The Ministry of Labor, Employment, Veteran and Social Affairs, through its Occupational Safety and Health Directorate ("Ministry"), has recently taken the position that employers are required to insure employees in case work-related injuries and occupational diseases within two years from the effective date of the new Law on Occupational Safety and Health (Official Gazette of RS, No. 35/2023) ("2023 LOSH"), i.e., by May 7, 2025 (opinion no. 001104700 2025 13401 000 000 011 024 of March 17, 2025).
This obligation, aimed at ensuring compensation for damages, is generally governed by Article 67 of the 2023 LOSH. The law further refers to the enactment of a specific regulation governing the conditions and procedures for insurance in case of work injuries and occupational diseases.
Even under the previous Law on Occupational Safety and Health (Official Gazette of RS, Nos. 101/2005, 91/2015, and 113/2017) ("2005 LOSH"), similar provisions were in place (Article 53), meaning that Article 67 of 2023 LOSH does not introduce a new obligation.
However, the new development lies in the Ministry’s position regarding the mandatory nature of this obligation.
Previously, the Ministry held the view that employers could not effectively comply with this obligation until a specific law, as referred to by the 2005 LOSH, was adopted. Consequently, the insurance was considered optional (for example, Ministry opinion no. 011-00-00016/2015-01 of April 3, 2015).
Now, the Ministry asserts that employers must fulfill this obligation within the general compliance period set forth by the 2023 LOSH, expiring on May 7.
Although there have been several announcements in recent years regarding the adoption of a separate law on this matter, such a law has not yet been enacted. It is worth recalling that 2019 was declared the Year of Occupational Safety and Health, during which both a new law governing safety and health at work and a separate insurance law were expected. However, this did not occur. In the absence of a dedicated law, the Ministry has now taken the stance that this insurance obligation must be fulfilled under general terms, i.e., in accordance with Insurance Law.
Without more specific regulatory guidance, this means that employers - regardless of their industry or the level of risk identified in their operations - may independently determine the amount of insurance premium and insurance conditions, in line with offers from insurance providers, as no minimum coverage requirements are prescribed.
Many employers had already secured such insurance for their employees voluntarily, guided by business prudence. Those who have not yet done so must ensure compliance by May 7, and those who already have insurance in place should review their policies to verify that work-related injuries and occupational diseases are included.
Unlike the 2005 Law, the 2023 Law introduces monetary fines for non-compliance, specifically:
Given the above, one must question what the scope of inspection oversight will entail in practice, i.e., how compliance will be assessed. In the absence of any clear guidelines, such inspections will likely be limited to a formal check of whether an insurance policy exists, placing form over substance, which runs contrary to the purpose of legal regulation. In other words, an obligation has been imposed on employers with, at best, unclear implications for employees.
Furthermore, inconsistent interpretation and application of unchanged legal provisions only increases legal uncertainty and, as such, is unacceptable in a regulated legal environment.
Author:
Borinka Dobrnjac, Senior Associate
Email: borinka.dobrnjac@prlegal.rs