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Employee Rights When an Undertaking is Transferred in Serbia

1. Employee Rights

The labour act imposes certain obligations in case of a “change of employer”, both for the predecessor and successor employee, which, by virtue of an explicit provision of law, encompasses only status changes.

2. Requirements of take over party

In case of a change of employer, the predecessor and successor employers jointly notify the representative trade union in the company about a number of requirements. The law further provides that the collective agreement/work rules of the company must continue to apply at least one year following the change. Finally, prior to completion of the change, the predecessor employer must notify employees in writing about the transfer of their employment agreements to the successor employer. If an employee fails to accept the transfer or respond within five working days from receipt of the notification, the predecessor employer is entitled to terminate their employment agreement.

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