REPORT 2014–2016 | ADVOCACY IMPACT LABOR REGULATION COMMITTEE THE COMMITTEE’S FOCUS 2014–2016: • Improving labor legislation through amend- CHAIRPERSON: Dragica Pilipović Chaffey, SBB ments to the Labor Law, by cutting unneces- VICE CHAIRPERSON: Jovana Tomić, Živković Samardžić Law Office sary paperwork, providing for easier entry to and exit from the labor market through more THE COMMITTEE’S MISSION: flexible employment, sanctioning underper- The findings of the survey conducted among AmCham member companies forming employees, and creating a predict- at the end of 2013 again confirmed that labor legislation reform is the prior- able system of social negotiations ity, and is the only reform measure which directly affects the employment • Watching over the implementation of labor rate. The mission of the Labor Regulation Committee is to improve labor legislation legislation and monitor the challenges to its implementation, with the aim of • Addressing any problems in the implemen- increasing Serbia’s competitiveness as an investment destination as well as tation of the Law on the Employment of facilitating economic growth and sustainable increase of employment. Foreigners THE COMMITTEE’S GREATEST ACCOMPLISHMENTS: SIGNIFICANTLY IMPROVED LABOR LEGISLATION WITH ADOPTED AMENDMENTS THE COMMITTEE’S MEMBERS: ADVOKATSKA KANCELARIJA VUKOVIĆ G4S SECURE SOLUTIONS NAUMOVIĆ & PARTNERI ADVOKATI TO THE LABOR LAW & PARTNERS GI GROUP HR SOLUTIONS NELT APATINSKA PIVARA HARVARD CLUB OF SERBIA ORION TELEKOM AVON COSMETICS HEMOFARM PHILIP MORRIS SERVICES Due to the problems identified and the measures BALKANS REAL ESTATE HEWLETT PACKARD PMI SERBIA CHAPTER BALL PACKAGING EUROPE proposed, the Labor Regulation Committee HYPO ALPE ADRIA BANK PRICEWATERHOUSECOOPERS BANCA INTESA IBM RAIFFEISEN BANK focused on developing job creation incentives BDK ADVOKATI JANKOVIĆ, POPOVIĆ & MITIĆ S&T BDO by improving labor legislation in order to make JOHNSON & JOHNSON SBB BEL MEDIC GENERAL HOSPITAL JT INTERNATIONAL SCHNEIDER ELECTRIC it compatible with the economic situation, BELGRADE OPEN SCHOOL KARANOVIĆ & NIKOLIĆ SEKULOVIĆ LAW OFFICE BOJOVIĆ & PARTNERS facilitate efficient oversight of implementation KINSTELLAR SERBIAN BUSINESS SYSTEMS CBS INTERNATIONAL KOMERCIJALNA BANKA SIEMENS (diminish abuse and the grey economy), and COCA COLA HELLENIC KPMG SOCIETE GENERALE BANK CROWE HORWATH enhance predictability as a key precondition LALIN LAW ŠTAMPA SISTEM CROWNE PLAZA LEO BURNETT STAR IMPORT for further investment and a long-term rise in DBP ADVOKATI L’OREAL BALKAN TELEGROUP DELHAIZE MERCK SHARP & DOHME TELESIGN employment. There is no doubt that the great- DELTA HOLDING METRO CASH & CARRY TITAN CEMENTARA est accomplishment of the committee was the DHL MICROSOFT SOFTWARE TMF SERVICES DINERS CLUB INTERNATIONAL MIKIJELJ, JANKOVIĆ & BOGDANOVIĆ UNIQA NEŽIVOTNO OSIGURANJE adoption in mid-2014 of a new Labor Law which DUFRY MK GROUP VICTORIA GROUP EOS MATRIX resolved most open issues in this area and MOJI BRENDOVI VIP MOBILE ERNST & YOUNG MONDELEZ VOJVOĐANSKA BANKA made major progress in labor legislation. After ERSTE BANK MORAVČEVIĆ, VOJNOVIĆ & PARTNERI WIENER STADTISCHE OSIGURANJE EUROBANK more than 25 meetings with representatives of NAFTNA INDUSTRIJA SRBIJE ŽIVKOVIĆ & SAMARDŽIĆ LAW OFFICE EXECUTIVE GROUP the Ministry of Labour, Employment, Veteran and 26 27 REPORT 2014–2016 | ADVOCACY IMPACT Social Affairs, members of working groups, trade of companies was continued through a Briefing unions, and business associations – 70% of the Session on Mobbing and the Protection of Law Committee’s comments were incorporated Whistleblowers, and through a roundtable with into the final text of the Labor Law, the most representatives of the competent Ministry and important among which relate to: the National Employment Service on implement- • The disbursement of severance pay to the ing previously amended rules for employment of employee only for the duration of his service foreign nationals. The goal of these implementation with the employer with whom his employ- seminars was to obtain the competent institutions’ ment terminates answers to AmCham member companies’ numer- • Extending the maximum duration of a fixed- ous questions about the practical implementation of term contract of employment to 36 months labor regulation. • More flexible employment, as well as the sanctioning of underperforming employees – FOCUS IN THE UPCOMING PERIOD by increasing the number of reasons for the 2016-2018: termination of contract (including the abuse of sick leave), and introducing disciplinary In the coming period the committee will certainly: measures (15 days suspension plus 20% sala- • Monitor the implementation of labor legislation ry reduction) and insist on consistent implementation and uniformity of interpretation Furthermore, AmCham took part in amending • Monitor amendments to legislation which con- the Law on Employment of Foreigners, most cern the functioning of social dialogue importantly by making suggestions which make it easier for employers to employ non–residents. SUCCESSFULLY MONITORING THE IMPLEMENTATION OF LABOR REGULATION After the Labor Law was adopted, the Labor Regulation Committee continued to monitor the implementation of the Labor Law, including by orga- nizing a seminar attended by the representatives of the Ministry of Labour, Employment, Veteran and Social Affairs, who took part in its drafting, with the aim of clarifying a number of provisions and harmo- nizing it with common practice. AmCham’s contribution to the implementation of the adopted laws and increasing compliance 28 29 REPORT 2014–2016 | ADVOCACY IMPACT WIDE ANGLE could be dispelled. In 2015, the Jovana Tomić, committee closely followed the Živković Samardžić Law Office adoption process for the Law on the Employment of Foreigners The Labor Regulations Committee and the Law on the Protection of was established with the aim of Whistleblowers, organizing relevant improving labor legislation, learn- seminars with the representatives of ing more about current practice, competent ministries, with the aim and clarifying ambiguities in the of aligning these legal texts with current implementation of labor actual practice. legislation. Amending the Labor Law was certainly the top priority The plan for the upcoming period for the committee, and AmCham is to organize a seminar about the member companies showed great Law on Requirements for Seconding enthusiasm and desire to use their Employees Abroad on a Temporary long-term experience to contrib- Basis. Moreover, the committee ute to the amendment of this law. will recommend that the Law on Committee members pointed out Labor-Related Records should be the challenges they encounter in amended and will implement other practice and, thanks to their sug- activities aimed at modernizing leg- gestions and their active participa- islation, creating legal certainty, and tion at meetings, the text adopted ensuring consistency of practice. for the Labor Law included 70% of the proposals made by the commit- For all that we have managed tee. After the law was adopted, the to do, as Vice Chair of the Labor committee took part in its imple- Regulations Committee, I owe a mentation, organizing a seminar huge thank you to all members of with the participation of the com- the committee for devoting their petent authorities who had taken time and offering their help in such part in developing the law, so that a generous manner, and in particu- ambiguities with regard to the ap- lar to AmCham representatives for plication of its numerous provisions being so well-organized and patient. 30 31.