Serbian employers are seeking comprehensive labour-law reform to reduce administrative burdens, clarify dismissal procedures, improve sick-leave verification and introduce more flexible working arrangements amid skills shortages and pressure on industrial competitiveness. A survey by the Serbian Employers’ Union found that 72.3% of participating employers identified reducing administrative requirements as a priority. Published on October 14, the findings were produced under a project supported by the Center for International Private Enterprise (CIPE). The results do not necessarily represent all employers in Serbia.
The proposals remain subject to legislative consideration and negotiations between the government, employers and trade unions. They could affect manufacturing, logistics, construction, technology and foreign investment.
Digital employment records and flexible working hours
The Employers’ Union is advocating wider use of electronic employment documentation, including contracts, notifications, employment decisions and formal warnings. Proposed rules would clarify electronic delivery, confirmation of receipt and employee-data protection.
Reducing paperwork, storage and manual processing could lower compliance costs, particularly for smaller businesses that rely on external accountants, legal advisers or management staff to handle employment administration. Secure identification, verifiable timestamps and reliable delivery records would remain essential for documents affecting employment rights.
The organisation also wants clearer rules for flexible working hours and employment arrangements. Serbian manufacturers producing automotive components, electrical equipment and processed metals must adjust staffing to changing orders, delivery schedules and production volumes. Greater flexibility could help companies organise shifts and manage fluctuations in demand. Any changes would need to preserve requirements concerning overtime, worker fatigue, occupational safety and minimum rest periods. For foreign investors, predictable employment rules are important when calculating staffing costs and planning production capacity.
Sick-leave verification and dismissal procedures
The Employers’ Union is calling for faster procedures to investigate suspected sick-leave abuse, which employers say can disrupt production, increase overtime costs and require temporary replacements. Its proposals include allowing appropriate documentation from private healthcare providers to support requests for verification by competent authorities. This would not give employers unrestricted access to medical records or the right to override medical assessments.
Serbia already operates the eBolovanje-Poslodavac system, introduced in January 2026 and expanded with additional electronic functions in April. It enables digital communication between employers, healthcare providers and the Republic Health Insurance Fund. Mandatory application is scheduled to extend to entrepreneurs employing workers from January 2027.
The proposed changes would build on this existing system. Medical confidentiality, independent assessments and employees’ legal rights would need to remain protected. The Employers’ Union is also seeking clearer dismissal procedures, particularly where procedural shortcomings lead to disputes despite employers claiming to have valid grounds for termination. More predictable rules could reduce legal expenses, compensation liabilities and disruption during restructuring or technological upgrades. Any reform would still need to preserve employees’ ability to challenge dismissal decisions and obtain effective judicial protection. Greater legal clarity could help banks and investors assess potential restructuring costs and employment liabilities.
Remote work and skills development
Remote and home-based employment are already recognised under Article 42 of Serbia’s Labour Law, which addresses working time, equipment, supervision and reimbursement of certain costs. The Employers’ Union wants further updates to reflect hybrid work and changing business practices.
The issue is relevant to IT, engineering, financial services, consulting and administrative functions. Clearer rules could help employers manage distributed teams and recruit specialists beyond major business centres. Occupational safety, information security, working-time records, equipment responsibilities and employee privacy would remain important.
The Employers’ Union is also calling for closer cooperation between educational institutions and industry to address shortages of qualified workers. Manufacturing increasingly requires expertise in automation, digital quality control and advanced maintenance, while energy and infrastructure projects need specialised engineering skills. Technology businesses face demand for software, data-management and artificial-intelligence capabilities.
Proposed measures include stronger practical training, closer links between schools and businesses, employee retraining and potential public support for smaller companies. Labour availability can influence investment decisions even where wages and infrastructure are competitive.
Reform negotiations and investment implications
Changes to labour legislation could affect companies’ administrative spending, operating efficiency and financial forecasts. Inconsistent enforcement or reforms that increase litigation could raise costs rather than reduce them.
The Employers’ Union has called for dialogue among the government, employer organisations and trade unions, as well as implementation of outstanding conclusions previously agreed by the Social and Economic Council.
Employers are seeking simpler administration, greater workforce flexibility and fewer procedural disputes. Employees and their representatives have interests in job security, predictable working hours, privacy and access to legal remedies. The government must balance these priorities with Serbia’s investment objectives and European integration process.
