What if you are made redundant?

When may an employer declare you redundant?

The Labour Law (Zakon o radu) allows dismissal when, as a result of technological, economic or organisational changes, a particular job is no longer needed or the volume of work decreases (Article 179). The change must be real: a post abolished, fewer people doing the same work, a plant or department closed.

When the changes affect a larger number of employees, the employer must adopt a redundancy programme (program rešavanja viška zaposlenih). The law sets that number according to the size of the employer. The programme considers measures such as transfer to other work, retraining or part-time work before moving to dismissal. When choosing who is redundant, sick leave, pregnancy, maternity leave and childcare leave must not be criteria.

How much is severance pay and when is it paid?

The employer must pay severance pay before the dismissal (Article 158). The amount is set by internal rules (opšti akt) or the employment contract, but it cannot be less than the sum of one third of your salary for each completed year of employment with that employer. Years with a predecessor employer also count where there has been a status change (statusna promena), as do years with related parties (povezana lica).

The salary used in the calculation is the average monthly salary paid for the last three months before the month in which severance pay is paid. For example, after nine completed years with the same employer, severance pay is at least three such salaries.

Is a deadline running? Call +381 65 2935 637 or send an enquiry with the severance pay calculation.

For three months after the dismissal, the employer may not employ another person to do the same work. If the need for that work arises again within that period, you have priority for the job (Article 182).

What must the dismissal decision contain?

A dismissal is made by a written decision, with a statement of reasons and an instruction on legal remedy (Article 185). The statement of reasons should show what changes occurred and which job stopped being needed because of them. Employment ends on the day the decision is delivered, unless the decision sets a different day.

The law gives some employees special protection. During pregnancy, maternity leave, childcare leave and leave for the special care of a child, the employer cannot terminate the employment contract (Article 187).

How do you challenge the decision?

You challenge the dismissal decision with a lawsuit before the basic court (osnovni sud). The court examines whether the job really stopped being needed, whether severance pay was paid on time and in the statutory amount, and whether the procedure was followed. If the court finds that the dismissal was unlawful, the law provides for reinstatement and compensation for damage.

Is a deadline running? Call +381 65 2935 637 or send an enquiry with the dismissal decision.

What should you do after your employment ends?

The employer must pay you all unpaid salary, salary compensation (naknada zarade) and other earnings within 30 days of the end of your employment (Article 186). For annual leave you have not used, you are entitled to payment in lieu (Article 76).

Is a deadline running? Call +381 65 2935 637 or send an enquiry with the dismissal decision and the final pay calculation.

Applying to the National Employment Service does not depend on whether you will challenge the dismissal. If you miss the 30-day deadline, you may lose the right to unemployment benefit.

When do you not need a lawyer?

If your post really was abolished and severance pay was correctly calculated and paid before the dismissal, it is often enough to check the calculation and apply to the National Employment Service in time. Check the calculation yourself: the number of completed years, the average salary for the last three months and the amount you received.