Federation Of Bosnia And Herzegovina - Changes And Amendments To The Labour Law Ms Lana Sarajlić

On 9 November 2018, the Law on Changes and Amendments to the Labour Law of the Federation of Bosnia and Herzegovina (initially adopted in 2016) was published in the Official Gazette of the Federation of Bosnia and Herzegovina, entering into force eight days after publishing.

Some of the main changes introduced with the amended Labour Law refer to the following:

shorter deadline for registration of employees with the competent tax and social institutions (right at the beginning of employment instead of 15 days from the date of conclusion of the employment agreement); obligation of employers to establish recruitment procedures in employment rulebooks, whereby in case of agencies and other administrative organisations, public institutions and public companies founded by the Federation of Bosnia and Herzegovina, canton, city or municipality, as well as in case of companies where the Federation of Bosnia and Herzegovina, canton, city or municipality appears as a shareholder of more than 50% of the total share capital of the respective company - job advertising should be public; possibility to exceptionally use the annual leave for longer than 30 days (as statutory maximum under the applicable Labour Law), having in mind specifics and terms of work, if such possibility is provided by collective agreement; obligation of employers to structure the variable part of the salary, having in mind specifics and need of business operations, in accordance with applicable laws and employers' internal acts. In addition, variable part of the salary, if achieved, constitutes the integral part of the salary, together with the basic salary and the increased salary in cases set out in the Labour Law; employment agreement shall be terminated, inter alia, (i) once employee reaches 65 years of age and 15 years of insurance (under the rules of pension and disability insurance), unless employee and employer agree otherwise, and (ii) once employee reaches 40 years of insurance coverage, regardless of years of age, unless employee and employer agree otherwise; in case they find that employers violated some...