Employer of Record Guide in 

Bosnia and Herzegovina

Vacation Leave

• Minimum entitlement: 18 working days per year
• Additional days: Based on years of service, education level, and working conditions
• Maximum: Up to 30 working days annually
• Payout rules: Unused vacation must be paid out upon termination

Sick Leave

• Duration: Up to 42 consecutive days per illness
• Payment:
  • First 42 days: 70% of average salary (paid by employer)
  • Beyond 42 days: Covered by health insurance
• Medical certification: Required from the first day of absence

Maternity Leave

• Duration: 365 days (12 months)
• Payment: 100% of average salary for first 12 months
• Funding: Paid through social insurance, not directly by employer
• Job protection: Position must be held open during leave

Parental Leave

• Duration: Up to 365 days total (can be shared between parents)
• Father's leave: Minimum 15 days must be taken by father
• Payment: 100% of average salary through social insurance
• Flexibility: Can be taken part-time in some circumstances

Bereavement Leave

• Duration: 5 working days for immediate family members
• Payment: Fully paid by employer
• Qualifying events: Death of spouse, children, parents, or siblings

Personal & Family Leave

• Marriage leave: 5 working days (paid)
• Moving leave: 2 working days (paid)
• Blood donation: 1 day per donation (paid)
• Emergency family care: As needed (unpaid, but job-protected)

Summary

Termination Types

Termination With Cause:

• Requires serious breach of employment duties
• No notice period or severance required
• Must be documented and justified

Termination Without Cause:

• Requires notice period or payment in lieu
• Must follow proper procedures
• Cannot be discriminatory

Notice Period Requirements

Notice periods vary based on length of service:

Severance Pay

• Redundancy: 1/3 of average monthly salary per year of service
• Minimum: 2 average monthly salaries
• Maximum: 10 average monthly salaries
• Calculation: Based on average salary over last 12 months

Probationary Periods

• Maximum duration: 6 months for most positions
• Notice during probation: 7 days for either party
• No severance: Required during probationary period

Final Pay Requirements

• Timeline: Must be paid within 30 days of termination
• Includes: Final salary, unused vacation pay, any outstanding bonuses
• Documentation: Employer must provide detailed calculation

Anti-Discrimination & Retaliation Laws

Employees cannot be terminated for reasons related to:

• Pregnancy or maternity leave
• Trade union membership or activities
• Filing complaints about working conditions
• Race, gender, religion, nationality, or political beliefs

National Holidays (2025)

Entity-Specific Holidays

Federation of Bosnia and Herzegovina:

• Eid al-Fitr (varies by lunar calendar)
• Eid al-Adha (varies by lunar calendar)
• Catholic Christmas (December 25)

Republika Srpska:

• Orthodox New Year (January 14)
• Day of Republika Srpska (January 9)
• Orthodox Christmas (January 7)

Holiday Pay Requirements

• Eligibility: All employees entitled to holiday pay
• Rate: 100% of regular daily wage
• Working on holidays: 150% premium pay plus substitute day off

Religious Observances

Employees are entitled to observe their religious holidays according to their faith, with arrangements made through employer agreement.

Required Documents for Employment

• Employment Contract: Must include job description, salary, working hours, probation period
• Personal Documents: ID card or passport, residence permit (if applicable)
• Tax Registration: Personal tax number (JMBG)
• Health Insurance: Registration with health insurance fund
• Bank Account: For salary payments (must be in local bank)

Language Requirements

• Official languages: Bosnian, Croatian, and Serbian
• Contract language: Must be in one of the official languages
• Translation: Foreign documents may require certified translation

Background Checks & References

• Criminal record check: May be required for certain positions
• Employment verification: Previous employer references
• Education verification: Diploma authentication may be required
• Consent required: Employee must agree to background checks

Data Protection & Privacy

• Personal Data Protection Law: Governs collection and processing of employee data
• Consent requirements: Explicit consent needed for data processing
• Data retention: Limits on how long personal data can be stored
• Cross-border transfers: Restrictions on transferring data outside BiH

IP Assignment & Confidentiality

• Work-for-hire: Employer owns IP created during employment
• Confidentiality clauses: Must be clearly defined in contract
• Non-compete agreements: Limited enforceability, must be reasonable in scope and duration

Probation Period Setup

• Standard period: 6 months maximum
• Evaluation process: Regular performance reviews recommended
• Termination rights: Either party can terminate with 7 days' notice

Onboarding Timeline (Sample)

What the EOR Handles

Borderless AI will handle:

• Employment contract preparation
• Tax and social insurance registration
• Payroll processing and compliance
• Local regulatory compliance
• Document collection and filing

Worker Classification: Employee vs Contractor

Bosnia and Herzegovina has strict criteria for distinguishing between employees and independent contractors:

• Employees: Work under employer control, receive regular salary, entitled to benefits and labour protections
• Contractors: Operate independently, invoice for services, responsible for own taxes and social contributions
• Key factors: Level of control, exclusivity, integration into business operations

Note: Misclassification can result in penalties, back payments of social contributions, and legal liability.

Unionization & Collective Agreements

• Union rights: Employees have the right to form and join trade unions
• Collective bargaining: Common in larger companies and public sector
• Strike rights: Protected under labour law with proper procedures
• Works councils: Required in companies with 50+ employees

Cultural Norms & Workplace Expectations

Bosnian workplace culture emphasises:

• Respect for hierarchy: Traditional management structures
• Personal relationships: Building trust through personal connections
• Work-life balance: Family time is highly valued
• Religious diversity: Accommodation for different religious practices
• Multilingual environment: Comfort with multiple official languages

Remote Work Considerations

Remote work regulations are still developing in Bosnia and Herzegovina:

• Legal framework: Limited specific legislation for remote work
• Equipment provision: Employer typically responsible for work tools
• Health and safety: Employer obligations extend to home office
• Tax implications: May affect tax residency status for cross-border workers

Anti-Discrimination Laws

Comprehensive protection against discrimination based on:

• Race, ethnicity, and nationality
• Gender and sexual orientation
• Religion and political beliefs
• Disability and age
• Pregnancy and family status

Note: Please verify all information above is accurate for Bosnia and Herzegovina, as the research indicated a potential data source discrepancy.