Every country has its own rules and requirements when it comes to employment contracts. For example, in many countries, it’s mandatory to provide employees with written employment agreements. In others, verbal contracts are acceptable and legally binding. Some countries also require contracts to be concluded in the local language, while others have no statutory language requirements as long as both parties understand the terms of the agreement.
In this section, we’ll explain everything you need to know about employment contracts in Bosnia and Herzegovina. We’ll cover the mandatory terms to be included in your employment contracts, as well as optional terms you can choose to incorporate. We’ll also discuss the rules that apply to fixed-term employment contracts in Bosnia and Herzegovina, maximum working hours, and the rules surrounding remote work.
Work contracts in Bosnia and Herzegovina must be concluded in writing in accordance with local employment law. Employers must provide each employee with a copy of their contract before they start work, and it must contain the most important details of the employment relationship such as the employee’s job description, working hours and salary. If the contract doesn’t stipulate an end date or fixed duration, it’s assumed to be an open-ended (permanent) contract.
Probationary periods allow both employers and employees to ‘test out’ the employment relationship before giving their full commitment. They are legal and common in Bosnia and Herzegovina but must not exceed a maximum of six months. During the probationary period, either party can end the agreement by giving notice of at least seven days.
In general, there are no mandatory employment policies for employers in Bosnia and Herzegovina. In organisations with a works council, work agreements may replace certain policies. Other organisations may choose to put in place policies of their own accord.
Unlike in some other countries, there is no requirement for employers in Bosnia and Herzegovina to submit employment contracts for the approval of any third-party body or organisation.
Different countries have their own rules about the terms that must be included in employment contracts. Read on to learn what you need to know to draw up compliant employment contracts in Bosnia and Herzegovina.
Bosnia and Herzegovina is divided into two entities, the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS). Each one has its own labour laws regulating employment contracts, which means that slightly different terms may be required in each.
In general, employers in Bosnia and Herzegovina should include at least the following terms in their employment contracts:
Different types of employment contracts in Bosnia and Herzegovina may also require different terms. For example, fixed-term contracts must also state the expected duration of the contract, and part-time contracts must state the employee’s weekly working hours.
Employers are also free to include additional terms, as long as they’re in line with local labour laws. For example, you may choose to incorporate a confidentiality clause or a non-compete agreement.
Other types of employment contracts in Bosnia and Herzegovina
There are also a few other types of employment contracts in Bosnia and Herzegovina, including:
Fixed-term contracts are permissible in both the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS). However, they are subject to certain limitations.
Employers in Bosnia and Herzegovina can use fixed-term contracts to engage workers to complete a specific task or to fill a position that is temporarily vacant. For example, an employer might hire someone on a fixed-term contract to replace another employee who is on leave.
In both FBiH and RS, fixed-term contracts are only permissible for a maximum period of three years. If the employee continues to work after the expiry date or if the employer concludes several fixed-term contracts adding up to a total of more than three years, the contract is considered to be an open-ended contract.
In RS, there are certain exceptions to the three-year limit on fixed-term contracts. For example, an employer may be able to conclude a fixed-term contract (or several successive contracts) for a longer period if they can justify their use due to the nature of the work or other legitimate business reasons.
While fixed-term contracts are intended to be used to cover temporary needs, employers sometimes need to renew or extend them if they continue to require the employee’s services. Read on to learn about the restrictions that apply to contract extensions in Bosnia and Herzegovina.
In general, fixed-term contracts come to an end automatically when their term is reached. However, either party can opt to terminate their contract at any time if they have a serious reason. If there isn’t a serious reason for termination, the terminating party may need to give notice to the other party and/or pay them compensation depending on the terms of the contract.
Employers in Bosnia and Herzegovina can extend or renew fixed-term contracts if they need the services of the employee for longer than expected. However, the total duration of the contract must not exceed the maximum period of three years. If a fixed-term contract is renewed beyond this duration, it is considered to be a permanent contract. This is also the case if the employee continues working after the end of the fixed-term contract, even if the contract is not renewed.
The standard work week in Bosnia and Herzegovina is 40 hours for a full-time employee. This is usually worked over five days (Monday–Friday).
Most full-time employees in Bosnia and Herzegovina work 40 hours per week. However, some jobs may be arranged so that employees work longer hours in some weeks and shorter hours in others. In this case, the employee’s weekly average working hours must not exceed 52 hours (or 60 hours for seasonal work).
Even in these cases, the employee’s working hours should not average more than 40 hours per week over the full calendar year (or another period defined by a collective bargaining agreement).
All work exceeding the standard working hours in Bosnia and Herzegovina is considered overtime. It is regulated by employment contracts and/or collective agreements, and the employee must be compensated. The maximum amount of overtime permitted is generally eight hours per week.
However, employees are required to work overtime of up to 10 hours per week if requested by their employer for any of the following reasons:
The labour inspectorate must be notified if a worker works overtime for three consecutive weeks or for a total of ten weeks in one calendar year. Overtime is not permitted for minors. There are also special rules that apply to pregnant women and parents of young children, which are different in each region.
Full-time workers in Bosnia and Herzegovina are entitled to a daily break of at least 30 minutes. This is not counted towards their working hours. Employees are also entitled to a minimum daily rest period of 12 hours. This can be reduced to 10 hours for seasonal workers. In addition, workers have the right to a weekly rest period of at least 24 hours, which should usually be granted on a Sunday.
Over the past few years, remote work has become increasingly common in many countries around the world, including Bosnia and Herzegovina. For this reason, many countries have introduced specific rights, rules, and regulations concerning remote work. Read on to learn about the situation in Bosnia and Herzegovina.
Employees in Republika Srpska (RS) have the right to request teleworking arrangements under local labour law. The Federation of Bosnia and Herzegovina (FBiH) doesn’t explicitly grant this right, though it’s still possible and common for employees to submit such requests. In both entities, employers must provide a specific contract for remote workers detailing their working hours, communication protocols and the applicable legal framework.
Employers in Bosnia and Herzegovina have specific obligations towards their remote workers. Creating a formal policy detailing expectations, communication protocols, and performance evaluation methods is strongly recommended. Employers of remote workers should also put in place data security measures to protect sensitive information, including employee data.
The Law on Occupational Health and Safety requires employers to ensure a safe working environment for employees — even those who are working remotely. This might include encouraging good ergonomics practices and communicating clearly about any potential health concerns related to remote work. Lastly, employers should consider the potential tax implications of an employee working and residing outside of the country.
Like all countries, Bosnia and Herzegovina has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in Bosnia and Herzegovina (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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