Learn about the legal processes for employee termination and severance in Bosnia and Herzegovina
In Bosnia and Herzegovina, the notice period requirements for employee termination differ slightly between the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska due to their separate labor laws.
The Law on Employment of FBiH dictates notice periods in the FBiH.
Republika Srpska has its own Labor Law which establishes notice periods.
In Bosnia and Herzegovina (BiH), which is divided into two entities: the Federation of Bosnia and Herzegovina (FBiH) and the Republika Srpska (RS), severance regulations can vary due to their individual labor laws.
Employees with indefinite employment contracts and a minimum of two years of continuous service with the same employer are generally entitled to severance pay upon termination by their employer. However, termination due to reasons within the employee's control, such as a serious breach of obligations, may disqualify them from severance. The severance pay is calculated based on the average monthly salary during the last three months of employment.
In FBiH, the Labor Law of the Federation of Bosnia and Herzegovina provides the legal basis for severance pay. The minimum severance is one-third of the average monthly salary for each year of service, with a maximum severance of six times the average monthly salary. Collective agreements and contracts may stipulate higher severance amounts.
In RS, the Labor Law in the Republika Srpska provides the legal basis for severance pay. The regulations are similar to FBiH, with potential minor variations in detailed calculations based on specific collective agreements or employment contracts.
Severance may also be payable upon retirement in certain circumstances. Severance rights may be extended in cases of involuntary termination due to economic circumstances affecting the employer. Some industries might have sector-specific severance regulations within collective agreements.
For the most up-to-date and case-specific guidance, it's always best to consult the relevant labor laws of your entity (FBiH or RS), sector-specific collective agreements, your employment contract, and a qualified labor law attorney in Bosnia and Herzegovina.
In Bosnia and Herzegovina, termination of employment can be categorized into three main types: termination by mutual agreement, termination initiated by the employee, and termination initiated by the employer.
This is the most straightforward form of termination where the employee and employer agree to end the contract amicably.
In this case, the employee resigns.
The employer terminates the contract. This has more stringent rules to ensure employees are protected from arbitrary dismissal.
Employers in Bosnia and Herzegovina must adhere to these key principles when terminating employees:
Termination notice must be in writing, clearly stating the reasons for dismissal.
In cases of collective redundancies, employers might need to follow consultation procedures and establish objective selection criteria.
Please note that specific details may vary slightly between the Federation of Bosnia and Herzegovina (FBiH) and the Republika Srpska (RS).
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