Introduction

Whether you’re hiring remotely, expanding into new markets, or onboarding global contractors, understanding local labour laws is crucial. Serbia and the USA might share some business ties, but their employment regulations differ significantly. If you’re managing teams across both jurisdictions, you can’t afford to copy-paste your HR strategy. With the rise of cross-border work and talent mobility, compliance has become more complex - and more important - than ever.

In my work at ThinkGlobal HR, I’ve supported clients navigating both Serbian and US employment landscapes. From misclassification pitfalls to termination rules, the key to success lies in understanding where the differences matter most.

Quick Tips

• In Serbia, fixed-term contracts are tightly regulated - renewals are limited.

• At-will employment is the norm in the USA - but non-existent in Serbia.

• Serbia mandates severance pay in more scenarios than most US states.

• Employee representation is more formalised in Serbia, including union rights.

• Always review social security and tax obligations separately for each country.

Employment Contracts: Formal vs Flexible

In Serbia, written employment contracts are mandatory. They must include specific terms such as job title, workplace, salary, working hours, and duration if fixed-term. Without a valid written agreement, the employer is in breach of the Labour Law.

Compare that with the US, where written contracts are optional in many states, and most employment relationships are considered “at-will”. This means either party can terminate the relationship at any time, with or without cause - something that would be unlawful in Serbia unless due process is followed.

For employers hiring in both countries, this means adopting two fundamentally different approaches to onboarding and termination. I once worked with a fintech client hiring developers in both regions. Their US template didn’t comply in Serbia - we had to build a compliant Serbian contract structure from the ground up, with probation periods, statutory benefits, and notice clauses all aligned to local law.

Termination Rights and Severance

Termination procedures in Serbia require clear justification and documentation. Dismissals must be based on legal grounds - such as misconduct or redundancy - and employees are entitled to written notice and severance pay, typically one-third of their monthly salary per year of service.

In the USA, termination is often faster due to the at-will principle. But risks still exist - especially with federal and state anti-discrimination laws and wrongful termination claims. Severance is generally not required by law, though it may be included in a contract or used as a risk management tool.

One client of mine had to restructure part of their Serbian operation. Because we’d planned ahead, all redundancies were implemented with compliant notice periods and consultations, avoiding legal challenges and preserving reputation.

Working Time and Leave

In Serbia, the standard work week is 40 hours, with at least one full day of rest. Employees are entitled to a minimum of 20 working days of annual leave, plus public holidays. Overtime is regulated and must be compensated or granted as time off.

The US has no federal law guaranteeing paid vacation. Leave entitlements vary by employer policy and state law. While the Fair Labor Standards Act (FLSA) sets overtime rules, there’s no obligation to offer paid holidays or rest periods unless state laws require it.

For international employers, this can create stark disparities. A US-based team may have far fewer statutory protections than their Serbian colleagues. This doesn’t mean reducing support in Serbia - it means understanding expectations, budgeting accordingly, and avoiding cultural missteps.

A Real-World Example: A Tale of Two Offices

I once supported a SaaS company headquartered in New York with a growing engineering hub in Belgrade. Their biggest challenge? Aligning expectations around working hours and benefits. US staff were on unlimited leave policies with minimal take-up, while Serbian staff expected formal holiday planning and strict adherence to labour code.

We worked together to localise benefits, improve clarity on leave booking systems, and introduce manager training to balance global consistency with local nuance. The result? A happier, more cohesive team and a reduced compliance risk profile.

Final Thoughts

Labour law isn’t just red tape - it’s the backbone of your people strategy. Whether you’re hiring one person or launching a new market, Serbia and the USA require very different approaches to employment law. Respecting those differences will not only keep you compliant - it’ll also build trust with your people.

What’s next for your global people strategy?

Book a free compliance check-in or HR audit with ThinkGlobal HR. We’ll help you navigate country-specific regulations, tailor your documentation, and scale your operations with confidence. Let’s make international employment simple, compliant, and human-centred.