The Serbian case study focuses on examining the existing legal and regulatory framework, governance indicators, human capacities as well as the institutional arrangement, inter-agency cooperation and stakeholder engagement. The analysis is used to identify what needs to be done or improved in order to develop the proper capacities for the implementation of the Posting of Workers Directive (96/71/EC) in Serbia. The empirical data is drawn from official reports, relevant grey and academic literature, and interviews with various stakeholders, i.e. policy-makers, enforcement agencies, and social partners. The findings show that Serbia has already experience in posting and detachment of workers for temporary work abroad. The legislative framework is partly harmonized with the EU in the field of labour mobility but more needs to be done in coordinating the social security system with EU Member States. While inter-institutional cooperation is established between line ministries and institutions which are responsible for labour mobility and the related policy areas, human resources in the institutions are not sufficient and need to be improved.