Employment of Foreigners in Serbia

The employment of foreign nationals is one solution increasingly adopted by employers in the Republic of Serbia, given the growing labour shortage each year.

Statistics show that more than 100,000 foreigners currently work in Serbia.

The Law governs the employment of foreigners on Employment of Foreigners, which specifies conditions and procedures for their employment.

The entire process is further regulated by the Law on Foreigners and the Regulation on Issuing a Unified Permit for Temporary Residence and Employment of Foreigners, which details the conditions and procedure for their employment.

Who is Considered a Foreigner?

Foreigners are defined as all individuals who do not hold citizenship of the Republic of Serbia.

Persons with dual citizenship—Serbian and another—are not considered foreigners.

Additionally, persons who have applied for asylum, those granted asylum or temporary protection, or those who have obtained refugee status under the Law on Refugees, are also not considered foreigners.

Legal Residency for Foreigners in Serbia

First, let us examine how foreigners can legally reside in Serbia.

A so-called tourist residence permit applies to individuals who do not intend to stay in Serbia for more than 90 days within a 6-month period.

For those planning a longer stay, obtaining a temporary residence permit is necessary.

Temporary residence permits for foreigners can be granted for a maximum period of three years.

However, it may happen that first-time applicants receive a permit valid for two years instead of the maximum three, as authorities have discretionary power to evaluate each case individually within the maximum permitted duration.

Temporary residence permits are granted for the following reasons:

Employment, self-employment, or similar types of work engagements;
Family reunification;
Ownership of real estate;
Education, studies, specialization, scientific research, etc.;
Medical treatment;
Other specific reasons are based on international agreements.

Permanent residency in Serbia can also be granted under conditions such as:

Having resided continuously in Serbia for more than three years based on previously granted temporary residence permits;
Being a minor with at least one parent who is a Serbian citizen or a foreigner with permanent residency;
Being of Serbian origin;
Holding a temporary residence permit where humanitarian reasons or Serbia’s interest justify granting permanent residency;
Continuous residence exceeding three years based on asylum rights.

Employment of Foreigners

According to Article 4 of the Law on Employment of Foreigners, a foreigner legally employed or temporarily employed in Serbia has equal rights and obligations concerning work, employment, and self-employment as Serbian citizens, provided legal requirements are met.

This means that foreigners may enter into employment contracts or other types of contracts not establishing formal employment, such as temporary and occasional work contracts, service agreements, professional training and development contracts, director’s rights and obligations agreements, and other work-related engagements outside of formal employment.

Work Permit in Serbia – Unified Permit

Foreigners seeking employment in Serbia must first obtain a temporary residence permit for employment purposes, followed by a work permit.

According to recent regulations, foreigners now obtain a single unified permit for both residence and employment.

The unified permit is a document that allows temporary residence and employment of foreigners in Serbia.

To legally establish employment (or other work engagement) from the first day, obtaining the unified permit beforehand is essential.

Unified Permit Application Procedure Applications for a unified permit are submitted exclusively electronically via the e-government portal.

This allows initiating the procedure without the applicant’s physical presence in Serbia, even while abroad.

Once approved, the Ministry of Interior issues the unified permit as a biometric document.

When a future employer submits an application, the Ministry of Interior and the National Employment Service decide on its issuance after conducting an employment assessment.

Employers obtaining a unified permit must not have dismissed employees due to technological, economic, or organizational changes in positions requiring the permit within 90 days before application submission.

Additionally, a proposed employment contract or other relevant work-related agreement must exist.

Thirdly, employers must initiate a labor market test before the permit’s issuance.

This test verifies whether domestic citizens registered as unemployed match job requirements.

This test is mandatory, except in cases where the Government exempts specific shortage occupations.

Employment in Serbia Without a Unified Permit

Under certain conditions, Serbian laws allow foreigners to work without a unified permit in cases such as:

Approved temporary residence (family reunification with a Serbian citizen or foreigner with permanent residency, property ownership, humanitarian residence, education, student exchange, scientific research, and other legal reasons);
Approved permanent residency;
Approved asylum or temporary protection or pending asylum applications unresolved for over six months;
Family members of diplomatic or consular representatives from countries with bilateral agreements allowing paid employment;
Crew members of foreign vessels or aircraft, international road or rail transport employees of foreign employers, or members of rescue teams assisting with accidents, natural disasters, and humanitarian aid;
Persons engaged in defence or internal affairs-related tasks based on inter-agency agreements or training in these fields.

Foreigners staying in Serbia no longer than 90 days within a 180-day period who are:

Owners, founders, representatives, or members of entities registered in Serbia without formal employment;
Engaged in establishing business contacts or meetings without income in Serbia;
Lecturers and researchers at professional meetings or research projects;
Participants in temporary educational, sports, artistic, cultural events, or scientific, artistic, cultural, or sporting events organized by authorized organizations;
Persons performing work based on contracts related to delivery, installation, maintenance, or training for machinery or equipment;
Persons independently or for foreign employers displaying equipment at trade fairs or exhibitions.

All other situations require a unified permit for residence and employment.

What Employers Should Know:

Contracts with foreigners require a valid unified permit and temporary residency.
Contracts can be indefinite, but unified permits must be renewed before expiration (up to 3 years).
Subsidies exist for employing foreigners if specific employer conditions are met.
Penalties exist for employers, foreigners, and employment services failing to comply with legal provisions, particularly concerning permit issuance.

Conclusion Employment of foreigners in Serbia is a regulated and recently simplified process requiring careful planning and adherence to legal procedures.

Employers should familiarize themselves with obligations and timely initiate permit procedures to avoid potential issues and penalties.

Given the complexity of regulations and practical challenges, we recommend seeking professional assistance from a lawyer specialized in employment and immigration law to guide the entire process and ensure the lawful engagement of foreign nationals.

Law Firm Petrović Mojsić & Partners