Dismissal and Severance Pay in Bosnia and Herzegovina
Dismissal and severance pay rules in BiH are set by entity laws – the Labour Act of FBiH and the Labour Act of RS. Conditions and severance amounts differ between entities.
Notice periods in FBiH and RS
In the Federation of BiH, notice periods depend on tenure: up to 2 years – 2 weeks; 2-5 yrs – 1 month; 5-10 yrs – 2 months; over 10 yrs – 3 months. In Republika Srpska: up to 1 yr – 7 days; 1-5 yrs – 15 days; 5-10 yrs – 20 days; 10-20 yrs – 30 days; over 20 yrs – 40 days. The notice period runs from the date of delivery of the written dismissal notice.
Severance pay – amounts and conditions
In FBiH, severance pay equals one average monthly salary per year worked with the same employer. In RS, the minimum is 1/3 of the average monthly salary per year worked, capped at 6 average salaries. A collective agreement may provide more favourable terms.
Dismissal protection and extraordinary dismissal
In both BiH entities, dismissal is prohibited during pregnancy, sick leave and statutory leave. The Labour Acts of FBiH (Art. 96-99) and RS (Art. 120-125) set out grounds for ordinary and extraordinary dismissal. Extraordinary dismissal (without notice) is only allowed in specifically listed cases of serious duty violations. The deadline for filing a lawsuit for unlawful dismissal is <strong>30 days</strong> from delivery in FBiH, and <strong>15 days</strong> in RS.
Frequently Asked Questions
What are the differences in severance pay between FBiH and RS?
In FBiH, severance equals one average salary per year worked (no statutory cap). In RS, the minimum is 1/3 of average salary per year, capped at 6 salaries. Collective agreements may provide better terms.
Can the employer dismiss without giving reasons?
No. Every dismissal in BiH must be reasoned and in writing. The employee has the right to appeal and judicial review of the lawfulness of the dismissal.
What is a collective redundancy programme in BiH?
In case of collective redundancies in FBiH, the employer must consult with employee representatives and prepare a programme including employment measures and severance. Similar rules apply in RS.