In every employment relationship, situations may arise in which an employer considers terminating an employment contract. However, dismissal is not a matter of personal discretion — it must be based on law and carried out through a clearly prescribed procedure. Otherwise, such dismissal is considered unlawful, and the employee has the right to request reinstatement and compensation for damages.
When a Dismissal Is Lawful
According to Article 179 of the Labor Law, there are several clearly defined grounds on which an employer may lawfully terminate an employment contract.
1. Unsatisfactory Work Performance
If an employee does not achieve expected results or lacks the necessary knowledge and skills to perform the job, the employer may decide on termination. However, prior to this, the employer must point out the employee’s shortcomings and give a reasonable period to improve. Only if the employee fails to improve may the termination be considered lawful.
2. Breach of Work Duties and Disciplinary Reasons
Termination may also be lawful when the employee seriously violates work obligations — for example, by performing duties irresponsibly, misusing company assets, refusing a lawful work order, reporting to work under the influence of alcohol, or causing significant damage. In such cases, the employer must first issue a written warning and give the employee at least eight days to respond before making the termination decision.
3. Business Reasons and Technological Redundancy
If due to economic, technological, or organizational changes the need for a particular job ceases to exist, the employer may terminate the contract. Such dismissal is lawful if decisions are objectively justified, selection criteria are not discriminatory (for example, pregnancy or medical leave cannot be grounds for dismissal), and the employee is paid the legally prescribed severance.
4. Refusal to Sign a Lawful Contract Amendment
An employee may be lawfully dismissed if they refuse to sign an amendment to the employment contract that is lawful and justified — typically involving job role changes, transfers, salary changes, or organizational restructuring. If the reasons are objective and lawful, and the employee refuses without justification, the employer may terminate the contract.
5. Special Cases
The Labor Law also prescribes special cases for lawful termination, such as when an employee is convicted for a criminal offense committed at or in relation to work, fails to return to work after authorized absence, or during the probationary period — provided that the employer gives justification and observes the minimum notice period of five working days.
When a Dismissal Is Unlawful
There are situations in which dismissal is strictly prohibited. This applies especially during pregnancy, maternity leave, and childcare leave. In such cases, the employer may not terminate the employment contract, and if the employee is on a fixed-term contract, it is automatically extended for the duration of the leave.
Dismissal is also unlawful when the employer fails to follow procedure — when they do not issue a written warning, do not allow the employee to respond, do not issue a reasoned decision, or fail to deliver it properly. Likewise, dismissal is unlawful if based on discriminatory grounds such as health condition, age, gender, religion, or use of medical leave.
Deadline for Filing a Lawsuit
If an employee believes the dismissal is unlawful, they have the right to file a lawsuit with the competent court within 60 days from the date of receiving the dismissal decision or learning of the violation. This deadline is preclusive, meaning that after it expires, a lawsuit can no longer be filed.
Procedure and Form of Dismissal
The law requires that the dismissal decision be written, reasoned, and properly delivered. The employer must attempt to deliver it personally, then by mail, and if that is not possible, by posting it on the company notice board. The decision must include reasons for dismissal and instructions on legal remedies. Improper delivery may cause an otherwise justified dismissal to become invalid — meaning that procedure is just as important as substance.
Conclusion
A lawful dismissal in Serbia is not an arbitrary employer decision, but a precisely regulated process that protects both employer and employee. To be valid, dismissal must have a legal basis, follow the prescribed procedure, and avoid any form of discrimination.
Employees, on the other hand, must know their rights and act promptly if they suspect unlawful dismissal. Filing an objection and initiating proceedings within the 60-day deadline may be crucial for job reinstatement and rights protection.
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