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Bosnia

How to Hire Workers in Bosnia | Employer of Record (EOR) in Bosnia

Looking to enter the Bosnian market? Our EOR services make it easy to establish your business in Bosnia. We handle all aspects of local employment, including payroll, benefits, and compliance with Bosnian labor laws. With our expertise in the Bosnian market, you can confidently expand your business, knowing that you have a trusted partner managing your international employment requirements.

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Bosnia and Herzegovina, with its stunning natural beauty and rich cultural heritage, is an attractive destination for businesses looking to expand internationally. TCWGlobal is your partner in navigating the complexities of hiring in Bosnia and Herzegovina.

With a population of over 3.5 million people, Bosnia and Herzegovina boasts a diverse and skilled workforce. From the historic streets of Sarajevo to the breathtaking landscapes of the countryside, Bosnia and Herzegovina offers a unique blend of culture, history, and natural beauty.

When it comes to expanding your business into Bosnia and Herzegovina, TCWGlobal understands the importance of compliance and local regulations. Our team of experts ensures that your workforce is fully compliant, allowing you to focus on growing your business.

In addition to compliance, TCWGlobal also offers personalized services tailored to your specific needs. Whether you need assistance with payrolling management, benefits administration, or any other aspect of HR, our team is here to help.

By partnering with TCWGlobal, you can rest assured that your expansion into Bosnia and Herzegovina will be seamless and successful. Our comprehensive services, combined with our local expertise, make us the ideal partner for businesses looking to expand into this dynamic market.
Worker Classifications

There are no official subcategories of workers in Bosnia (FBiH).

Fixed-Term Contracts

Fixed-term contracts are permitted in the FBiH region of Bosnia for a maximum of 3 years. There is no limit on renewals, but the total duration cannot exceed the 3 year maximum unless there is a termination period between contracts of at least 60 days. The contract may specify that it can be terminated early for specific reasons.

Probationary Periods

Probationary periods are permitted up to 6 months in the FBiH region. If the Worker fails to meet expectations as determined by a supervisor or other authorized individual, the employment agreement may be terminated with seven days' notice.

Holidays

In FBiH, there are 6 public holidays, which are considered paid days off. Workers are also entitled to four days of leave for religious/traditional holidays; two of which are paid and two of which are unpaid. If a Worker works on a public holiday, they are entitled to a pay premium. However, the amount of the premium is not dictated by law so it is within the discretion of the employer or issued in accordance with the employment contract.

Vacation

During the first six months of service, Workers are entitled to 1 day of paid vacation for each month worked. After six months of continuous service, Workers are entitled to a minimum of 20 paid working days of vacation per year. If a Worker worked for the same employer prior and there were 15 days or less between the two periods of employment, they do not have to observe the six-months of reduced vacation. Rather, they are immediately entitled to the minimum of 20 paid working days of vacation per year. Each calendar year, the Worker must use at least 12 days of annual leave in an uninterrupted period. The remainder can be carried over to the following year, but must be used by June 30 of that subsequent year. Accrued but unused leave is only payable at the end of employment if it was the employer's fault that the leave could not be used (e.g. economic, organizational, or technical reasons). It is not payable if the Worker resigned or was terminated due to a breach of work duties. Workers may not elect to receive their annual leave allotment as a payment in lieu of time off.

Sick Leave

If a Worker falls ill, a competent doctor will determine the amount of leave the Worker requires by certificate. The Worker must notify the employer of the illness or injury within three days of the beginning of the absence. The employer must pay at least 80% of the Worker's wages (100% for work injuries and certain specific illnesses) during the leave period. If the absence lasts for more than 42 days, then a portion of the wages issued may be reimbursed by the competent health insurance fund.

Working Hours

A standard workweek is 8 hours per day, 5 days per week (Monday through Friday), totaling no more than 40 hours per week. Minors cannot work more than 35 hours per week. Those limits may be increased only in specific situations. Work performed in difficult conditions or at night (between 10:00 p.m. and 6:00 a.m.) is payable at a pay premium. That premium is not prescribed by law so it is at the employer's discretion or issued in accordance with the employment agreement.  Directors and Executive Directors are not bound by working time restrictions.

Overtime

Work in excess of the maximum working hours is considered overtime, which is payable at a premium. However, the premium rate is not prescribed by law. Therefore, it is within the employer's discretion or issued in accordance with the employment contract. In no event may a Worker work more than 8 hours of overtime per week. Minors must never work overtime.

Mandatory Bonuses

There are no mandatory bonuses in the FBiH region of Bosnia.

Termination

There are two types of terminations in the FBiH region of Bosnia: regular and extraordinary. Regular terminations may either be for the employer's organizational, economic, or technical reasons or due to the employer's incapacity to perform work duties. Extraordinary terminations are due to a Worker's breach of their work duties.  Regular terminations require (1) at least fourteen days' written notice outlining the justification, and (2) severance if the Worker has worked for more than 2 years on an indefinite contract. Severance is determined by collective bargaining agreement or the employment contract, but in no case may be lower than 1/3 of average monthly wages over the preceding three months for every year of service, capped at six average monthly salaries. In addition, if the employer has a vacancy for the same position or a position that fits the Worker's qualifications within one year of the Worker's termination, it must be offered to the Worker. Extraordinary terminations do not require notice, severance, or re-employment. However, the employer must establish that the Worker is liable for a grave breach of work duties or repeated minor breaches of work duties over a period of six months. In addition, the dismissal must take place within 60 days of learning of the breach, but no later than one year. Employment agreements may also be terminated by mutual agreement. 

Resignation

Workers must provide notice of resignation as outlined in the employment contract, which must require at least seven days.

Unique Country Nuances

Most employers issue hot-meal and transportation allowances as they are not taxable.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

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When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.