Bosnia and Herzegovina Employment Guide

Navigating Employment Termination in Bosnia and Herzegovina

As an international HR professional, I've observed that terminating employment in Bosnia and Herzegovina requires careful navigation of complex legal frameworks. The termination process must be handled collaboratively between employers and key stakeholders, often involving specific procedures and potential temporary costs depending on the circumstances.

Legally Compliant Grounds for Termination

Bosnian labor law recognizes several valid reasons for employment termination:

• Employee demise
• Mutual agreement between employer and employee
• Employee reaching age 65 with 20 years of insurance coverage
• Permanent loss of working capacity
• Voluntary resignation by employee
• Employer-initiated dismissal
• Contract expiration
• Criminal conviction resulting in imprisonment exceeding 3 months
• Court-ordered security, correctional, or protective measures lasting over 3 months
• Judicial decision mandating employment termination

Notice Period Requirements

The notice period structure demonstrates Bosnia and Herzegovina's employee protection focus. When employees initiate termination, the minimum notice period is 7 days, extendable to one month maximum. However, employer-initiated terminations require at least 14 days' notice, potentially extending to three months. These periods should be clearly defined in employment agreements to ensure compliance.

Severance Pay Eligibility and Calculation

Severance pay obligations apply under specific conditions:

• Employee holds an indefinite-term employment contract
• Employer terminates the relationship after minimum two years of continuous service
• Termination doesn't result from employment obligation violations

The severance amount must equal at least one-third of the employee's average monthly salary (based on the last three months' earnings). Actual compensation amounts are typically detailed in individual employment contracts or collective bargaining agreements.

Practical Considerations for International Employers

From my experience with SailGlobal's cross-border operations, employers should document all termination procedures meticulously. Case studies show that proper documentation reduces legal challenges significantly. Additionally, consulting local legal experts before termination can prevent costly compliance errors, particularly regarding notice periods and severance calculations.