Public debate on the Draft Law on Work Engagement due to Increased Workload (the “Draft”) has been recently held as this regulation is to be adopted by the end of this year, although it is still discussed among professional audiences.

What Does Work Engagement Imply and What Jobs Can It Apply to?

Subject of this regulation is governing the work engagement concerning certain jobs, which are of temporary character (including, inter alia, seasonal workers), due to increased workload with an employer, as well as rights, obligations and liabilities of both employers and employees, record of such work engagement, and payment of taxes and contributions thereof.

According to the official text of the Draft, work engagement is work outside employment, no longer than 180 days within a calendar year, whereas maximum number of working days varies depending on the business activity within which a particular work is performed. The Draft sets out jobs for which an employer may engage persons due to an increased workload as certain jobs in the following sectors: agriculture, forestry and fisheries; construction; services, accommodation and food; administrative and auxiliary service activities; tourism jobs; household assistance jobs for natural persons; cleaning activities for residential buildings.

Who Can Be an Employer, and Who Can Be a Person Under the Work Engagement?

Under the Draft, employers are legal entities and entrepreneurs, and in certain cases, i.e. under the terms envisaged by the Draft, the natural persons as well. In addition, employer can imply a residential community, provided that it directly and for its own purposes engages a person to clean the building.

On the other hand, persons under work engagement may imply adult natural persons, both nationals and foreign citizens. Exceptionally, a person under work engagement may also be a person under the age of 18, if it meets special terms and only in case of specific jobs. Special attention should be paid to the provisions referring to work engagement of foreign citizens who do not require visa to enter the Republic of Serbia and who, pursuant to these provisions, are not obliged to obtain work permit during their short-term stay in Serbia according to the regulations governing the residence of foreign citizens.

In other words, this solution is different than the one stipulated by the Law on Employment of Foreign Citizens (Official Gazette of RS no. 128/2014, 113/2017, 50/2018 and 31/2019), which requires obtaining of both residence permit and work permit.

Rights of a Person Under Work Engagement and Obligations of an Employer

With regards to a person under work engagement, an employer will be obliged to register and deregister such engagement via special information system administered by the Tax Administration.

Persons under work engagement are entitled to financial compensation for their work, for each commenced working hour, which may not be lower than official minimum salary (in the amount of minimum cost of work, applied on the day of payment), while employers will be obliged to execute payment of related tax and contributions for compulsory social insurance. The Draft also stipulates the right of persons under work engagement to be informed about the working conditions before starting the work, in written form, as well as to the vacation, safety and health at work, and other rights thereof.

Legal Protection of Persons Under Work Engagement

Nevertheless, the Draft was criticised by professional public for insufficiently regulated legal protection of persons under work engagement.

The Draft does not stipulate right to increased salary for overtime work, commencement and conducting of labour dispute for exercising rights relating to the subject engagement, paid leave, trade union organizing and negotiating etc, which is the case in the EU member states.

With regards to the protection, i.e. exercising of rights, the Draft stipulates that disputes between employers and persons under work engagement concerning the working hours, compensation payment, as well as on discrimination and harassment at work, may be resolved before the Republic Agency for Peaceful Settlement of Labour Disputes, while the conducting of such procedure will require consent, i.e. approval of both parties. The aforesaid solution is particularly problematic considering that an employer may terminate the work engagement at any time.

If this regulation is adopted, by its entry into force the following regulations will cease to apply:

• Law on Simplified Work Engagement for Seasonal Jobs in Certain Activities (Official Gazette of RS 50/18);
• Rulebook on the Content of Certificate on Work Engagement of a Seasonal Worker (Official Gazette of RS 67/18); and
• Rulebook on Registration and Deregistration of Seasonal Workers (Official Gazette of RS 3/19).

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