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Secondment of Foreigners to Serbia in Just a Few Steps

Vitomir Žunić

Managing Partner

Aleksandra Jaćimović

Senior associate

01/04/2024

The Law on Foreigners and the Law on Employment of Foreigners (hereinafter: “the Law”) underwent several amendments as part of changes introduced over recent years.  The expectation was that these changes would make Serbia even more attractive for foreign employment and encourage foreign investments in the country.

With that in mind, significant changes occurred with the amendments to the set of laws regulating the status of foreign nationals, at the end of 2023. As of February 1, 2024, the Serbian legal system introduced the institute of the unified permit – a permit that enables a foreigner to legally live and work in Serbia.

The main idea of the amendments is to improve the business environment in Serbia by facilitating the process of obtaining appropriate permits for foreign citizens in the Republic of Serbia. In this way, the Serbian legal system aims to align with the legal frameworks of the European Union and to enhance the status of foreign nationals in Serbia, through the mechanism of the unified permit.

An earlier analysis of the implementation of the Law has shown that up to the moment of applying the regulations related to the unified permit, among different types of permits, the largest number of work permits issued by the National Employment Service was the work permit for employment.

The most sought-after were work permits for persons seconded to work in Serbia, which a foreign company employs.

For that reason, the secondment of foreigners to Serbia demands special attention. The introduction of a new institute into the Serbian legal system entails the amendment of numerous other existing institutes, resulting in significant changes to the law’s provisions.

For those interested in this topic, we recommend exploring this resource to familiarize themselves with the key points regarding the secondment of foreigners to Serbia.

 

1. Unified Permit 

 

The most significant amendments to the Law on Foreigners and the Law are related to the introduction of the unified permit.

The unified permit, which combines residence and work permits, is a key document that enables temporary stay and employment of foreign workers in Serbia. This document is issued to individuals who are seconded to work in Serbia by a foreign employer, to perform specific tasks or provide services, within the framework of cross-border temporary activities.

In the case of workforce secondment, the unified permit based on secondment allows foreign workers to legally carry out work activities in Serbia during the secondment period, in accordance with legal and administrative requirements.

 

2. Seconded Person Definition

 

It is common nowadays that modern business transcends national borders. Therefore, a natural consequence is increased workforce mobility. Furthermore, many foreign employers opt to second their employees abroad, in order to work in a branch or subsidiary company registered in Serbia.

According to the Law, a seconded person is a foreigner employed by a foreign employer, where they exercise employment rights, and who is seconded to work for an employer within the territory of the Republic for a limited period, after which they return to work to their original employment with the foreign employer, in accordance with the Law, or a ratified international agreement.

 

3. Conditions for Issuing a Unified Permit for Seconded Persons

 

Employees who are seconded to Serbia are entitled to apply for the unified permit, issued for this special case of employment. Namely, the Law recognizes the secondment of foreign employees as a separate category – a special case of employment, alongside the movement within a company, independent professionals, and training and improvement.

In the procedure of obtaining the unified permit based on secondment, the primary decision regarding the fulfillment of conditions for the secondment of foreign employees is made by the National Employment Service. The assessment for seconded employees, i.e., foreign employees temporarily seconded to work in Serbia, is based on several key conditions.

First, there must be a valid business-technical cooperation agreement between the domestic employer and the foreign employer. Additionally, the seconded employee must have been employed by the foreign employer for at least a year, before secondment to Serbia, with the necessary registration for mandatory social insurance..

Secondly, there needs to be a written agreement between the domestic and foreign employer specifying the terms of foreign employee’s work in Serbia, including their salary, working hours, occupational health and safety conditions, as well as accommodation, meals, and transportation for the seconded employee during the stay in the country. This agreement should also include statements from both employers that the foreign employee will return to work for the foreign employer upon the expiration of the secondment period in Serbia.

It’s important to note that seconded employees must not have fewer rights than those prescribed by the law for employees primarily employed in Serbia.

The first assessment for secondment can be given for a maximum period of three years. In other words, a unified permit based on secondment can be issued for a three-year period, with the possibility for renewal for the same maximum period – an additional three years.

The renewal of the unified permit, based on a secondment to Serbia, can be obtained if, at the time of applying for the renewal, all legal conditions for the secondment of foreign employees are still met.

 

4. Mandatory Electronic Submission of Applications for Unified Permit

 

When discussing recent changes, and a completely new legal framework for foreign employees, it’s important to mention the significant shift in the way applications for obtaining the appropriate permit are submitted. The entire procedure is now conducted exclusively online.

Once the profile is verified, the next step is to apply through the specially designated portal for foreigners.

The application process is carefully configured and consists of a series of questions related to the personal information of the foreigner, residency and origin details, as well as the basis for staying in Serbia. It is important to emphasize that no step in the process can be skipped, and the responses are entered in the form of appropriate data.

The next-to-last step requires submitting the necessary documentation to process the application, with all documents submitted electronically.

The final step is the payment of the administrative fee, which is automatically generated through the portal.

A decision on the submitted application for the issuance of the unified permit is made within 15 days from the date of receipt of the application. The unified permit, issued in the form of a biometric card, must be personally collected.

Therefore, with the abovementioned crucial changes, foreigners have the opportunity to submit their application electronically, without the obligation of personal presence in Serbia. However, once they receive the unified permit card, they must personally collect it.

This process ensures transparency and efficiency in submitting applications for the issuance of unified permits for seconded employees, providing clear guidelines to foreign workers, and facilitating administrative procedures under relevant legal provisions.

 

5. Penal Provisions

 

Special attention has been given to penal provisions related to misdemeanors committed by employers who fail to ensure the rights and obligations stipulated in the act on the secondment of foreign workers. These amendments are aimed at strengthening the protection of foreign workers and ensuring compliance with legal regulations regarding their work in Serbia. For example, employers will be fined between RSD 800,000 and 2,000,000 if they employ a foreigner contrary to the business-technical cooperation agreement, or if they fail to provide the seconded worker with the necessary conditions as outlined in the secondment act. The penal provisions are now clearly defined and more strictly regulated to ensure that employers fulfill their obligations towards seconded workers. In cases where the employer fails to provide the prescribed working conditions, such as salary, working hours, accommodation, and healthcare, appropriate sanctions are envisaged. These penal provisions aim to ensure compliance with the law and protect the rights of seconded employees.

 

6. Summary for Sending Seconded Persons to Serbia

 

Employee mobility is clearly transforming the way the modern workforce operates, particularly as more businesses expand globally. Employees today are commonly asked to take assignments in company locations away from home – sometimes, even in another country.

The practice has shown that, since the Law has been implemented, there is a strong interest of employers to enable a foreigner to start work as soon as possible.

Novelties introduced by the amendments to the domestic regulations have had a great impact on the improvement of the business climate in Serbia. With the introduction of simpler and faster procedures, foreigners coming to work in Serbia were provided with more appropriate treatment, which certainly had an impact on the more positive attitude that these persons have today towards the domestic administration, and Serbia, in general.

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