MEMORANDUM

OF UNDERSTANDING ON EMPLOYMENT OF THE DEPENDENTS OF DIPLOMATIC, CONSULAR AND TECHNICAL PERSONNEL

("Off. Herald of RS - Treaties", No. 7/2022)

KKM/9216-2/2022/ Adm

NOTE VERBALE

The Ministry of Foreign Affairs and Trade of Hungary presents its compliments to the Ministry of Foreign Affairs of the Republic of Serbia and has the honour to propose the conclusion of a reciprocal Memorandum of Understanding on employment of the dependents of diplomatic, consular and technical personnel, which reads as follows:

Article 1

Definitions

For the purposes of this Memorandum of Understanding:

1. "Gainful activity" shall mean any self-employment or non-self-employment activity which generates income and is performed full-time or part-time, but without entering into permanent employment contracts and fully in compliance with the legislation of the receiving State.

2. "Diplomatic mission or consular post" mean diplomatic missions according to the Vienna Convention on Diplomatic Relations of 18 April 1961, consular posts according to the Vienna Convention on Consular Relations of 24 April 1963 and the permanent representations of each of the States to international organizations which have their offices in the other State.

3. "Member(s) of diplomatic mission(s) or consular post(s)" mean the staff of diplomatic missions and consular post and staff members of the permanent representations above, beneficiaries of special stay permit issued by the respective Ministry of Foreign Affairs.

4. "Dependent" means:

i. Spouse and life partner of the member of diplomatic mission or consular post, in accordance with the laws of receiving State.

ii. Unmarried dependent children, up to the age of 23 years, forming part of the household of the member of diplomatic mission or consular post and unmarried, dependent children under 26 years if they pursue university studies.

iii. Unmarried dependent children, suffering from any physical or mental disabilities, forming part of the household of the member of diplomatic mission or consular post.

5. "Contracting Parties" are the Ministry of Foreign Affairs and Trade of Hungary and the Ministry of Foreign Affairs of the Republic of Serbia.

6. "Receiving State" shall mean the state of the Contracting Party where the member of a diplomatic mission or consular post is officially assigned to.

Article 2

Authorisation to engage in a gainful employment

(a) The dependents of a member of a diplomatic mission or consular post of the sending State shall be authorized, on a reciprocal basis, to engage in a gainful employment in the receiving State in accordance with the provisions of the law of the receiving State.

(b) The receiving State shall retain the right to withhold authorization for employment in certain areas.

(c) The grant of authorization to a dependent to engage in gainful employment does not release a dependent from any requirement, formality or stipulation relating to personal traits, credentials, work experience or other criteria regularly imposed on any employment. In case of activities requiring special qualifications, it shall be necessary for a dependent to comply with the relevant requirements.

(d) Any authorization to engage in a gainful occupation in the receiving State shall, in principle, be valid only during the tenure of the member of a diplomatic mission or consular post in the receiving State.

(e) Change in employment/occupation would require new authorization.

Article 3

Procedure

(a) A request for authorization to engage in a gainful employment shall be sent on behalf of the dependent by the diplomatic mission or consular post of the sending State to the Protocol Division of the Ministry of Foreign Affairs of the receiving State.

(b) The procedure followed shall be applied in a manner so as to enable the dependent to engage in a gainful employment as soon as possible and any requirements relating to work permits and similar formalities shall be favorably applied.

(c) The Ministry of Foreign Affairs of the receiving State shall subsequently inform the Embassy of the sending State, through diplomatic channels, whether the applicant has been authorized to engage in a gainful employment.

Article 4

Immunity

In the case of dependents who enjoy immunity from the civil and administrative jurisdiction of the receiving State in accordance with the Vienna Convention on Diplomatic Relations, 1961 or Vienna Convention on Consular Relations, 1963 or under any other applicable international instrument including the rules of customary international law, such immunity shall not apply in respect of any act or omission carried out in the course of the gainful employment and falling within the civil or administrative jurisdiction of the receiving State.

Article 5

Criminal immunity

In the case of dependents who enjoy immunity from the criminal jurisdiction of the receiving State in accordance with the Vienna Convention on Diplomatic Relations, 1961 or Vienna Convention on Consular Relations, 1963 or under any other applicable international instrument:

(a) The provisions concerning immunity from the criminal jurisdiction of the receiving State shall continue to apply in respect of any act carried out in the course of the gainful employment. However, in case of serious offences, upon the request of the receiving State, the sending State shall give due consideration to waiving the immunity of the dependent concerned from the criminal jurisdiction of the receiving State.

(b) The sending State shall also give due consideration to waiving the immunity of the dependent from the execution of a sentence.

Article 6

Fiscal, social security and exchange control regimes

In accordance with the Vienna Convention on Diplomatic Relations, 1961 or under any other applicable international instruments, dependents shall be subject to the fiscal, social security and exchange control regimes of the receiving State for matters connected with their gainful employment in that State.

A dependent who engages in gainful activity in the receiving State under the present Memorandum of Understanding shall receive the status of a fiscal resident in it and be subject to its applicable tax, labour and social security legislation.

Article 7

Recognition of degrees

This Memorandum of Understanding does not imply the recognition of degrees, grades or studies between the two countries.

Article 8

Settlement of disputes

Disputes arising from the interpretation or application of this Memorandum of Understanding will be settled amicably through negotiations between the Contracting Parties, through diplomatic means.

Article 9

Entry into force, duration and termination

This Memorandum of Understanding is concluded for an indefinite period and shall enter into force on the date the Ministry of Foreign Affairs of the Republic of Serbia notifies the Ministry of Foreign Affairs and Trade of Hungary that the necessary requirements under national law of the Republic of Serbia have been completed.

This Memorandum of Understanding may be amended by mutual consent between the Contracting Parties. The amendments shall enter into force pursuant to the provisions envisaged in paragraph 1 of the present Article.

Either Contracting Party may terminate this Memorandum of Understanding at any time, in writing, through diplomatic channels. In that event, the Memorandum of Understanding shall cease to have effect six (6) months from the date of such notification.

The termination shall not affect the validity of an authorization to engage in gainful activity granted under this Memorandum of Understanding, which shall continue to be in force until the expiry date indicated in the authorization.

If the content of this proposal is acceptable to the Ministry of Foreign Affairs of the Republic of Serbia, the Ministry of Foreign Affairs and Trade of Hungary proposes that this Note, together with the reply of the esteemed Ministry shall constitute a reciprocal Memorandum of Understanding on employment of the dependents of diplomatic, consular and technical personnel.

The Ministry of Foreign Affairs and Trade of Hungary avails itself of this opportunity to renew to the Ministry of Foreign Affairs of the Republic of Serbia the assurances of its highest consideration.

Budapest, 1 March 2022

MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF SERBIA BELGRAD

No. 143-4/2022-9

The Ministry of Foreign Affairs of the Republic of Serbia presents its compliments to the Ministry of Foreign Affairs and Trade of Hungary and has the honour to acknowledge the receipt of the Verbal Note No. KKM/9216-2/2022-Adm, dated 1 March 2022 with the following content:

"The Ministry of Foreign Affairs and Trade of Hungary presents its compliments to the Ministry of Foreign Affairs of the Republic of Serbia and has the honour to propose the conclusion of a reciprocal Memorandum of Understanding on employment of the dependents of diplomatic, consular and technical personnel, which reads as follows:

Article 1

Definitions

For the purposes of this Memorandum of Understanding:

1. "Gainful activity" shall mean any self-employment or non-self-employment activity which generates income and is performed full-time or part-time, but without entering into permanent employment contracts and fully in compliance with the legislation of the receiving State.

2. "Diplomatic mission or consular post" mean diplomatic missions according to the Vienna Convention on Diplomatic Relations of 18 April 1961, consular posts according to the Vienna Convention on Consular Relations of 24 April 1963 and the permanent representations of each of the States to international organizations which have their offices in the other State.

3. "Member(s) of diplomatic mission(s) or consular post(s)" mean the staff of diplomatic missions and consular posts and staff members of the permanent representations above, beneficiaries of special stay permit issued by the respective Ministry of Foreign Affairs.

4. "Dependent" means:

i. Spouse and life partner of the member of diplomatic mission or consular post, in accordance with the laws of receiving State.

ii. Unmarried dependent children, up to the age of 23 years, forming part of the household of the member of diplomatic mission or consular post and unmarried, dependent children under 26 years if they pursue university studies.

MINISTRY OF FOREIGN AFFAIRS AND TRADE OF HUNGARY BUDAPEST

iii. Unmarried dependent children, suffering from any physical or mental disabilities, forming part of the household of the member of diplomatic mission or consular post.

5. "Contracting Parties" are the Ministry of Foreign Affairs and Trade of Hungary and the Ministry of Foreign Affairs of the Republic of Serbia.

6. "Receiving State" shall mean the state of the Contracting Party where the member of a diplomatic mission or consular post is officially assigned to.

Article 2

Authorisation to engage in a gainful employment

(a) The dependents of a member of a diplomatic mission or consular post of the sending State shall be authorized, on a reciprocal basis, to engage in a gainful employment in the receiving State in accordance with the provisions of the law of the receiving State.

(b) The receiving State shall retain the right to withhold authorization for employment in certain areas.

(c) The grant of authorization to a dependent to engage in gainful employment does not release a dependent from any requirement, formality or stipulation relating to personal traits, credentials, work experience or other criteria regularly imposed on any employment. In case of activities requiring special qualifications, it shall be necessary for a dependent to comply with the relevant requirements.

(d) Any authorization to engage in a gainful occupation in the receiving State shall, in principle, be valid only during the tenure of the member of a diplomatic mission or consular post in the receiving State.

(e) Change in employment/occupation would require new authorization.

Article 3

Procedure

(a) A request for authorization to engage in a gainful employment shall be sent on behalf of the dependent by the diplomatic mission or consular post of the sending State to the Protocol Division of the Ministry of Foreign Affairs of the receiving State.

(b) The procedure followed shall be applied in a manner so as to enable the dependent to engage in a gainful employment as soon as possible and any requirements relating to work permits and similar formalities shall be favorably applied.

(c) The Ministry of Foreign Affairs of the receiving State shall subsequently inform the Embassy of the sending State, through diplomatic channels, whether the applicant has been authorized to engage in a gainful employment.

Article 4

Immunity

In the case of dependents who enjoy immunity from the civil and administrative jurisdiction of the receiving State in accordance with the Vienna Convention on Diplomatic Relations, 1961 or Vienna Convention on Consular Relations, 1963 or under any other applicable international instrument including the rules of customary international law, such immunity shall not apply in respect of any act or omission carried out in the course of the gainful employment and falling within the civil or administrative jurisdiction of the receiving State.

Article 5

Criminal immunity

In the case of dependents who enjoy immunity from the criminal jurisdiction of the receiving State in accordance with the Vienna Convention on Diplomatic Relations, 1961 or Vienna Convention on Consular Relations, 1963 or under any other applicable international instrument:

(a) The provisions concerning immunity from the criminal jurisdiction of the receiving State shall continue to apply in respect of any act carried out in the course of the gainful employment. However, in case of serious offences, upon the request of the receiving State, the sending State shall give due consideration to waiving the immunity of the dependent concerned from the criminal jurisdiction of the receiving State.

(b) The sending State shall also give due consideration to waiving the immunity of the dependent from the execution of a sentence.

Article 6

Fiscal, social security and exchange control regimes

In accordance with the Vienna Convention on Diplomatic Relations, 1961 or under any other applicable international instruments, dependents shall be subject to the fiscal, social security and exchange control regimes of the receiving State for matters connected with their gainful employment in that State.

A dependent who engages in gainful activity in the receiving State under the present Memorandum of Understanding shall receive the status of a fiscal resident in it and be subject to its applicable tax, labour and social security legislation.

Article 7

Recognition of degrees

This Memorandum of Understanding does not imply the recognition of degrees, grades or studies between the two countries.

Article 8

Settlement of disputes

Disputes arising from the interpretation or application of this Memorandum of Understanding will be settled amicably through negotiations between the Contracting Parties, through diplomatic means.

Article 9

Entry into force, duration and termination

This Memorandum of Understanding is concluded for an indefinite period and shall enter into force on the date the Ministry of Foreign Affairs of the Republic of Serbia notifies the Ministry of Foreign Affairs and Trade of Hungary that the necessary requirements under national law of the Republic of Serbia have been completed.

This Memorandum of Understanding may be amended by mutual consent between the Contracting Parties. The amendments shall enter into force pursuant to the provisions envisaged in paragraph 1 of the present Article.

Either Contracting Party may terminate this Memorandum of Understanding at any time, in writing, through diplomatic channels. In that event, the Memorandum of Understanding shall cease to have effect six (6) months from the date of such notification.

The termination shall not affect the validity of an authorization to engage in gainful activity granted under this Memorandum of Understanding, which shall continue to be in force until the expiry date indicated in the authorization.

If the content of this proposal is acceptable to the Ministry of Foreign Affairs of the Republic of Serbia, the Ministry of Foreign Affairs and Trade of Hungary proposes that this Note, together with the reply of the esteemed Ministry shall constitute a reciprocal Memorandum of Understanding on employment of the dependents of diplomatic, consular and technical personnel."

The Ministry of Foreign Affairs of the Republic of Serbia has the honour to confirm that the foregoing is acceptable for the Ministry of Foreign Affairs of the Republic of Serbia and that the Verbal Note of the Ministry of the Foreign Affairs and Trade of Hungary and the present affirmative Verbal Note of the Ministry of Foreign Affairs of the Republic of Serbia shall constitute the Memorandum of Understanding on employment of the dependents of diplomatic, consular and technical personnel between two Ministries.

The Ministry of Foreign Affairs of the Republic of Serbia avails itself of this opportunity to renew to the Ministry of the Foreign Affairs and Trade of Hungary the assurances of its highest consideration.

Belgrade, 13 March 2022