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Bosnia and Herzegovina - Compensation & Benefit Legislation

CAPITAL

Sarajevo

 

CLIMATE

Hot summers and cold winters. Areas of high elevation have short, cool summers and long, severe winters. Mild, rainy winters along coast.

 

LANGUAGES

Croatian, Serbian and Bosnian.

 

LEGAL SYSTEM

Based on civil law system.

 

CURRENCY

Bosnia and Herzegovina Convertible Marka (1 USD = 2.2047 BAM as of March 15, 2002).

 

BOSNIA AND HERZEGOVINA - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

BOSNIA AND HERZEGOVINA - EMBASSY/CONSULATES

U.S. Embassy at Sarajevo

Alpinsina 43

Sarajevo, Bosnia-Herzegovina

Telephone: [387] (33) 445-700

Fax: [387] (33) 659-722

http://www.usis.com.ba/

 

Embassy of Bosnia-Herzegovina at Washington D.C.

2109 E Street N.W.

Washington D.C. 20037

Telephone: (202) 337-1500

Fax: (202) 337-1502

E-mail: info@bosnianembassy.org

http://www.bosnianembassy.org/

 

BOSNIA AND HERZEGOVINA - HOLIDAYS

 

Note: In addition to the above dates, the government of Bosnia-Herzegovina has decided to allow its citizens two working days per year to fulfill their religious needs. These days are not considered official holidays, and the measure has been introduced to respect the religious and ethnic diversity of the country.

 

BOSNIA AND HERZEGOVINA – SPECIAL GOVERNMENT NOTE

The Dayton Agreement, signed in Paris on 14 December 1995, retained Bosnia and Herzegovina's exterior border and created a joint multi-ethnic and democratic government. This national government - based on proportional representation similar to that existed in the former socialist regime - is charged with conducting foreign, economic, and fiscal policy.

 

The Dayton Agreement also recognized a second tier of government, comprised of two entities - a joint Bosniak/Croat Federation of Bosnia and Herzegovina (the Federation) and the Bosnian Serb Republika Srpska (RS) - each presiding over roughly one-half the territory.

 

The Federation and RS governments are charged with overseeing internal functions. The Dayton Agreement established the Office of the High Representative (OHR) to oversee the implementation of the civilian aspects of the agreement.

 

BOSNIA AND HERZEGOVINA - MINIMUM AGE

The minimum age for employment of children in the Federation and in the RS is 15 years. The law on labor prohibits children from performing hazardous work, such as night work.

 

(Section 6.d. Acceptable Conditions of Work, Bosnia and Herzegovina – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

BOSNIA AND HERZEGOVINA - MINIMUM REMUNERATION

The minimum monthly wage in the Federation is approximately $100 (200 KM); in the RS it is approximately $32 (65 KM).

 

(Section 6.e. Acceptable Conditions of Work, Bosnia and Herzegovina – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

BOSNIA AND HERZEGOVINA - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

BOSNIA AND HERZEGOVINA - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

The Constitutions of the Federation and the RS provide for the right of workers to form and join unions, as do labor laws in both entities. There are no legal restrictions on who may join unions, and the right of minority workers to join unions is protected in both entities. However, in practice union membership in the RS is overwhelmingly Bosnian Serb and in the Federation overwhelmingly Bosniak. Bosnian Croats have informal labor organizations in areas where they are the dominant ethnic group, but generally they are represented by the Federation union. A joint-entity multiethnic union was established in the district of Brcko in 2000. Union membership is mandatory for officially-employed workers in the RS; in the Federation, approximately 70 percent of the official workforce is unionized.

 

Unions legally are independent of the Government and political parties; however, they are highly politicized. There are no legal restrictions on forming new unions; however, in practice one union confederation in each entity represents all workers. A new confederation of trade unions tried to register with in the Federation, but has been unsuccessful due to political interference by the established confederation. In the RS, the sector-based branches of the union confederation have become increasingly independent, and one branch successfully has broken off from the umbrella organization.

 

Unions have the right to strike, and increasingly have used that right to pressure for payment of overdue salaries or wages, protest or demand changes in management, and voice their opinion on economic reform and government policy. Protest is often the only way to compel the payment of salaries or wages. Most strikes are legal; however, the Government claimed that some were illegal (on the grounds that they were not announced far enough in advance, or 48 hours) in an attempt to avoid negotiations. A Law on Strikes governs strike activity in both entities, and retaliation against strikers is prohibited. There were several major strikes during the year, including those by factory workers, teachers, and health care workers, due to arrears in salaries of several months or more. Courts hear labor disputes.

 

In November 1999, the Government was found to be in violation of ILO Convention 111 (on employment discrimination) and 158 (on termination of employment) because of its failure to act in the case of workers at Aluminj Mostar who were dismissed during the war because of their non-Croat ethnicity. Aluminj Mostar has protested the ILO ruling, arguing that it did not have the opportunity to respond to the union complaint. In August a long-delayed legal audit requested by OHR was completed. The Federation Government and the company were debating the report's recommendations at year's end, but had not reached an agreement on a future course of action.

 

In 2000 both the Federation and RS passed comprehensive labor legislation as part of loan conditions established by the World Bank and the International Monetary Fund; however, implementing provisions were still not in place by year's end.

 

Unions are free to form or join federations or confederations and affiliate with international bodies; however, no unions do so in practice.

 

b. The Right to Organize and Bargain Collectively

 

Collective bargaining is provided for in the Law on Working Relations in the RS and in a comprehensive collective agreement in the Federation; however, collective bargaining rarely is used. In addition the collective bargaining agreements appear to apply only to public sector and state-owned enterprises, leaving private businesses uncertain about their status under the general collective bargaining agreements. The substantial number of government employees, particularly in the RS, permits the Government to remain highly influential in determining the overall level of wages in each entity.

 

The Law on Labor in both entities prohibits discrimination by employers against union members and organizers, in accordance with ILO standards. However, discrimination continued.

 

There were no export processing zones.

 

c. Prohibition of Forced or Compulsory Labor

 

The Constitution prohibits forced or compulsory labor; however, women were trafficked for the purpose of sexual exploitation (see Section 6.f). Prisoners in Tuzla have reported that the warden uses prisoners to work in his private business (see Section 1.c.).

 

The Constitution prohibits forced or compulsory labor by children; however, girls were trafficked for the purpose of sexual exploitation (see Section 6.f.).

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The minimum age for employment of children in the Federation and in the RS is 15 years. The law on labor prohibits children from performing hazardous work, such as night work. Child labor is not known to be a problem; however, children sometimes assist their families with farm work and odd jobs. Romani children are often seen begging on the streets in Sarajevo.

 

The country has not signed the ILO Convention 182 concerning the worst forms of child labor.

 

The Constitution prohibits forced or compulsory labor by children; however, girls were trafficked for the purpose of sexual exploitation (see Section 6.f.).

 

e. Acceptable Conditions of Work

 

The minimum monthly wage in the Federation is $100 (200 KM); in the RS it is $32 (65 KM). Neither minimum wage provides a decent standard of living for a worker and family. Many workers have outstanding claims for payment of salaries and pensions. Employees are required by law in both entities to make mandatory contributions to social funds in the following percentages. In the Federation, contributions to the Pension, Health insurance, and Unemployment Insurance funds are 7, 5, and 1 percent respectively. In the RS, the percentages are 9, 7.5, and 0.5 percent for the previously listed funds and an additional 1 percent for the Protection of Children fund and 1.5 percent for the Water fund.

 

The legal workweek is 40 hours under both Federation and RS entity law; however, "seasonal" workers may work up to 60 hours per week. The laws of both entities require that overtime be paid to employees. Overtime is limited to 20 hours (10 mandatory and 10 voluntary) in the Federation. In the RS overtime is limited to 10 hours, although an employees may volunteer for an additional 10 hours in exceptional circumstances. Rules regarding rest and vacation vary, although typically no vacation is granted during the first 6 months of employment and 18 days per year are granted after that period. In practice employers at times grant additional vacation days to workers.

 

Occupational safety and health regulations generally are ignored because of the demands and constraints imposed by an economy devastated by war. Neither entity has completed passage of new laws to enforce international worker rights standards. Workers cannot remove themselves from hazardous working conditions without endangering their continued employment.

 

f. Trafficking in Persons

 

There are no laws that specifically prohibit trafficking in persons, and trafficking in women for sexual exploitation was a serious and growing problem. The country is a major destination and transit point, and to a lesser extent a country of origin, for women and girls trafficked for sexual exploitation. The country is extremely vulnerable to trafficking in persons, because of weak laws, porous border controls, and corrupt police who are bribed easily and facilitate trafficking.

The majority of women trafficked into Bosnia come from Moldova, Romania, and Ukraine, but also from Bulgaria, other Eastern European countries, and countries of the former Soviet Union. Most of the trafficked women crossed through Yugoslavia or Hungary before entering the country. Many of them were sold in Belgrade, and from there were smuggled across the Drina River at Zvornik and Bijeljina into the country. The ages of the women trafficked into the country averaged 22 years, ranging between 13 and 36 years of age. More than 12 percent of the women were minors.

 

BOSNIA AND HERZEGOVINA - STANDARD WORKWEEK

The legal workweek is 40 hours under both Federation and RS entity law; however, "seasonal" workers may work up to 60 hours per week. The laws of both entities require that overtime be paid to employees.

 

Overtime is limited to 20 hours (10 mandatory and 10 voluntary) in the Federation. In the RS overtime is limited to 10 hours, although an employees may volunteer for an additional 10 hours in exceptional circumstances.

 

(Section 6.e. Acceptable Conditions of Work, Bosnia and Herzegovina – Report of Human Rights Practices, 2001, U.S. Department of State.)