Employment Agreement represents the basic legal framework that governs the relationship between the employer and the employee. While its purpose is to ensure stability and security in the employment relationship, in practice, situations often arise that lead to its termination. Termination of an employment agreement can have far-reaching consequences for both parties, and it is therefore of utmost importance that this process is carried out in accordance with legal regulations.
Whether the termination is initiated by the employee or the employer, both parties must be familiar with their rights and obligations. Mistakes in the termination procedure can lead to legal disputes, damages, and a tarnished business reputation, further highlighting the need for professional legal advice.
Proper legal support can contribute not only to compliance with legal norms but also to the preservation of professional integrity and interpersonal relationships in the workplace. In the following text, we will provide a more detailed explanation of the types of terminations, the legal regulations governing this area, as well as the rights of the employee and the obligations of the employer in the process of terminating the employment agreement.
Our goal is to provide clear and concise explanations that offer reliable information to anyone in this sensitive situation. Therefore, one of the grounds for the termination of the employment relationship is the termination of the employment agreement—either initiated by the employee (voluntarily) or by the employer. Of course there is a possibility prescribed by Serbia Labor Law, mutual termination agreement with notice period by agreement
Termination initiated by the employee
During the course of the employment relationship, the employee has the right to terminate the employment agreement by respecting the defined notice period and providing written notice to the employer. The minimum duration of the notice period that the employee is required to comply with is 15 days, although the general act or the employment agreement may specify a longer notice period, but not exceeding 30 days.
Termination initiated by the employer
In practice, this often appears as a more complex method for ending the employment relationship. Specifically, the employer may terminate the employment agreement for several reasons:
- If there is a justified reason related to the employee’s work capacity and behavior;
- If the employee, through their fault, violates work obligations;
- If the employee does not adhere to work discipline;
- If there is a justified reason related to the employer’s needs (such as redundancy or refusal to accept an annex to the employment agreement).
Disciplinary procedure – breach of the work obligations / breach of the work discipline
The employee is obliged during the employment relationship to comply with legal provisions, general acts, and the agreed terms of employment with the employer. Employers, through general acts (such as the Work Rules and Collective Agreement), define additional violations of work obligations and behavior that constitutes a breach of work discipline. Before terminating the employment agreement, the employer is required to conduct a disciplinary procedure in accordance with the Labor Law (concise explanation of the Labor Law) and the applicable general act of the employer.
As a necessary step in the disciplinary procedure, the employer must issue a warning to the employee prior to termination of the employment agreement, i.e., inform the employee in writing about the reasons for termination and provide a period of at least eight days from the delivery of the warning for the employee to respond to the allegations in the warning.
Considering that each disciplinary procedure should be approached individually, you can contact our team for more detailed instructions, as in the case of termination, you will certainly need a attorney specialized in labor law, who is well-versed in labor law matters.
„Redundancy“
Furthermore, the Labor Law refers us to another labor law institute. If, due to technological, economic, or organizational changes, the need for a specific job ceases or if the volume of work decreases, the employer may terminate the employment agreement with the employee.
Depending on the specific situation, the employer may implement changes that result in a reduction in the number of employees or the complete elimination of certain job positions. Depending on the number of employees affected by the “technological redundancy” procedure and the time frame within which the changes will take place, the employer may be required to create a program to address the surplus of employees, in cooperation with the relevant state institution, such as the National Employment Service.
The severance pay to which the employee is entitled in this case cannot be lower than the sum of one-third of the employee’s salary for each year of employment with the employer who is responsible for the severance payment. The employee cannot waive the right to severance pay.
Termination of an employment agreement is a complex and legally sensitive process that requires careful and lawful handling. Whether you are an employer faced with a difficult decision, or an employee dealing with the termination of your employment agreement and the end of your working relationship, it is essential to understand your rights and obligations. Proper interpretation of legal provisions and professional legal assistance can prevent costly mistakes and ensure fair protection for all parties involved.
Our law office has many years of experience in the field of labor law and provides full support throughout all stages of the termination process—from legal consultation and preparation of documentation to representation before the court. Through a professional approach and clearly defined steps, we ensure that every client is well-informed and legally protected.
Contact us so we can review your situation together and find the best solution. Timely legal assistance often makes a crucial difference.
FREQUENTLY ASK QUESTIONS
Can an employer terminate an employee verbally?
- No. In every legal basis for termination, the employer is obligated to issue a written Decision on termination of employment, in accordance with Article 193 of the Labor Law.
Is there a specific form to be filled out for the employee’s request to terminate the employment agreement?
- The Labor Law does not prescribe a mandatory form for the employee’s written notice of termination. Each employer may define the required form more precisely through general acts or the employment agreement, but it must always comply with the legal regulations.
How can an employee appeal the decision on termination of employment?
- The employee has the option to initiate legal proceedings before the competent court for annulment of the termination decision within 60 days from the delivery of the said decision. Please note that this is a peremptory deadline, meaning that any legal action initiated after this period will result in the dismissal of the lawsuit due to untimeliness.
