CEE Legal Matters
In-depth coverage of the news and newsmakers that shape Europe's emerging markets
Terminating an employee is a critical juncture for employers, fraught with potential risks and complications. Such a move can disrupt workflow and productivity, casting a shadow on workplace morale and organizational stability. Additionally, it opens the door to legal disputes, with terminations often seen as unfair or discriminatory, resulting in costly litigation.
In the Serbian market, contractual penalties are often included in employment contracts since this is concrete and efficient protection for the employer in case of a breach of certain contractual obligations by employees. On a general note, a contractual penalty is a fixed monetary receivable that can be claimed in case of a breach of contractual obligations by one party, without having to prove the actual amount in damages. However, in the area of labor law, there is still uncertainty when it comes to the validity of such clauses and their enforceability in case of disputes.
Considering the ongoing martial law in Ukraine and frequent air strikes in various parts of the country, more and more employers are becoming concerned about whether they should adopt measures to protect their personnel or provide shelter, and what the liability if these obligations are not fulfilled would be.
The need for management contracts arises when an employer needs to arrange for a relationship beyond that of one with a simple employee – one with an individual performing managerial or supervisory tasks. Therefore, the relevant labor laws (in the Federation of Bosnia & Herzegovina, Republika Srpska, and Brcko District of Bosnia & Herzegovina) introduce management contracts that offer an alternative for the employer to conclude an agreement with a manager without establishing actual employment. The aim is for a more flexible arrangement of said business relationship or established employment which is absolutely subject to the provisions of the relevant labor laws.
In recent times, the global economic landscape has raised concerns about the potential onset of a recession. Consequently, businesses operating in North Macedonia are proactively seeking strategies for cost reduction and organizational restructuring.
A historic labor strike unfolded in 2023’s ever-evolving Hollywood scene, resembling a gripping drama. On May 2, the Writers Guild of America (WGA) took center stage, unanimously endorsing a strike. This was reminiscent of the industry-shifting 2007–2008 Hollywood strike, marking fifteen years since writers last voiced dissent.
Negotiations on next year's wages started at the beginning of October 2023, with stakeholders - employers and trade unions representing workers - and the government as an observer taking part in the wage negotiations, which can last several weeks.
