Change of employer and preservation of employment: Serbian experience in light of European law

Abstract

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.