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How to hire remote employees in
So you want to hire in Bosnia & Herzegovina. You’ll have to make a decision: Do you want to hire your new remote talent as employees, or do you want to hire them as contractors? Conventional wisdom might say employees, but hiring abroad is hardly conventional—below, we’ll cover what you need to know about your options.
If you want to successfully hire in
Bosnia & Herzegovina
, you have two options:
Laws about hiring contractors are significantly more simple in
Bosnia & Herzegovina
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Bosnia & Herzegovina
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Bosnia & Herzegovina
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Bosnia & Herzegovina
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Bosnia & Herzegovina
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Bosnia & Herzegovina than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Bosnia & Herzegovina.
In Bosnia & Herzegovina, employees who are going to work for the first time or who have not worked for more than 15 months, become entitled to leave after working for six months.
Employees receive a minimum of 20 days of paid leave annually, and a maximum of 30 days. Employees under 18 and employees who work in hazardous occupations are entitled to additional leave.
There are 18 public holidays.
Employees receive 100% of their salary compensation if the absence is due to work injury, pregnancy, or organ transplant. The first 42 days of compensation are paid by the employer. After the first 42 days, sick pay is refunded by the state.
In FBiH sick pay is a minimum of 80% of the employee’s salary compensation and no less than the minimum monthly salary. RS sick pay is a minimum of 70% of the employee’s salary compensation. The first 30 days are paid by the employer and after that it is paid by the state.
Leave is mandatory 28 days before birth and must be taken for a minimum period of 42 days after birth. Maternity leave is paid at full salary for the duration of the employee’s leave.
When a specialist decides that the child needs more than normal treatment, a breastfeeding mother is entitled to two absences per day to nurse her child until the child is one year old, and parents of children aged one to three years old are entitled to serve part-time, at half pay.
Disabled children's parents have special protections. Normally, an employee who is pregnant and on maternity leave cannot be fired.
The Father can participate or use the mother's unused maternity leave if the parents consent. One adult has the freedom to exercise any of these rights in situations of adoption or foster parenting.
Apart from maternity and paternity leave, there is no other parental leave.
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In Bosnia &Herzegovina law Article 46, an employee shall be entitled to paid absence from work of up to seven working days in one calendar year - paid leave
Employees is entitled to paid absence from work up to seven working days in the event of serious disease or death of a family.
Employees may be terminated with notice if the termination is justified for business reasons or if the employee is unable to fulfill his or her assigned responsibilities and the employer is unable to transfer or retrain the employee for a new position with reasonable effort.
The notice of the termination must be given in writing and provide a justification for the dismissal.
In the FBH, the employer must provide the written notice a minimum of 14 days in advance, unless the employee is on probation, where only seven days of notice is required. An employee must give seven days of notice when quitting.
The Severance Pay in Bosnia & Herzegovina depends on the Duration of Employment:
Probation period not last longer than 6 months for the Federation of Bosnia and Herzegovina, and 3 months for the Republic of Srpska.
The standard working hours in Bosnia & Herzegovina is 40 hours.
Employees are entitled to a break of at least 30 minutes when working more than 6 hours daily, and at least a continuous period of 24 hours weekly
In Bosnia & Herzegovina, employees overtime is limited to 10 hours per week in most cases and must be justified by an emergency or a sudden operational need for the increased hours.
A workweek can in some cases be extended, with the hours reduced in other weeks to ensure the average workweek for the relevant period of time is limited to 52 hours, or 60 hours for seasonal workers.
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