Severance pay provides financial support to an employee at the end of an employment relationship. It helps the employee transition to a new job more easily. In the Federation of Bosnia and Herzegovina, this right is regulated and depends on the circumstances under which employment was terminated.
🤝 When does an employee have the right to severance pay?
An employee is entitled to severance pay if:
– the employment contract was for an indefinite duration, and
– the employer terminated the employment contract,
– and the employee worked continuously for the same employer for at least two years.
This right does not apply if the employment relationship ended due to serious breach of work duties or other actions for which the employee is responsible.
📊 How is severance pay calculated?
The amount depends on:
– the length of employment with that employer, and
– the employee’s average net salary over the last three months.
The minimum amount is at least 1/3 of the average salary for each completed year of service with the employer.
📝 Severance Pay Procedure
1) The employer issues a written decision on termination.
2) The employee receives written notice of the termination.
3) The severance amount must be specified and paid no later than the last working day.
4) If the employee believes the right was violated, a labor dispute may be initiated.
🌍 Support for clients abroad (Germany, Austria, Switzerland)
We assist workers residing abroad or temporarily employed on contract with companies from BiH.
All communication can be handled online — no need to travel to BiH.
❓ FAQ
1) Do I have the right to severance pay if I resign myself?
Generally — no. Severance pay applies to employer-initiated termination.
2) Can severance pay be higher than the legal minimum?
Yes — if specified by employment contract, work regulations, or collective agreements.
3) What if the employer refuses to pay?
A labor dispute may be initiated to enforce payment.
📞 Contact – Legal Support
Email: ana@raguzlegal.ba
Phone: +387 63 413 147
