Advokatska kancelarija BAKIĆ — Law Office

Legal & Tax One Stop Shops · 06 / 12

Employment Contracts and Internal Labor Acts in Bosnia and Herzegovina

Structured, efficient and compliant management of employment relationships, internal labor acts, and related regulatory obligations before competent authorities

Designed for employers seeking strategically structured, legally compliant, and efficient drafting of employment contracts and internal labor acts in Bosnia and Herzegovina (BiH).

What We Do and How We Do It

  • Efficient, structured, and compliant provision of legal advice in the field of labor law, as well as services for drafting and aligning internal labor acts in BiH
  • Precise identification of required internal labor acts in accordance with the client’s business activities and business model
  • Effectively managed, clearly defined, and phase‑based process from initial structuring to full drafting and alignment of internal labor acts in accordance with applicable regulations and legal practice
  • Timely identification of potential legal and tax implications of the project (in advance – prior to its implementation)
  • Dedicated legal support in drafting and aligning internal labor acts
  • Parallel integration of legal, financial, tax, and regulatory aspects
  • Mitigation of risks related to regulatory irregularities, labor disputes, and potential sanctions
  • Structured and compliant management of internal labor acts
  • Legal certainty through precise application of labor, corporate, financial, and tax regulatory regulations, as well as legal practice
  • Compliance with applicable regulations, legal practice, and requirements of competent authorities
  • Centralized communication and coordination of all activities
  • Continuous communication and timely client reporting
  • Optimization of time and resources through efficient project management
MORE INFORMATION: What We Do and How We Do It+

Comprehensive legal support in the field of labor law in BiH, focused on the drafting and/or alignment of internal labor acts of an employer with applicable regulations, as well as relevant judicial and inspection practice, while simultaneously providing legal support in relation to labor disputes, misdemeanor proceedings, and related tax regulatory matters.

In practice, properly aligned internal labor acts represent a key tool for clearly regulating the rights and obligations between employers and employees, enabling more efficient human resources management, and reducing the risk of labor disputes and misdemeanor sanctions. In this regard, establishing internal legal certainty through properly structured and compliant internal acts represents an important element of stable and responsible business operations.

A significant number of internal labor acts constitute a statutory obligation of employers, and their non-adoption or adoption in a manner not compliant with applicable regulations may expose both an employer and its responsible person to misdemeanor sanctions. At the same time, certain internal labor acts, although not explicitly prescribed as mandatory, represent recommended practice, as they contribute to clearer regulation of mutual rights and obligations between employers and employees. Certain internal labor acts also have particular importance from a tax regulatory perspective, especially in the context of proper determination of taxable and non-taxable payments to employees, in accordance with the applicable regulations in BiH.

We particularly note that labor law regulations applicable to the private sector in BiH fall within the competence of the entities and the district, whereby each of these levels has its own labor laws, by-laws, inspection authorities, and courts competent for labor disputes. Therefore, operating across multiple jurisdictions within BiH requires a coordinated and harmonized approach in order to ensure full legal compliance in all relevant aspects of business operations.

Our One Stop Shop approach is based on a detailed understanding of applicable regulations and legal, judicial, and inspection practice, as well as on a clearly structured management of the process. We provide clients with precise guidance regarding the content and scope of the required documentation, as well as the sequence of actions, along with prior verification of the compliance of all elements before their implementation, whereby the identification of the required internal labor acts is carried out in detail in accordance with the client’s registered business activities and specific business model. This contributes to the quality and legal certainty of internal acts, reduces the need for subsequent corrections, and minimizes the risk of disputes or actions by the competent inspection authorities.

Through this approach, the client has a single point of contact throughout the entire process, with clear communication, efficiency, coordinated management of all activities, and regular written updates on all initiated or completed legal actions, thereby enabling systematic and efficient implementation of labor law projects while simultaneously relieving the client of organizational and administrative burdens.

Within this One Stop Shop, we provide, inter alia, the following services:

  • legal advisory and analysis of applicable labor regulations, as well as legal/judicial/inspection practice;
  • drafting and/or alignment of internal labor acts (employment contracts, management contracts, rulebooks, internal decisions, etc.);
  • provision of oral/written instructions for the proper implementation and application of internal labor acts in practice;
  • tax regulatory advisory in relation to rights and obligations arising from employment relationship.

Legal and tax regulatory aspects are considered in parallel and in a coordinated manner, enabling more efficient process management and a more rational use of time and resources, while reducing the need for engaging multiple advisors.

Further information on our labor law services is available in the explanation below.

ADDITIONAL INFORMATION: General Overview of the Most Important Internal Labor Acts+

Below we provide a general overview of the most important internal labor acts which, among others, we can prepare for our clients.

GENERAL OVERVIEW OF THE MOST IMPORTANT INTERNAL LABOR ACTS

  1. All types of employment contracts;
  1. All types of other engagement contracts (services contracts, etc.);
  1. All types of managerial contracts (with or without establishment of employment relationship);
  1. All types of agreements on termination of employment contracts;
  1. All types of legal documents related to termination of employment contracts/relationships;
  1. All types of warnings prior to termination of employment contracts;
  1. All types of decisions on paid or unpaid leave of employees;
  1. All types of receipts/certificates and statements related to an employment relationship;
  1. Labor Rulebook;
  1. Rulebook on organization/systematization of job positions;
  1. Rulebook on minor and major breaches of work duties;
  1. Rulebook on business secrecy;
  1. Decision on procedures for hiring employees with an employer;
  1. Decision on the content and manner of keeping records of employees and other engaged persons on a work, with following Schedules;

Schedule 1: Employees records – master record at employer,

Schedule 2: Records for other engaged persons at work,

Schedule 3: Records of working hours,

Schedule 4: Records of working hours for employees performing work at a separate workplace,

  1. Decision on the amount of meal allowance;
  1. Decision on the amount of transportation allowance;
  1. Decision on reimbursement of business travel expenses;
  1. Rulebook on the use and record-keeping of company vehicles, with 6 Schedules;
  1. Decision on conditions, manner of use of company vehicle and other rights and obligations of users;
  1. Decision on conditions and manner of use of employee’s private vehicle for business purposes and other rights and obligations;
  1. Decision on conditions, amount, manner and procedure for exercising the right to vacation allowance, with Schedule;
  1. Decision on the amount of vacation allowance for year 20XX (template);
  1. Decision on conditions, manner and procedure for exercising the right to annual leave;
  1. Decision on annual leave for year 20XX (template);
  1. Decision on the plan for using annual leave;
  1. Schedule plan for annual leave use for year 20XX (template);
  1. Decision on conditions, manner and procedure for exercising the right to severance pay and its amount;
  1. All types of decisions/contracts on severance pay;
  1. Receipt on handover of employee’s mandatory insurance registration copy;
  1. Receipt on handover of employee’s tax card;
  1. Decision on rights and obligations of employees and employer, if employee works on holidays;
  1. Rulebook on Occupational Safety;
  1. Rulebook on Fire Safety;
  1. All other internal labor acts/documents prescribed by applicable labor law regulations in BiH (Note: Identification of the required internal labor acts is carried out in detail in accordance with the registered business activities).

All One Stop Shops