Redistribution of Working Hours: Limitations and Conditions for Reapplication During the Calendar Year

Basic Rules

The provisions of the Labor Law (“LL”) stipulate that an employer can execute the redistribution of working hours when required by:

• Nature of Activity: For example, in construction, agriculture, or tourism, where there is increased business activity during certain periods (seasons) while it is reduced during others.
• Work Organization: For instance, to avoid disruptions in the production process.
• Better Utilization of Resources: For example, certain weather conditions throughout the year may favor more rational use of resources.
• Rational Use of Working Time: For instance, aligning working hours with climatic conditions in agriculture.
• Execution of Specific Tasks within Set Deadlines: For example, when there are contractual deadlines for completing specific tasks.

The redistribution of working hours is carried out so that the total working hours of an employee over a six-month period during the calendar year do not exceed the contracted working hours on average.

A collective agreement may stipulate that the redistribution of working hours is not connected to the calendar year and can last longer than six months, but no longer than nine months.

In cases of redistribution of working hours, working time cannot exceed 60 hours per week.

The redistribution may cover one or more job positions, or a portion of employees or all employees at the employer's company.

Additionally, the redistribution can encompass the entire period of six or nine months or another shorter period (e.g. one or more months).

Finally, as a rule, redistribution implies that employees work longer hours in the first part of the redistribution period and shorter hours in the second part. However, longer and shorter working periods within the overall redistribution period may alternate.

In any case, the duration of working time throughout the entire redistribution period must not exceed the contracted working hours (full-time/part-time) on average.

Limitations and Prohibitions

The redistribution of working hours cannot be carried out for jobs where reduced working hours have been established in accordance with LL.

Redistribution of working hours is prohibited for employees under 18 years of age.

An employer may execute a redistribution of working hours for a pregnant employee and for an employee who is a parent with a child under three years old or a child with severe physical or mental disabilities—only with written consent from the employee.

Redistribution and Overtime

Considering the abovementioned, the redistribution of working hours itself is not considered overtime work.

However, an employee whose employment relationship has ended before the expiration of the period for which working hour redistribution is being implemented has the right to have their hours worked beyond their contracted working time during this redistribution:

• Counted towards their working time and for their employer to deregister them from mandatory social insurance at the end of that time, or
• Compensated and paid as overtime work.

Finally, there is a possibility for an employee to agree to work on average longer than their contracted working time (full-time/part-time) during redistribution; in this case, any hours worked beyond average working time will be calculated and paid as overtime.

Position of the Ministry of Labor, Employment, Veterans and Social Affairs of the Republic of Serbia

In practice, it is common for employers to operate in industries where seasonality is particularly important. Thus, there is a need to organize two redistributions of working hours within a calendar year for periods lasting six months each. On the other hand, employers' general acts often do not foresee additional possibilities provided by LL.

In this regard, the Ministry expressed in opinion number 002932205 2024 13400 001 002 102 010 dated October 25, 2024, that there are no obstacles for employers to carry out redistributions of working hours multiple times within a calendar year if each redistribution does not last longer than six months.

The Ministry also stated that it is not competent to assess specific reasons for which redistributions are organized and whether those reasons can be identical when implementing multiple redistributions within a calendar year.

Borinka Dobrnjac

Senior Associate

borinka.dobrnjac@prlegal.rs; legal@prlegal.rs;