Employment of Foreign Nationals in Serbia: Steps Every Employer Should Know

Employment of foreign nationals in Serbia has become an important issue for many employers. Companies increasingly hire foreign citizens due to a shortage of certain profiles on the domestic labor market, business expansion, arrival of foreign investors, work with affiliated companies or the need for specific skills that are not easy to find locally.

However, hiring a foreign citizen is not only a matter of selecting a candidate and signing an employment contract. The employer must check whether the foreign national has an appropriate basis for residence, whether they have the right to work, whether a single permit procedure is required and whether the contract is aligned with the actual job position.

It is particularly important to bear in mind that, as of 1 February 2024, an amended regime for employment of foreigners has been in application in Serbia. The National Employment Service states that employment of a foreign national is exercised under the condition that the person possesses a long-stay visa based on employment (for foreigners for whom possession of a visa is a necessary condition for entry into Serbia), temporary residence approval or permanent residence and a single permit, unless otherwise provided by law.

This means that employers should not rely on outdated information about a “work permit” as a separate document without checking the current regime. Although the term work permit for foreigners is still often used in practice and online searches, for most cases today the central concept is the single permit for temporary residence and work.

Who Is Considered a Foreigner for Employment Purposes?

A foreigner is a person who does not have citizenship of the Republic of Serbia. The Law on Employment of Foreigners regulates the conditions and procedure for employment of foreigners, as well as other issues relevant to their work in Serbia.

For the employer, this is important because the candidate’s citizenship directly affects the steps that precede the start of work. A citizen of the Republic of Serbia may enter into employment under the general rules of the Labor Law, while a foreign citizen most often must have an appropriate basis for residence and the right to work.

In practice, there are different situations. A foreign national may be coming to Serbia for employment. They may already be staying in Serbia based on family reunification, education, ownership of real estate or another basis. They may be transferring from another company. They may be seconded from a foreign company. They may be a director, manager or employee of a domestic employer.

That is why it is not enough to ask only whether the foreigner “has papers”. The employer must know the exact basis of residence and work, whether that basis relates to the specific employer and whether it enables performance of precisely the job for which the candidate is being engaged.

Legal Framework for Employment of Foreign Nationals in Serbia

Employment of foreigners in Serbia connects several legal areas: residence of foreigners, right to work, employment relationships, mandatory social insurance, tax treatment and, in certain cases, the status of affiliated companies or seconded persons.

The biggest mistake employers make is treating the hiring of a foreign citizen only as an HR procedure. That is not enough. The company must simultaneously check whether the foreigner legally resides or can legally reside in Serbia, whether they have the right to work, whether a single permit is required, whether there is an exemption from the obligation to obtain a single permit, whether the contract is properly structured, whether the job position is aligned with the documentation and whether there are tax and social security obligations.

A single permit is a permit which, when statutory requirements are met, combines temporary residence and the right of a foreigner to work in the Republic of Serbia. The Rulebook on Issuing a Single Permit prescribes detailed conditions for submitting and processing applications for the issuance of a single permit for temporary residence and work of a foreigner electronically.

What Is a Single Permit for Residence and Work?

The single permit for residence and work is the key institute for most employers hiring foreign citizens in Serbia. It connects the issue of temporary residence and the right to work when statutory requirements are met.

For the employer, this is particularly important because the procedure is not merely a formality. Documentation must correspond to the actual engagement. If a foreigner is being employed in a specific job position, the contract, job description, duration of engagement and employer data must be aligned.

In other words, the single permit does not merely serve for the foreigner to “get a paper”. It connects residence, work and the specific basis of engagement. Therefore, an incorrectly structured contract or an unclearly defined position may cause a problem already during the procedure, but also later in the event of an inspection.

The Welcome to Serbia portal explains that the right to work in Serbia is generally linked to an appropriate visa D issued on the basis of employment or a temporary residence and work permit, with a note that in certain cases temporary residence may also allow the right to work. This does not mean that the employer should automatically conclude that each of these bases is sufficient for every form of engagement. The foreigner’s specific status, basis of residence, type of work and documentation must be checked in each individual case.

Work Permit for Foreigners and the Single Permit: Why the Difference Matters

Many employers still use the expression work permit for foreigners. This is understandable, because that term was common in practice for a long time. However, employers should know that the current regime places emphasis on the single permit for temporary residence and work.

For SEO reasons, the expression work permit for foreigners may appear in the text because users frequently search for it. But a legally precise text must explain that in most employment cases today, the issue is whether the foreigner has an appropriate basis of residence and work through a single permit, or another legally recognized basis.

This difference is not merely terminological. If an employer uses outdated forms, old internal procedures or relies on earlier experience without checking the new regime, it may wrongly assess when a foreigner can start working.

First Step: Checking the Status of the Foreign Citizen

Before initiating the procedure, the employer should establish several basic facts. First, it should check whether the foreign citizen is already in Serbia or still needs to come. Then it should determine on what basis the person resides in Serbia, if already present, and whether they have approved temporary residence, permanent residence, a long-stay visa based on employment or a single permit.

The most important question is whether the existing status enables work for the specific employer and in the specific job position. This is particularly important for candidates who already reside in Serbia. The employer must not automatically assume that regulated residence also means the right to work. Residence and the right to work are connected issues, but they are not the same.

For example, a foreigner may have approved temporary residence on one basis, but that does not necessarily mean they may immediately start working for a new employer. Likewise, a foreigner may have a previously approved right to work in connection with one employer, while a change of employer may require additional checks or a separate procedure.

Can a Foreigner Work Without a Single Permit?

In certain cases, a foreigner may have the right to work without an issued single permit. This is a particularly sensitive area, because exceptions exist, but they should not be interpreted broadly or automatically.

The Law on Employment of Foreigners provides situations in which the employment conditions for foreigners under that law do not apply to certain categories. Therefore, the employer must carefully check whether a specific exception truly applies to the person it intends to engage.

This is particularly important for persons with a special residence or work status, such as family members, persons with permanent residence, persons with approved protection, students, researchers, directors or other persons whose status may depend on special statutory conditions.

For the employer, the safest approach is to check each exception in the specific case. It is not enough for the candidate to say that they have residence or that they have already worked in Serbia. The legal basis, documentation and conditions under which the person may work must be checked.

Who Initiates the Procedure and What Documentation Is Required?

The procedure may involve the foreigner, the employer or an authorized person, depending on the specific basis and manner of submitting the application. The Portal for Foreigners allows electronic submission of applications for temporary residence, long-stay visa and combined residence-work permit.

For the employer, it is important not to leave the entire procedure to the candidate if the documentation depends on company data and acts. Documentation differs from case to case. In practice, the passport, basis of residence, employment contract or another contract, employer data, job description, duration of engagement, qualifications where relevant and other evidence that the competent authority may request are most often checked.

A universal list of documents should not be used without legal review. What is sufficient for employment with one employer may not be sufficient for a seconded person, director, self-employed person or a foreigner changing employer.

Therefore, it is advisable for the employer to check before submitting the application whether all documents are mutually aligned. If the contract says one thing, the job description another and the actual job position a third thing, the procedure may be slowed down or become problematic.

Labor Market Test and the Role of the National Employment Service

For certain employment bases, the National Employment Service has an important role. In the procedure for employment of foreigners, assessment of fulfillment of conditions for employment of a foreigner, special cases of employment or self-employment may be relevant.

In practice, when the assessment is relevant, it must not be viewed as a separate formality, but as part of a broader verification of the conditions for the foreigner’s work. The employer must properly present the need for employment, the job position, working conditions and documentation supporting the application.

If the job description is unclear, if the conditions are not realistically presented or if the documentation does not correspond to the actual engagement, the procedure may be more difficult. That is why this step must not be reduced to merely completing a form.

For companies hiring a foreigner for the first time, the labor market test and communication with competent institutions are often the most sensitive part of the procedure. Errors in this phase may delay the start of work and create additional administrative costs.

Employment Contract or Another Basis of Engagement

One of the key decisions for the employer is choosing the correct contractual basis. A foreign citizen may be engaged under an employment contract, but in practice there are also other models, depending on whether the person is a seconded employee, director, manager, person moving within affiliated companies, consultant or another type of engagement.

An incorrectly chosen contractual basis may create problems in several directions. It may make the single permit procedure more difficult. It may raise the question of whether the employer has properly registered the worker. It may create a problem if an inspection finds that the actual relationship does not correspond to the documentation.

For example, if a foreigner is formally presented as a consultant, but in practice works as an employee with working hours, a superior, a job position and obligations characteristic of an employment relationship, the employer may be exposed to risk. The same applies when documentation provides for one job position, while the foreigner actually performs other tasks.

Therefore, before signing the contract, the employer should answer several questions: who is the formal employer, where will the foreigner work, to whom is the foreigner accountable, is the person coming from an affiliated company, how long will the engagement last and does the actual job description correspond to the contract?

Employer’s Obligations Before the Start of Work

A foreign citizen should not start working before the statutory conditions for residence and work have been fulfilled. This is one of the most important rules for employers.

Before the start of work, the employer should check whether the appropriate permit has been issued, for what period it is valid, whether it relates to the specific basis of work, whether the contract has been signed in the appropriate form and whether there is an obligation to register for mandatory social insurance.

It is also important to establish an internal deadline record. Single permits and other bases of residence and work have a duration. If the company does not monitor deadlines, it may happen that the foreigner continues working even though their status has expired or has not been extended in time.

For larger employers engaging several foreign workers, it is advisable for the HR and legal departments to have a clear internal process: who monitors deadlines, who communicates with the candidate, who prepares documentation and who checks whether work status and contract are aligned.

Checklist for Employment of Foreign Nationals in Serbia

Before a foreign citizen starts working, the employer should check at least the following:

• Whether the foreigner already resides in Serbia or is still coming from abroad.
• On what basis the foreigner resides or plans to reside in Serbia.
• Whether a single permit for temporary residence and work is required.
• Whether there is a statutory exemption from the obligation to obtain a single permit.
• Whether the foreigner’s existing status allows work for the specific employer.
• Whether the contract corresponds to the actual job position and job description.
• Whether the data on the employer, job position and duration of engagement are aligned in the documentation.
• Whether assessment of fulfillment of conditions or a labor market test is required.
• Whether there are social insurance registration obligations.
• Whether permit validity deadlines and any planned extension have been checked.

This checklist does not replace legal review, but it may help the employer identify in time the issues that must not remain unresolved until the first working day.

What if the Foreigner Changes Employer?

Change of employer is one of the situations in which mistakes are most often made. The employer should not assume that a foreigner who already works in Serbia can automatically move to a new company.

The Law on Employment of Foreigners recognizes the concept of consent, that is, an act enabling a foreigner to change the basis of work, change employer or be employed by two or more employers during the validity of the single permit. Consent is issued by the organization competent for employment affairs, in accordance with the law.

Therefore, the new employer must check whether the existing permit allows work for it or whether an additional procedure is required. This is particularly important if the candidate comes from another company and claims to already have regulated status.

In practice, the safest approach is to check documentation before concluding the contract and before agreeing the start date. Otherwise, the company may end up in a situation where it hired a candidate who formally cannot yet work for the new employer.

Tax and Social Security Obligations

Employment of foreigners may also raise issues of taxes, contributions, residency and social insurance. This is particularly visible with directors, managers, seconded persons, employees who travel frequently or foreigners who simultaneously have links with several countries.

The employer should check whether the foreigner is a Serbian tax resident or a resident of another country, whether there is a double taxation treaty, whether special social insurance rules apply and how obligations based on salary or remuneration are calculated.

These issues should not be resolved later, after the foreigner has already started working. If the employment law status is properly structured but taxes and contributions are treated incorrectly, the employer may still have a serious problem.

Most Common Mistakes of Employers

The most common mistake is allowing work to start before all conditions are fulfilled. Employers sometimes believe that it is enough that the application has been submitted or that the candidate expects approval. That is not a secure basis for starting work.

The second mistake is failing to distinguish residence from the right to work. A foreigner with regulated residence in Serbia does not automatically have the right to work for every employer.

The third mistake is relying on outdated terminology and old procedures. If a company still thinks only in terms of a work permit, without understanding the single permit, it may set up the procedure incorrectly.

The fourth mistake is an incorrectly defined basis of engagement. The formal contract must correspond to the actual relationship. If one thing is stated in the documentation and another happens in practice, the employer enters a risk zone.

The fifth mistake is incomplete or inconsistent documentation. The contract, job description, employer data and actual engagement must be aligned.

The sixth mistake is lack of attention to permit validity deadlines. If deadlines are not monitored, the company may miss timely extension or status checks.

The seventh mistake is automatically taking over a foreigner from another employer. Moving to a new company may require additional checks, consent or another procedure.

Inspection Risks and Consequences of Irregular Employment

Irregular employment of foreigners may lead to misdemeanor liability, fines, problems related to the employee’s work status and additional administrative procedures. In addition, consequences may be operational: interruption of work, project delay, loss of a key employee or problems with a client.

The risk is greater in companies that employ a larger number of foreign workers, in construction, the IT sector, hospitality, manufacturing, transport, management positions and international groups of companies. In such cases, employment of foreigners is not an isolated case, but part of a broader compliance system.

That is why it is better to check the procedure before the start of work than to correct mistakes later. Subsequent corrections often take longer, cost more and create greater risk for the company.

When Does the Employer Need Legal Support?

Legal support for companies is particularly useful when the company is hiring a foreign citizen for the first time. Then it is important to establish a good model that will later be used for other cases as well.

Support is also recommended when the company hires a larger number of foreigners, when there is an urgent need for the start of work, when the foreigner changes employer, when a director or manager from abroad is engaged, when it is a seconded person or when there is an affiliated company in another country.

A law firm can assist in checking the basis of engagement, preparing contracts, aligning documentation, checking exemptions, monitoring deadlines and reducing the risk of incorrect interpretation of regulations.

Conclusion

Employment of foreign nationals in Serbia can be efficient if the procedure is properly structured from the beginning. The employer should not view it merely as an administrative procedure, but as a connected issue of residence, right to work, contract, tax obligations and internal compliance.

The most important thing is to check before the start of work who the candidate is, on what basis they reside in Serbia, whether they have the right to work, whether a single permit is required, whether there is an exemption and whether the documentation corresponds to the actual job position.

If your company plans to hire foreign citizens in Serbia, timely legal review can help ensure the procedure is carried out properly, with lower risk of administrative delays, inspection problems and irregularities in the employee’s work status.

FAQ

Can a foreigner work in Serbia only on the basis of temporary residence?

Not always. Temporary residence and the right to work are not the same. In some cases, temporary residence may be connected with the right to work, but the employer must check the specific basis and conditions.

What is a single permit for residence and work?

A single permit is a permit which, when statutory requirements are met, combines temporary residence and the right of a foreigner to work in Serbia.

Is the expression work permit for foreigners still used?

Yes, the expression is still often used in practice and online searches. However, employers should know that in most cases today the key institute is the single permit for temporary residence and work.

Can a foreigner start working as soon as an application is submitted?

The employer should not allow the start of work merely because the application has been submitted. Before work begins, it is necessary to check whether the conditions for lawful residence and work have been met.

What if the foreigner already works for another employer in Serbia?

The new employer should check whether the existing status allows work for the new company. Change of employer may require additional checks, consent or another procedure.

Is a labor market test always required?

It does not have to be relevant in every case, because the procedure depends on the specific basis of engagement. When it is relevant, the need for employment and the conditions of the job position must be properly presented.

What are the most common mistakes of employers?

The most common mistakes are allowing work before conditions are met, choosing the wrong contractual basis, failing to distinguish residence from the right to work, inconsistent documentation, lack of attention to deadlines and automatically taking over a foreign worker from another employer.