A draft law on temporary work engagement has just been passed onto the Serbian Parliament for discussion, according to the Serbian Monitor and Nova Ekonomija.

The law stipulates that workers in Serbia, hired through employment agencies, will be guaranteed equal pay and other working conditions (working hours, absence, holidays), health & safety at work, that are the equal to workers who are directly employed by the employer.

As indicated in the draft law, and at the request of trade union representatives, in order to encourage direct employment of workers, the possibility of finding workers through employment agencies is now limited to 10% of the total number of employees directly employed by a company. This takes into account the current practice of laying off surplus workers and their subsequent re-employment through agencies to significantly less favorable working conditions.

An exception to this limitation is set for companies with less than 50 employees. This exception was the biggest problem in the debate on the draft law, as the employers’ representatives argued that their constitutional rights were violated.

The law also proposes that employment agencies cannot assign a previously employed part-time employee for a certain period of time with the same employer directly or through the same or another agency for a total period of time of 24 months, except in cases where temporary work with the employer is granted for a longer period in accordance with the Labour Law. This is to prevent the continued employment of part-time employees with the same employer.

Furthermore, civil servants are not allowed to work in the public sector if their employment came via an employment agency and that also applies to work for local governments and the government of autonomous provinces.

The law also proposes that an agency is not allowed to charge the employer for the temporary work after the termination of service.

Approximately 2.1% of Serbian people find employment via employment agencies. Ministry of Labour data, as of September 2018, showed there were 111 registered employment agencies in Serbia. This is an increase compared to 2016, when they were 88. Up to September 2018, employment agencies found work for 16,841 people.

Serbia is a potential candidate for EU membership with the country formally applying in 2009. The new law on temporary work aligns Serbia more closely to the EU’s Agency Work Directive.