{"id":16804,"date":"2026-03-24T20:28:07","date_gmt":"2026-03-24T19:28:07","guid":{"rendered":"https:\/\/advokatbabicnovisad.rs\/severance-pay\/"},"modified":"2026-03-30T18:43:42","modified_gmt":"2026-03-30T17:43:42","slug":"severance-pay","status":"publish","type":"post","link":"https:\/\/advokatbabicnovisad.rs\/en\/severance-pay\/","title":{"rendered":"Severance pay"},"content":{"rendered":"\t\t
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What is severance pay?<\/strong><\/p>

Severance pay is a compensation that an employer is obliged to pay to an employee in certain cases. It is regulated by the Labor Law. <\/p>

When is an employee entitled to severance pay?<\/strong><\/p>

The employee is entitled to severance pay:<\/p>

  • in the event of dismissal if declared redundant<\/li>
  • in case of retirement<\/li><\/ul>

    Severance pay in case of dismissal<\/strong><\/p>

    Only if the employee’s employment relationship has been terminated due to technological, economic or organizational changes, the need for their work has ceased or the scope of their work has decreased, is the employee entitled to severance pay. Therefore, in any other cases of termination of employment (termination by agreement, termination by the employee or termination by the employer on any other basis), the employer is not obliged to pay severance pay. <\/p>

    Severance pay in case of retirement<\/strong><\/p>

    The employer is obliged to pay the employee a severance pay upon retirement, at least in the amount of two average salaries in the Republic of Serbia according to the latest published data of the republican statistical authority. This applies equally to retirement on old-age, early old-age, disability or survivor’s pension. An employee who retires has the right to severance pay regardless of the time spent in employment with the employer with whom this right is exercised. Also, this right equally belongs to both fixed-term and permanent employees. <\/p>

    How is the amount of severance pay calculated?<\/strong><\/p>

    It is stated that in the case of retirement, the severance pay is at least two average salaries in the Republic of Serbia, while in the case of dismissal because the employee has become redundant, the severance pay is equal to the sum of one third of the employee’s salary for each completed year of work with the employer with whom the right to severance pay is exercised. Earnings are considered to be the employee’s average monthly salary paid for the last three months preceding the month in which the severance pay is paid. <\/p>

    It is important to note that the Labor Law prescribes minimum amounts of severance pay. An employee may be entitled to severance pay in a larger amount than prescribed by law if so agreed with the employer in the employment contract or if so prescribed by a collective agreement. <\/p>

    Can an employee waive the right to severance pay?<\/strong><\/p>

    It is not uncommon for an employer and an employee to sign agreements in which the employee waives the right to severance pay in advance. Such agreements are null and void, so even if the employee signs that he is not entitled to severance pay, that he will not claim it, that he waives it, etc., he still has the right to severance pay. Of course, when the employee’s claim for severance pay falls due for payment, the employee can have the debt owed to his former employer discharged or simply not claim payment. <\/p>

    If you need legal assistance regarding severance pay, call our law firm.<\/p>

    Danilo Babi\u0107- attorney at law Novi Sad<\/em><\/p>

    <\/strong><\/p>

    <\/p>

    <\/p>

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    What is severance pay? Severance pay is a compensation that an employer is obliged to pay to an employee in certain cases. It is regulated by the Labor Law. When is an employee entitled to severance pay? The employee is entitled to severance pay: in the event of dismissal if declared redundant in case of […]<\/p>\n","protected":false},"author":54,"featured_media":16795,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[145],"tags":[],"class_list":["post-16804","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-texts-on-professional-topics-en"],"_links":{"self":[{"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/posts\/16804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/users\/54"}],"replies":[{"embeddable":true,"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/comments?post=16804"}],"version-history":[{"count":1,"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/posts\/16804\/revisions"}],"predecessor-version":[{"id":16805,"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/posts\/16804\/revisions\/16805"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/media\/16795"}],"wp:attachment":[{"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/media?parent=16804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/categories?post=16804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advokatbabicnovisad.rs\/en\/wp-json\/wp\/v2\/tags?post=16804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}