Employer of Record in Serbia
Skuad’s Employer of Record Serbia (EOR) solutions make business expansion to Serbia easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Serbia, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. Learn more
Serbia At A Glance
The Republic of Serbia is a European nation, landlocked from all sides by Central and South-eastern European countries. The key highlight of the Serbian economy is that it is developing, characterized by upper-middle income range. Services, industry, and agriculture are the three main pillars of the economy here. Interestingly, the country is ranked 52 on the Social Progress Index, 51 on the Global Peace Index, and 64 on the Human Development Index. Over the past two decades, the country has attracted commendable FDI – to the tune of $40 billion.
Estimated population: 8,704,436 (2021)
Currency: Serbia Dinar (RSD)
Languages frequently spoken: Serbian
GDP: $41,431,648,801 (2017)
Employment In Serbia
When hiring in Serbia, foreign companies need to be well-versed with the labor laws of the land with clear knowledge of various statutory obligations expected from employers. When you work with an EOR in Serbia, it allows you to remain focused on your core expertise to achieve business results. Since human resources are integral to a foreign business's success in the country, an optimized EOR Solution is what you need for cost-effective expansion.
Here are some facets of the Serbian labor laws:
The Serbian labor law has many more Articles that lay down rules about employers' and employees' relationships. For ensuring that your hiring process is compliant with the obligatory laws, speak to Skuad experts today.
Contractors vs. Full-time Employees
As per the labor laws, an employment contract in Serbia is the key to differentiating between a contractor or an employee. The employment agreement in Serbia is prepared in compliance with the Labor Act and should include details about the salary, benefits, compensation, leaves, etc.
The labor law also mentions contractual relationships, of which the service agreement is the most commonly used. The employer can hire contractors under a service agreement only for activities that do not fall under the purview of their business activity. The contractors are free to stipulate the agreement terms; however, the minimum guarantees for employees do not apply to contractors. The Obligations Act predominates the terms of a service agreement.
There are also several differences in taxation and social security obligations in both the types of agreement – employment and service.
Hiring In Serbia
To hire employees in Serbia, your business needs to be incorporated in Serbia, or you can hire through an Employer of Record in Serbia. Since you are new to the country, you can use the services of hiring companies in Serbia to ensure that you get the right talent for your organization. you can use online resources like job portals to spearhead your hiring process. Some of the popular and top online job sites in Serbia are Balkan Job Finder, Nadji Posao, National Employment Service, Ogledalo, Firme, Glassdoor, Hello World, and Startit Poslovi.
The process can be long-drawn when you go the incorporation way, not to forget the legal hassles, bureaucratic, and administrative processes involved. An EOR or PEO like Skuad can make a crucial difference to your hiring and talent recruitment process in Serbia.
Probation & Termination
Skuad’s EOR solution helps new businesses traverse the difficult and complex HR landscape in Serbia with incomparable agility and swiftness. An Employer of RecordEOR is a business entity that works on your behalf and handles all HR functions end-to-end. It includes hiring, onboarding, payroll, taxation, compensation, benefits, and compliance with local employment laws. Thus, if you plan to hire local or foreign workers, the best solution is to go ahead with an employer of record service in Serbia.
Skuad is one of the top Employer of Record companies in Serbia, covering all aspects of HR services including, but not limited to, work visas and work permits, hiring, payroll, salaries, benefits, payroll compliances, preparing employment contracts, termination, severance pay, and more. The platform acts as a single central tool for accomplishing your hire-to-retire services.
Types Of Visas In Serbia
There are two distinct types of work visas in Serbia.
To work in Serbia, it is essential to have a work permit in Serbia. It is practically impossible to get a Serbian work permit without a job offer. Before submitting the required application form to the National Employment Service, employers must declare a lack of Serbian employees working on the said posts. Once it is proved that the local workforce is not available for work, employers can hire foreigners and apply for Serbian work permits for foreigners.
Payroll & Taxes In Serbia
Setting up payroll and taxes in Serbia requires in-depth knowledge of the local policies and regulations, which comes with several risks and liabilities. Choosing Skuad for payroll outsourcing in Serbia can ease your resources and make the entire process straightforward and legally compliant. Learn more about our payroll services here.
The legislation does not require bonuses, but every year that Serbians work, they are entitled to a 0.4 percent salary boost.
When you start your business in Serbia, you are required to incorporate a company here. There are different entities that you can choose from
- Limited Liability Company, Private or Public; and,
- a Partnership – General or Limited.
The business opportunities in Siberia are growing as Siberia is a developing economy. However, incorporating a holding company in Serbia means that you need to thoroughly understand the incorporation process nitty-gritty and the Company Act in Serbia. For example, to start a Private Limited Liability Company here, the share capital is RSD 100, while the number of shareholders needs to be 50 or less. Similarly, there are other rules and regulations to keep in mind.
The best way is to work with Skuad’s EOR solution to avoid incorporating a holding company in Siberia and yet hire the best local talent here for your Siberian business.
Professional Employer Organization (PEO)
If you have chosen to expand your business in Siberia, you can consider choosing between an EOR or a professional employer organization in Serbia. While the former is an independent organization taking care of all your HR needs, the latter is a co-employer or a collaborator where you are at the helm of affairs. So, to use PEO services, you will need to register your business entity in Siberia.
Both cases are beneficial to you because all HR-related responsibilities are taken care of by another party so that you can focus on your core business. Skuad offers both types of services to our clients. It would be great to talk to you to know your exact requirements before we help you choose between our EOR solution and PEO services.
If you have shortlisted Serbia as a potential investment destination and are still deciding the best way to start your business there, you could do it on your own, or better still, take the help of an Employer of Record in Siberia. Speak to Skuad’s experts for more details and information.