Labor and Employment

CONTRACTS AND EMPLOYMENT-RELATED TERMS AND CONDITIONS

An employment relationship is established by an employment contract that regulates the rights, obligations, and responsibilities between employers and workers.

The general conditions for establishing an employment relationship by concluding an employment contract between an employer and a worker are regulated by the Labor Law (“Official Gazette of the Republic of Srpska”, No. 1/16, 66/18, 91/21-Decision of the Constitutional Court and 119/21).

Special conditions for employment are determined in relation to a specific job and are determined by the General Collective Agreement and the Rulebook.

The form and content of the employment contract are defined by Article 35 of the Labor Law and the Rulebook on Forms of Employment Contracts (“Official Gazette of the Republic of Srpska”, No. 9/22).

You can find out more about the legislation governing this area on the official website of the Ministry of Labor and Veterans’ and Disabled Protection of the Republic of Srpska.

HOLIDAYS, ANNUAL LEAVE, LEAVE OF ABSENCE

  • A full-time worker is entitled to a 30-minute break during working hours.
  • A worker has the right to a daily rest between two consecutive working days lasting at least 12 hours, and workers employed in agriculture and seasonal work, for at least 10 hours continuously.
  • A worker is entitled to a weekly rest period of at least 32 hours without interruption.
  • A worker who has at least six months of uninterrupted work is entitled to an annual leave of at least 20 working days.
  • Details on workers’ vacations are prescribed by Articles 75 to 95 of the Labor Law (“Official Gazette of the Republic of Srpska” No. 1/16, 66/18, 91/21-Decision of the Constitutional Court and 119/21).
  • Workers have the right to paid leave in cases prescribed by Article 89 of the Labor Law and unpaid leave pursuant to Article 92 of the Labor Law.

TERMINATION OF THE CONTRACT

Termination of employment is defined by Articles 175 to 197 of the Labor Law. (“Official Gazette of the Republic of Srpska”, number: 1/16, 66/18, 91/21-decision of the Constitutional Court and 119/21).

Termination of the employment contract by the employer is possible:

  • If the employee commits a serious breach of duty,
  • If, for economic, organizational, and technological reasons, there is a need to terminate the work of workers,
  • If the employee, due to his/her professional and work abilities, cannot successfully perform the work obligations from the employment contract,
  • If the employee does not return to work within five working days from the day of expiration of unpaid leave or suspension of employment rights.

Termination of employment contract by workers

An employee has the right to terminate the employment contract with the employer if:

  • The employer violates its obligations under the employment contract,
  • If these breaches are such that the employee cannot reasonably be expected to continue working for the employer,
  • As if the employee does not want to continue working for the employer.

PENSION DISABILITY INSURANCE

The pension and disability insurance system of the Republic Srpska is organized in accordance with the principle of intergenerational solidarity and belongs to the systems commonly referred to as PAYG systems.

The existing system of pension and disability insurance, in essence, functions by allocating contributions from the salaries of employees from which the rights from pension and disability insurance are financed.

The Law on Pension and Disability Insurance (“Official Gazette of the Republic of Srpska”, No. 134/11, 82/13, 103/15, 111/21, and 15/22) establishes mandatory pension and disability insurance and regulates rights and obligations based on that insurance. Also, the law establishes the possibility for persons who are not covered by compulsory insurance to be insured for voluntary pension and disability insurance.

Insured risks in the sense of the Law are age, disability, and death of the insured or beneficiary.

Depending on the occurrence of the insured risk, the rights from the pension and disability insurance are for old age – old-age pension, for disability – disability pension, and rights based on remaining working ability, in case of death of the insured, i.e. personal pension beneficiary – survivor’s pension. The conditions for acquiring these rights are determined by law.

To exercise the rights from the pension and disability insurance, as well as the identified needs and interests in the field of this insurance, the Pension and Disability Insurance Fund was established, whose activity is of special social interest. The fund was established and exists to provide and exercise rights from pension and disability insurance for the territory of the Republic of Srpska. News from the field of pension and disability insurance are published on the Fund’s website, and answers to various questions in this field can be found.

Under the Law on Pension and Disability Insurance, the following bylaws were adopted:

  • Decree on Medical Expertise in Pension and Disability Insurance (“Official Gazette of the Republic of Srpska”, No. 2/13),
  • Rulebook on the list of bodily injuries (“Official Gazette of the Republic of Srpska”, No. 84/18),
  • Rulebook on the List of Occupational Diseases (“Official Gazette of the Republic of Srpska”, No. 84/18) and
  • Rulebook on the procedure for determining jobs where the length of insurance is calculated with increased duration (“Official Gazette of the Republic of Srpska”, No. 57/13 and 45/14).

 

International agreements (agreements) on social security

For the pension and disability insurance system, interstate agreements on social insurance that Bosnia and Herzegovina has concluded with other countries are of great importance in order to regulate mutual rights and obligations in this area. Bilateral agreements have been concluded and ratified with Austria, Croatia, FR Yugoslavia, Turkey, Macedonia, Slovenia, Belgium, Hungary, Luxembourg, and Switzerland.

According to the Vienna Convention on the Succession of States, the successor states in the former SFRY have, among other things, the obligation to take over and carry out the tasks of the former federal state from social security agreements in force and in force at the end of its existence. These are the following countries: Bulgaria, the Czech Republic, Denmark, France, Italy, the Netherlands, Norway, Poland, Romania (health only), Germany, Sweden, Switzerland, the United Kingdom, and Egypt (reciprocal pension payments).

HEALTH INSURANCE

Compulsory health insurance covers all citizens of RS and other persons in accordance with the Law on Health Insurance (“Official Gazette of RS” No. 18/99, 51/01, 70/01, 51/03, 57/03, 17/08, 01/09, 106/09, 110/16 and 94/19) and the Decree with the legal force on the amendment of the Law on Health Insurance (“Official Gazette of the Republic of Srpska” 44/20).

Foreign citizens who are employed in the Republic of Srpska apply for health insurance with the RS Tax Administration.

Persons coming from countries with which BiH has signed an agreement on social insurance receive health care in the manner prescribed by the signed agreements.

Countries with which an agreement has been concluded:

You can find more information about health insurance in the Republic of Srpska on the official Internet website of the Health Insurance Fund of Republic of Srpska (http://www.zdravstvo-srpske.org/).

 

Safety and health at work

Occupational safety and health are provided and implemented by every legal and natural person who employs one or more workers. The employed person achieves protection and health at work in accordance with the Law on Occupational Safety (“Official Gazette of the Republic of Srpska”, No. 1/08 and 13/10), and bylaws in the field of protection and health of workers.

Every employer is obliged to obtain a decision from the Ministry of Labor and Veterans’ Affairs on the fulfillment of conditions in the field of protection and health at work, in accordance with the Rulebook on the procedure for determining the fulfillment of prescribed conditions in the field of protection and health. at work (“Official Gazette of the Republic of Srpska”, number: 70/08 and 58/11).

The employer has the obligation to perform risk assessment at the workplace and in the work environment for all employees, and the assessment is performed by licensed institutions licensed by the Ministry of Labor and Veterans’ Affairs.

More information in this area can be found on the official website of the Ministry of Labor and Veterans’ Affairs of the Republic of Srpska.