The subject of this work is the role of the statute as a basic general act of local and regional self-government units and legal persons with public powers with particular reference to legal persons carrying out activities designated as a public service. In particular, this paper will refer to the public institution as an established form basic under the law prescribed procedure, which again has its own internal rules on the basis of which it performs the activity. The form of a public institution is governed by the provisions of the Law on Institutions, but in more detail by other specific laws governing the performance of a particular activity as a public service, such as the institution. Health Care Act, Social Welfare Act, Preschool Law and the like. It is shown consequently, through the basic content of the statute, that its provisions constitute the basis for the adoption of general decisions relating to the institution, its employees or the manner of operations and management, but also those individual relating to the right and obligation of the individual worker or the user of the service provided by that institution. The statute is a source for establishing employment relationships, contractual relationships, conducting various procedures (e.g. public procurement), but also the development of certain services and programs that raise the quality of public services in the community.