RIGHT TO REIMBURSEMENT OF COMMUTING EXPENSES IN RELATION TO FREE TRANSPORTATION SERVICE

RIGHT TO REIMBURSEMENT OF COMMUTING EXPENSES IN RELATION TO FREE TRANSPORTATION SERVICE

The legal criterion for determining the amount of reimbursement an employee is entitled to, in the case of free public transport, would negate the right itself, even though the establishment of this norm was based on the assumption that the cost always exists, except in cases where the employer provides their own transport.

Therefore, employees have not automatically lost the right to reimbursement of commuting expenses. We believe that general acts and employment contracts may regulate the criteria for reimbursement of commuting expenses, taking into account the amount of the last reimbursement paid under this basis.

“Article 118, paragraph 1, item 1) of the Labor Law (“Official Gazette of the Republic of Serbia,” No. 24/2005, 61/2005, 54/2009, 32/2013, 75/2014, 13/2017 – Constitutional Court decision, 113/2017, and 95/2018 – authentic interpretation, hereinafter: the Law) prescribes that an employee has the right to reimbursement of commuting expenses in accordance with the general act and the employment contract, in the amount of the public transportation fare, unless the employer has provided their own transport.

Thus, it is the employer’s obligation to reimburse the employee for commuting expenses, in the amount of the public transportation fare, or to organize their own transportation for employees to and from work.

Regardless of how employees commute, the Law defines the amount of transportation expenses that the employer must reimburse, which is determined by the cost of public transportation fare.

The Law assumes that commuting expenses always exist (except when the employer organizes their own transport), which is why employees should have the right to reimbursement of such expenses.

In further elaboration of this right, it was necessary to regulate this matter through general acts (collective agreements and work regulations) and employment contracts. Practice has shown that these acts also address various situations that arise in specific cases that cannot explicitly be covered by the prescribed rule regarding the amount of this expense (e.g., when work is performed in locations where public transport is not available) or when the employer agrees to reimburse expenses in a higher amount than prescribed (in certain cases, the employer may arrange through a collective agreement, employment contract, or work regulations to determine this cost in a different way, such as based on fuel prices for a specific mileage, etc.).

The legal criterion for determining the amount of reimbursement an employee is entitled to, in the case of free public transport, would negate the right itself, even though the establishment of this norm was based on the assumption that the cost always exists, except in cases where the employer provides their own transport.

Therefore, employees have not automatically lost the right to reimbursement of commuting expenses. Instead, it is necessary to resolve the issue of the manner and amount of such reimbursement.

Considering all the above, we believe that general acts and employment contracts may regulate the criteria for reimbursement of commuting expenses, taking into account the amount of the last reimbursement paid under this basis before the new situation regarding free transport in the City of Belgrade arose.

Article 80, paragraph 2 of the Law on State Administration (“Official Gazette of the Republic of Serbia,” No. 79/2005, 101/2007, 95/2010, 99/2014, 47/2018, and 30/2018 – other law) prescribes that opinions issued by state administration authorities are not binding.”

(Opinion of the Ministry of Labor, Employment, Veteran and Social Affairs, No. 340029 2025 13400 001 001 011 024 dated January 31, 2025.)