General information | An employment contract is terminated by the: - death of the employee;
- mutual consent of the employee and employer;
- termination with notice (ordinary) or without notice (summary dismissal) of employment by the employer;
- termination by the employee;
- the employee fulfils the requirements for retirement stipulated within the laws on retirement of FBiH or RS;
- declaration of invalidity by the competent authority;
- lapse of time (for fixed-term contracts);
- sentencing of the employee to a prison sentence or if the employee is bound by a safety or protection measure with a duration over 6 months;
- the employee is subjected to a security measure, an educational or protective measure with a duration over six months; and
- a decision of the competent court, on the date determined in the court decision.
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| 6.1. Formal requirements for the employer |
Written form and reasons for termination | Termination of employment by the employer must be done in writing and should state the reasons for the termination. A copy of the termination must be delivered to the employee. Non-compliance with these requirements may result in the termination being invalid. |
| 6.2. Terms of notice |
At least 15 days by the employer and the employee | The minimum notice period for termination of employment both by the employer or the employee is 15 days. During the probationary period the minimum notice period is 7 days for both the employer and the worker. |
Entitlement to remuneration during the notice period | During the notice period on termination of employment, employees are entitled to full remuneration and all other statutory rights. |
| 6.3. Dismissal without notice |
Serious breach of duty | The employer may terminate the employment contract without notice if the employee is liable for a serious breach or serious breach of work obligations or if the employment is of such nature that the employer cannot be expected to continue the employment relationship. In case of offense or breach of work obligations that are less severe, the employer will give a written warning to the employee. The written warning must contain a description of the offense and/or the breach of work obligations and the employer’s intention to terminate the employment contract without notice in case of repetition. |
Promptness | If there is a valid reason for a dismissal without notice, the employee can be dismissed within 30 days of learning about the fact causing dismissal. |
| 6.4. Causes for dismissal |
Termination by employee | Employees may terminate employment relationships without giving reasons. |
Termination by employer must include objective justification | Employers must provide an explanation (cause) for the termination of the employment contract. |
Reasons for termination | The employer may terminate an employment contract under the prescribed notice period in cases where: - termination is justified due to economic, technical or organisational reasons (in this case the employer may terminate the employment contract if, taking into account the size, capacity and economic condition of the employer and the worker’s capabilities, it cannot be reasonably expected from the employer to give the worker other jobs or educate or equip him for work in other jobs);
- the worker is not capable of carrying out his employment contract obligations; or
- other instances prescribed by the BD Employment Law.
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| 6.5. Mass redundancies |
Definition | If an employer employs a minimum of 15 employees and intends to terminate the employment contracts of more than 20% of employee in the next three months due to economic, technical or organisational reasons, then this represents a “collective redundancy”. |
Consultation duties | Before terminating the employment contracts, the employer must consult with the workers’ council or, if no workers’ council has been set up, the trade union that represents at least 10% of all employees. |
| 6.6. Severance pay |
2 year term | If an employee concludes an employment contract for an unlimited duration and this is terminated by the employer after a minimum of two years of continuous work (except if the contract is terminated due to breach of employment obligations or non-performance of employment obligations by the employee), then said employee is entitled to a severance payment to an amount depending on his years of continuous employment relationship with that employer. Severance payment is determined based on the collective agreement, employer’s rulebook or employment contract, but it may not be lower than 1/3 of the monthly average salary for every year of service as paid to the employee within the last three months prior to termination of the employment contract. |
| 6.7. Special dismissal protection |
Groups protected against dismissals | In Brčko District, employees who belong to the following groups may not be made redundant: - pregnant women, parents during maternity/paternity leave and parents of disabled children during care leave cannot be made redundant for economical, organizational or technological reasons; and
- employees who have suffered a work-related injury or illness may not be laid off during their inability to work. If the employment is fixed term the period of the inability to work will not be calculated as part of the employment contract term.
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Union/workers’ council representatives | For the duration of their union/workers’ council activity as well as one year thereafter, the workers’ representative in the workers’ council or union may only be dismissed with the prior approval of the minister for labour issues. |
| 6.8. Alteration of occupational circumstancesAltered occupational circumstances of an employee such as changes in working ability due to an injury at work or a work-related illness cannot damage the rights of an employee as arising out of an employment relation. An employee that is temporarily incapable of working is entitled to return to work under the condition that he received the necessary treatment and rehabilitation and after the written approval to return to work is issued by relevant physician/health institution. In the event that the authorised physician or health institution state that the employee has a decreased work capability, the employer is under a duty to offer in writing other jobs for which the employee is equipped. The employee that suffered an injury at work or suffered from professional work-related sickness is entitled to professional education and training, as organised by the employer. Only with the approval of the labour inspector can the employer terminate the employment contract of an employee with decreased work abilities due to an injury at work, work-related sickness or if the employee is in direct danger of a disability caused by work. |
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