Leoni: We are meeting all obligations towards employees
In line with its earlier announcement that Leoni Serbia would gradually halt production at its branch in Malošište by the end of the year, the company has confirmed that the public was duly informed.
At the beginning of September, the first group of employees had their contracts terminated under the conditions set out in the redundancy programme, Leoni stated.
In their press release, they explained that inaccurate or misleading information had appeared in the media, and for that reason, they wished to stress that Leoni has, from its very first day of operations in Serbia, regularly met all obligations towards employees, including the payment of salaries, salary-related compensation, as well as taxes and contributions.
“Therefore, claims that eight months of employment contributions have not been paid in 2025 are not true. According to information we received from the Republic Fund for Pension and Disability Insurance (PIO), data on employment contributions and wages for the current year are recorded at the end of the year. This procedure is in line with regulations and does not affect entitlement to rights at the National Employment Service, which keeps complete records,” the statement read.
The company noted that on 18 July they advised employees at the Malošište branch to check their employment records at the nearest PIO office.
“If during that check you notice any technical error on the part of the PIO Fund, please notify the HR department without delay so that we can take the appropriate steps in a timely manner,” the notice said.
The company stated that the majority of employees did so and resolved any uncertainties directly with the relevant services at the Malošište branch.
They also pointed out that, under the Labour Law, severance pay is only granted “for each completed year of employment with the employer”, noting that this provision does not include months beyond a full year.
“Employees whose contracts are being terminated are receiving severance pay for each full year of service in the amount of 50 percent of the average monthly wage (‘gross 1’) earned over the last three months. This is 50 percent more than the minimum severance pay prescribed by law,” they explained.
Leoni further noted that around 420 people received severance pay in September following contract terminations at the Malošište branch, while only four employees – less than one percent – lodged objections to how the severance pay was calculated.
By the year’s end, a further 1,500 people at the Malošište branch will lose their jobs. As Leoni announced in July, the closure of this branch is due to loss-making operations.
At its other sites in Serbia – Prokuplje, Niš and Kraljevo – the company is also facing rising costs. Nevertheless, these three factories continue to work on their projects with a clear goal of improving business operations.
At present, Leoni Serbia employs around 8,500 people, meaning that after the closure of the Malošište branch, it will have around 7,000 employees.
Leoni has been operating in Serbia since 2009.
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