Law on Employment and Unemployment Insurance

Establishment and work of an Employment Agency

Conditions for establishment and work of an employment agency shall be regulated by the Law on Employment and Unemployment Insurance (“Off. Herald of RS”, Nos. 36/2009, 88/2010, 38/2015, 113/2017 i 113/2017 – other Act), as well as by the Regulation on Requirements in Terms of Space and Technical Equipment for the Work of an Employment Agency, the Conditions of Professional Qualification of Employees, Program, Content and Manner of Taking an Exam for the Work in Employment (“Off. Herald of RS”, Nos. 98/2009, 100/2012, 65/2014 i 11/2018).

Activity of an Employment Agencies

An employment agency may be founded by legal or natural entities for the purpose of conducting employment affairs, namely:

  • Dissemination of information on employment opportunities and conditions
  • Jobmatching within the country and internationally
  • Vocational guidance and career counselling
  • Implementation of particular active employment policy measures, based on a contract with the National Employment Service.

The employment agency shall not engage in employment of minors, or placement in high risk jobs, in accordance with provisions regulation the relevant field.

During a strike, an employment agency shall not perform placement services to fill the strikers’ jobs, except in the event that the minimum service has not been provided, pursuant to law.

Operating License

The operating license shall be issued to an employment agency by the Ministry of Labor, Employment and Social Issues upon a written request, on condition that the employment agency fulfils requirements regarding:

  • Space and technical equipment
  • Professional qualifications of its staff.

Operating license may be issued to an employment agency which has at least one employee with a university degree. A qualified person shall be understood to be a person who has completed at least secondary school and passed the employment professionals’ examination.

Requirements in terms of space and technical equipment, professional qualifications of its staff, as well as the programme, contents and manner of sitting the employment professionals’ examination shall be prescribed by the Minister in charge of employment affairs

The Ministry of Labor, Employment and Social Issues shall keep a register of issued licenses.

An employment agency may not be founded by, or have employment affairs conducted by a person who:

  • Has received an unconditional sentence of imprisonment for at least six months for a criminal offence; this prohibition shall apply for three years following the completion of the sentence
  • Is the founder of an employment agency whose license to conduct employment affairs has been revoked; this prohibition shall apply for three years from the day of the revocation of the license.

Upon obtaining the license to conduct employment affairs, an employment agency shall be registered with the competent authority, whereupon it may start operations.

For the purpose of conducting employment affairs on a specific territory, an employment agency may establish branches, which are required to meet the conditions prescribed for obtaining the operatiing license to an employment agency which were perscribed by the Law on Employment and Unemployment Insurance.

The license shall be issued for a period of five years and may be extended.

The license shall be revoked by the Ministry of Labor, Employment and Social Issues if the employment agency:

  • Ceases to meet the requirements for obtaining a operating license for employment agencies, which are prescribed by the Law on Employment and Unemployment Insurance
  • Has performed employment services contrary to the Law on Employment and Unemployment Insurance.

The license shall also be revoked if the employment agency’s founder receives an unconditional sentence of imprisonment for at least six months.

The employment agency whose license has been revoked for reasons as follows:

  • Performing the employment services contrary to the Law on Employment and Unemployment Insurance
  • the employment agency’s founder receives an unconditional sentence of imprisonment for at least six months.

the license may be reissued upon expiry of three years from the day of revocation of the license.

National Employment Service may, by means of public procurement, contract an employment agency to implement particular employment affairs, in accordance with the Performance Agreement. In this case mutual rights and duties of National Employment Service and an employmen agency shall be defined by a contract.

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