Croatia Labor Law and Employment Policy Overview

Employment Law Overview

• Key Laws and Regulations:
  • Labor Act
  • Social Security Act
  • Health Insurance Act
• Legal Characteristics:
  • Aims to protect employee rights and promote workplace fairness
  • Sets standards for minimum wage, working hours, leave, and social security benefits

Employment Contract Requirements

• Contract Types:
  • Indefinite contracts
  • Fixed-term contracts
• Contract Provisions:
  • Must include clauses on job description, remuneration, working hours, probation period, and termination conditions
• Language and Currency:
  • Contracts must be written in Croatian
  • Currency is the Croatian Kuna (HRK)

Working Time Regulations

• Standard Working Hours: 40 hours per week
• Rest Days and Breaks: Minimum of 24 hours of rest per week, and 12 hours of rest per day

Leave Policy

• Annual Leave: Minimum of 20 working days of paid annual leave per year
• Public Holidays: 14 statutory public holidays
• Special Leave:
  • Sick leave: Up to 42 days per year, paid at 70% of regular salary
  • Maternity leave: 98 days, including 28 days before and 70 days after childbirth
  • Paternity leave: 10 working days, or 15 working days for multiple births

Employee Dismissal and Contract Termination

• Notice Period:
  • Less than 1 year of service: 2 weeks
  • 1 year of service: 1 month
  • 2 years of service: 6 weeks
  • 5 years of service: 8 weeks
  • 10 years of service: 10 weeks
  • 20 years of service: 12 weeks
• Severance Pay: Employees with 2 or more years of service receive 33% of monthly salary for each year of service, up to a maximum of 6 months' salary
• Protection Against Unfair Dismissal: Legal protections against unfair dismissal, including notice period, severance pay, and reinstatement rights

Taxation

• Personal Income Tax:

  • Salary Range (HRK)	Tax Rate
    0 - 47,780.21	20%
    47780.21 and above	30%

• Social Security Contributions:

  • Employee: 15% of salary
  • Employer: 16.5% of salary

Health Insurance

• Insurance Policy: Mandatory universal health insurance
• Coverage: Healthcare, dental care, prescription drugs, etc.

Compensation and Benefits

• Minimum Wage: HRK 5,275 per month
• Salary Structure: Typically includes base salary, bonuses, and allowances

Work Permits and Visas

• Permit Requirement: Non-EU/EEA citizens require a work permit
• Application Process: Apply through Croatian embassies or consulates abroad

Confidentiality and Non-Compete Clauses

• Enforceability: Enforceable, but must be reasonable and not unduly restrict employee's employment opportunities
• Common Provisions: Confidentiality of information, non-compete clauses, solicitation restrictions

Training and Development

• Legal Requirements: Safety training, skills development, etc.
• Government Support: Government-funded and encouraged policies for corporate training

Workplace Diversity and Inclusion

• Legal Requirements: Prohibits discrimination based on race, gender, religion, or other protected characteristics
• Enforcement: Commissioner for Equal Opportunities investigates and resolves discrimination complaints

Remote Work Policy

• Legal Framework: Remote work is permitted, but must be specified in the employment contract
• Tax and Insurance Implications: Remote work may impact tax and social security obligations

Authoritative Website Addresses

• Croatian Ministry of Labor and Pension System: https://www.mrd.hr/