In Serbia, it has long been known that state representatives, responsible for upholding the law, often take the lead in violating and circumventing it. Now, official data and state audits confirm what has been discussed for years: ministries, public administration and state-owned companies are increasingly hiring employees on temporary and occasional contracts, a practice that often violates the law.
These workers, hired for temporary positions, frequently remain in that status for far longer than the legal limit of 120 days per year. The law does not specify that an individual cannot remain in this status for more than the allowed period, creating a legal loophole that the state and employers are exploiting. While it is up to the state to enforce the law and prevent such practices, it seems that the state is the one taking advantage of these legal shortcomings, with inspections largely overlooking these issues.
Who is handling our documents?
Dissatisfied workers from the Ministry of Internal Affairs (MUP) contacted Forbes Serbia to share their experiences. They claim they are earning less than the officially established minimum wage for this year, and that the nature of their work differs significantly from what their contracts state.
These workers report that their contracts are renewed multiple times a year, but they continue to perform the same duties. They are engaged in administrative work, yet they are not technically employed by the MUP. As a result, these individuals, who handle personal data and issue documents, are not legally recognized employees of the Ministry, raising concerns about the security and integrity of citizens’ personal information.
Below the minimum wage
Workers on temporary contracts do not enjoy the same rights as employees, including benefits such as sick leave, vacation, or meal allowances. They are paid only for the days worked, with a per-hour compensation rate that, in some cases, is as low as 270 dinars net—below the minimum hourly wage of 308 dinars.
Despite repeated complaints, the situation has not changed, even after promises from officials such as Ivica Dačić, who assured that the issue was being addressed. A recent press release from a meeting with the Independent Police Union acknowledged the ongoing problem, but it is clear that no tangible solutions have been implemented yet.
When Forbes Serbia sought answers from the Ministry of Internal Affairs, no response was provided before the article’s publication. Questions about the number of temporary workers, whether they are being paid below the minimum wage, and the legality of their engagement remained unanswered.
A widespread practice
Unfortunately, the Ministry of Internal Affairs is not alone in engaging in this practice. The use of temporary contracts and the extension of fixed-term contracts for more than two years is widespread across the public administration and state-owned enterprises. In one instance, when a state institution director was asked why they were following this practice, the response was: “Ask the Prime Minister why. I’m forced to do this because the state encourages it.”
The State Audit Institution (SAI) report titled Employment of Natural Persons Outside the Employment Relationship in Ministries confirms these practices. The report indicates that this form of employment has not been adequately regulated, leading to uneven compensation, poor oversight, and the assignment of duties that should be performed by civil servants to temporary workers. In some cases, job responsibilities have been expanded without corresponding increases in workload, resulting in overpayments totaling 2.8 million dinars.
Problems with oversight and accountability
The SAI’s report highlights that, unlike civil servants, temporary workers are not subject to behavioral and functional competence checks, nor do they adhere to the principles of political neutrality and conflict of interest that apply to official employees. Additionally, around 13% of individuals engaged under these temporary contracts are retirees, which raises concerns about the overall efficiency and effectiveness of these workers.
Despite the expectation that certain administrative tasks should be performed by full-time civil servants, many ministries continue to hire individuals on temporary contracts to handle core duties. These positions are not temporary or occasional, but rather part of the permanent structure of the ministries, which further complicates the issue.
Between 2021 and 2023, approximately 10,000 non-employment contracts were signed across 23 ministries, with many ministries failing to publicly disclose the number of temporary workers they had hired. The report also reveals that nearly two-thirds of ministries did not establish clear guidelines for engaging individuals outside of the employment relationship.
Conclusion
This systemic exploitation of temporary contracts within the state administration not only violates labor laws but also undermines the quality and integrity of public services. With no clear resolution in sight, the state’s use of legal loopholes continues to exacerbate the situation, leaving thousands of workers without proper employment rights while citizens’ sensitive data and essential services are handled by those not officially employed by the state.
