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Bosnia and Herzegovina is a beautiful country with a lot to offer. However, if you want to expand your business in Bosnia and Herzegovina, you’ll need to familiarise yourself with the country’s hiring practices and the legal requirements you must meet.
A written employment contract detailing the employee’s compensation, benefits, and termination requirements is mandatory in Bosnia and Herzegovina and must be in the local language. In addition, salary and other compensation amounts in an offer letter or employment contract in Bosnia should be stated in convertible marks rather than foreign currency.
Bosnian workers are also entitled to several benefits and protections under the law. These include things like paid vacation days, sick days, and maternity/paternity leave. As an employer, you will be responsible for providing these benefits to your employees.
Bosnia and Herzegovina is a good choice for finding remote employees for several reasons. First, the country has a highly educated workforce. This means you can find workers with the skills you need.
Second, the Bosnian workforce is known for being very hardworking. Third, Bosnia and Herzegovina has a large talent pool, so you can find workers with the specific skills you need for your business.
Finally, the Bosnian government supports businesses that want to set up operations in the country. This means you can get the help you need to set up your business in Bosnia and Herzegovina and find the workers you need.
When it comes to recruiting in Bosnia and Herzegovina, partnering with Native Teams can be a game-changer. With the help of our Employer of Record services, your business can hire new workers in Bosnia, onboard them into the company, and meet all legal requirements for paying them, providing them with benefits, and paying any applicable taxes - directly, with no middlemen involved in the process.
Hire your first Bosnian employee with Native Teams.
When hiring new employees in Bosnia and Herzegovina, it’s important to consider the following labour laws and regulations.
Employment law in Bosnia and Herzegovina (BiH) is regulated at the entity level, rather than through a unified state-level Labour Law. BiH consists of two entities: the Federation of Bosnia and Herzegovina (FBiH) and the Republic of Srpska (RS), each with its own legal framework governing labour and social rights.
In the Federation of Bosnia and Herzegovina, employment relationships are primarily governed by the Labour Law. The General Collective Agreement (GCA) also applies to employers and employees within the entity and further regulates employment rights and obligations.
In the Republic of Srpska, employment relationships are similarly governed by its own Labour Law and General Collective Agreement, which establish the applicable employment conditions and requirements.
Employment relationships may also be regulated through company-specific collective agreements concluded between an employer and the representative trade union. Where no such agreement exists, the company’s internal work rules generally govern relevant employment matters.
Individual collective agreements, work rules, and employment contracts must comply with the applicable Labour Law and cannot provide employees with less protection than the law requires. Similarly, employment contracts cannot contain terms that are less favourable to employees than those established by the applicable collective agreement or work rules.
Employment contracts in Bosnia and Herzegovina may be concluded for either an indefinite or fixed term, depending on the nature and duration of the employment relationship.
Permanent employment
Employment contracts are generally concluded for an indefinite period and remain in effect until terminated by either party in accordance with applicable labour law.
Fixed-term employment
Fixed-term contracts may be concluded for a limited period, subject to the following limits:
Fixed-term employment is an exception and may be used in specific circumstances, including seasonal work, project-based work, or temporary increases in workload.
Certain circumstances may also allow temporary employment for specific durations. For managers, the employment period may correspond to the length of their mandate. For employees completing a compulsory apprenticeship, employment may last for the duration of the apprenticeship programme.
Employment contracts in Bosnia and Herzegovina must include key information defining the employment relationship, working conditions, and rights and obligations of both parties.
The employment contract should include:
Download a free employment contract for Bosnia and Herzegovina through Native Teams.
An employment relationship in Bosnia and Herzegovina is formally established through an employment contract. The relationship begins when the employee starts working under the signed contract, following the recruitment procedure established by the employer’s workplace regulations.
During recruitment, employers cannot request personal information that is not directly relevant to the job. This includes information about family or marital status, family planning, or other documents and evidence that are not necessary for the position.
Once the employment contract is concluded, the employer must register the employee for mandatory insurance, including:
Employers must also document any changes to the employee’s insurance status and communicate them to the employee.
The standard full-time working week in Bosnia and Herzegovina is 40 hours, unless otherwise provided by law, collective agreements, workplace rules, or the employment contract.
Full-time working hours may be distributed across five or six working days, depending on the applicable collective agreement and internal workplace rules.
For employees under the age of 18, working time is limited to a maximum of 35 hours per week.
Employment contracts may also be concluded for part-time work. Part-time work is defined as any arrangement where the employee works fewer hours than the standard full-time working hours.
In Bosnia and Herzegovina, work performed between 10 PM and 6 AM is considered night work. In agriculture, night work is defined as work performed between 10 PM and 5 AM, unless otherwise provided by law, cantonal regulations, or a collective agreement.
Where shift work includes night work, shifts must be organised so that an employee does not work consecutive night shifts for more than one week.
Employers must consider employees’ specific needs when organising night and shift work and ensure that appropriate health and safety conditions are maintained.
Night workers are entitled to the same health and safety protections as other employees, including preventive measures and access to appropriate protective equipment at all times.
Employees in Bosnia and Herzegovina are entitled to workday, daily, and weekly rest periods, which cannot be denied.
Rest during the workday
Employees who work more than six hours per day are entitled to a break of at least 30 minutes. Upon request, the employer must grant a one-hour break on one day during the working week. Rest periods are not counted as working time, and their timing and organisation are regulated by collective agreements, workplace rules, and the employment contract.
Daily rest
Employees are entitled to at least 12 consecutive hours of rest between two working days. For seasonal work, the minimum is 10 consecutive hours, while juvenile employees are entitled to at least 12 consecutive hours.
Weekly rest
Employees are entitled to at least 24 consecutive hours of weekly rest. If an employee is required to work on their designated rest day, they must receive compensatory rest within an agreed period of no more than two weeks.
Employees may be required to work on a weekly rest day in cases of force majeure, an extraordinary increase in workload where no other measures are possible, or to prevent the loss of perishable goods. Additional circumstances may be established by collective agreements or internal regulations.
Employees in Bosnia and Herzegovina are entitled to between 20 and 30 working days of paid annual leave per calendar year.
In exceptional cases, annual leave may exceed 30 working days where the nature of the role or working conditions require it, as determined by a collective agreement.
Minor employees are entitled to a minimum of 24 working days of paid annual leave per calendar year.
Employee remuneration in Bosnia and Herzegovina consists of mandatory and optional salary components, as well as certain payments provided separately from salary.
The employee’s salary may include:
Employers are also required to provide certain non-salary payments, including:
These payments are considered expense compensation rather than salary and are generally not subject to taxes or social contributions unless they exceed the applicable non-taxable limits.
To calculate the salary and taxes in Bosnia and Herzegovina, click here.
Employees in Bosnia and Herzegovina are entitled to sick leave in cases of temporary incapacity for work.
Employees must notify their employer in writing of their temporary incapacity within three days of its onset. They must also provide a certificate from an authorised medical doctor within the same three-day period, in accordance with health insurance regulations.
In cases of severe illness, a close family member or another person living in the employee’s household may submit the medical certificate. Employees who live alone must submit the certificate within three days after the reason preventing timely submission has ended.
If the employer has doubts about the validity of the employee’s absence, they may request an assessment of the employee’s health capability from the relevant authority in accordance with the law.
One parent in Bosnia and Herzegovina may be entitled to take parental leave until the child reaches three years of age, provided this right is established by a collective agreement or workplace regulations.
During parental leave, the employee’s rights and obligations arising from the employment relationship are suspended.
Special provisions apply to parents of children with severe developmental disabilities. One parent may have the right to work half-time if they are a single parent or both parents are employed, provided the child is not placed in a social-healthcare institution, and the relevant health institution has provided an assessment.
The parent exercising this right is entitled to salary compensation in accordance with the law. They cannot be required to work night shifts or overtime, or have their workplace changed, without their written consent.
Women in Bosnia and Herzegovina are entitled to one year of continuous maternity leave during pregnancy, childbirth, and childcare.
Based on a medical certificate, maternity leave may begin up to 28 days before the expected delivery date. An employee may choose to take a shorter period of maternity leave, but it cannot end earlier than 42 days after childbirth.
Fathers are entitled to paid leave following the birth of a child, with the duration determined by the employer’s internal regulations. After the first 42 days following childbirth, the father may take the remaining maternity leave if both parents agree. The father may also take the leave if the mother dies, abandons the child, or is unable to use the leave for other justified reasons.
After maternity leave, a woman with a child under one year old is entitled to work half-time. For twins, triplets, or additional children, this right extends until the child reaches two years of age, unless otherwise provided by cantonal regulations.
The father may also exercise the right to reduced working hours if the mother works full-time.
An employment contract in Bosnia and Herzegovina may end for several reasons, depending on the circumstances of the employment relationship.
Employment may be terminated:
The grounds for termination by an employer in Bosnia and Herzegovina differ between the Federation of Bosnia and Herzegovina and the Republic of Srpska.
Federation of Bosnia and Herzegovina
An employer may terminate an employment contract on grounds including:
Republic of Srpska
Grounds for termination may include:
Notice periods in Bosnia and Herzegovina differ between the Federation of Bosnia and Herzegovina and the Republic of Srpska, as well as depending on which party terminates the employment relationship.
Federation of Bosnia and Herzegovina
Republic of Srpska
The notice period begins on the date the notice is delivered to the employer or employee.
Collective agreements, workplace regulations, and individual employment contracts may establish longer notice periods. However, these cannot exceed one month when the employee resigns or three months when the employer terminates the contract.
Employees who challenge their dismissal may request a temporary court measure for reinstatement while legal proceedings concerning the termination are ongoing.
Unemployed individuals in Bosnia and Herzegovina may be entitled to financial and social security benefits, including:
These benefits are primarily provided through unemployment insurance and regulated by the Law on Employment Mediation and Social Security for Unemployed Persons and other applicable legislation.
To qualify for monetary compensation, an individual must have worked for at least eight consecutive months or a total of eight months within the 18 months before their employment ended. Part-time employment is calculated proportionally to its full-time equivalent, while periods of mandatory insurance also count towards eligibility.
Employers must ensure that the required unemployment insurance contributions are paid, as eligibility for monetary compensation depends on these obligations being fulfilled.
Monetary compensation amounts to 40% of the average net salary in the Federation of Bosnia and Herzegovina during the three months before termination of employment. The Federal Institute of Statistics publishes the relevant average salary figure periodically.
Employees in Bosnia and Herzegovina may be entitled to severance pay when their employment is terminated by the employer, provided certain conditions are met. Severance rights are regulated by the labour laws of both the Federation of Bosnia and Herzegovina (FBiH) and the Republika Srpska (RS).
To qualify for severance pay:
The amount of severance depends on the circumstances of the termination and the employee’s length of service.
If the termination is found to be unlawful, the employee may be entitled to additional severance or compensation determined by the court. Severance may also apply where the employee’s ability to perform their duties changes due to health reasons or other circumstances beyond their control
Probationary periods in Bosnia and Herzegovina differ between the Federation of Bosnia and Herzegovina and the Republic of Srpska.
In the Federation of Bosnia and Herzegovina, a probationary period may be used to assess an employee’s professional skills, work habits, and overall suitability for the role. The probationary period cannot exceed six months.
Employees on probation are entitled to the employment rights associated with the work they perform. If an employee does not meet the required performance standards, the employment relationship ends on the last day of the probationary period specified in the probationary contract.
In the Republic of Srpska, a probationary period may be agreed through the employment contract or a separate probationary work agreement. It may last for up to three months and, exceptionally, may be extended by mutual agreement for an additional three months.
Employees in Bosnia and Herzegovina must inform their employer of any inventions, industrial designs, or technical improvements developed during or in connection with their work.
Employees are also required to keep information relating to inventions and industrial designs confidential and cannot disclose it to third parties without the employer’s consent.
Inventions and industrial designs created during the course of employment or in connection with the employee’s work belong to the employer.
The employee is entitled to compensation for such inventions or designs, as determined by the applicable collective agreement, employment contract, or a separate agreement.
Personal data protection in Bosnia and Herzegovina is governed by the Law on Personal Data Protection.
Through the Stabilisation and Association Agreement (SAA), Bosnia and Herzegovina committed to aligning its domestic legislation with the European Union’s legal framework, including the harmonisation of personal data protection rules with EU legislation.
The EU’s General Data Protection Regulation (GDPR) establishes rules for the processing and protection of personal data, as well as the transfer of personal data outside the EU. Its objectives include giving individuals greater control over their personal data and creating a more harmonised data protection framework.
The GDPR takes a more comprehensive approach to data protection than the existing legislation in Bosnia and Herzegovina, particularly regarding the monitoring of high-risk data processing activities.
A non-compete clause in Bosnia and Herzegovina may be included in the employment contract or concluded as a separate agreement.
The clause may restrict employees from working for a competitor or operating a competing business in the same industry as their former employer without explicit permission.
A non-compete restriction may apply for up to two years after the termination of employment and is intended to protect the employer’s business interests and proprietary information.
The specific terms of the restriction, including the conditions and method for ending the non-compete period, must be established in the employment contract or determined by an applicable collective agreement or employment policy.
Remote work in Bosnia and Herzegovina allows employees to perform their duties outside the employer’s premises, typically from home or another remote location.
Remote work is governed by general employment legislation and must comply with applicable legal requirements and labour standards, including the requirement for a formal agreement.
A remote work contract may only be concluded for work that is not dangerous or harmful to the health of the employee or others and does not pose a risk to the working environment.
Employers in Bosnia and Herzegovina remain responsible for employee health and safety when work is performed remotely, including ensuring that the remote workplace meets applicable safety standards.
Health and safety requirements are governed by the relevant Health and Safety at Work laws in Bosnia and Herzegovina and the Republic of Srpska.
Employers are required to:
Employers in Bosnia and Herzegovina are responsible for ensuring that remote workspaces comply with applicable health and safety requirements, although direct inspections of employees’ homes may be limited.
Employees working remotely must maintain a safe and ergonomically appropriate workspace, with guidance from the employer to help prevent work-related injuries and accidents.
Remote work arrangements must also comply with applicable rules on working hours, overtime, and rest periods. Employees have the right to disconnect outside their agreed working hours.
Depending on the nature of the role, employers and employees may agree on flexible working hours, including adjustments to starting and finishing times.
One of the primary benefits lies in competitive labour costs. Compared to Western Europe or North America, salaries and associated employment costs in Bosnia and Herzegovina are significantly lower. This makes it an attractive destination for companies looking to optimise budgets without compromising on quality.
Cultural adaptability further enhances Bosnia and Herzegovina’s appeal. The country shares strong historical and cultural ties with Europe, ensuring smoother integration with Western work practices and business norms.
Finally, Bosnia and Herzegovina is becoming increasingly recognised for its growing tech hubs and entrepreneurial spirit, positioning it as a competitive choice against neighbouring countries such as Serbia or Croatia.
Native Teams helps you employ and pay your team in Bosnia and Herzegovina through owned entities and infrastructure.
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