Lessons Learnt Civil Service Reform in Serbia

Origins of CS Reform in Serbia:  Law on Labor Relations in State Authorities (1991) – previous, semi-CS law  State Administration Reform Strategy (2004) – main guidelines for the new system  Law drafted with external support (the World Bank, UNDP, EU-DIAL)  Administrative tradition and legacy of the previous states (Serbia as center of administration) – pros and cons

Relevant Legislation:  Law on Civil Servants  Law on Salaries of Civil Servants and General Service Employees  A number of implementing Bylaws  Law on State Administration  Law on Free Access to Information of Public Importance  Law on State Audit Institution (SAI)  Law on the Ombudsman

Career vs. Position Based System: Career system:  ‘closed’ – entry at lower ranks, while more senior positions are filled from within;  provides incentives for good performance and at ensuring that investments in training remain within the civil service Position-based system (job-in-rank system):  open – emphasis on selecting the right candidate for the position to be filled;  brings new talent into the civil service  frees managers to focus on results

Serbian System Features:  Law on CS enacted in 2005, application began in 2006  No basis in the Constitution (only State Administration)  Like most systems – hybrid of the two models (advantage for transitional countries);  Original idea – stronger element of career, esp. to appointed positions, but unsuccessful so far  Executing positions – combination, with strong element of position system  Intent was to stimulate mobility in CS

Serbian CSL: Definition of CS:  Clear demarcation between civil servants and elected and politically appointed officials (MPs, the President, ministers), judges, public prosecutors;  Clear demarcation between civil servants and general service employees of state authorities (ancillary technical tasks);  Tasks belonging to the competence of the state authority – ministries, other public administration authorities, courts, public prosecutors’ offices, public attorney’s office, President, etc.  Somewhat different regimes for authorities outside the “state administration”  Employees of local self-governments excluded;

Relation to the MoD:  MoD employs only 111 civil servants (almost entirely women);  Only “horizontal” tasks – HR, finances, etc.  Rulebook on Internal Organization and Job Classification applying to these 111 CSs;  The rest falls under the Formation  Rules under the Formation much more flexible – rationalization conducted on its basis.

Principles of work:  Legality, impartiality and political neutrality  Accountability – for legality, professionalism and effectiveness of work  Prohibition of discrimination (both positive and negative)  Openness – access to information (limitation for personal data protection)  Merit-based employment and promotion  Equal opportunities

Rights of CSs:  Safety of work-place  Remuneration (salary and other)  Vacation & leave (Labor Law and Special Collective Bargaining Agreement) – w. days  Membership of trade unions and professional associations  Right to appeal to decision affecting rights and duties  Additional rights – bargaining agreements

Obligations:  Execution of orders by a superior (verbal) – if deemed unlawful, can be refused, should be communicated; repeated written order must be executed and the Head of State Authority notified;  Reassignments, temporary additional work, temporary assignment to lower-rank position  Participate in working groups  Keeping official and other secrets  Observing working hours  AMENDMENT: Duty to inform about corruption (whistleblowing)

Conflict of Interest Prevention:  Prohibition to accept presents (except protocol, small value) and to misuse position  Possibility of additional (outside) work with permission of Head of State Authority (except for scientific research, publishing, culture, art)  Prohibition of founding business entities and of entrepreneurship  Limitations on membership of managing boards  For appointed civil servants – application of legislation on prevention of conflict of interest

Types of Jobs in CS:  Appointed positions :  managerial, though the term is nowhere used in the Law (instead – “directing and harmonizing”)  Appointment by Government or other State Authority (Assistant Minister, Director, Deputy Director, Assistant Director…)  Executing (not to be mixed with “executive”!)  all others, including heads of smaller organizational units (departments, sections…)  classified into RANKS according to job complexity, knowledge and skills required, etc.  General job classification by a Bylaw

Labor position of civil servant: Executing:  As a rule employed indefinitely  Conditions for termination of employment regulated in the law  Exceptions to indefinite employment – replacement of absent CS, temporary workload increase, positions in the minister’s cabinet (!), apprenticeship Appointed:  Five year mandate (Law on State Adm.), renewable  Reasons for dismissal clearly regulated in Law (mainly corruption, 2 bad performance appraisals, if Ombudsman’s recommendation is accepted, etc.)

Filling in the vacancies:  General conditions (citizenship, clean record…)  For appointed CS – higher education and a minimum of 9 years of working experience  Rulebook on job systematization  Conditions for filling in: 1) existence in the Rulebook; 2) foreseen by the staffing plan  Procedures for filling in executing positions: 1) reassignment within the Authority; 2) mutual agreement on takeover; 3) transfer based on internal or public competition; 4) new employment upon public competition

Filling in vacancies – executing positions:  Internal reassignment is given advantage  Mutual agreement between Heads of Authorities to take over a CS – second option  Internal competition in civil service – third option  Public competition – mandatory (no other way of hiring into CS)  If the latter is unsuccessful, position either remains vacant or procedure re-initiated  Advantage given to hiring from within (career), though strong element of external hiring, as internal competitions and transfers are NOT mandatory

Filling in vacancies – appointed positions:  Internal and public competition  Internal competition obligatory if Government is appointing  Repeated appointment – without competition  Selection committee proposes max. 3 candidates for appointment to Minister/Director, who then proposes one candidate to the Government  Minister/Director – not obliged to propose a candidate for appointment  If no appointment is made, new procedure initiated

Performance Appraisal:  Strongly linked to promotion possibility  Results evaluated (monitored) on quarterly basis  Appraisal conducted once a year  Five levels of grade/mark  “Early” appraisal – if performance in one quarter is evaluated with the lowest grade  Extraordinary appraisal – all CSs who receive the lowest grade – 2 nd level grade results in demotion & repeated lowest grade – dismissal  Fast track dismissal of poorly performing CSs

Promotion – position-based: Executing positions:  To a position in immediately higher rank (e.g. from adviser to independent adviser) or to a management executing position (e.g. chef of section)  Based on appraisal (min. 2 consecutive highest grades or 4 second highest) To appointed positions:  Appointment to any appointed position

Promotion – salary based:  Without changing rank or position, but with increase in salary through obtaining of a higher salary class (Law on Salaries of CSs)  Also linked to performance appraisal (based on the Law on Salaries)  Increases in salaries very small (40-50 EUR)  No increase in salary if appraisal conditions (very demanding) are not met

Training and Qualifications:  Right AND duty of CS to improve professionally in line with the needs of the state authority  HRM Service (CoG institution) in charge of developing programs and delivery of training  Internal competitions for selecting recipients of funding for additional education for civil servants (linked to performance appraisal)  State professional exam for indefinite term CSs

Ways/reasons for termination of employment  Expiry for limited term civil servants  Bad appraisal (repeated in extraord. appraisal)  Poor performance on probation  Failure to pass professional state exam  Staying “unassigned” for over 2 months (results from downsizing through changes of Rulebooks or dissolution of the state authority, if the scope of its work is not taken over by another)

Other regulated issues:  Apprenticeship (conditions, duration, etc.)  Disciplinary liability (minor and grave breaches of duties), procedure and sanctions  HRM system – staffing plans, HRM Service, personnel records  High Civil Service Council (prescribes types of qualifications, knowledge and skills evaluated in selection procedure, enacts the Code of Conduct)

Positive Lessons (1):  Sufficient time was allowed as transitional period for application of the Law on CS  Public competition prescribed as mandatory – reducing scope for arbitrariness in recruitment (but not entirely eliminating it)  Professionalization of top levels of civil service (but…)  Good balance of job security and possibility to downsize the sizeable state administration (latest amendments)

Positive Lessons (2):  Other PA related legislation and new institutions (e.g. Ombudsman, SAI, Commissioner for Access to Information, Anti-Corruption Agency) integrated with CS quite well – civil servants’ responsibility of “speaking truth to power” made easier (independent institutions as allies)

Negative Lessons (1):  Law too detailed (191 articles!), regulates issues such as contents of public competition announcement, entire recruitment procedure, appeals procedure and boards – makes technical and procedural changes too difficult!  Poor regulation of management authority, tasks – complete centralization of decision-making powers  Very formalistic approach to requirements regarding skills, competences for work in civil service  Very high requirement for appointed CSs in terms of length of professional experience

Negative Lessons (2):  Non-performance of internal competitions for each vacant position (procedure of internal reassignment) – opens space for excessive discretion by managers  Appraisal system poorly applied (unevenly, lack of incentive for managers to appraise realistically)  Training poorly integrated into appraisal and promotion system – changes under way!  The depoliticization “bar” set very high – question of political culture and time needed for change  Lack of depoliticization need not be at odds with professionalization of positions  No ex-post analysis of effects of legislation

Thank you for your attention.