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Undoubtedly, payroll is a critical process for any organization. The pay cycle in Bosnia and Herzegovina refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

It is weekly, bi-monthly, monthly.

There is no statutory requirement to pay the 13th or 14th month's salary. However, it is customary for companies to give Christmas bonuses.

With effect from January 1, 2023, the minimum wage is increased by 9.85% to 596 Bosnian convertible marks.

Overtime is typically paid for time worked over 38 hours per week or more than 10 hours per day. It is also paid for work on weekends or public holidays. In case of force major (fire, earthquake, flood) or an extraordinary increase of the workload, as well as in other similar cases of emergency need, an employee, at the request of the employer, shall be required to work longer hours than their working hours (overtime work), not more than 10 hours weekly.

Suppose the overtime work of an employee exceeds three weeks in continuity or exceeds ten weeks during one calendar year. In that case, the employer shall inform of the overtime work the authority in charge of labor inspection of the Canton.

No overtime work shall be allowed for minor employees.

A pregnant woman, mother, or adoptive parent with a child of up to three years of age or a self-sustaining parent or adoptive parent with a child of up to six years of age, may work overtime if they provide a written statement of voluntary consent to such work.

An employee shall be entitled to an increased salary for challenging work conditions, overtime work or night work, and for work on Sundays or holidays or any other day which is in the law determined to be a non-working day, per the collective agreement or employment contract.

Employers in the Federation of Bosnia and Herzegovina and the Brcko District are required to keep Forms OLP-1021, or comparable data, for five years after the end of the month covered by the applicable form or data.

Each entity requires employment- or tax-related records to be kept for five years. FBiH employers must keep employment records showing employee data, start dates, whether the employee has an indefinite or fixed contract, the place of work, and weekly working hours. For terminated employees, the records must show the date and reason for termination and the total length of service. The required data may be kept electronically and must be retained for at least five years.

According to Article 24 of the Employment Law of FBiH, the employment agreement shall be concluded in writing, mandatory containing data on:

• name and registered address of the employer;
• name and family name, permanent or temporary residence of the employee;
• duration of labor contract;
• day of commencement of work;
• place of work;
• employee designation and brief job description;
• duration and schedule of working hours;
• salary, benefits, and period of payment;
• remuneration;
• length of annual leave;
• termination notice;
• other data related to terms of employment defined in a collective agreement

With effect from February 2, 2023, the Federation of Bosnia published Rulebook on the content and method of submitting reports on work-related injuries and occupational diseases.

In practice, the employer requests the following:

1. CIPS (the document which provides information about the name, surname, and residence address of the candidate)
2. Medical/health certificate (which is mandatory per the Law on Safety in the Working place)
3. CV
4. JS 3100 form (de-registration form from the Tax Authority)
5. Tax card

Typically, the probation period may be agreed upon in the employment agreement. The probationary employment period may not exceed six months. If the probationary period has been agreed upon, the dismissal notice period shall be at least seven days. Employees who fail to satisfy work requirements can be terminated once their probationary period expires. In this situation, the decision on termination of the employment agreement should be adopted seven days before the probation period expiration. It should be followed by evaluating the employee's performance during probation.

There are eight public holidays amounting to 14 days of leave.

• Jan 1 to Jan 3: New Year's Day Holiday
• Jan 7: Orthodox Christmas
• Jan 9: Day of Republic of Srpska
• Jan 14: Orthodox New Year
• Apr 9: Easter
• Apr 16: Orthodox Easter
• Apr 21: Ramadan Bajram
• May 1 and May 2: Labor Day
• May 9: Victory Day over Fascism
• Jun 28: Kurban Bajram
• Nov 21: The day of establishment of the General Framework Agreement for Peace in Bosnia and Herzegovina
• 25 December: Christmas Day

Under the labor laws of BiH, employees are entitled to an additional paid leave of absence for five working days for RS and seven working days for FBiH annually in cases of serious illness and death of family members. Employees may refuse to work if the employer does not meet health and safety measures at the workplace. Employers must register all employees for Health and Health/Disability Insurance and enable the complete protection of employees against any accidents at work.

During an employee's temporary inability to work, employers cannot terminate the employment contract with an employee who suffered an injury at work or was sick. The employer must allow employees to return to the same jobs.

Women are entitled to maternity leave for one year without interruption during pregnancy, childbirth, and after birth for the care of the baby. Under the labor law of Republika Srpska (RS), in case of the birth of twins or a third child, women are entitled to 18 months of maternity leave. The woman may start maternity leave on her demand 28 days before the due date basis a doctor's recommendation. She may begin to work before the expiration of her maternity leave but not before 60 days after the child's birth by the labor law of RS and 42 days by the labor law of FBiH. She is entitled to a 60-minute break during working hours for child feeding and other care. During maternity leave, women are entitled to full salary compensation, the net amount of which could be reverted to the employer from social service with prompt and correct application supported by necessary documents.

Employees are entitled to five days' unpaid paternity leave at the time of the birth or adoption of a child. They can also apply to the Federal Government scheme for additional paid leave of two weeks.

Adoption Leave: All regions: If the mother dies or abandons the baby, or if the mother is prevented from using the right to maternity leave, the adoptive parent may use it.

All regions: 365 days (12 months)

Leave for minors: Minors are entitled to at least 24 days of holiday per year.

Absence from Work: An employee shall be entitled to paid absence from work of up to seven working days in one calendar year - paid leave in the case of marriage, wife's confinement, severe disease, or death of a family or household member.

There is no mandatory notice period under the labor law.

In Bosnia and Herzegovina, employees must give a minimum of seven days' notice and a maximum of 30 days' notice. Employers must provide a minimum notice period of 14 days and a maximum of 3 months.

1. by the death of the employee;
2. by agreement between the employer and employee;
3. once the employee is 65 and has 20 years of insurance record unless the employer and employee agree otherwise;
4. on the day of delivery of a final decision determining the complete work disability;
5. by the cancellation of the employer or the employee;
6. by the expiry of the period of a contract;
7. if the employee is convicted to serve a prison punishment longer than three months - on the day when they start the serving of his punishment;
8. if the employee is imposed a security, corrective, or protection measure in the duration exceeding three months - from the start of implementation of that measure;
9. by the decision of the competent court resulting in the termination of employment. An explanation of cancellation must be given in writing by the employer. The cancellation period may not be less than 15 days nor exceed six months, provided that the specific duration of the cancellation period is regulated in the collective agreement.

The cancellation period shall begin to run from the day of serving the cancellation on the employee or the employer.

Severance Calculations: An employee concluding an employment contract with the employer for an undefined period, receiving cancellation of the employment contract from the employer after at least two years of uninterrupted work, unless the contract is being canceled due to default of the obligations arising from employment or due to failure to fulfill the obligations arising from the employment contract on the part of the employee, shall be entitled to receive severance allowance in the amount to be determined depending on the duration of the prior uninterrupted employment with that particular employer.

The severance allowance referred to in paragraph 1 of this article shall be determined by the collective agreement and the rulebook, whereby the severance allowance may not be less than one average monthly salary of the employee as paid in the last three months before the termination of the employment contract. Employees made redundant are entitled to redundancy pay, which is paid at their base — not full — salary level (this excludes incentive-based payment and bonuses or overtime and penalty rates).

A foreign national seeking employment in companies operating in B&H must have a work permit. Work permits are issued by the competent Employment Service offices responsible for the region of the employer's head office. The employer shall submit the application for a work permit on behalf of foreign workers. A work permit shall expire when employment ceases. A work permit is valid for one year and may be extended.

The information needed to prepare the application for a work permit are:

Necessary certified documents:

Original document needed:

• Information about the foreigner: name and surname, including all formal names and surnames, names and surnames of parents.
• Date of birth/ gender/ place of residence and home address in the country of origin/ valid traveling documents: number, date, and place of issuing.
• Information about the job, job type, and working conditions.
• Company information: registration number and date.
• Number and date of bank confirmation of the employer's solvency.
• Name and evidence of tax payments of the foreigner (in case of renewal of working permit).
• Number and date of a written explanation of the employer on the justification of the employment of a foreigner
• The number, date, and place of the issued graduation certificate of a foreigner must be translated into one of Bosnia and Herzegovina's official languages and validated by the competent authority.

1. Passport copy
2. Translation of the graduation certificate into one of the official languages of Bosnia and Herzegovina
3. Proof of company registration and tax ID
4. The company's solvency
5. Documents highlighting proof of employment
6. Confirmation of paid administrative expenses for the working permits: Passport, graduation certificate must be translated into one of the official languages in Bosnia & Herzegovina, company registration declaration and tax ID

In the negotiation process, the employer is entitled to do all background checks and verifications of the candidates. If the employer deems the candidate's background inappropriate, the employer is entitled to terminate the further negotiation. This is possible until sending an offer letter to the candidate, i.e., before he accepts the official offer.

Here, it is essential to note that if background checks and verifications include collecting and processing the candidate's personal data, the employer must have their prior written consent.