Law on safety and health at work
Employer’s obligation to ensure employees are protected from workplace injuries and occupational diseases – (Article 67)
The previous Law on Safety and Health at Work from 2005 prescribed the employer’s obligation to insure employees against workplace injuries, occupational diseases, and work-related diseases according to a special law, which has not been adopted in the meantime (the Law on Insurance for Workplace Injuries and Occupational Diseases for Compensation of Damage), i.e., from 2005 until today. According to that law, employers could insure employees for damage compensation, but they were not obligated to do so. Additionally, this law did not prescribe any misdemeanor liability or fines in cases employers failed to act as specified.
Even the competent Ministry of Labor, Employment, Veterans, and Social Affairs, the Occupational Safety and Health Administration, in its opinion number 011-00-00016/2015 from April 3, 2015, stated that the insurance of employees against workplace injuries, occupational diseases, and work-related illnesses for the purpose of providing compensation for damage still exists only as an option, not as an obligation for employers, and that the conditions and procedures for insurance will be regulated only with the adoption of a special law.
On April 28, 2023, a new Law on Safety and Health at Work was adopted (“Official Gazette of RS”, no. 35/2023), which came into force on May 7, 2023. Article 67 of the new Law on Safety and Health at Work retains the employer’s obligation to insure employees in case of workplace injuries and occupational diseases for the purpose of providing compensation for damage. It is specified that the financial resources for this insurance are the responsibility of the employer and that the conditions and procedures for insurance against workplace injuries and occupational diseases will be regulated by law. Therefore, this insurance will be implemented in accordance with the Law on Insurance.
If the employer fails to insure employees in accordance with Article 67 of the Law on Safety and Health at Work, they should be aware that non-compliance with this provision may result in a fine in the amount of:
- 1.000.000 to 1.500.000 dinars for an employer with the status of a legal entity;
- 200.000 to 400.000 dinars for an employer who is an entrepreneur;
- 30.000 to 150.000 dinars for the director, or another responsible person at the employer;
- 30.000 to 150.000 dinars for an employer who is a natural person.
At yesterday’s panel discussion “Occupational Safety and Health: Harmonization with New Regulations and Practical Challenges,” held at the American Chamber of Commerce in Serbia, representatives from the Occupational Safety and Health Administration and the Labor Inspectorate, on behalf of the Ministry of Labor, Employment, Veterans, and Social Affairs, confirmed the obligation of insurance of the employees against workplace injuries and occupational diseases and that all employers must comply with the requirements set forth in Article 67 of the Law on Safety and Health at Work. A special regulation regarding the conditions and procedures for insurance will not be adopted for now.
Considering that the new Law on Safety and Health at Work provides employers with a two-year period from the date of its entry into force to comply with the new regulations, employers will have until May 7, 2025, to insure their employees against workplace injuries and occupational diseases for the purpose of providing compensation for damage. Otherwise, they may be liable for misdemeanors in accordance with the law.
If you have any questions or require additional information, please feel free to contact us at office@ctlegal.rs
Note: The information contained in this document does not constitute legal advice on any legal matter but is provided only for the purpose of general information about legal changes.
