Overview of Bosnia and Herzegovina Labor Laws and Employment Policies

Employment Law Overview

• Key Laws and Regulations:
  • Labor Law of Bosnia and Herzegovina
  • Social Security Law of Bosnia and Herzegovina
  • Tax Law of Bosnia and Herzegovina
• Legal Characteristics:
  • Aims to protect employee rights and promote fairness in the workplace.
  • Regulates aspects such as minimum wage, working hours, leave, social security, and taxation.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Provisions:
  • Must include details on job description, remuneration, working hours, rest periods, vacation, social security, and taxation.
• Language and Currency:
  • Contracts must be in Bosnian or Croatian language.
  • Currency is the Bosnia and Herzegovina Convertible Mark (BAM).

Working Time Regulations

• Standard Working Hours: 40 hours/week, Monday to Friday
• Rest Days and Breaks:
  • Minimum of 24 hours of rest per week.
  • Entitled to at least 30 minutes of break after 6 hours of daily work.

Leave Policies

• Annual Leave: 20 days
• Public Holidays: 5 days
• Special Leave:
  • Sick leave: Paid
  • Maternity leave: Up to 12 months, 50-80% of salary
  • Paternity leave: 7 working days (Federation of Bosnia and Herzegovina) or 3 working days (Republika Srpska/Brcko District)

Employee Termination and Contract Termination

• Notice Periods:
  • Employee: 7-30 days
  • Employer: 14-90 days
• Severance Pay:
  • Employees with 2+ years of service are entitled to severance pay, amount determined by collective agreement, minimum 1/3 of average monthly salary, maximum 6 times average salary.
• Protection Against Unfair Dismissal:
  • Employer must provide written notice and reasons for termination.
  • Employees have the right to appeal unfair dismissals.

Tax Laws

• Personal Income Tax:

  • Salary Range	Tax Rate
    0 - 30,000	0%
    30,000 - 45,000	10%

• Social Security Contributions:

  • Employee: 6%
  • Employer: 12.50%

Health Insurance

• Insurance Policy:
  • Employees are required to participate in the national health insurance scheme.
• Coverage:
  • Basic medical services, hospitalization, medication, and dental care.

Compensation and Benefits

• Minimum Wage: 596 BAM/month
• Compensation Structure:
  • Base salary
  • Bonuses
  • Allowances

Work Permits and Visas

• Permit Requirements:
  • Non-Bosnian citizens require a work permit.
• Application Process:
  • Employer applies to the Ministry of Employment and Social Policy of Bosnia and Herzegovina.

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Bosnia and Herzegovina.
• Common Provisions:
  • Restrict employees from using or disclosing confidential information after leaving employment.
  • Restrict employees from working for competitors after leaving employment.

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skills development training to employees.
• Government Support:
  • Government provides funding and incentives to encourage corporate training.

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on race, gender, religion, or other protected characteristics.
• Enforcement Measures:
  • Employers must establish policies and procedures to ensure compliance.

Remote Work Policies

• Legal Framework:
  • Remote work is legally supported in Bosnia and Herzegovina.
• Tax and Insurance Implications:
  • Tax and social security implications of remote work depend on specific circumstances.

Authoritative Website Addresses

• Ministry of Employment and Social Policy of Bosnia and Herzegovina: https://www.fbihvlada.gov.ba/