The number of foreign nationals working in Serbia has been steadily increasing in recent years, so an increasing number of employers are encountering the procedure for engaging them for the first time. Although the employment relationship is established through an employment contract, in order for work to commence lawfully, it is necessary to first determine the basis on which the foreign national is exercising the right to reside and work in Serbia. The basis determines the course of the procedure, the obligation to conduct a labor market test, and the documentation that must be submitted.

Temporary Residence and Work Permit for a Foreigner in the Republic of Serbia (Single Permit)

As of February 1, 2024, the single permit system has been in effect, combining approval for temporary residence and a work permit into one procedure and document.

An application for this permit is submitted exclusively electronically, through the website https://welcometoserbia.gov.rs/. The application may be submitted by the foreign national or by the employer on their behalf, or by a person authorized by either of them.

A single permit may be issued to a foreign national for a period of validity of up to three years and may be extended for the same period, depending on whether the grounds for issuing the single permit continue to exist.

Unlike the general 30-day deadline applicable to decisions on temporary residence, the competent authority decides on a single permit within the shorter period of 15 days from the date of receipt of a duly completed application.

A single permit may be issued on different grounds, depending on the manner in which the foreign national is engaged, with the specific ground determining the further course of the procedure.

Grounds for Issuing a Single Permit

As part of the single permit issuance procedure, the National Employment Service assesses whether the conditions for the foreign national to work are met, which differ depending on the basis of their engagement. The regulations distinguish the following grounds:

• employment;
• special cases of employment, namely:

• for posted workers,
• for intra-company transfer,
• for independent professionals,
• for training and professional development;

• self-employment;

 For each of these grounds, specific requirements and documentation proving their fulfillment are prescribed.

Type D Visa on the Basis of Employment

If, under the visa regime, a foreign national requires a visa to enter Serbia for the purpose of working, they must obtain a D visa on the basis of employment. This visa allows them to reside and work in Serbia during its period of validity, for up to 180 days. If the foreign national intends to continue residing and working in Serbia beyond the period for which the D visa was issued, they must submit an application for a single permit during the validity of the D visa. The provisions concerning the assessment of whether the conditions for the foreign national to work are met also apply accordingly to the procedure for issuing a D visa on the basis of employment.

Which Conditions Must Be Met?

Before a foreign national begins working, the employer should determine on what basis they may lawfully reside and work in Serbia. Depending on their citizenship, existing residence status, basis of engagement, and any applicable statutory exception, it is necessary to determine:

• whether the foreign national already has the right to work in Serbia without a single permit;
• whether the foreign national requires a long-stay visa on the basis of employment;
• whether a single temporary residence and work permit is required;
• whether a labor market test is required in the particular case.

In certain cases, a foreign national acquires the right to work on the basis of approved temporary residence, without the issuance of a single permit. This may, among other things, be the case when their temporary residence has been approved on the basis of ownership of real estate.

If a foreign national has been granted permanent residence in Serbia, they have the right to work without a single permit. In that case, the employer does not initiate the procedure for issuing a single permit but may enter into an employment relationship with the foreign national in accordance with the general rules of labor law.

Labor Market Test

 The labor market test is conducted by the National Employment Service at the employer’s request in order to determine whether there are individuals registered with the National Employment Service who meet the requirements specified by the employer’s application for the particular position. The request to conduct this test forms an integral part of the application for a single permit.

The labor market test is conducted only when a single permit is issued on the basis of employment. For other grounds for issuing a single permit, the availability of a suitable candidate registered with the National Employment Service is not checked; instead, compliance with the specific requirements prescribed for the particular basis of engagement is assessed. Thus, for example, in the case of an independent professional, the existence of an appropriate contractual relationship and other prescribed requirements are verified.

In practice, conducting the labor market test may extend the single permit issuance procedure, particularly for occupations where a shortage of domestic labor is evident. Therefore, when planning the start date of employment, an employer should take into account not only the 15-day deadline for deciding on a duly completed single permit application, but also the time required to complete the other steps in the procedure.

Penalties for Employers

The law prescribes high penalties for employers who employ or otherwise engage a foreign national to work contrary to the provisions of the law, namely:

• fines of 800,000 to 2,000,000 dinars for legal entities,
• fines of 50,000 to 500,000 dinars for entrepreneurs,
• a fine of 20,000 to 150,000 dinars for the responsible person at the employer.

For certain offenses, the employer may also be subject to a protective measure prohibiting the performance of a particular business activity for a period of six months to one year.

What This Means for Employers in Practice

The procedure for employing foreign nationals in Serbia is now simpler than it was before the introduction of the single permit, but it still requires the employer to determine in advance the appropriate legal basis for the engagement, which will in turn determine the course of the procedure, documentation, deadlines, and whether a labor market test is required.

The procedure may also be initiated even before the employee physically arrives in Serbia, allowing employers to coordinate the procedure with the planned start date of employment.

This article is to be considered as exclusively informative, with no intention to provide legal advice. If you should need additional information, please contact us directly.