination

We advise employers on all forms of employment termination (regular, summary dismissal, mutual termination).
Prepare decisions and documentation in accordance with the law to reduce the risk of challenges.
Assist in negotiations with employees and in concluding agreements that save time and resources.
We pay special attention to dismissals in restructuring or downsizing contexts.

Result: legally secure and efficient terminations while minimizing risk of litigation.

5) Internal and out-of-court dispute resolution

We mediate between employers and employees to resolve disputes quickly and without court proceedings.
Organize negotiations and mediation in cases of termination, damages, or rights violations, to reach a solution that satisfies both sides and prevents escalation.
We represent clients with the goal of minimizing high costs and lengthy procedures while preserving the employer’s reputation.

Result: disputes resolved efficiently through negotiation and agreements, without unnecessary court costs or loss of employee trust.

6) Employment Litigation

Annulment of termination – representing employers in proceedings challenging the lawfulness of dismissals.
Annulment of annexes to employment contracts – resolving disputes over changes to working conditions via contract annexes.
Annulment of other employer decisions – representation in disputes over reassignment or disciplinary measures.
Damages for workplace injury – defense in cases where employees seek compensation.
Workplace mobbing – representation in cases alleging harassment or abuse.
Workplace discrimination – representation in proceedings concerning alleged discrimination.

Result: comprehensive legal protection for employers in all types of labor disputes, with a realistic assessment of success and risk control.

7) Occupational Health and Safety

We advise employers on legal obligations regarding employees’ health and safety.
Prepare risk assessments, evacuation plans, and emergency protocols.
We organize employee trainings and testing in line with legal standards.
Represent employers before the labor inspectorate and help them to remedy irregularities.

Result: compliant and safe working environments that reduce the risk of injuries and inspection fines.

8) Data Protection and Privacy at the Workplace

We draft personal data protection rulebooks and procedures for the lawful processing of employee data.
Advise on video surveillance, performance monitoring, and other forms of employee oversight.
We implement GDPR standards and align internal acts with domestic regulations.
Provide privacy trainings for HR and management.

Result: lawful and transparent data processing, preserved employee trust, and avoidance of regulatory fines.

9) Collective Labor Relations and Class Action

We participate in negotiations on collective agreements with unions and employee representative bodies.
We advise on employer obligations arising from collective agreements and statutory provisions.
Represent employers in collective disputes before relevant authorities and in mediation proceedings.
We help structure internal policies in line with negotiated arrangements.

Result: stable and predictable collective relations that reduce the risk of strikes and collective disputes.

10) Employee Mobility and Secondment

We advise on all aspects of assigning employees to work abroad.
Prepare contracts and internal acts aligned with host-country regulations.
We help ensure compliance with tax, labor, and social security rules.
Organize procedures for obtaining permits and other administrative requirements.

Result: legally secure international mobility without the risk of sanctions or work interruptions.

11) Independent Contractors and Non-Employment Engagement

We prepare agreements with sole proprietors and freelancers that ensure business flexibility.
Advise on the tax and employment-law implications of such engagements.
We structure arrangements to reduce the risk of reclassifying sole entrepreneurs to fully employed status.
We help employers leverage the benefits of collaborating with freelancers while staying legally compliant.

Result: efficient and flexible cooperation with external contributors, with full legal compliance and minimized risk.

What Collaboration with Us Looks Like

Initial analysis – we assess the employer’s internal acts and processes to identify risks.
Strategy definition – we propose a plan of measures and documents that ensure compliance.
Document preparation – we draft rulebooks, contracts, and procedures.
Implementation and training – we put acts into practice and train employees.
Ongoing support – we regularly update documents and advise employers.

Examples of Completed Projects (Non-Confidential)

Restructuring HR policy in an IT company – preparing a complete set of rulebooks and employment contracts.
Representing an employer in a mobbing dispute – successfully concluded in the employer’s favor.
Organizing work abroad – preparing documentation for assigning employees to work in the EU.
Data protection training program – educating management and employees in the financial sector.

Vitomir Žunić

Tijana Zunic Marić

Jelena Đukanović

Aleksandra Jaćimović

Frequently Asked Questions (FAQ)

1. Is every company required to have a Employment Rulebook?

An Employment Rulebook is mandatory for employers with more than 10 employees.

It regulates key employment matters, from working hours, annual leave, and disciplinary measures to termination procedures.

Although smaller employers are not obliged to adopt a rulebook, in practice, many do so for legal certainty and transparency.

A good rulebook resolves many potential issues in advance and reduces the risk of misunderstandings and disputes.

2. When can an employer dismiss an employee without risk of a dispute?

Termination is sensitive and may be carried out only in cases clearly prescribed by law, when there is a justified reason, such as breach of work discipline, redundancy, or failure to perform duties.

The termination procedure must be properly conducted and documented, as procedural errors are the most common reason employers lose cases.

We therefore recommend seeking legal advice before any dismissal decision to minimize the risk of annulment.

3. What is the difference between mobbing and discrimination at work?

Mobbing is systematic harassment or abuse of an employee by the employer or other employees, while discrimination means unequal treatment based on personal characteristics (sex, age, nationality, disability, etc.).

Both mobbing and discrimination can have serious consequences for the employer, from damages to reputational harm.

Preventive measures such as rulebooks, training, and clearly defined reporting procedures are the best way to reduce risks and demonstrate compliance.

4. Can an employer use video surveillance and monitor employees’ communications?

Video surveillance is allowed only if clearly justified, e.g., to protect people and property, and if it is regulated in advance through a policy and employee notice.

As for monitoring communications (email, internet), the employer must balance the right to privacy with the legitimate interest of protecting the business.

Any decision to introduce monitoring must be transparent, proportionate, and in line with the Personal Data Protection Act and the GDPR. Improper monitoring can lead to high fines and serious reputational consequences.

5. What rights does an employee have when working abroad?

When sending employees abroad, the employer must ensure they retain basic rights under their employment contract while also complying with the host country’s rules.

This includes minimum wage, working hours, occupational health and safety, and social security rights.

The employer must prepare contracts and acts that ensure full compliance and provide the employee with legal certainty and protection.

6. How does engaging a freelancer differ from establishing an employment relationship?

Freelancers and sole proprietors provide services under a service contract, copyright agreement, or business cooperation agreement, while employment is established with an employment contract.

The key difference is the level of subordination and obligations: an employee is subordinate to the employer and entitled to all benefits (annual leave, sick leave, contributions), whereas a freelancer has greater autonomy but is responsible for their own taxes and contributions.

If the engagement of a freelancer in substance functions as employment, there is a risk of “reclassification,” which can lead to penalties for the employer.

7. What should I do if an employee files a lawsuit against me?

First, analyze the legal basis of the claim and gather documentation proving the lawfulness of the employer’s actions.

The most common claims concern dismissals, damages, mobbing, and discrimination. It is crucial to have evidence that all procedures were conducted in accordance with the law and internal acts.

An experienced legal team can help the employer assess the chances of success and choose a strategy—from settlement to full litigation.

8. Is it more cost-effective to resolve labor disputes in court or by settlement?

Court proceedings can be lengthy and expensive with uncertain outcomes. Settlement often offers a faster and more economical solution, especially when there is a real risk that the employer may lose.

However, the decision depends on the nature of the case and long-term consequences; sometimes it is important to send a clear message to employees and defend the decision in court.

A strategic approach weighs all factors and selects the option that serves the company’s best interests, financially and reputationally.