Employment contracts Bosnia & Herzegovina

What should an employment contract in Bosnia and Herzegovina include?

The following are the general terms and clauses of every employment contract made in Bosnia and Herzegovina:

• Details about the parties of the agreement, including their names, living addresses, and contact information.
• Description of the job, including the rights and responsibilities of both parties.
• Payschedule frequency, salaries, and benefits the employee will receive.
• Hours and days of the week when the employee is expected to work.
• Conditions under which the employment can be terminated, including notice periods and other relevant policies.
• Confidentiality and non-disclosure clauses to safeguard the proprietary information of the employer.

Before signing, the employer and the employee are responsible for reading and thoroughly understanding each employment contract clause.

What types of employment contracts exist in Bosnia and Herzegovina?

The following are the most important categories of employment contracts in Bosnia and Herzegovina:

1. Employee contracts

Employee contracts can fall into one of the following categories:

• Indefinite employment contracts: Indefinite or permanent employment contracts are not limited by a specific timeframe, but either party to the agreement can terminate them. Termination of indefinite employment should follow the notice period specifications within the contract or mandated by employment laws.
• Fixed-term employment contracts: Fixed-term contracts are concluded when the duration of employment is limited due to reasons such as fluctuations in demand, completion of a particular project, deadlines, and similar circumstances. These agreements are terminated automatically after the specified expiration date and don’t require any notice period unless agreed upon within the contract.

2. Service employment contracts

Under this type of employment contract, individuals are obligated to provide their services or expertise to companies or clients in exchange for a certain fee. Service employment contracts may have different durations and must specify the scope of services, tasks, responsibilities, and remuneration for the service provider.

3. Seasonal employment contracts

As their name implies, seasonal employment contracts are used to hire employees to meet the seasonal demand in specific industries, such as tourism, hospitality, and agriculture. Seasonal employment contracts are limited in duration and may be renewed in cases of higher demand. The most important employment terms, such as wages, working hours, and benefits, should be clearly defined within the contract.

How to hire employees in Bosnia and Herzegovina?

Hiring employees from Bosnia and Herzegovina imposes a few legal obligations, including having a legal establishment, obtaining a tax number, opening local bank accounts, and operating per regulations set by local authorities. 

Besides legal responsibilities prior to hiring, employers in Bosnia and Herzegovina must also adhere to labor laws regarding minimum wages, working hours, benefits, notice periods, and other important conditions.

Companies that want to avoid complex compliance systems can rely on global recruitment companies such as Native Teams. Utilizing our Employer of Record solutions, you can ensure peace of mind while hiring in Bosnia and Herzegovina. We will handle your payroll, taxes, and HR administration while fully adhering to local employment laws.