At the beginning of February, the Federal Ministry of Labor and Social Policy published a draft version of the new Labor Law, now available for public consultation. This law introduces several significant changes that will directly impact employers, employees, and the overall business environment in the Federation of Bosnia and Herzegovina (FBiH). Given that these changes will shape employment and business operations in the coming years, it is crucial for employers to stay informed and prepare for adaptation.
The draft version of the law and the accompanying form for comments and proposals are available at:🔗 https://fmrsp.gov.ba/radni-tekst-zakona-o-radu-federacije-bih
Below, we highlight the most significant novelties that could become part of labor legislation in FBiH:
🔹 Permanent Employment as the Standard – Employers’ flexibility in hiring workers on fixed-term contracts will be limited. Such contracts will only be allowed in exceptional cases, with a shorter maximum duration. This change promotes job stability and long-term employment relationships.
🔹 Regulation of Overtime and Special Work Conditions – The new law introduces clearer rules for overtime work, night shifts, work on Sundays and holidays, and shift work, ensuring standardized calculations and compensation. Employers will be required to comply with these new standards and provide adequate compensation for employees.
🔹 Parental Protection and More Flexible Leave Policies – The law enhances protection for pregnant women, new mothers, and breastfeeding employees, while also introducing paternity leave for fathers. Additionally, parents whose children are starting first grade will be entitled to additional leave, promoting a better balance between work and family life.
🔹 Unpaid Leave Expansion – Employees who provide personal care or have foster parent status will be entitled to unpaid leave, allowing better alignment between professional and family responsibilities.
🔹 Breaks Count as Working Hours – The new law allows annual leave to be taken in multiple parts, while breaks during the workday will now be counted as working hours. This change aims to improve work organization and increase flexibility for employees.
🔹 Greater Salary Transparency and Digital Payroll Calculation – Employers will be legally required to adopt workplace regulations, regardless of the number of employees. The law also introduces a minimum salary increase rate, digital payroll processing, and enhanced transparency in earnings, ensuring fairer employment relations.
🔹 Regulation of Remote Work and Digital Platforms – For the first time, the law recognizes work through digital platforms, making it one of the first European labor regulations to fully implement EU directives in this field. This update addresses modern work models, such as remote work and freelance jobs, ensuring both business flexibility and worker protection.
These legislative changes will significantly shape business operations in the Federation of Bosnia and Herzegovina, making it essential for employers and business owners to stay informed and adjust their practices accordingly.
Our legal team at IA Law Firm is here to assist and advise you in aligning your business with the new labor law provisions.
For more information about IA Law Firm Bosnia’s employment law services, visit:🔗 https://ia-lawfirm.com/radno-pravo/
