Introduction

Whether you’re expanding into Southeast Europe or hiring talent remotely from the US, understanding the labour law landscape is non-negotiable. Bosnia and Herzegovina and the United States have fundamentally different legal frameworks, shaped by distinct political, economic, and cultural histories. Misunderstanding those differences can create serious compliance risks, from fines and back pay to reputational harm.

This matters now more than ever. With global hiring on the rise and more companies adopting distributed workforces, clarity on cross-border employment rules isn’t just helpful - it’s essential. As someone who’s supported clients hiring in both regions, I can confidently say that assuming “one approach fits all” is where things often go wrong.

Quick Tips

• Employment in Bosnia is governed by detailed labour codes - in the US, it's largely state-led and varies widely.

• Notice periods, annual leave, and severance are legally mandated in Bosnia - in the US, they often aren’t.

• Misclassification penalties in both countries are severe - especially if workers are treated like employees but paid as contractors.

• Collective bargaining is more prevalent in Bosnia than most US states.

• At-will employment in the US has no equivalent in Bosnia - termination must be justified and documented.

Contract Types and Termination Rules

One of the first things that surprises US employers hiring in Bosnia is the rigidity of employment contracts. In Bosnia, fixed-term contracts can only be used in specific circumstances and must include clear reasons and durations. Indefinite contracts are the norm.

Termination also looks very different. In the US, “at-will” employment means employers can dismiss staff without giving a reason (with some exceptions). In Bosnia, termination requires cause, documentation, and notice. Severance and the right to appeal are common.

For example, I worked with a US client who hired a small operations team in Sarajevo. Initially, they assumed they could mirror their US termination practices. We had to urgently restructure contracts, reissue compliant policies, and coach their managers on Bosnian dismissal law to avoid penalties.

Leave and Working Time Differences

Bosnia mandates a minimum of 20 days of paid annual leave per year, plus public holidays. Maternity leave, sick leave, and rest periods are also protected by law. The work week is capped at 40 hours, and overtime is strictly regulated.

In contrast, the US has no statutory right to paid holiday at the federal level. While many employers offer time off, it's not a legal requirement. Similarly, maternity leave policies vary by state and employer, and federally mandated unpaid leave (FMLA) only applies to companies with 50 or more employees.

From a compliance perspective, this can create tensions. In one case, a Bosnian employee contracted by a US firm expected leave in line with local law. The contract (drafted in the US) didn’t offer it. We resolved it, but only after negotiations and some reputational risk.

Employee Protections and Unionisation

Bosnia has strong protections for workers, particularly in unionised sectors. Collective agreements often set minimum wages, working hours, and redundancy terms that go beyond the labour code.

Unionisation in the US depends on state laws, and protections for union members vary. In “right to work” states, employees can opt out of union membership and dues. That level of decentralisation can make workforce management fragmented.

For businesses managing teams in both locations, this means different consultation duties and cultural expectations. HR leaders should ensure local HR or legal advisors are consulted before major changes like restructures or policy rollouts.

A Real Example: Balancing Both Worlds

I supported a growing tech firm based in the US with a small but growing presence in Bosnia. They needed consistent values, but two very different employment systems. We created a dual-approach framework: shared principles (like fairness, inclusion, and wellbeing) with locally adapted policies.

From pay transparency to parental leave, each location had its own processes - but the employee experience felt cohesive. They’ve since grown to over 200 staff across five countries, with zero compliance breaches.

Final Thoughts

Global hiring isn’t just about access to talent - it’s about adapting your business to new systems and standards. Bosnia and the US represent two very different models of employment law. Get it right, and you’ll not only avoid costly missteps but build trust with your workforce.

What’s next for your global people strategy?

Book a free compliance check-in or HR audit with ThinkGlobal HR. Whether you’re entering new markets, reviewing cross-border contracts, or planning for sustainable growth, we’re here to help. Practical support. Trusted advice. And a team who knows how to make global work - work.