In Serbia, the traditional employment relationship is still the predominant form of workforce engagement. Currently, the relevant court practice regarding re-classifica-tion is limited, and the authorities have not been vigorously inspecting or sanctioning sham forms of contractor engagement. With the growing sectors that demand more flexible working arrangements (in particular IT and consultancy), we expect a growing trend of engaging independent contractors via service agreements. This could eventually lead to more reaction from the authorities, as they encounter more and more cases of flexible work engagements. Therefore, employers should be aware of the factors that can possibly contribute to re-classification, and of the consequences of an independent contractor being re-classified as an employee. The risk can be mitigated by properly structuring the relationship with independent contractors.
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