A few open questions concerning the right to severance pay in the Republic of Serbia

This paper aims to explain the nature of employees' right to severance pay in situations where the employer resorts to collective dismissal due to economic, organizational, or technological changes. The validity of setting up public funds that would, together with the employer, participate in the payment of severance and their financing is called into question, as well as the possibility for foreign investors to use money from public funds in the event of collective dismissal. The author also identifies a problem related to employers' autonomy to make business decisions on economic, organizational, and technological changes and the (un)justified interference of courts in such decisions. The paper also offers a recommendation regarding the moment that is considered relevant for determining whether certain persons are affiliated, for the purposes of exercising employees' right to severance. Certain solutions adopted by domestic legislation are criticized, and potential future solutions are proposed. Employees' right to severance pay is primarily examined from the perspective of domestic positive law, but comparative-law solutions are also mentioned with respect to certain related institutes. A brief overview is also provided of other measures that an employer can take before terminating employment contracts on the stated grounds and paying severance.