Virginia, US

Apr 28 2017

Increased Enforcement of Local Payroll Rule



The Ministry of Labor has started enforcing the law that requires employers of work permit holders to transfer foreign workers to local payroll when the worker renews their work permit after the first year of their assignment.


Nationals of countries that have signed a social security agreement with Serbia may have their work permits extended for an additional year, up to a total of two years, without the need to transfer them to local payroll during the two-year period.

What This Means for Employers and Foreign Nationals

Companies must abide by the law requiring them to transfer work permit holders to a local contract after one year. After employees are transferred to local payroll, employers must enroll them in the national social security program and conduct a labor market test, since when a work permit holder is transferred to local payroll, the immigration authorities consider this an initial work permit application instead of an extension.

This alert is for informational purposes only. If you have any questions, please contact the immigration professional with whom you work at Fragomen or send an email to

© 2017 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.