Redundancy in Serbia’s IT Sector: When Innovation Turns Against the Innovator

Just two years ago, redundancies in Serbia’s IT sector mirrored a global slowdown, prompted by tightening budgets and cooling demand from Western markets. Navigating macroeconomic fluctuations became the industry’s defining challenge. Many firms tightened belts, paused hiring, or canceled projects outright.

What once appeared as a temporary contraction has evolved into something more unsettling—but also more complex. Today’s redundancies arise not from external factors, but from technology itself. The very innovations programmers created—automation, generative AI, intelligent testing—are now transforming workflows and, in many cases, replacing jobs. Junior coders, Q&A testers of all seniority levels, and outsourced support teams are among the most vulnerable.

Locally, Serbia’s IT landscape is in flux. In many cases, companies trimmed between five and ten percent of their workforce—or even more. Demand for traditional programming roles is shrinking: open IT positions dropped by 25 percent, while companies now particularly prize specialists in AI, DevOps, cloud architecture, and cybersecurity.

Against this backdrop, navigating redundancy becomes both a pressing legal matter and a moment for strategic career reflection. Here’s how to approach it thoughtfully.

First, understand your rights under Serbian labor law. If an employer declares “technological redundancy,” certain legal safeguards must be observed. For instance, proper severance pay must be provided before termination, and employees cannot legally waive this entitlement. Moreover, it is unlawful for an employer to fill the same position within three months of declaring redundancy—if they do, the termination may be reversible.

Workers might also be offered a mutual termination agreement with so-called “voluntary” or incentive-based severance pay. Though sometimes labeled as voluntary, these arrangements typically serve the employer’s interests by avoiding formal redundancy procedures. It is vital to negotiate terms carefully: fair compensation should at least match what you’d be entitled to under a formal redundancy, including unemployment benefits and continued insurance coverage.

Yet, this moment offers an unexpected opportunity. AI disruptions reflect shifts, not dead ends. Serbia’s restructuring signals a shift toward higher-value, future-oriented roles. If your work is highly skilled—cybersecurity, AI governance, cloud engineering, DevOps—demand remains strong. If you’ve been made redundant, scrutinizing whether the correct process was followed, securing fair severance, and exploring retraining paths isn’t just practical—it’s vital.

In this sea of change, programmers in Serbia face an imperative to adapt. Innovation no longer guarantees job security by itself; it must be paired with strategic legal awareness and continuous professional evolution.

Putting It All Together: Legal Guidance for IT Professionals Facing Redundancy

In the face of an AI-driven downturn, legal clarity can be a lifeline. If redundancy looms—or has materialized—take these steps seriously:

From the moment you’re informed, ask for the redundancy programme or decision and confirm whether proper drafts were presented to the trade union and National Employment Service. If not, your employer may have skipped a critical step.

Review the termination notice carefully. It must be written, provide a clear rationale, explain your rights, and reference the redundancy decision.

Insist on severance at—or above—the legal minimum: one-third of your average gross monthly salary per full year of employment. Ensure it is paid before you leave.

If offered a mutual termination, pause. Ask how this affects your access to unemployment benefits and whether it diminishes your entitlement to legal severance.

If anything seems off—unusually short severance, improper notice, a quick hire replacing you—consider legal challenge. Courts have upheld employees’ rights when procedural missteps occurred.

At Cvjetićanin & Partners, we stand ready to assist. Whether you need help reviewing severance offers, evaluating whether redundancy was legal, or planning next steps—including reskilling or negotiating exit terms—our expertise is here for you.