Employment in CSOs is based at positive legislation of BiH. The regulation of the labor-legal relations in associations and foundations is not provided neither in Associations and Foundations Law at level of BiH, FBiH, RS or District Brčko.

Law on Labor within the Institutions of Bosnia and Herzegovina is clear and applies to the regulation of employment in institutions of BiH and its bodies, as well as of employees of public companies of BiH, associations and foundations of BiH, inter-entity corporations and other institutions for the exercise of additional competencies in BiH, unless otherwise provided by another law.12

According to this the law on labor in the institutions of BiH applies to associations and foundations of BiH where an institution of BiH appears as the founder, but does not apply to the associations and foundations were BiH or its institution are not the founder. The law should not apply to domestic non-profit organizations founded by individuals who have acquired legal personality by registration. If the founder of the association or foundation is not the State of Bosnia and Herzegovina, or any of the institutions of Bosnia and Herzegovina, it is legally groundless that legal framework which regulates labor relations in them is the same as the one for the institutions of Bosnia and Herzegovina and its bodies. If that would be the case, employees would automatically have the status of employees in the institutions and bodies of BiH, which is by no means the purpose of the law on labor in the institutions of BiH.

Labor relations are regulated by the Entity Labor Laws and applied to all legal entities (except CSO registered at State level). CSOs should be registered at the State level and Entity Laws should be applied, depending on the CSO headquarters which is the case among CSOs registered at other levels of authorities.

In accordance to the statistics there were 2.064 persons employed in CSOs, while in RS (by 30.9.2020) 1.050. During 2018 there was 1.895 in FBiH and 1.044 in RS. There is no incentive programs for employment in CSOs.

0 – 20 Fully disabling environment20 – 40 Disabling environment
40 – 60 Partially enabling environment60 – 80 Enabling environment
80 – 100 Fully enabling environment

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