Employment Law in Croatia
Employment Law in CroatiaUpdated on Thursday 09th February 2017
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Employment in Croatia is governed by the country's Constitution, international conventions and treaties, local employment laws and regulations, collective agreements signed by one or more employers or an association of employers on the one part and one or more labor unions on the other part, as well as individual employment contracts between employers and employees. The Ministry of Labor and Pension System of the Republic of Croatia (Ministarstvo rada i mirovinskog sustava) is in charge of the administrative and other tasks relating to employment policy, regulations and law enforcement of labor market, rights and obligations of the employers and employees, employment relations, policy on pension and insurance and relations with trade unions and employers associations. Our lawyers in Croatia can offer you a wide range of legal services for employers in Croatia.
General employment matters:
• Maximum working hours for full-time work is 40 per week, but this can be extended up to 60 hours under a collective agreement. The employer must give a written request to the employee for overtime work.
• Minimum age for employment in Croatia is 15 years.
• Legal minimum for paid annual leave is 28 days. Public holidays are not included in the duration of the annual leave.
• Employees are entitled to 13 annual public holidays, up to seven days of personal leave, and up to 42 days of paid sick leave per year.
• Workers employed by a company who has at least 20 workers, have the right to take part in decision-making on issues related to their economic and social rights and interests.
Work permit/visa requirements
EU/ EEA citizens are not required to have any work permit to work in Croatia. However, because Croatia is still in a transitory period with EU, citizens from Austria, Belgium, Cyprus, France, Germany, Greece, Italy, Luxembourg, Malta, the Netherlands, Slovenia, Spain and UK will still need work permits in Croatia. As for the non-EU/ EEA citizens, residence permits for longer-term stays and work permits are required in order for them to have a job in Croatia.
Business visa is required for any foreigner who wishes to enter Croatia to work as a company director or a new investor. If you are living in Croatia or plan to move there or invest in Croatia, our Croatian lawyers can help you deal with all the formalities for obtaining a work permit or even applying for a residence permit. Should you have any other enquiry on permits and visa matters, our law firm in Croatia will be able to assist you.
Termination of employment contract
The Labor Act provides that an employment contract will be terminated upon the death of the worker, upon expiration of a fixed-term or upon retirement of the worker (currently the retirement age is 65). The Labor Act also sets out the rules for ordinary dismissal (where written notice is required) and summary dismissal (where the employer has justified reasons to terminate the employment contract without notice) of an employee.
For an ordinary dismissal, an employer may terminate the employment contract when:
1. There is no need for performing certain work due to economic, technological or organizational reasons;
2. The employee is not capable of fulfilling his or her employment related duties because of his/ her permanent characteristics or abilities;
3. The employee violates his/her employment obligations.
Employer's compliance obligations
All legal entities incorporated in Croatia, branch offices and representative offices are required to:
• register with the Croatian Institute for Pension Insurance within 24 hours from the start of their business operations;
• register each of their employees with the Croatian Institute for Pension Insurance within 24 hours of employment;
• register/deregister employees at Croatian Institute for Pension Insurance exclusively online if such legal entities have three or more employees;
• withhold and pay compulsory social security contributions (pension fund, health insurance, unemployment fund contributions and contributions against injuries at work). Currently, the minimum social security contributions for employer and employee is HRK 2,780.05 per month. Employer social security contributions are not capped.
Our lawyers in Croatia are able to help you with any legal issue relating to employment in Croatia such as drafting employment contracts and employment disputes resolutions. Should you require any assistance on the Employment Law in Croatia, please contact our law firm in Croatia.