What it is
Serbia’s Labour Law describes this as a loss of need for work caused by technological, economic or organisational changes. It is neither disciplinary dismissal nor a mutual termination agreement: the employer must rely on a real need to reduce staff and follow a separate procedure. A collective agreement, employer rulebook, or employment contract may provide better terms, but not terms worse than the law.
Why it became important
The issue returned to public attention after N1’s report on Srbija Kargo. Citing two workers in Niš, it reported more than 350 layoffs; they said they received decisions on 3 August and had not seen an explanation of the selection criteria. The same report contains no company response to N1’s questions. Those accounts do not themselves determine whether the process was lawful, but they explain why the documents and criteria matter.
When a programme is required and what it must contain
An employer must adopt a redundancy-resolution programme when, within 30 days, work is no longer needed for at least 10 workers at an employer with 21–99 permanent employees, 10% at one with 100–300, or 30 at one with more than 300. The programme is also required for at least 20 workers over 90 days, regardless of the employer’s total size. It must state the reasons, number and profile of affected workers, selection criteria, re-employment measures, socio-economic support, and dismissal timetable.
The union and employment service
Before adopting a programme, the employer works with the representative union and the national employment service on re-employment measures. The draft goes to them for opinions and proposals: the union has 15 days, while the employment service has the same period to suggest ways to prevent or reduce dismissals, retrain workers, or help them find new jobs. The employer must consider those proposals and report its position within eight days.
Decision, severance and safeguards
Before termination on this ground, the employer must pay severance. The legal minimum is one third of a monthly salary for each completed year with that employer; a collective agreement or contract may provide more. Absence due to temporary incapacity, pregnancy, maternity leave, or childcare leave cannot be used as a criterion. After this type of dismissal, the employer normally may not hire someone else for the same work for three months; if the need returns sooner, the laid-off worker has priority.
How a worker can challenge it
A worker who believes a decision or the procedure violated their right may bring a case before the competent court within 60 days of receiving the decision or learning of the violation. With the worker’s written authorisation, their union representative may start the case. It is practical to keep the decision, proof of its receipt date, severance calculation, employment contract, and applicable collective agreement: they allow the individual case to be compared with the general rules.
What remains open
This note explains general rules and does not determine whether a particular dismissal was lawful. In the Srbija Kargo case, at least the exact number of affected workers, the existence and content of any programme, the criteria used, severance amounts, and the company’s position remain publicly open. A collective agreement, internal acts, and documents that have not been published may also matter to any individual assessment.