LAW
ON ENTERING EMPLOYMENT AND UNEMPLOYMENT INSURANCE

("Official Herald of the RS", No. 71/2003 and 84/2004 by another Law)

I BASIC PROVISIONS

Article 1

The present Law shall regulate the employment tasks, the active employment measures, rights and duties of persons looking for employment, the establishment of the National Employment Service, the conditions and the way of establishing employment agencies, the keeping of records, the unemployment insurance and relevant contributions, the procedure of putting into effect of insurance rights, the supervision and other matters significant for the employment.

1. Employment Tasks

Article 2

In terms of the present Law, the following shall be employment tasks:

1) informing on employment possibilities and conditions;

2) employment mediation;

3) vocational guidance and advising on the choice of profession;

4) organisation of additional education and training in conformity with the law;

5) carrying out of programs and active employment policy measures;

6) mediation in the sphere of employment abroad;

7) work permit issuance to aliens and stateless persons.

2. Person Looking for Employment

Article 3

In terms of the present Law, a person looking for employment shall be an unemployed person (hereinafter: the unemployed) and an employed person who is looking to change the job.

3. The Unemployed

Article 4

In terms of the present Law, the unemployed shall be a person between 15 and 65 years of age, able and immediately ready to work, who was not previously employed, or realised the right to work in another way, and who is entered in the unemployment records, while actively looking for employment.

The unemployed referred to in paragraph 1 of the present Article is actively looking for employment if:

1) he is reporting to the National Employment Service (hereinafter: National Service) within the time limits, as prescribed by the present Law, to obtain information as to the possibilities and conditions of employment and employment mediation;

2) he does not decline an adequate employment offered to him, and an adequate additional education and training, in conformity with the present Law;

3) he is reporting in response to a vacancy offered;

4) he is looking for employment through the National Service and/or the employment agencies (hereinafter: the agency), or directly addressing an employer to get employed;

At the request by the National Service, the unemployed shall be obliged to submit evidence to prove that he is actively looking for employment referred to in paragraph 2, items 3 and 4 of the present Article.

The employer shall be obliged to issue to the unemployed, interviewed by him on the ground of a reported vacancy or at the initiative of the unemployed actively looking for employment, a corresponding certificate by which to confirm the day, the hour and location of the interview.

Article 5

In terms of the present Law, a full-time pupil, a high school and a university student (hereinafter: student), a retired person and a farmer engaged in agricultural activity and compulsorily insured on the ground of land-registry revenue, shall not be considered as being unemployed.

A person whose employment rights are resting, in conformity with the law, shall also not be considered as unemployed.

4. Employer

Article 6

In terms of the present Law, an employer shall be a domestic or a foreign legal and natural person who employs, reports vacancies, and pays the unemployment insurance (hereinafter: the employer).

5. Entities in Charge of Employment

Article 7

Tasks of employment referred to in Article 2 of the present Law shall be performed by the National Service.

Tasks of employment referred to in Article 2, items 1 through 6 of the present Law may be performed by the agencies as well.

6. Principle of Accessibility, Procedure and Prohibition of Discrimination in the Sphere of Employment

Article 8

In implementing the present Law, other regulations and acts, the National Service and agencies shall provide to a person looking for employment an equal accessibility to employment tasks, and the equality in employment procedure, regardless of race, skin colour, national affiliation, ethnic origin, language, religion, political or other opinion and orientation, social background or origin, property status, marital or family status, family responsibility, age, membership in trade unions, associations or political organisations, or regardless of any other circumstance that could be a ground for discrimination, and/or unequal treatment of individuals between whom there exist differences which are not in the function of carrying out the tasks of a work post.

Equal accessibility shall be guaranteed to jobs and the equality in the procedure of employing of men and women.

Special protection of designated categories of persons (disabled individuals, under-age persons, and elder persons) shall not be contrary to the principle specified in paragraph 1 of the present Article.

7. Impartiality Principle

Article 9

The National Service and the agencies shall perform employment tasks impartially as regards persons looking for employment and the employers.

8. Free Service Principle

Article 10

The National Service shall perform employment tasks, referred to in Article 2 of the present Law, free of charge for persons looking for employment and employers, unless otherwise specified by the present Law.

The agency shall perform employment tasks referred to in Article 2, items 1 through 6 of the present Law, free of charge for the unemployed.

9. Active Employment Policy

Article 11

In terms of the present Law, an active employment policy shall be considered to be the enactment and the implementation of the programs andmeasures aimed at the promotion of employment and/or full, productive and freely chosen employment.

10. Rights of the Unemployed

Article 12

The unemployed shall effectuate the right to:

1) be informed of the employment possibilities and conditions;

2) employment mediaton;

3) vocational guidance and advising in the choice of employment,

4) additional education and training, in conformity with the law;

5) active employment policy measures;

6) unemployment allowance when out of job, in conformity with the law:

7) other rights as specified by the present Law and the general act of the National Service.

11. Unemployment Insurance

Article 13

Unemployment insurance (hereinafter: insurance) shall be effectuated as an obligatory and a voluntary insurance.

II EMPLOYMENT TASKS

1. Agreement between the National Service and the Unemployed

Article 14

An unemployed waiting for a long time for employment, or an unemployed effectuating the right to unemployment allowance, and the National Service, shall conclude an agreement relating to the conditions, procedure and measures for his employment (hereinafter: the agreement).

The agreement shall be concluded in conformity with the present Law and the general act of the National Service.

In terms of the present Law, the unemployed waiting for a long time for employment shall be a person who has been entered in the unemployment records for a period exceeding two years.

2. Obtaining Information

Article 15

A person looking for employment shall be bound to obtain information as regards reported vacancies, employment conditions, professional guidance possibilities and advising in the choice of profession, employment mediation, additional education and training, including other rights, as specified by the present Law.

Article 16

The National Service shall be bound, on the ground of the vacancy data collected from employers, to inform the person looking for employment about the employment possibilities and conditions.

3. Duty of Announcing the Vacancies

Article 17

The National Service shall be bound, within 24 hours from receiving the report from an employer, to announce the vacancy on the notice-board and on the Internet address of the National Service, and should the employer so demand, also through the mass media accessible to citizens in the Republic, within a five day time-limit from forwarding the demand.

At employer's demand, the agency may publish a vacancy in the mass media.

The National Service may charge the employer for the publishing referred to in paragraph 1 of the present Article, should the employer ask that the vacancy be made public in a special form and in a particular mass medium.

The agency may collect the costs referred to in paragraph 2 of the present Article from the employer.

4. Offering the Choice of Persons by the National Service

Article 18

An employer may demand that the National Service directly suggests a choice of persons to be employed.

Should both the unemployed and the employed person looking for a change of jobs be available on the records of the National Service, who both equally meet the requirements set for the employment by the employer, the National Service shall offer to the employer the one unemployed.

5. Employer's Freedom in the Sphere of Employment

Article 19

An employer shall decide independently on the choice of persons to be employed, among those offered by the National Service or the agencies, and another person who has directly addressed the employer for employment.

The employer shall be entitled to employ a person without mediation by the National Sevice or the agency.

6. Compensation for Damage due to Unjustified Withdrawal from Employment

Article 20

An employer negotiating without intention to conclude a contract of labour, or withdrawing without justified reason from negotiating the contract of labour, causing thus by his conduct specific material costs to the person looking for employment, and/or making him to decline the employment by another employer, shall be liable for the loss caused.

A person negotiating with an employer without intention to conclude a contract of labour, or withdrawing without justified reason from negotiating the contract of labour, causing thus by his conduct a damage to the employer, shall be liable for the loss caused.

7. Compensation for Damage due to Discrimination in the Sphere of Employment

Article 21

A person considering himself as being discriminated against on the grounds referred to in Article 8 of the present Law shall be entitled to claim damages by filing an action with the court, on the ground of discrimination by the employer who has withdrawn from establishing the labour relationship.

8. Mediation in Employment

Article 22

In terms of the present Law, mediation shall include tasks and measures of establishing the contact between a person looking for employment and an empoloyer, for the purpose of entering employment or concluding a contract of performing temporary and occasional tasks.

The National Service and the agencies shall perform tasks of mediation in employment on the ground of data filed in the records relating to the unemployed, the employed person looking for a change of jobs, open job opportunities, reports on vacancies, as well as in direct cooperation with the employer, the unemployed and the employed person looking for a change of jobs.

Tasks referred to in paragraph 1 of the present Article shall be performed by the Nactional Service and the agencies both in the country and abroad.

9. Mediation Procedure

Article 23

The National Service and/or the agencies shall take into account in the mediation procedure, the conditions of work of a given job at the employer, professional qualifications, profession, know-how and skills, and work capacity of the person looking for employment.

Should there be a doubt as to the state of health, the National Service may direct the unemployed to check his health capacity.

Data relating to the checking of health capacity shall be confidential.

Should there be no person in the records who entirely meets the necessary conditions, the National Service shall be obliged, within three days from forwarding the employment application, to notify the employer on measures taken, or possible to be taken by it, in order to fill the vacancy.

The National Service shall cover the costs of checking the health capacity referred to in paragraph 2 of the present Article.

10. Directing the Unemployed to the Employer

Article 24

The National Service shall direct the unemployed, who is filed in the records, to the employer for the purpose of making the choice for entering employment.

The general act of the National Service shall specify the criteria and other requirements relating to the procedure of directing to the employer a person looking for employment.

The person who was directed by the National Service to the employer shall be obliged to notify the National Service on the reasons of his failure to present himself to the employer on the day due.

Should a justified reason, referred to in paragraph 3 of the present Article, exist, the unemployed shall be bound to present himself in person, in order to notify the National Service immediately after the justified reason has ceased to exist.

Article 25

At the demand by an unemployed, who is effectuating a right to allowance in conformity with the law, the National Service shall authorise payment for covering the expenses of forwarding of the employment application, as well as for covering travel expenses for the purpose of an interview with the employer, pursuant to the general act of the National Service.

11. Mediation in Getting Employed Abroad

Article 26

Mediation in getting employed abroad shall be performed by the National Service and/or the agency in cooperation with employment organisations of individual countries, in conformity with the ratified and published conventions of the International Labour Organisation and other international treaties.

The National Service and/or the agency shall be bound, in the procedure of mediation in getting employed abroad, to notify the person looking for employment on the conditions of work and living, on the work rights and duties, as well as to render assistance in the realisation of rights on the ground of labour in the event of unemployment after returning from work in the foreign country.

12. Mediation Fee

Article 27

Mediation in employing an unemployed shall be performed by the agency against a fee to be covered by the employer.

Employment mediation for an employed person looking for a change of jobs may be performed by the agency against a fee.

Expenses of mediation in obtaining employment abroad incurred by the National Service and the agency shall be covered by the employer.

Services in the area of employment that are not specified in the present Law may be performed by the National Service against a fee, which shall be specified by the Government of the Republic of Serbia (hereinafter: the Government).

13. Vocational Guidance and Advising in the Choice of Calling and Employment

Article 28

In terms of the present Law, vocational guidance shall be considered to be professional advising, providing information, selection and classification for the purpose of renderng assistance to the unemployed and other interested person in the choice of calling and employment.

In terms of the present Law, advising in the choice of calling shall be considered to be the rendering of assistance to children, young people, the unemployed ones, and the employed persons, both individually and in groups, in the matter of choosing or changing a calling and/or a job, in the areas of education, additional education and training, as well as in professional rehabilitation.

Article 29

The National Service and the agency shall perform tasks of vocational guidance and advising in the choice of calling.

14. Advising of Employers and Persons Looking for Employment about the Law and Other Acts

Article 30

The National Service shall be obliged to give advices and extend assistance to employers and persons looking for employment, filed in the records, about the following:

1) laws, subordinate legislation, collective agreements and other valid acts, rights, duties and responsibilities of the employers and the employed persons, as well as of their associations, relating to entering employment and unemployment insurance;

2) the way of filling out and forwarding to the National Service of forms and documents.

The National Service shall be obliged to give advices and render assistance referred to in paragraph 1 of the present Article in every one of its organisational units, regardless of the way specified for being entered in the records, in conformity with the present Law.

III ENACTMENT AND IMPLEMENTATION OF PROGRAMS AND MEASURES OF ACTIVE EMPLOYMENT POLICY

Article 31

At the proposal by the Ministry in charge of labour and employment affairs (hereinafter: the Ministry), and after obtaining an opinion from the Social and Economic Council of the Republic of Serbia, the Government shall enact a program of active employment policy for the Republic (hereinafter: the Program).

The agency in charge of the territorial autonomy and local self-government may enact a program for the territorial autonomy and the local self-government.

The Program referred to in paragraph 2 of the present Article shall be enacted depending on the needs of the territorial autonomy and the local self-government and its development, the number and structure of the unemployed persons, the surplus of employed persons, the available funds, and other conditions and possibilities for its putting into effect.

The territorial autonomy and the local self-government program referred to in paragraphs 2 and 3 of the present Article, has to be in conformity with the Program.

The programs referred to in paragraphs 2 and 3 shall regulate priorities, funds and jurisdiction for their putting into effect, and particularly:

1) new employment inducing measures;

2) employing of designated categories of the unemployed (who are looking for employment, waiting for a long time for employment or those older than 50);

3) employing of refugees and displaced persons;

4) employing of members of ethnic minorities with marked uncemployment rate;

5) employing and professional rehabilitation of disabled persons and persons with reduced work capacity, in conformity with the law;

6) employing the surplus of the employed;

7) professional mobility;

8) self-employment;

9) public works employment;

10) other employment furtherance measures.

In carrying out the programs referred to in paragraph 5 of the present Article, in the event of a marked unemployment rate of women, their adequate participation shall be provided for.

The Ministry shall be obliged to inform the Government, at least once a year, about the realisation of the Program.

1. Carrying out of Programs

Article 32

The programs referred to in Article 31 shall be carried out by the National Service.

The programs referred to in Article 31 may be carried out by the agency as well.

The Government and/or an agency of the territorial autonomy and local self-government in charge of carrying out the tasks referred to in paragraph 2 of the present Article shall announce a public call for tenders.

2. Financing of Programs

Article 33

The programs referred to in Article 31 of the present Law shall be financed from:

1) the budget of the Republic of Serbia;

2) the funds of a territorial autonomy and a local self-government;

3) the funds originating from gifts, donations, legacies, credits, interest, and other funds, in conformity with the law.

Programs and active employment policy measures may be financed also from the contributions and other assets of the National Service, in concordance with the present Law and the general act of the National Service.

Employers and/or their associations may participate in the partial provision of funds intended for carrying out the programs referred to in Article 31 of the present Law, in conformity with the law.

3. Encouraging New Employment

Article 34

An employer engaging on a full-time basis an unemployed of a surplus profession, waiting for a long time for employment, or for whose profession there is no, or there is minor, need for full-time and indefinite employment, and/or engaging a person referred to in Article 31, paragraph 5, items 2 through 6 of the present Law, may obtain a subsidy for a 24 month period relating to the conribution set apart for retirement and disabled persons' insurance, health-care insurance and unemployment insurance (hereinafter: compulsory social insurance), to be paid by the employer.

The subsidy referred to in paragraph 1 of the present Article shall be provided through the National Service.

Employer engaging two unemployed persons referred to in paragraph 1 of the present Article on a half-time work basis may obtain the subsidy specified in paragraph 1 of the present Article.

The employer engaging unemployed persons referred to in paragraphs 1 and 3 of the present Article who are older than 50, may obtain the subsidy specified in paragraph 1 of the present Article for a period of up to 36 months.

The subsidies referred to in paragraphs 1 and 4 of the present Article shall be put into effect in conformity with the present Law and the general act of the National Service.

Article 35

Encouraging new employment referred to in Article 34 of the present Law shall be put into effect on the ground of a contract to be entered into by the National Service and the employer.

The contract specified in paragraph 1 of the present Article shall particularly specify:

1) the compulsory social insurance subsidy payable by the employer referred to in Article 34 of the present Law;

2) time of payment of the subsidy.

Article 36

Should a person employed in terms of Article 34 of the present Law have his contract of labour cancelled by the employer without the fault on the part of the employed, before the expiration of the time span exceeding by three times the period covered by the subsidy already paid, such employer shall be obliged to pay back, within a 30 day time-limit from the day of notice, the entire amount of subsidy, together wth the legally prescribed interest due.

4. Additional Education and Training

Article 37

In terms of the present Law, additional education and training shall be considered to be the activities providing to an unemployed and an employed person the possibility of acquiring, under special programs, the following:

1) additional know-how and skills for performing tasks falling within the scope of his calling;

2) vocational qualification;

3) re-training;

4) additional qualification;

5) necessary know-how and skills for performing designated jobs;

6) necessary know-how and skills for handling work devices and safety-at-work means.

Re-training in terms of the present Law, shall be considered to be the acquiring of new know-how and skills for independent work in the profession.

Re-training in terms of the present Law shall be considered to be a change of the former calling by which new know-how and skills are obtained through theoretical and practical training, for working at the same or lower pofessional qualification level.

Additional qualification in terms of the present Law shall provide new and necessary know-how and skills through theoretical lecturing and practical training for working at the higher professional qualification level within the framework of a designated grup of calling.

An unemployed filed in the National Service records shall be obliged to accept additional education and training, as directed by the National Service, for the purpose of getting employed or of increasng the possibility for employment.

The additional education and training shall be organised by the National Service, the agency or the employer.

Article 38

Additional education and training of an unemployed shall be carried out for the purpose of getting employed, of the creation of employment possibilities, and of the self-employment.

The additional education and training shall be carried out at the demand by an employer or in order to satisfy the labour market needs.

The expenses of additional education and training organised by the National Service at the demand of the employer, shall be covered by the employer, while the expenses of additional education and training to satisfy the labour market needs - by the National Service, in accordance with the geneal act of the National Service.

The National Service may bear the costs of additional education and training effected in order to satisfy the needs of the employer, in conformity with the general act of the National Service.

The expenses of additional education and training organised by the agency at the demand of an employer, shall be covered by the employer, while the expenses of additional education and training effected in order to satisfy the labour market needs shall be covered by the agency.

Article 39

Rights and duties of the unemployed directed to take additional education and training shall be specified by a contract to be concluded between the National Service and the unemployed.

The unemployed who is directed by the National Service to undergo additional education and training shall be entitled to obtain obligatory textbooks and the coverage of travel expenses, as stipulated by the contract referred to in paragraph 1 of the present Article.

Article 40

Additional education and training in conformity with the programs referred to in Article 31 of the present Law shall be organised by the National Service, the agency or the employer.

The expenses of the additional education and training referred to in paragraph 1 of the present Article shall be financed in conformity with Article 33 of the present Law.

Article 41

In the event of change of the employer, it may be provided by the contract that the new employer shall assume the obligation of providing funds or partal funds for carrying out the additional education and training.

5. Self-Employment

Article 42

In terms of the present Law, self-employment shall be the establishment, by the unemployed or through associating of several unemployed persons, of an enterprise, a cooperative, a shop, a husbandry or another form of entrepreneurship.

The unemployed in the process of self-eploying may effectuate the right to:

1) lump-sum payment provided for the event of unemployment, in conformity with the present Law;

2) an unemployment subsidy , in conformity with the present Law;

3) additional education and training;

4) assistance by the business center, in conformity with the present Law.

Lump-sum payment

Article 43

At the demand of the unemployed, the National Service may pay the unemployment allowance in a lump-sum for the purpose of getting self-employed, in conformity with the present Law and the general act of the National Service.

The payment of the lump-sum unemployment allowance for the purpose of self-employment shall be effectd on the ground of a contract to be concluded between the unemployed and the National Service.

The contract referred to in paragraph 2 of the present Article shall be the instrument of specifying the rights and duties of the unemployed and the National Service.

The beneficiary of the funds shall be obliged, within 60 days from the day of entering into contract, to forward to the National Service the evidence relating to the correct use of the specific purpose self-employment funds.

Breaking the Contract and Refund of Funds

Article 44

Should the beneficiary of the funds referred to in Article 43 of the present Law be unable to use the specific purpose funds, or should he use the funds contrary to the purpose, and fail to forward to the National Service, within 60 days, the evidence relating to the correct use of the specific purpose funds, he shall be obliged to refund the lump-sum allowance, increased by the amount of the legally specified interest, within the 15 day time-limit from the day of rendering the ruling of the National Service on the refund of funds.

The National Service shall be obliged to render the ruling on the refund of funds within 15 days from the day of forwarding a notification stating that the funds were not used for the specific purpose, and within a 15 day time-limit at the latest, from the expiration of the time-limit for submitting the evidence relating to the specific purpose use of the funds.

The National Service shall continue to pay to the beneficiary of the funds, referred to in paragraph 1 of the present Article, the unemployment allowance, in conformity with the present Law, for the remaining time, beginning with the day of settling the commitment.

Self-Employment Subsidy

Article 45

The minister in charge of labour and employment affairs (hereinafter: the Minister) shall regulate in detail the manner and the procedure for putting into effect of the right to subsidy, as well as the amount of the subsidy referred to in Article 42, paragraph 2, item 2 of the present Law.

The payment of funds referred to in paragraph 1 of the present Article shall be effected on the ground of contract to be entered into between the unemployed and the National Service.

The contract shall be the instrument of specifying the rights and duties of the National Service and the unemployed.

Breaking of contract and the refund of funds shall be effected as specified in Article 44 of the present Law.

6. Business Center

Article 46

A business center shall be organised within the framework of the National Service for the purpose of rendering assistance in self-employment, in conformity with the general act of the National Service.

7. Employment Looking Club

Article 47

An employment looking club shall be organised within the framework of the National Service, in conformity with the general act of the National Service.

The unemployed shall acquire in the club the know-how, the capacity and the skills in the matter of looking for employment.

The employment looking club shall provide information regarding vacancies, the employment conditions and possibilities through individual and group advising and shall render assistance in looking for employment.

8. Entering Employment out of the Place of Residence

Article 48

The unemployed entering employment out of the place of residence, by mediation of the National Service or otherwise, may effectuate the right to a lump-sum unemployment allowance to cover for travel and removal expenses, in concordance with the general act of the National Service.

9. Employment and Professional Rehabilitation of Disabled Persons

Article 49

A disabled person and a person with reduced work capacity (hereinafter: the invalid) shall be employed under special conditions, in conformity with the law.

Rights of Invalids

Article 50

An unemployed invalid filed in the records of the National Service may effectuate the right to:

1) professional assistance in determining the remaining work capacity and the choice of calling;

2) professional rehabilitation;

3) take part in financing the fitting out the work post suitable for work of an invalid.

The professional rehabilitation referred to in paragraph 1 of the present Article shall be the acquiring of know-how and skills necessary for the employment of invalids.

The rights specified in items 2 and 3 of the present Article shall be effectuated in conformity with the general act of the National Service.

10. Public Works Employment

Article 51

Public works in terms of the present Law shall be the works:

1) in social, humanitarian, cultural and other activities;

2) undertaken for the maintenance and restoration of public infrastructure;

3) undertaken for the maintenance and protection of the environment and the nature;

4) which are of general interest and do not fall into the regular activity of a public enterprise and/or where the public enterprise has no capacity to carry them out.

Invitation for Public Works

Article 52

For public works wich are in the interest of the Republic, the invitation for organising of public works shall be made by the Government, and for public works in the interest of a territorial autonomy and/or a local self-government - by the executive agency of the territorial autonomy and/or local self-government.

Public Works Financing

Article 53

Funds for the organisation of public works shall be provided from the budget of the Republic and/or the territorial autonomy or the local self-government, as well as from gifts, donations, legacies, credits and other funds provided for this purpose.

Organising of Public Works

Article 54

The decision on organising and carrying out of public works which are in the interest of the Republic shall be rendered by the Government.

The decision on organising and carrying out of public works which are in the interest of a territorial autonomy and/or a local self-government shall be rendered by the executive agency of the territorial autonomy and/or local self-government.

The agency in charge for rendering the decision referred to in paragraphs 1 and 2 of the present Article shall be obliged, prior to rendering the decision, to demand the opinion of the Employment Council of the Republic of Serbia or of the employment council at the level of territorial autonomy or local self-government.

Employing in Public Works

Article 55

The National Service shall designate an unemployed for performing tasks at an employer in accordance with the contract to be concluded between the agency rendering the decision on organising and carrying out of public works, and the employer.

The National Service shall determine the participation of the unemployed persons in the public works, and particularly:

1) the beneficiary of the unemployment allowance;

2) those who are waiting for a long time for employment;

3) those who are older than 50;

4) women;

5) unemployed persons in need from the social point of view, in conformity with the law.

Article 56

An employer engaged in organising of public works shall conclude with the unemployed, directed by the National Service, a contract of labour for a specific period of time.

11. Notification on the Realisation of Program

Article 57

The employer being entrusted with the organising of public works referred to in Article 54 of the present Law, shall be obliged to always, and two times a year at least, forward a report at the demand by the Government, the Minstry and/or the executive agency of the territorial autonomy and/or local self-government - relating to the realisation of the entrusted programs of employing in the public works.

IV ENTITIES IN CHARGE OF EMPLOYMENT

1. National Employment Service

Article 58

The National Employment Service shall hereby be established.

The Provincial Employment Service (hereinafter: Provincial Service) shall be stablished as an organisational unit of the National Service, in conformity wth the law.

Article 59

The National Service shall be an institution having the status of social insurance organisation, engaged in performing the tasks aimed at poviding the realisation of citizen's rights to employment and employment insurance, and other rights in conformity with the present Law.

The head office of the National Service shall be in Belgrade.

The National Service shall be entered in the court registry, in conformity with the law.

Article 60

The National Service shall perform the following tasks:

1) keeping records in conformity with the law;

2) providing insurance to employed persons;

3) realisation of rights on the ground of insurance;

4) mediation in the sphere of employment;

5) getting employed abroad;

6) issuing of work permit to an alien or a stateless person;

7) vocational guidance and advising in the choice of calling;

8) organising additional education and training;

9) control of insurance applications;

10) control relevant in acquiring the status of unemployed and the realisation of rights on the ground of unemployment;

11) organising and carrying out of voluntary insurance;

The National Service shall carry out the programs referred to in Article 31 of the present Law.

In addition to the tasks specified in paragraphs 1 and 2 of the prsent Article, the National Service shall perform professional, organisational, administrative, economic, financial and other general tasks in the sphere of employment and insurance, in conformity with the present Law, the internal statute, and the other acts of the National Service.

National Service Bodies

Article 61

The bodies of the National Service shall be the managing board, the supervisory board, and the director.

Managing Board

Article 62

The managing board of the National Service shall include 15 members.

The chairman and the members of the managing board of the National Service shall be nominated and released from duty by the Government.

One member each of the managing board shall be proposed, respectively, by: the representative trade unions for the territory of the Republic, the representative associations of employers for the territory of the Republic, and the organisations of unemployed persons, organised for the territory of the Republic, in conformity with the law.

One member of the managing board shall be proposed from among the employed personnel in the National Service, in the way specified by the internal statute of the National Service.

Article 63

The managing board and the chairman of the managing board shall be nominated for a period specified by the internal statute of the National Service.

Scope of Tasks

Article 64

The managing board shall enact:

1) the internal statute of the National Service;

2) the general acts of the National Service;

3) the National Service program of work;

4) the National Service financial plan.

Article 65*

The managing board shall decide:

1) on the performance of tasks of the National Service;

2) on the use of funds of the National Service, in conformity with the law;

3) on the adoption of report on the performance of tasks, and the annual balance sheet of the National Service;

4) (ceased to be valid);

5) on other matters, in conformity with the present Law and the internal statute of the National Service.

The contribution rates referred to in paragraph 1, item 4 of the present Article shall be published in the "Official Herald of the Republic of Serbia".

Article 66

The managing board shall submit to the Government the report on the performance of tasks and the annual balance sheet of the National Service, in conformity with the law.

Article 67

The Government shall be in charge of granting consent to the internal statute and the program of work of the National Service.

The National Assembly of the Republic of Serbia shall be in charge of granting consent to the financial plan of the National Service.

The annual balance sheet of the National Service shall be prepared in conformity with the law.

Supervisory Board

Article 68

The supervisory board of the National Service shall include three members.

The chairman and the members of the supervisory board of the National Service shall be nominated and released from duty by the Government.

The chairman and the members of the supervisory board shall be nominated for a period specified in the internal statute if the National Service.

Scope of Tasks

Article 69

The supervisory board:

1) shall effect control over the legality of work of the managing board and the director;

2) shall check wether the interim statement of accounts and the annual balance sheet are in accordance with the law and other regulations;

3) shall check whether the account books and other documents are kept in an orderly manner and in conformity with regulations;

4) shall perform other tasks in conformity with the internal statute of the National Service.

The manner of work as well as other matters significant for the work of the supervisory board shall be regulated by the internal statute of the National Service.

Director of the National Service

Article 70

The director of the National Service shall be nominated by the managing board of the National Service, after obtaining consent by the Government.

Scope of Tasks

Article 71

The director of the National Service shall manage the National Service.

The director of the National Service shall:

1) organise the work and carrying out of tasks in the National Service;

2) represent the, and stand proxy for, the National Service;

3) carry out decisions of the managing board of the National Service;

4) pass the act on the organisation and systematization of tasks in the National Service, after obtaining consent of the managing board;

5) manage the work of the personnel in the National Service;

6) perform other tasks as specified in the internal statute of the National Service.

Professional Service of the National Service

Article 72

Tasks specified by the law, the internal statute and other acts of the National Service shall be carried out by the personnel employed in the National Service.

Article 73

Supervision over the legality of work and of the acts of the National Service shall be effected by the Ministry.

Financing of the National Service

Article 74

The revenue of the National Service shall include funds:

1) of the compulsory insurance contributions;

2) of the voluntary insurance contributions;

3) budgetary funds of the Republic;

4) realised through the sale of socially-owned capital and the sale of socially-owned enterprises or their parts, in conformity with the law;

5) realised through the issuance and/or trade of securities, in conformity with the law;

6) realised through the investing of capital;

7) from domestic and foreign credits and loans, in conformity with the law;

8) from gifts, donations and legacies;

9) from other resources that are realised in conformity with the law.

2. Agency

Article 75

Agencies may be established by natural and legal persons, in conformity with the law.

The agency shall perform employment tasks referred to in Article 2, items 1 through 6 in conformity with the present Law.

The agency may not perform the tasks of employment of minors, as well as of employing at tasks involving a higher risk.

The agency may not mediate in course of a strike in employing an unemployed person to perform tasks otherwise performed by the participants in the strike, except for the tasks for which, in conformity with the law, the maintaining of a minimum work process is not provided for.

Agency Work Permit

Article 76

The agency shall be entered in the registry of the competent body, after obtaining a work permit from the Ministry.

The work permit shall be issued to the agency by the Ministry on the ground of application in writing, with the enclosed evidence as to the fulfilment of conditions for obtaining the permit.

The work permit shall be issued by the Ministry if the agency fulfils the conditions in terms of premises and technical fitting out, as well as professional capacity of the personnel employed.

The Ministry shall decide on the application within a 30 day time-limit from the day of submitting the request.

The premises and technical conditions for the work of the agency and the contents of the permit referred to in paragraph 3 of the present Article shall be regulated by the Minister.

As having the professional capacity shall be considered a person referred to in paragraph 3 of the present Article, who is employed in the agency. while possessing at least a secondary level of professional qualification and after passing the examination in the area of employment work.

The agency shall pay a fee for the issuance of the work permit, whose amount shall be specified by the Government.

Funds obtained through the fee referred to in paragraph 7 of the present Article shall be used for the active employment measures.

Work Permit Validity

Article 77

The work permit shall be issued to the agency for a period of three years, with the possibility of extension.

Taking away of the Work Permit

Article 78

The work permit may be taken away from the agency by the Ministry, in conformity with the law, if:

1) it ceases to meet the conditions referred to in Article 76 of the present Law;

2) it performs tasks referred to in Article 2, items 1 through 6, contrary to the present Law.

Issued Permit Registry

Article 79

The Ministry shall keep the registry of issued work permits and shall form a data base on agencies that are established.

3. Cooperation between the National Service and the Agencies

Article 80

The National Service and the agency shall be obliged to cooperate in the interest of the unemployed and the employer, in order to perform employment tasks and carry out the programs and the active employment measures.

The Ministry shall be obliged to render assistance in effecting the cooperation between the National Service and the agencies.

The National Service and the agencies shall enact, by mutual agreement, the code of professional conduct of the personnel employed in the National Service and in the agency.

4. Examination to Qualify for Working in the Sphere of Employment

Article 81

The employed in the National Service and in the agency shall pass an examination to qualify for working in the sphere of employment before a commission to be established by the Minister.

The way and program of passing the examination to qualify for working in the sphere of employment shall be regulated by the Minister.

V EMPLOYMENT COUNCIL

1. Republic Council

Article 82

The Republic Employment Council (hereinafter: the Republic Council) shall be established by the Government.

The Republic Council shall include representatives of the Government, the representative trade unions, the representative associations of employers at the level of the Republic, the representatives of the National Service, of the agencies, the representatives of the associations in the area significant for employment, as well as the experts in the sphere of employment.

Scope of Tasks

Article 83

The Republic Council shall shall hand down opinions and recommendations regarding:

1) the contents of the Program;

2) the organising of public works and work engagement of the unemployed persons, and on carrying out public works;

3) economic, social and demographic policies and the policy of the Government in the sphere of employment;

4) the bills and other drafts of regulations relating to employment, labour and social insurance;

5) additional education and training.

2. Provincial Employment Council

Article 84

The Provincial Employment Council (hereinafter: the Provincial Council) may establish a competent agency of the territorial autonomy.

The Provincial Council shall include representatives of territorial autonomy, representatives of representative trade unions, representative associations of employers, of the Provincial Service, of the agencies, the representatives of associatons significant in the sphere of employment at the territorial autonomy level, and the experts in the sphere of employment.

3. Local Employment Council

Article 85

The Local Employment Council (hereinafter: the Local Council) may establish a competent agency of the local self-government.

The Local Council shall include representatives of local self-government, representatives of the representative trade unions, representative associations of employers, representatives of the organisational unit of the National Service, of the agencies, as well as the representatives of associations significant in the sphere of employment, at the level of the town and/or municipality, and the experts in the sphere of employment.

Article 86

The Porivincial and the Local Councils shall hand down opinions and recommendations to the competent agency of the territorial autonomy and local self-government relating to:

1) the enactment of programs;

2) organising of public works and work engagement of the unemployed persons in carrying out the public works;

3) additional education and training;

4) other matters relevant to employment.

Article 87

The work referred to in articles 82, 84, and 85 of the present Law may be performed jointly also by associations engaged in the protection of interests of designated categories of the unemployed (invalids, ethnic minorities, participants to the armed conflicts, women, young people and the like), without the right to vote.

VI RECORDS

Article 88

The National Service shall keep records of persons looking for employment and of employers, in conformity with the present Law and the regulations covering records in the sphere of employment.

Article 89

The National Service shall keep records of persons looking for employment according to the uniform registry number of citizens, in conformity with the law and regulations relating to records in the sphere of employment.

Enterng in the Records

Article 90

The unemployed shall report to the National Service in person according to residence or according to the place of termination of employment, if having a dwelling-place in such place.

A foreign citizen or a stateless person may report as an unemployed if possessing a permanent or temporary residence permit.

The unemployed shall be bound to notify the National Service on the change of dwelling-place within five days from the day of changing the dwelling-place.

An employed person may report to the National Service in order to change the employment and/or in order to obtain advice, information or mediation, without having a duty of regular reporting to the National Service.

The contents and the manner of keeping records of the National Service shall be prescribed by the minister.

Duty of the Unemployed towards the National Service

Article 91

The unemployed shall be obliged to report in person to the National Service at least once in three months, and at every call by the National Service.

An unemployed effectuating a right to financial assistance in the event of unemployment (hereinafter: unemployment allowance) shall be obliged to report in person to the National Service every thirty days, and at every call by the National Service, and to prove that he is actively looking for employment in the manner which is specified by the present Law and the general act of the National Service.

Article 92

An unemployed effectuating the righs established by the present Law shall be obliged to notify the National Service on every change that might influence the acquiring or forfeiting the rights, within five days, at the latest, from the occurrence of the change.

Deleting from the Records

Article 93

The unemployed shall be deleted from the records if he fails, without a justified reason, to carry out the obligations towards the National Service, i.e.:

1) fails to report to the National Servce within the time-limit referred to in Article 91 of the present Law;

2) fails to respond to the call by the National Service;

3) fails to submit evidence on active looking for employment at the demand of the National Service;

4) declines the offered and adequate employment or an offered participation in the active employment measures;

5) fails to report to the employer he has been directed to by the National Service;

6) declines additional education and training;

7) through his own fault ceases to attend and/or fails to complee the additional education and training.

The unemployed shall be deleted from records on the day of failing to meet the obligations specified in paragraph 1, items 1 through 7.

The unemployed shall be deleted from records if he engages in the work without concluding the contract of labour or the contract on temporary or occasional tasks.

An adequate employment referred to in paragraph 1, item 4 of the present Article shall be the employment at the same level of professional qualification and in the calling of the unemployed in the first three months of his being filed in the unemploment records.

After the expiration of three months, the adequate employment shall be the employment in the sphere of the calling, taking into account the acquired work experience and the labour market situation.

After nine months of being filed in the unemployment records, the adequate employment shall be any employment that has been offered.

Should a justified reason referred to in paragraph 1 of the present Article exist, the unemployed shall be bound to report in person and to notify the National Service immediately after the termination of the justified reason.

Termination of Being Kept in the Records

Article 94

The keeping of records about the unemployed shall cease if:

1) he withdraws from the records;

2) he enters a full-time employment;

3) he states that he is entering employment by using the funds obtained for such purpose;

4) he begins independently to engage in an entrepreneurial activity or a professional activity;

5) he establishes an enterprise or another legal entity;

6) he becomes owner or a majority co-owner in a husbandry;

7) he becomes a pupil or a student;

8) he fulfils the conditions for acquiring the right to retirement benefits, in conformity with the law;

9) he reaches the age of 65;

10) he becomes entirely incapable for work, in conformity with the law;

11) he begins to serve a sentence of imprisonment, a safety measure imposed on him, a correctional or protective measure, for a period exceeding six months;

12) the permanent or temporary residence permit of an alien ceases to be valid;

13) the unemployed dies.

Adjournment of Rights

Article 95

Rights and duties of an unemployed shall be adjourned:

1) in the course of serving or completing the serving in the military;

2) in the course of serving a sentence of imprisonment, a safety measure imposed on him, and of a correctional or protective measure, up to six month time;

3) if he stays abroad when his spouse has been directed to work abroad, within the framework of international technical or educational and cultural cooperation, in a diplomatic, consular or other representation offices.

The unemployed shall be obliged to report to the National Service within ten days from the termination of reasons referred to in paragraph 1 of the present Article.

Re-entering to the Records

Article 96

An unemployed who is deleted from the records after failing to meet the obligation towards the National Service, referred to in Article 93, paragraph 1, item 1 through 7, shall be entitled to be re-eneterd to the records of the National Service after the expiration of three months from the day of termination of his being filed in the records.

An unemployed who works at an employer without a contract of labour, shall be entitled, in course of his effectuating the right to unemployment allowance, to be re-entered to the records of the National Service after the expiration of nine months from the day of termination of his being filed in the records, while other unemployed persons - after the expiration of the six month time-limit from the day of termination of their being filed in the records.

Right to Insight in Data Kept in the Records

Article 97

An unemployed shall be entitled to look into the personal data kept about him in the records of the National Service, and to demand correction of incorect data.

Special Records

Article 98

The National Service shall keep special records regarding:

1) vacancies;

2) an unemployed looking for employment;

3) an unemployed alien or a stateless person possessing a residence permit;

4) a citizen of the Republic of Serbia working abroad through the mediation by the National Service;

5) an employer;

6) insured persons in the event of unemployment.

Records specified in paragraph 1 of the present Article shall be kept in accordance with the general act of the National Service.

Employer Records

Article 99

The National Service shall keep records of employers based on their head offices.

The employer records shall obligatorily contain data on:the name and firm of the employer; head office and address; registry number from the uniform records of employers; code of activity and kind of activity; number of employed personnel; vacancy needs, and the kind of services the employer wants to use in the National Service.

Article 100

The employer shall be bound to report to the National Service:

1) a vacancy;

2) a case of entering employment and of concluding a contract of performance of temporary and occasional tasks, except in the event of entering into contract on temporary and occasional tasks effected through a young people's or students' cooperatives;

3) the insurance of the employed person;

4) the termination of employment;

5) the termination of insurance.

Article 101

The employer may report a vacancy also to an agency.

Vacancy Report

Article 102

The vacancy report shall be forwarded by the employer to the National Service on a form to be prescribed by the Minister.

The vacancy report shall obligatorily include data relating to employer, the kind and description of jobs, special work requirements, earnings and duration of employment, the place of work, and shall not contain the conditions of a discriminatory nature.

The employer may report a vacancy by electronic mail as well.

Report on Entereing Employment and Termination of Employment, and on Unemployment Insurance

Article 103

A report on entering employment and on insurance shall be forwarded by the employer to the National Service on a prescribed form within five days from the day of entering into contract of labour or conract on temporary and occasional tasks.

A report on termination of employment and on insurance shall be forwarded by the employer to the National Service on a prescribed form within five days from the day of termination of employment.

VII UNEMPLOYMENT INSURANCE

1. Duty to Insure

Article 104

Compulsory insurance shall serve to provide the rights in the event of unemployment, i.e.:

1) unemployment allowance;

2) health insurance and old-age and disability insurances, in conformity with the law;

3) other rights in conformity with the present Law and the general act of the National Service.

In terms of the present Law, the compulsory insurance shall be a compulsory participation of the employed person, the employer and the person independently engaged in a line of business, in providing funds for the realisation of rights on the ground of unemployment.

Article 105

A person covered by compulsory unemployment insurance with the National Service shall be:

1) an employed person realising, in accordance with the labour regulations, the earnings and/or compensation of earnings;

2) a person performing temporary and occasional tasks, except the person referred to in Article 5, paragraph 1 of the present Law;

3) an elected or nominated person receiving for his work a salary and/or compensation of salary;

4) a natural person who, in accordance with law, independently performs commercial or other activity as a basic calling (hereinafter: the entrepreneur);

5) a founder and/or co-founder of an enterprise.

Financing of Compulsory Insurance

Article 106

Funds for the realisation of compulsory insurance rights shall be provided from the compulsory insurance contribution (hereinafter: the contribution) to be paid by the persons specified in Article 105 of the present Law and the employer, as well as from other funds provided in conformity with the law.

2. Voluntary Insurance

Article 107

Voluntary insurance, in terms of the present Law, shall be the insurance of a person who is not covered by compulsory unemployment insurance, as well as of a person who is covered by compulsory unemployment insurance for the purpose of obtaining rights wider than the ones effectuated through compulsory insurance, and other rights that are not determined by the compulsory insurance.

The person referred to in paragraph 1 of the present Article may conclude a voluntary insurance, in conformity with the present Law, under the conditions set forth by the general act of the National Service.

The person covered by voluntary insurance shall acquire and effectuate the rights in the manner and scope as set forth by the general act of the National Service.

3. Right to Unemployment Allowance

Article 108

Persons covered by compulsory insurance, referred to in Article 105 of the present Law, shall be entitled to unemployment allowance if they were insured for 12 months, at least, contnuously or intermittently for the preceding 18 moths.

A continuous insurance specified in paragraph 1 of the present Article shall also be a suspension of insurance lasting less than 30 days.

Article 109

The unemployed shall be entitled to unemployment allowance in the event of:

1) termination of need for performing the tasks, in conformity with the law;

2) bankruptcy, winding-up, and in all other cases of termination of work of the employer, in conformity with the law;

3) failing to achieve the anticipated results of work and/or in the event of incapacity for work established in conformity with the law;

4) transfer of a spouse, in conformity with special regulations;

5) being employd abroad, in conformity with the law.

The right to unemployment allowance shall pertain also to an unemployed who was employed for a definite period of time, or who has performed temporary and occasional tasks, except for the persons referred to in Article 5, paragraph 1 of the present Law.

An unemployed whose employment is terminated on the ground of agreement in writing with the employer at the initiative of the employed, or cancellation of the contract of labour or contract of temporary and occasional tasks on the part of the employed, or on the ground of cancellation by the employer of the contract of labour or the contract of temporary and occasional tasks, if there is a justified rason relating to the conduct of the employed in concordance with the labour regulations, shall not be entitled to unemployment allowance.

The unemployed covered by voluntary insurance shall be entitled to unemployment allowance at the amount and under the conditions and manner specified by the general act of the National Service.

Time-Limit for Submitting a Request

Article 110

Unemployment allowance shall pertain to an unemployed beginning with the first day of the termination of insurance, if he applies accordingly, submitting the request to the National Service within a 30 day time-limit from the day of termination of employment or termination of insurance.

The unemployed who submits the request to the National Service after the expiration of the 30 day time limit from the day of termination of employment or termination of insurance, shall be entitled to unemployment allowance only for the remaining time, counted according to the established duration of the unemployment allowance right.

The right to unemployment allowance shall not pertain to the unemployed who submits the request after the expiration of the time otherwise covered by the unemployment allowance right, in conformity with the present Law.

The time-limit referred to in paragraphs 1 through 3 of the present Article shall not include the time during which, according to health insurance regulations, the unemployed has been incapable to work.

Basis for Determining the Amount of Unemployment Allowance

Article 111

The basis for determining the amount of unemployment allowance shall be the average earnings or compensation of earnings paid to the unemployed, in conformity with the law, for the six months preceding the month of termination of insurance.

Where the earnings paid are lower than the basis applied in paying the contribution, the basis for determining the amount of unemployment allowance shall be the basis applied in paying the contribution.

Where the earnings are not paid to the unemployed in the period referred to in paragraph 1 of the present Article, the basis for determining the unemployment allowance shall be the basis applied in paying the contribution.

Amount of Unemployment Allowance

Article 112

The unemployment allowance shall be determined at the amount of 60 percent of the basis referred to in Article 111 of the present Law.

The unemployed shall effectuate the right to the amount of allowance referred to in paragraph 1 of the present Arzicle, for the first three months of the use of the right to unemployment allowance.

The unemployed shall be entitled to unemployment allowance at the amount of 50 percent of the basis referred to in Article 111 of the present Law, for the remaining time for which his right to unemployment allowance has been determined.

In course of the additional education and training, referred to in Article 37 of the present Law, the unemployed has been directed to by the National Service, the allowance referred to in paragraphs 1, 2 and 3, shall be raised for 10 percent.

Lowest and Highest Amount of Unemploymnt Allowance

Article 113

The unemployment allowance referred to in Article 112 of the present Law may not exceed the average monthly earnings per employed, as effected in the Republic according to the last published data of the republic institution in charge of statistics, or lower than the minimum earnings, as determined in conformity with the law for the month of payment of the allowance.

Payment of Unemployment Allowance

Article 114

The unemployment allowance shall be paid for the month preceding the month of payment.

Period of Validity of the Right to Unemployment Allowance

Article 115

Unemployment allowance shall be paid to an unemployed for the period of:

1) three months, if the insured is covered by insurance for a period of one to five years;

2) six months, if the insured is covered by insurance for a period exceeding five years, and up to 15 years;

3) nine months, if the insured is covered by insurance for a period exceeding 15, and up to 20 years;

4) 12 months, if the insured is covered by insurance for a period exceeding 20 years;

5) 24 months, if the insured is covered by insurance for a minimum period of 20 years and is 61 years old (man) and/or 56 years old (woman), or has completed 38 years of insurance coverage (man) and/or 33 years of insurance coverage (woman), and is at least 51 years old;

6) 24 months, if the insured is older than 55 years and is covered by insurance for a perid exceeding 25 years.

A year of insurance coverage (i.e. year of service - translator's note) shall be considered a completed period of 12 months for which the employed and the employer have paid the insurance contribution.

Exrtended Payment of Unemployment Allowance

Article 116

By exception to Article 115 of the present Law, the unemployed shall have his payment of the unemployment allowance continued:

1) during the period of additional education and training;

2) during the period of his being temporarily prevented to work, as duly determined pursuant to health-care regulations;

3) during maternity leave, the leave for the purpose of nursing the child, and the leave due to special nursing of the child, according to labour regulations.

Lump-sum Payment of Unemployment Allowance

Article 117

Lump-sum payment of the unemployment allowance to the unemployed may be approved in conformity with articles 43 and 44 of the present Law, under the conditions specified by the general act of the National Service.

Reduction of Unemployment Allowance

Article 118

The unemployed shall have the amount of his unemployment allowance reduced in proportion to the amount of revenue effectuated by him on the ground of a copyright contract, performing handicraft service, and other transactions, or of the revenue acuqired in other ways.

The procedure and the manner of reduction of unemployment allowance shall be regulated by the general act of the National Service.

Suspension of Payment of Unemployment Allowance

Article 119

The payment of the unemployment allowance shall be suspended to an unemployed within the period of validity of a contract of carrying out temporary and occasional tasks, as well as in the cases specified in Article 95 of the present Law.

Article 120

After the termination of reasons referred to in Article 119 of the present Law, the unemployed shall effectuate the right to be paid the unemployment allowance for the remaining time covered by his recognised right to unemployment allowance, if he applies accordingly and files, within a 30 day trime-limit, a demand to the National Service for effectuating the right.

Article 121

An unemployed whose employment is terminated 30 days prior to his going to serve his term in the military and/or to complete the military service, shall be entitled to the unemployment allowance if, after returning, he submits, within a 30 day time-limit, a demand to the National Service, and if he meets the conditions specified by the present Law.

The unemployed referred to in paragraph 1 of the present Article shall effectuate the unemployment allowance from the day of his returning from serving his term in the military.

If the unemployed fails to submit the demand to the National Service within the time-limit specified in paragraph 1 of the present Article, his right to unemployment allowance shall be realised from the day of submitting the demand.

Termination of Right to Unemployment Allowance

Article 122

The unemployed shall have his right to unemployment allowance terminated in the event of failing to meet the obligations specified by the present Law, i.e.:

1) failing to report to the National Service within the time-limit specified in Article 91 of the present Law;

2) failing to respond to the call by the National Service without a justified reason;

3) failing to inform the National Service within the five day time-limit about a change which is a requirement or the ground of acquiring, realisation or termination of the right to unemployment allowance;

4) declining an adequate employment;

5) declining or arbitrarily failing to attend the additional education and training;

6) establishing by an agency in charge that he works at an employer without a contract of labour or a contract of performing temporary and occasional tasks.

In the case referred to in paragraph 1, item 2 of the present Article, the unemployed shall be bound to present himself in person to the National Service immediately after the justified reason has ceased to exist.

The unemployed shall have his right to unemployment allowance terminated also in the event of a change of the status of insured person, i.e.

1) after entering a full-time employment;

2) after meeting conditions for the realisation of old-age retirement benefits or the realisation of the right to family or invalid pensions, in conformity with the law;

3) after it is established that he has become totally incapacitated for work;

4) after engaging in an independent handicraft or other entrepreneurial line of business.

Article 123

An insured person employed part-time shall keep the rght to payment of unemployment allowance at the amount of a difference between the amount of unemployment allowance and the amount of earnings paid by the employer, if the amount of earnings is lower than the unemployment allowance amount due to him.

Regaining the Right to Unemployment Allowance

Article 124

An unemployed whose right to unemployment allowance is terminated may effectuate that right again if he meets anew the conditions of acquiring the unemployment allowance right, provided his insurance coverage (i.e. years of service - translator's note) shall not include the insurance coverage already accounted for the realisation of his last unemployment allowance, except the case of an unemployed having 25 or more years of insurance coverage after the termination of the last insurance.

An unemployed who has his right to unemployment allowance terminated, due to entering employment, prior to expiration of the time for the realisation of that right, shall continue to use the right to unemployment allowance for the remaining time at the designated amount, if he becomes unemployed again, and if this is more favourable to him.

4. Right to Health Insurance, Old-age and Disability Insurances

Article 125

A beneficiary of the unemployment allowance shall be entitled to health, old-age and disability insurances in the course of effectuating the right to unemployment allowance.

The basis applied in paying the contributions shall be the designated amount of the unemployment allowance.

Accounting and payment of insurance contribution referred to in paragraph 1 of the present Article shall be effected by the National Service in conformity with the general act.

Article 126

Members of the family of a beneficiary of unemployment allowance shall be entitled to health insurance if they are not insured under some other ground.

VIII UNEMPLOYMENT INSURANCE CONTRIBUTION

1. Contribution Rate

Article 127-143*

(ceased to be valid)

5. Voluntary Insurance Funds

Article 144

Voluntary insurance funds shall be managed and used separately.

6. Duty of Orderly Realisation of Rights and Efficient Use of Funds

Article 145

The National Service shall manage the funds referred to in Article 74 of the present Law in the way that shall ensure an orderly realisation of rights that are effectuated, in conformity with the law, through the National Service, and that shall promote the efficiency of use of the capital disposed of by it.

IX PROCEDURE OF REALISATION OF RIGHTS IN THE SPHERE OF INSURANCE

Article 146

Deciding on rights of the unemployed, in the first and second instance procedure, shall be the competence of the National Service bodies, to be designated by the general act.

The unemployed may initiate an administrative dispute with the competent court against a finally binding ruling of the National Service, in conformity with the law.

X SUPERVISION OVER THE WORK OF THE NATIONAL SERVICE AND THE AGENCY

Article 147

Supervision over the work and the acts, as well as the professional control over the work of the National Service and the agency, shall be effected by the Ministry.

Article 148

The supervision over the work of the National Service and the agency shall be effected at least once in two years.

The report on the effected supervision shall be forwarded within a 15 day time-limit to the National Service or the agency.

Article 149

The National Service and the agency shall be obliged to take measures for the elimination of shortcomings that are established, within the one month time-limit from the day of receipt of the report, and shall accordingly notify thereof the Ministry.

Article 150

The Minister shall prescribe the contents, the way and the procedure of carrying out the professional supervision.

XI PENAL PROVISIONS

Article 151

A fine of from 100,000 to 200,000 dinars shall be imposed for violation on an employer-entrepreneur, and a fine of from 200,000 to 400,000 dinars on an employer-legal entity, who fails to report:

1) a vacancy (Article 100, item 1);

2) a case of entering employment and concluding a contract of performing temporary and occasional tasks (Article 100, item 2);

3) the insurance of an employed person (Article 100, item 3);

4) the termination of employment (Article 100, item 4);

5) the termination of insurance (Article 100, item 5).

A fine of from 100,000 to 200,000 dinars shall be imposed for violation on an employer-entrepreneur, and a fine of from 200,000 to 400,000 dinars on an employer-legal entity, who, after interviewing an unemployed for the purpose of entering employment, has failed to issue a corresponding certificate, in accordance with Article 4, paragraph 4 of the present Law.

A fine of from 10,000 to 20,000 dinars shall be imposed also on a responsible person in the legal entity for the violation specified in paragraphs 1 and 2 of the present Article.

Article 152

A fine of from 200,000 to 400,000 dinars shall be imposed for violation on the National Service if:

1) it collects a fee for services rendered to a person looking for employment and to an employer (Article 10, paragraph 1);

2) it fails to conclude an agreement with the unemployed (Article 14);

3) it fails to announce a vacancy in the manner prescribed in Article 17 of the present Law;

4) it fails to keep the records specified by the present Law or keeps them disorderly (articles 88 and 98).

A fine of from 10,000 to 20,000 dinars shall be imposed also on a responsible person in the National Service for the violation specified in paragraph 1 of the present Article.

Article 153

A fine of from 100,000 to 200,000 dinars shall be imposed for violation on an entrepreneur who has founded an agency, and a fine of from 200,000 to 400,000 dinars on a legal entity who has founded an agency, if:

1) collecting from an unemployed person a fee for the service rendered (Article 10, paragraph 2);

2) performing tasks of employing minors, as well as tasks of employing at work positions involving a higher risk (Article 75, paragraph 3);

3) mediating in course of a strike in employing unemployed persons to perform tasks otherwise performed by the participants in the strike, except for the tasks for which the maintaining of a minimum work process is not provided for (Article 75, paragraph 4);

4) performing employment tasks without a permit from the Ministry (Article 76, paragraph 1);

5) engaging in employment tasks without being entered in the registry for performing them (Article 76, paragraph 1).

A fine of from 10,000 to 20,000 dinars shall be imposed for the violation specified in paragraph 1 of the present Article also on a responsible person in the legal entity.

XII TRANSITIONAL AND CONCLUDING PROVISIONS

Article 154

The National Service shall begin its work on the day of being entered in the registry kept by the agency in charge, in conformity with the law.

The Republic Labour Market Institution shall terminate its work on the day of the beginning of work of the National Service.

The National Service shall take over the employed personnel, the property, the rights, and the duties of the Republic Labour Market Institution.

Article 155

The unemployed who until the entering into force of the present Law has realised the right to unemployment benefit, shall realise that right, in the scope and duration, in terms of the regulations that have been valid until the day of entering into force of the present Law.

The procedure of realisation of rights on the ground of unemployment that is not completed by a finally binding decision until the entering into force of the present Law, shall be completed in concordance with the regulations that have been valid until the day of entering into force of the present Law.

Article 156

To the insured persons in the area of independent lines of business, who have been paying contribution as advance payment in course of 2002 on the basis of earnings, such payment shall be deemed as a final contribution account for the year of 2002.

To the insured persons in the area of independent lines of business who have been paying contribution in course of 2002 on the basis of flat-sum revenue and on the assessed lowest insurance basis for the June-December period of 2002, the final contribution account for that year shall be effected by applying the lowest insurance basis, if the difference between the lowest basis and the assessed basis amounts up to 3 percent.

Should the difference specified in paragraph 2 of the present Article exceed 3 percent, the final contribution account for that year shall be paid in the form of advance payment of contribution by applying the assessed basis, increased by 3 percent.

Article 157

Bases applicable to insured persons in May of 2003, under the regulations that have been valid until the entering into force of the present Law, shall apply until the lowest insurance rates referred to in Article 132, paragraph 2 of the present Law be specified.

The lowest bases referred to in paragraph 1 of the present Article shall be specified on the ground of data of the institution in charge of statistics relating to average earnings per employed in the Republic for the April-June period of 2003.

Article 158

The Minister shall pass detailed regulations on the ground of authority provided for in the present Law, within a six month period from the day of entering into force of the present Law.

Article 159

On the day of entering into force of the present Law, the employed personnel in the National Service shall have no duty of passing the examination in order to qualify for working in the sphere of employment, except for trainees who shall be obliged to pass it within one year from the day of entering into force of the present Law.

Article 160

On the day of entering into force of the present Law, the Law on Employment and Realisation of Rights of Unemployed Persons ("Official Herald of the RS", Nos. 22/92, 73/92, 82/92, 56/93, 34/94, 52/96, 46/98, and 29/2001) shall cease to be valid.

Article 161

Provisions of general acts of the Republic Labour Market Institution that are not contrary to the provisions of the present Law, shall apply until the enactment of general acts of the National Service, at the farthest within six months from entering into force of the present Law.

Article 162

The National Service shall be obliged to conclude an agreement with the unemployed, in terms of Article 14 of the present Law, within a 12 month time-limit from the beginning of its work.

Article 163

The present Law shall enter into force on the eighth day from the day of publication in the "Official Herald of the Republic of Serbia".

Napomene

* Article 65, paragraph 1, item 4 and articles 127 through 143 of the Law on Entering Employment and Unemployment Insurance ("Official Herald of the RS", No. 71/2003) shall cease to be valid on the day of the beginning of application of the Law on Mandatory Social Insurance Contributions ("Official Herald of the RS", No. 84/2004), i.e. 1 September 2004.