Fixed-term employment contract between flexibilization and precarization: Legal and economic aspects

A fixed-term employment contract, as an institution of labor law, is recognized by the legislation of the Republic of Serbia as one of the types of employment relationships, alongside the open-ended employment contract. The legal aspects addressed in this paper are reflected in the presentation of the legal framework and the conditions under which a fixed-term employment contract may be concluded, as well as its legal effects and the harmonization of labor legislation with European Union law. On the other hand, the ratio of employees under fixed-term contracts to the total number of employees can provide significant insights into the state of the labor market. Taking into account unemployment and the supply and demand on the labor market, we can assess whether fixed-term employment contracts lead to labor market flexibility or to precarization. The possibility of misuse of this legal institution exists, most often by employers who use it to "avoid" entering into open-ended employment contracts, bringing consequences that are not only legal but also economic. Contemporary challenges, particularly those related to insecure forms of employment, require further alignment of the legal framework with the social and economic needs of society.