The Marović Law Office provides legal assistance to employees and employers in disputes related to employment contract termination. Our team has over 30 years of experience in labor law, representing clients before courts in the Republic of Serbia. We provide support at all stages – from receiving notice of grounds for termination, through providing statements, to court proceedings for unlawful dismissal.
Employment Contract Termination Process – Step by Step:
The Labor Law clearly regulates the grounds for employment contract termination by the employer. They can be divided into several main categories
Note: Termination of employment by mutual agreement and resignation by the employee do not constitute termination by the employer, but rather represent separate modes of termination of the employment relationship.
If the employee has, through their fault, committed a breach of work obligations or failed to comply with work discipline, before terminating the employment contract, the employer is obligated to deliver a written notice to the employee containing clear grounds for termination of the employment contract and a deadline of at least eight days within which the employee is required to provide a written statement regarding the allegations in the delivered notice.
The employer may issue a decision on employment contract termination only after the expiration of the deadline of at least eight days provided for the employee’s statement, provided that the employee was previously served with a notice. The decision must contain:
The decision is delivered to the employee personally at the employer’s premises or sent to their residence/address.
The employer is obligated to pay the employee, no later than 30 days from the termination of the employment relationship, all unpaid wages, wage compensation, and other earnings that the employee earned up to the date of termination of the employment relationship.
The employee may, within 60 days from receipt of the decision on employment contract termination, initiate court proceedings and demand:
You should contact a lawyer immediately after the employee receives the notice of grounds for employment contract termination. This allows for timely challenge of the validity of the allegations in the notice and prevents unlawful dismissal.
If the decision on employment contract termination has already been issued and delivered to the employee, it is important to consult with a lawyer without delay due to the 60-day deadline from receipt of the decision that is provided for initiating a dispute before the competent court in case of violation of the employee’s rights.
On the other hand, responsible employers want to be certain that they will comply with the procedure for lawful termination, as well as avoid litigation and potential court costs, so they most often consult with lawyers even before drafting the notice of grounds for employment contract termination.
No. For an employer to terminate an employee’s employment contract, certain conditions must be met regarding the existence of grounds for termination that are provided by law or the employer’s general act, which must be explained and proven by the employer. If the employment contract is terminated without relevant justification, it is considered unlawful and the employee has the right to challenge it in court.
According to the Labor Law, the employer is obligated to deliver a written notice to an employee who has breached work obligations or failed to comply with work discipline. This notice must clearly state the reason for termination, with adequate explanation and citation of facts and evidence indicating that the conditions for termination have been met, as well as a deadline of at least eight days within which the employee must provide a written statement regarding the allegations in the notice.
It is important to emphasize that the obligation to deliver notice applies only to grounds for termination arising from non-compliance with work discipline or breach of work obligations committed through the employee’s fault.
Termination of an employment contract can be valid even if the decision was not personally delivered to the employee at the employer’s premises, but only if the employer complied with the procedure prescribed by the Labor Law.
The law provides two methods of delivering the termination decision:
If the employer sent the termination decision to the employee’s address but it was not delivered, the employer will first make a written note of this and post it on the notice board, and after the expiration of 8 days from posting, the decision is deemed delivered.
However, if the employer did not attempt to deliver the termination decision to the employee at all, the procedure prescribed by law has not been complied with, which constitutes grounds for challenging the lawfulness of the termination.
The employer may terminate an employee’s employment contract during sick leave or temporary work incapacity if there are legal grounds for termination.
However, it should be kept in mind that the employer cannot terminate an employee’s employment contract because:
Therefore, these cases cannot be considered justified grounds for which the employer would have the right to terminate the employee’s employment contract.
Regardless of the reason, the employer may not terminate the employment contract of a female employee during pregnancy, while on maternity leave, absence from work for childcare, and special childcare.
Otherwise, the termination decision would be null and void, meaning it has no legal effect. If the employer was aware of these circumstances, the employee may initiate court proceedings by filing a lawsuit and request that the court determine that the termination decision is null and void, as well as reinstatement to work, payment of compensation for damages in the form of lost wages and other work-related earnings from the moment of unlawful termination of the employment relationship.
A fixed-term employment contract lasts until the expiration of the agreed period for which the employment relationship was established. Before the expiration of that period, termination of the employment contract is possible only if there are legal grounds such as breach of work obligations, non-compliance with work discipline, and other cases provided by law.
Otherwise, the termination would be unlawful and the employee has the right to challenge it in court.
The deadline for initiating court proceedings due to unlawful termination is 60 days from the date of receipt of the termination decision. This is a so-called preclusive deadline, which means that if the employee does not file a lawsuit within that period, they lose the right to challenge the termination decision in court
The deadline begins to run from the day the decision was properly delivered to the employee, either personally or by registered mail to the employee’s address, which is why it is particularly important to pay attention to the date of receipt of the decision.
Within that deadline, the employee may file a lawsuit with the competent court and request reinstatement to work, compensation for damages in the amount of lost wages, and payment of taxes and mandatory social security contributions.
An employee who sues an employer for unlawful termination may choose between two claims or combine them:
Therefore, reinstatement to work is not mandatory – the employee decides whether they want to return to work or only receive compensation.
Yes, filing a lawsuit against an employer does not affect the employee’s right to register with the National Employment Service (NES) and receive unemployment benefits.
The right to this benefit depends on whether the conditions prescribed by law are met, which primarily require that the employee was insured for at least 12 months continuously or intermittently in the last 18 months.
The monetary benefit is granted to the employee from the first day of cessation of mandatory insurance if they register and submit a request to the National Service within 30 days from the date of termination of the employment relationship or cessation of insurance.
Therefore, the fact that court proceedings have been initiated does not affect the recognition of the right to unemployment benefits.
If the employer does not pay the employee all unpaid wages, wage compensation, and other earnings that the employee earned up to the date of termination of the employment relationship, no later than 30 days from termination of the employment relationship, they are violating the law, and the employee may seek payment through the courts.
In practice, this means they can file a lawsuit in court to obtain payment of the amounts owed by the employer, with statutory default interest.
The employee also has the right to payment of unpaid claims from an employer against whom bankruptcy proceedings have been initiated.
Court proceedings for unlawful termination in the Republic of Serbia fall under labor disputes, which by law have priority in resolution. However, the duration in practice depends on the court’s workload and the complexity of the case.
Therefore, although labor disputes are by nature urgent proceedings, their duration depends on the circumstances of the specific case. For this reason, attempting an out-of-court settlement is often recommended, if possible.
If the court determines that the termination was unlawful, the employer bears the costs of the proceedings. This includes:
The court in its judgment obliges the defendant employer to compensate the employee for all justified costs of the litigation. Therefore, in that case, the employee does not bear the costs of the proceedings; they fall on the employer who lost the case.
The union cannot directly prevent the issuance of a termination decision or annul the termination, but it can significantly help the employee in their protection.
In practice, the union represents the interests of employees in negotiations with the employer, files complaints with the Labor Inspectorate due to irregularities, and if necessary, organizes collective actions such as strikes or public pressure.
In this way, the union does not resolve the dispute itself, but represents important support for the employee in proceedings before the employer, inspection, or court.
A lawyer can negotiate with the employer before initiating court proceedings, with the aim of peacefully resolving the disputed situation, which is often a useful and efficient way to protect the employee’s rights.
Negotiations with the employer through a lawyer engaged by the employee ensure professional communication and most often result in an agreement.
This solution is usually faster, more efficient, and cheaper than years of litigation in court.
If there is no possibility of reaching an agreement with the employer, and there is a justified reason from which it can be concluded that the employee’s rights have been violated or that the termination was unlawful, the employee may engage a lawyer who will file a lawsuit with the competent court on their behalf.
Yes, in case of termination of an employment contract due to reduction in work scope, i.e., the employee being declared redundant, the employee is entitled to severance pay.
The amount of severance pay is determined in accordance with the Labor Law and depends on the length of service with the employer where the employment relationship is terminating.
The minimum statutory amount of severance pay is one-third of the employee’s average monthly wage for each completed year of work with that employer. The employer’s general act or employment contract may provide for more favorable conditions for the employee (higher severance pay amount).
Therefore, when an employer terminates a contract for economic, technological, or organizational reasons, payment of severance pay is mandatory and represents the employee’s right.
Napomena: Sadržaj ovog teksta ima isključivo informativni karakter i ne predstavlja pravni savet. Iako se trudimo da informacije budu tačne i ažurne, svaka situacija ima svoje specifičnosti i zahteva individualnu pravnu procenu. Za tačne i pouzdane savete u vezi sa vašim konkretnim slučajem, preporučuje se da se obratite advokatu.
Poslednje ažuriranje: 13. oktobar 2025. godine.
