Date: 24/12/2019

Roundtable on Staff Leasing Law

In a panel discussion with representatives of the Ministry of Labor, Employment, Veteran and Social Policy, representatives of AmCham member companies exchanged views on the recently adopted Law and the legal, organizational and technical challenges to its implementation

“Only dialogue can lead us to the legal solutions that are most suited to the needs of both employers and employees. AmCham has been and remains a very active and reliable partner of the Ministry of Labor, as well as other ministries of the Government of the Republic of Serbia, and it is my great pleasure that we were able to collaborate during the public debate on the Law which will be discussed today. The fact that 80% of AmCham's comments found a place in the final text of the Law presents firm evidence of the positive results of this collaboration,” said Branislav Savić, First Vice President of AmCham.

"The Staff Leasing Law will provide the legal basis for eliminating numerous problems, particularly inequality, discrimination and unfair competition, when it comes to the status of seconded employees, agencies dealing with assignments and the employers who are the end users,” said Minister Zoran Đorđević, who added that "the positive effects of passing this law will be reflected in the protection and improvement of working conditions for employed workers for the purpose of transferring employees to other entities."

The introductory remarks were followed by a two-hour panel discussion attended by State Secretary Bojana Stanć, Snežana Bogdanović, Head of Legal and Study Analytical Issues in the Area of Labor and Employment, Goran Marković, Chief of the Labor Inspectorate, and ministry representatives Ivana Nikolić and Danijela Rajković. The discussion focused on issues related to interpretation of the Law, as well as potential problems in practice that the economy could encounter:

- will what is provided by the general act of the beneficiary employer (in the rulebook or through a collective agreement) apply to a seconded employee, for whom there is no comparable employee? For example, holidays, paid absences, additional grounds for increased earnings.

- limiting the number of employees through agencies – quotas, i.e. the possibility of leasing an employee with a permanent employment contract with an agency to the beneficiary employer so that this contract is signed for a permanent term, as well as the number of employees transferred that are required by the beneficiary employer (Article 11, paragraph 1 of the Law)

- application of the law in a situation where there is no comparable employee (Article 2, paragraph 5 of the Law)

- the relatively short deadline for implementation of the Law, i.e. the possibility of delaying implementation of the Law, bearing in mind that compliance with the Law requires comprehensive preparations, such as: changes in the budget and business model of the beneficiary employer, changes in job classification and internal regulations on benefits and rewards, and new arrangements with employment agencies

State Secretary Bojana Stanić emphasized the importance of open dialogue between the economy and legislators while suggesting that another meeting be organized within six months of the Law coming into force in order to review the practical results of implementation of the Law.

The discussion was moderated by Dragana Bajić of Kinstellar, Chair of AmCham’s Labor Regulations Committee.