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SERBIA – Stricter Enforcement of Law Limits Assignments

The National Employment Service of Serbia has begun strictly enforcing a provision of the 2014 law on Employment of Foreigners which limits the duration of work permits for intra-company transfer (ICT) and assigned personnel to one year.

Serbian Work Permits

A work permit for assigned personnel or intra-company transfer assignments of over 90 days can be issued to foreign nationals who have been employed by the sending company abroad for at least one year prior to the assignment, and who remain on home country payroll.

Until recently, the law which limits the duration of this work permit to one year was not enforced, and the work permit could be extended.

Now, however, this work permit can be extended for one more year only if the foreign employee is a national of a country which has an existing social security agreement with Serbia.

A list of the 28 nations which have bilateral agreements with Serbia on social security can be found here.

Otherwise, if the employer wishes the assignment to be extended beyond one year, they must transfer the foreign national to the payroll of the Serbian client company, branch company or subsidiary, and apply for a “work permit for employment”, which can be further extended annually in line with the holder’s temporary residence permit.

A work permit for employment, however, requires labour market testing and is subject to a quota limit, and the holder will be subject to Serbian taxes.

Action Items

  • Employers planning to send their foreign national employees on assignment to Serbia, or with assignees currently in Serbia, should consult an immigration specialist to determine their options.

This news alert was prepared using information provided by ODI Law.

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DISCLAIMER: The information contained in this immigration alert has been abridged from laws, court decisions, and administrative rulings and should not be construed or relied upon as legal advice. If you have specific questions regarding the applicability of this information, please contact Peregrine © 2021 Peregrine Immigration Management Ltd.