Stankovic & Partners has obtained a significant legal victory, as the Supreme Court of Serbia recently issued a ruling in favor of the firm’s client in an employment dispute matter.

The case involved a collective termination of employment contracts, in which the claimant sought annulment of the decision terminating their employment. The Supreme Court upheld the legality of the employer’s actions, ruling that the annulment claim was unfounded when the termination arose from the elimination of the employee’s position during a lawfully conducted reorganization and rationalization process.

In its decision, the Supreme Court emphasized that employers are not required to apply specific criteria for determining surplus employees unless the reduction affects multiple employees performing the same job. This clarification provides important guidance for both employers and legal practitioners navigating collective termination procedures.

“We are exceptionally proud that the Supreme Court has recognized our efforts in representing our client,” said Managing Partner Nenad Stankovic. “It is an immense honour to contribute to the shaping of judicial practice in Serbia.”

The firm noted that this milestone strengthens their commitment to delivering top-tier legal services and underscores their ongoing dedication to supporting clients in complex employment law matters.

This ruling is expected to have a lasting impact on employment law in Serbia, offering clarity to employers on their obligations during workforce reorganization and reinforcing the principles of lawful termination procedures.

What does this ruling mean

1. Clarification of Employer Rights in Collective Terminations

Before this ruling, there was some uncertainty about whether employers had to apply “criteria for determining surplus employees” in every case of workforce reduction.

• The Supreme Court clarified that such criteria are only mandatory when multiple employees perform the same job and the employer must decide who stays and who goes.
• This means that if a position itself is being eliminated through a lawful reorganization, the employer does not need to apply additional internal ranking or selection rules.

Impact: Employers now have clearer legal backing to restructure or eliminate positions without being accused of unfair selection processes, as long as the process is lawful and documented.

2. Limits on Employee Claims for Annulment

The court explicitly stated that claims seeking annulment of employment termination are unfounded if the termination is due to legitimate organizational restructuring.

• Employees cannot challenge terminations simply by arguing that the employer did not follow surplus employee criteria if their position itself was removed.

Impact: Reduces frivolous or weak lawsuits against employers in reorganizations, saving companies time, cost, and legal uncertainty.

3. Precedent for Future Cases

Since it comes from the Supreme Court, this decision has binding or highly persuasive authority on lower courts.

• It effectively shapes judicial practice in Serbia regarding employment terminations due to reorganization.
• Lawyers and companies will likely cite this ruling when defending similar cases or structuring workforce changes.

4. Encouragement for Lawful Reorganization

The ruling reinforces that Serbia’s courts support lawful, well-documented organizational changes.

• Employers can pursue efficiency and rationalization without undue fear of legal challenge, as long as the process is fair and documented.