The previous Law on Safety and Health at Work from 2005 stipulated the employer’s obligation to insure employees against work-related injuries and occupational diseases, in accordance with a special law. However, as the special law regulating this matter was never adopted, the subject provisions remained without significant practical impact in the previous period.
On 7 May 2023, the new Law on Safety and Health at Work (“Official Gazette of RS”, no. 35/2023) (the “Law”) came into force, that retained the obligation for employers to insure employees, referring to general insurance legislation. Compared to the previous law, the new Law prescribed a monetary fine for the employer if it failed to insure its employees against work-related injuries and occupational diseases, in the amount of up to RSD 1,500,000 for the employer, i.e. up to RSD 150,000 for the responsible person within legal entity.
According to the Law, employers are required to insure employees against work-related injuries and occupational diseases, with funds from their own resources, to ensure compensation for damages. In addition, the representatives of the Occupational Health and Safety Administration and the Labor Inspectorate on several occasions confirmed that employers now must insure their employees against work-related injuries and occupational diseases.
Employers are obliged to organize their operations in accordance with the new Law within two years from the date of entry into force, including the obligation to insure employees. Therefore, employers should comply with all provisions of the new Law by 7 May 2025 at the latest.