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Labour and Employment, Europe

Employee Liability for Damage Caused to the Employer – Labour Law and Obligations Law Framework in Serbia

26 Jun 2026

Employee liability for damage caused to the employer is a specific legal institute under Serbian labour law, requiring a prior internal procedure conducted by the employer before initiating court proceedings. This article examines the conditions for establishing liability, the procedural steps required under the Labour Law, the legal nature of the employer’s decision on damage, and the relevant case law, with particular focus on the interplay between internal procedures and judicial protection in damage compensation disputes.

Author:

Borinka Dobrnjac, Senior Associate at PR Legal