Termination due to Performance or Misconduct in Serbia: Consult a labor law Attorney
Termination of Employment in Serbia: Performance, Misconduct and Legal Procedure
Serbian employment law provides a structured framework for lawful termination of employment. While redundancy and refusal to sign a contract annex are frequently discussed grounds for dismissal, disputes in practice most often arise from issues related to professional capability and workplace conduct.
Under Serbian Labor Law, dismissal is not evaluated solely on the employer’s stated reason. Courts examine whether the employee was treated fairly, whether procedural safeguards were respected, and whether the employee was given a genuine opportunity to respond.
Understanding the difference between performance-based and conduct-based termination is therefore essential for ensuring lawful dismissal.
Termination Due to Insufficient Performance (Article 179, Paragraph 1, Point 1)
This legal ground applies when an employee:
- Fails to achieve required work results, or
- Lacks the necessary knowledge or abilities to perform assigned tasks.
However, Serbian law does not permit immediate dismissal in such cases. Instead, the employer must first provide structured support through a formal notice procedure.
Mandatory Elements of the Performance Notice include:
- Written Notification:
The employer must inform the employee in writing about specific deficiencies in performance.
- Clear Improvement Instructions
The notice must contain concrete guidance on how to improve performance, along with a reasonable deadline.
- Objective Evaluation Criteria
Notice must be based on measurable and documented performance indicators—not subjective dissatisfaction. Courts will assess whether the evaluation system was objective and consistently applied.
Failure to follow these steps may render the dismissal unlawful.
Termination Due to Breach of Work Duty or Discipline (Article 179, Paragraphs 2 and 3)
Where the employee is at fault—through negligence, abuse of position, refusal to follow lawful instructions, workplace intoxication, or providing false data—the employer may rely on disciplinary grounds for dismissal.
In these cases, the procedure shifts from a performance notice to a formal warning process.
The Mandatory Warning Procedure:
1. Written Warning Prior to Dismissal
Before terminating employment, the employer must issue a written warning identifying the specific violation.
2. Statement of Legal Grounds and Evidence
The warning must clearly state:
- The legal basis for dismissal
- The relevant facts
- The supporting evidence
3. The 8-Day Defense Period
The employee must be granted at least eight days to respond and present their defense.
This procedural safeguard is fundamental. Courts carefully review whether the employee was given a real opportunity to be heard.
Finalizing the Termination Process
If dismissal remains justified after the notice or warning stage, the employer may issue a formal Dismissal Decree.
Key Legal Requirements:
- The decree must be in writing.
- It must contain a detailed explanation of the reasons for termination.
- It must be delivered personally to the employee.
If personal delivery fails, the employer must document the attempt and publish the decree on the company notice board. After eight days of publication, it is considered legally delivered.
Statutory Deadlines
There are strict time limits for issuing a dismissal decree, and if an employer waits too long, the court can easily overturn the firing:
- Six months from discovering the relevant facts
- Maximum one year from the occurrence of the event
Missing these deadlines may invalidate the dismissal.
Why Procedural Precision Matters
In employment disputes before Serbian courts, procedural compliance is often decisive. Even minor omissions—such as vague wording, incomplete evidence, or missed deadlines—may lead to annulment of dismissal.
If a court invalidates termination, consequences may include reinstatement and payment of back wages.
For this reason, careful documentation, objective evaluation systems, and properly drafted warnings are essential elements of lawful employment termination in Serbia.
Note: This text provides general information and does not constitute legal advice. For specific questions and legal advice, please consult a lawyer.
Author
Vojislav S. Dulić
Vojislav Dulić is an attorney at law born in Herceg Novi, specifically in the town of Bijela.
He successfully completed his primary and secondary education in Geneva, thus acquiring an international education and perspective that further enriches his practice. Upon returning to Serbia, he further honed his knowledge and skills by practicing law in Belgrade, where he had the opportunity to work on various complex cases at a prestigious law firm.
He further complemented his practice by working in Geneva, within various branches of law. He speaks English, French, and Italian.
He is a member of the Belgrade Bar Association.
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