Types of Employment Contracts in Bosnia and Herzegovina
Employment contracts in BiH are regulated by entity-level laws – the Labour Act of FBiH (Official Gazette FBiH 26/16, 89/18) and the Labour Act of RS (Official Gazette RS 01/16). Each entity has specific rules on contract types.
Permanent and fixed-term contracts in FBiH
In the Federation of BiH, an employment contract can be open-ended (permanent) or fixed-term. Fixed-term contracts are concluded for temporary, seasonal or project work and may last a maximum of 2 years (including renewals). After expiry, if the employee continues working, the contract is deemed permanent. The law explicitly prohibits chaining fixed-term contracts to circumvent employment rights.
Fixed-term in RS and special contract types
In Republika Srpska, fixed-term contracts may not exceed a total of 2 years. Special engagement forms include the service contract (one-off tasks without employment), the occasional and temporary work contract (up to 60 days per year), and the part-time employment contract. All are subject to contributions and taxes but differ in employment law protections.
Probationary work and agency employment
In both BiH entities, probationary periods may be included in contracts – up to 3 months in FBiH (with exceptions up to 6 months) and up to 3 months in RS. Agency employment is not specifically regulated in FBiH, but general Labour Act rules apply. In RS it is covered by specific regulations. A worker employed through an agency has the right to equal treatment as directly employed workers.
Frequently Asked Questions
Can a fixed-term contract in BiH be renewed multiple times?
Yes, but the total duration with the same employer may not exceed 2 years in either entity. After that, if the employee continues working, the contract is deemed permanent.
What is a service contract and how does it differ from an employment contract?
A service contract is a civil law contract with no employment relationship – the worker has no right to annual leave, notice period or social protection as with an employment contract.
How do probationary period rules differ between FBiH and RS?
In FBiH, probation can last up to 3 months (exceptionally up to 6). In RS, up to 3 months. In both entities the notice period during probation is shorter than the standard.