When it comes to foreigners residing or planning to reside in the Republic of Serbia, the most common practical issue involves the procedure for issuing a single permit for residence and work in the Republic of Serbia (“Single permit”). However, there is considerable uncertainty regarding the legal consequences that arise when a foreigner’s employment relationship is terminated. Answers to these questions are not explicitly laid out in a single law or regulation but require a comprehensive analysis and interpretation of several interrelated regulations governing this area.
To provide accurate answers, it is necessary to make a distinction between the following two situations:
1) termination of employment before the expiration of the Single permit or
2) termination of employment upon the expiration of the Single permit.
1. Termination of Employment Before the Expiration of the Single Permit
If a foreigner’s employment is terminated before the expiration of the Single permit, they have the right to establish employment with another employer. During the validity period of the Single permit, the foreigner (or the employer on their behalf, as well as a legal or natural person authorized by the foreigner or employer) may file a request to change the basis of work, the employer, or to be employed by two or more employers.
This request is decided by the locally competent organizational unit of the National Employment Service, within 10 days from the date of receipt of a proper request, and the approval is provided to the applicant via the unified web portal. Upon receiving this approval, the foreigner may change the basis of work, employer, or become employed by two or more employers without the need to submit a new request for the issuance of a Single permit (provided all changes occur within the permit's validity period).
If a foreigner becomes unemployed and is unable to find a new job, the question arises regarding their unemployment insurance rights.
A foreigner is considered unemployed in accordance with the regulations on employment and unemployment insurance and enjoys the same rights as citizens of the Republic of Serbia, if the conditions prescribed by law are met. In addition to the conditions applicable to domestic citizens, the foreigner must have regulated residence in the Republic of Serbia for the entire duration of the entitlement. In order to register with the National Employment Service as unemployed, the foreigner must have been granted permanent or temporary residence in the Republic of Serbia. Termination of legal residence would also result in termination of entitlement under mandatory unemployment insurance.
Mandatory unemployment insurance is part of the system of mandatory social insurance through which the following rights are provided in the case of unemployment:
1) financial compensation,
2) health insurance and pension and disability insurance in accordance with the law, and
3) other rights in accordance with the law.
A foreigner who was registered for insurance may obtain the right to financial compensation in the case of unemployment in the same manner as domestic citizens, provided their stay in the Republic of Serbia is legal.
The financial compensation is granted from the first day following the termination of mandatory insurance, if the foreigner registers and submits a request to the National Employment Service within 30 days from the date of termination of employment or insurance. A person who submits a request after the 30-day deadline is entitled to compensation from the date of the request, while a person who submits the request after the period in which they would have been entitled to compensation, in accordance with the law, is not entitled to financial compensation.
The general conditions for exercising the right to financial compensation, which must be fulfilled by domestic citizens as well, relate to the duration of the insurance (the individual must have been insured for at least 12 months continuously or with interruptions during the last 18 months), as well as the reasons for the termination of employment or mandatory insurance (not all reasons qualify as a basis for this benefit). A special condition, as previously mentioned, is that the foreigner must have regulated residence in the Republic of Serbia for the entire duration of the entitlement.
A foreigner who is receiving financial compensation for unemployment is entitled to health and pension and disability insurance for the duration of the financial compensation. Family members of a foreigner receiving financial compensation are entitled to health insurance if they are not covered under another basis, provided they have regulated residence in the Republic of Serbia.
2. Termination of Employment Upon the Expiration of the Single Permit
In addition to the reasons for termination of employment established by labor law, a foreigner’s employment may also be terminated upon the expiration of the Single permit. In such a case, the basis for the foreigner’s legal stay in the Republic of Serbia would cease (unless the foreigner meets the conditions to stay in the Republic of Serbia under another basis). If a foreigner is unlawfully residing in the Republic of Serbia, the competent authority will issue a return decision and determine a deadline for voluntary departure, within which the foreigner must leave the Republic of Serbia.
In this case, the foreigner would not be able to exercise rights under unemployment insurance.
Conclusion
From all of the above, it can be concluded that the legislator clearly intends to equate foreigners with domestic citizens in terms of exercising rights in case of unemployment, as well as all other rights and obligations regarding work, employment, and self-employment. However, the rights of foreigners are limited by the regulations governing their residence in the territory of the Republic of Serbia, and any violation of these regulations would result in the termination of the aforementioned rights.
Author:
Milena Đukić, Associate
Email: milena.djukic@prlegal.rs