Change of Employer and Preservation of Employment: Serbian Experience in Light of European Law

Protection of employees in the event of a change of employer in Serbia was
first regulated by the Labour Act (2005). This was a result of the harmonization of
Serbian legislation with Council Directive 2001/23/EC, while the effect of the European
Court of Justice jurisprudence was negligible. Protection is guaranteed regardless
of whether the company identity has been preserved or not, thereby making it more
favourable than the European concept of transfer of undertaking. Nevertheless, the
relevant provisions of the Labour Act have often been evaded in practice, especially
when it comes to the application of the principle of preservation of employment. This
was facilitated by the content of certain legal provisions. There is a notable need for
their improvements, in order to enable employees to continue to work for the transferee
under the same working conditions and be protected from dismissals exclusively
or predominantly motivated by the change of employer.