Bosnia and Herzegovina ("B&H") is composed of two administrative entities — the Federation of Bosnia and Herzegovina ("FB&H") and the Republika Srpska ("RS") — along with the Brčko District ("BD"), which is a special administrative unit. Rules regulating labor are adopted at the level of entities and the administrative unit and apply depending on the place of employment.

In B&H legislation, the primary employment status is that of an employee in an employment relationship, i.e., a person who has entered into an employment contract with an employer.

In addition to employment relationships, the legal framework in B&H also recognizes other forms of engagement outside employment, primarily:

• a service contract, used for the performance of a specific task or assignment outside an employment relationship;
• a contract for temporary and occasional work, used for work that is not permanent or continuous in nature and for which the employer does not conclude an employment contract;
• a copyright contract, used in cases involving the creation of copyrighted work;
• a management contract, used for regulating the management members who are not entering an employment relationship.

The concept of “self-employed” as a distinct, unified status is not systematically regulated in B&H. However, in practice, individuals operate as sole entrepreneurs through registration of crafts or other forms of independent activity in accordance with applicable business regulations.

Yes, different types of employment contracts are provided in B&H. These include fixed-term and indefinite-term employment contracts, as well as employment contracts for interns, employment contracts for full-time employees, employment contracts for part-time employees, and employment contracts for management.
The RS Labor Law stipulates a specific type of additional employment contract for employees who already have a full-time employment contract to establish an additional employment relationship.  

An employment contract has to be concluded in written form and signed in wet ink by both the employer and the employee.

An employment contract cannot be established with a person under the age of 15. A person under the age of 18 may only enter into employment with the consent of their legal representative and a medical certificate confirming their ability to perform work that does not endanger their health, morals, or education.

An employment agreement has to contain the following information:

• the employer’s name and registered seat;
• the employee’s name and residence address;
• the term of the employment agreement;
• the commencement date;
• the place of work;
• the employee’s position and a brief job description;
• working hours and work schedule;
• salary and payment periods;
• annual leave entitlement; and
• the notice period.

In RS and BD, a fixed-term employment contract needs to specify one of the statutory grounds for concluding such a contract instead of an indefinite employment contract.

Yes, part-time employees are generally afforded the same rights as full-time employees, proportionate to their working hours.

The Labor Law in FB&H and BD does not regulate the assignment of employment contracts.

However, the Labor Law in RS stipulates that employees may be temporarily assigned to work for another employer where there is a temporary cessation of need for their work, where business premises have been leased, or where a business cooperation agreement has been concluded with another employer.

Such an arrangement can last up to one year, unless the employee agrees to a longer duration. The employee will enter into a fixed-term employment agreement with the host employer, which cannot be less favorable than the original employment agreement.

In case of a status change of the employer in FB&H, all employment contracts in force on the date of the change are transferred to the new employer as the legal successor. This is subject to the employee’s written consent.

Employees whose employment contracts are transferred retain all rights arising from their employment up to the date of the transfer.

The predecessor employer is obliged to notify the affected employees in writing about the transfer of their employment contracts to the successor employer.

Labor laws of RS and BD stipulate that if an employee refuses the transfer of their employment agreement or fails to respond within five working days from receipt of the notification on transfer, the predecessor employer has the right to terminate the employment contract.

Furthermore, under the Labor laws of RS and BD, the successor employer is required to apply the Employment Rulebook of the predecessor employer for at least one year following the change of employer, unless it expires earlier in accordance with its terms.

No, local legislation does not provide statutory rights for employees on a change of control of an employer. However, such rights can be contractually agreed in the employment agreement.

Employers in FB&H have the right to unilaterally modify certain terms of employment in two cases. First, in urgent circumstances (such as replacement of an absent employee, sudden increase in workload, prevention of major damage, breakdown of equipment, or force majeure events), the employer can issue a unilateral decision temporarily assigning an employee to another position. This assignment can last up to 60 days within a one-year period. Second, where the nature of the work requires it, the employer can redistribute working time. In such cases, full-time and part-time hours may vary across different periods, provided that the average working time during the redistribution does not exceed 52 hours per week, or 60 hours per week for seasonal work.

In RS, employers can redistribute working time depending on business needs. Additionally, the employer can assign an employee to another position corresponding to their professional qualifications and work experience and can transfer the employee to another place of work under statutory conditions. These include situations where the employer operates in multiple locations, where the distance between workplaces is less than 50 km with organized transport and reimbursed travel costs, and where the new position matches the employee’s qualifications and experience.

In BD, the employer can also redistribute working time and transfer employees to another place of work under conditions aligned with those in RS.

No, B&H is not an employment-at-will jurisdiction.

An employer has to render a termination decision in writing, provide reasons for the termination, and inform the employee of their right to file a request for protection of rights. If the employer does not respond favorably to such a request, the employee has the right to initiate court proceedings, where the court will assess the legality and justification of the termination.

An employer can terminate an employment contract only on grounds expressly provided under the applicable Labor law. These include economic, organizational or technical reasons, inability of the employee to perform their job duties, unsatisfactory performance during a probation period, as well as minor or gross misconduct.

In cases of termination due to the employee's misconduct, the employer is also required to inform the employee of the reasons for termination and allow them to present their defense before the decision is made.

Yes, an employee who finds that their employment contract has been wrongfully terminated has the right to file a request for protection of rights with the employer within 30 days. The employer needs to respond within 30 days. If the employer fails to respond or responds unfavorably, the employee can initiate court proceedings before the competent court.

In such proceedings, the court will assess the legality and justification of the termination. The burden of proof in the court proceedings lies with the employer.

The employee can seek reinstatement to their position, payment of salary and related social contributions for the period until reinstatement as if they had continued working, as well as compensation for damages, where applicable.

Yes, whistleblower protection exists in B&H, but it is regulated through separate laws at different levels of government.

At the state level, the Law on Protection of Persons Reporting Corruption in B&H applies only to civil servants and employees of state-level institutions. It does not extend to other levels of government nor to the employees in the private sector.

In RS, the law does not establish a formal procedure for granting protected whistleblower status, except for interim measures that can be ordered by the court.

In BD, the legal framework covers reporting of breaches of laws, regulations, and irregularities in work, including fraud and conduct indicating corruption.

In the Sarajevo Canton, the Anti-Corruption Office is competent to grant whistleblower status. However, whistleblowers who suffer adverse consequences must seek judicial protection before the court.

At the level of FB&H, there is currently no specific whistleblower protection law in force.

Yes, employees in B&H have a right to privacy.

Employee personal data cannot be collected, processed, used or disclosed to third parties unless this is required by law or necessary for the exercise of rights and obligations related to the employment relationship.

Employees have the right to access all documents containing their personal data held by the employer, as well as the right to request deletion of data that is not directly relevant to their job duties and correction of inaccurate data.

In addition to specific labor law provisions, employee data protection is governed by the state-level Law on Personal Data Protection.

In case of a breach, the employee has the right to file a request for protection of rights with the employer. They may also file a complaint with the state-level Personal Data Protection Agency, which is competent to monitor compliance and impose sanctions on the employer.

Yes, employees and job applicants are protected against discrimination under the applicable labor laws in B&H.

Discrimination is prohibited on grounds including sex, sexual orientation, marital status, family obligations, age, disability, pregnancy, language, religion, political or other beliefs, nationality, social origin, property status, birth, race, skin color, membership in political parties or trade unions, health status or any other personal characteristic.

The prohibition of discrimination applies in particular to:

• recruitment conditions and candidate selection;
• working conditions and employment rights;
• education, training, and professional development;
• promotion opportunities; and
• termination of employment.

In FB&H and BD, the employee who faces discrimination has the right to file a request for protection against discrimination with the employer within 15 days. Furthermore, the employee can initiate court proceedings if the employer fails to respond within 15 days or responds unfavorably.

In RS, the employee can directly file a lawsuit before the competent court, without first submitting a request for protection of rights to the employer.

Statutory rights to vacation, medical leave, and parental leave exist under B&H legislation.
Employees are entitled to a minimum of 20 days of paid annual leave. Employees are also entitled to medical leave for a period determined by an authorized physician. Salary compensation during medical leave is borne by the employer for up to 42 days in FB&H and up to 30 days in RS.

With regard to maternity and parental rights, a female employee is entitled to maternity leave of up to one year. Based on the opinion of an authorized physician, maternity leave can commence up to 28 days before the expected date of delivery. A female employee cannot use maternity leave for less than 42 days in FB&H and BD, or less than 60 days in RS after childbirth. After this mandatory postnatal period, the father may exercise the right to maternity leave instead of the mother, subject to mutual agreement between the parents.

Following maternity leave, a female employee is entitled, until the child reaches at least one year, to work half of the full working hours. For twins, the third child and each subsequent child, this right extends until the child reaches two years of age. A breastfeeding mother who returns to full-time work is also entitled to two daily breaks of one hour each for breastfeeding until the child reaches one year.

There have been no significant changes to leave benefits in the past 12 months, and there is currently no proposed legislation expected to materially impact these rights.

Yes, entity-level Labor laws in B&H recognize restrictive covenants, in particular non-compete and confidentiality clauses. All three labor laws provide that an employee may, only with prior consent of the employer, perform activities within the employer’s line of business.

Additionally, the employer and the employee in FB&H can agree that, for up to two years after termination of employment, the employee shall not be employed by a competitor or perform activities that compete with the employer. Such a non-compete obligation is only valid if the employer undertakes to pay the employee compensation during the restriction period in an amount of at least one half of the employee’s average salary paid in the three months preceding termination of employment. In RS and BD, a non-compete clause can be agreed for a maximum duration of one year.

All three labor laws further provide that employees are obliged to keep trade secrets, including information relating to inventions and industrial designs, and cannot disclose such information to third parties without the employer’s consent.

B&H labor laws do not explicitly regulate non-solicitation clauses. However, employers and employees are free to agree on such restrictions contractually.

Under B&H legislation, employees cannot be lawfully terminated solely for refusing to sign a restrictive covenant.

Yes, employers are required to pay mandatory social security contributions for all employees in B&H, in accordance with entity-level regulations.

In FB&H and RS, employers are required to pay contributions for pension and disability insurance, health insurance, and unemployment insurance, as well as personal income tax.

In RS, employers are also required to pay an additional contribution for child protection.

Employees in BD have the right to choose whether their social contributions and income tax will be paid under the FB&H or RS system.

Yes, B&H legislation mandates a range of statutory employee benefits under entity-level labor and social security legislation. Employers are required to provide and finance mandatory social security contributions, including pension and disability insurance, health insurance, and unemployment insurance, as well as personal income tax obligations.

Employees are entitled to statutory minimum benefits under entity-level labor laws, including paid annual leave and paid sick leave (up to 42 days in the FBiH and up to 30 days in the RS), with such entitlements being borne by the employer.

Yes, legislation in B&H provides for a mandatory retirement age, after which the employment relationship terminates ex lege. In both FB&H and RS, the standard retirement age is 65. Under certain conditions, employees may be entitled to early retirement before reaching the age of 65. Such conditions are stipulated under applicable entity-level legislation.

Retired individuals in B&H have the right to enter into employment while continuing to receive their retirement benefits. However, income earned from such employment is not subject to any exemptions regarding mandatory social security contributions or personal income tax.

Yes, provided that the employment agreement designates the office as the employee’s primary place of work, with remote work permitted only upon the employer’s approval. In such cases, the employer may require the employee to return to the office, and refusal to do so may constitute misconduct that could lead to termination.

However, if the employment agreement provides that the employee works exclusively remotely, the employer would generally need to conclude a new employment contract with the employee in order to designate the office as the place of work.