Croatia

Types of Employment Contracts in Croatia

– Employment Contract with a Definite Period: Covers a specific duration of employment.

– Employment Contract with an Indefinite Period: Provides job security without a fixed end date.

– Self-Employment Contract: Offers less protection and fewer benefits compared to traditional employment contracts.

The maximum weekly working hours are capped at 40 hours in Croatia. Employees who work at least six hours a day are entitled to a rest break of at least thirty minutes each working day.

Overtime for an individual worker in Croatia is limited to a maximum of 180 hours per year. However, if specified in a collective agreement, this limit can be extended to 250 hours per year. Overtime work for minors is strictly prohibited.

Under the Croatian labour code, employees are entitled to a minimum of four weeks (20 calendar days) of annual leave each calendar year. Minors and employees working in environments where protection from harmful influences isn’t possible are entitled to a minimum of five weeks of annual leave. The duration of annual leave can also be extended through collective agreements, potentially exceeding the minimum specified by labour law.

In Croatia, employers are responsible for paying sick leave for the first 42 days of illness. From the 43rd day onward, sickness benefits are provided by the Croatian Health Insurance Institute (HZZO). These benefits are paid in full until the employee either recovers or reaches a maximum of eighteen months. After eighteen months, the benefit is reduced by 50%, except in cases of certain serious illnesses where no reduction applies. Sick pay typically amounts to 70% of the salary base, but it increases to 100% in cases related to war, caring for a sick child under three years old, organ or tissue transplants, medical isolation, or complications during pregnancy.

In Croatia, maternity leave can be taken for up to 6 months, including 70 days of mandatory leave plus additional time. Maternity leave is fully paid based on the salary compensation base and begins 28 to 45 days before the expected birth date. Following the mandatory leave period, which ends 70 days after childbirth, the mother can transfer all or part of the remaining maternity leave (referred to as additional maternity leave) to the child’s father. For the remaining parental leave period, which ranges from 6 to 30 months depending on the number of children, the salary compensation is 70% of the salary base.

Healthcare Insurance
Basic health insurance in Croatia is mandatory for all citizens with permanent residence as well as foreign nationals with permanent residence status. Employers are required to contribute 16.5% of the gross salary towards health insurance. Self-employed individuals are also obligated to pay for health insurance.

Pension
Details on pension contributions and benefits are typically outlined in Croatian pension legislation and regulations.

Unemployment Compensation
Eligibility and specifics for unemployment benefits are governed by Croatian labour laws and social security regulations.

Work Accident Insurance and Occupational Diseases
Coverage for work-related accidents and occupational diseases is included under mandatory health insurance in Croatia.

Maternity Leave and Family Benefits
Maternity leave and various family benefits are regulated by Croatian labour laws, offering support and compensation during and after pregnancy.

The most common benefits include:

– Additional medical insurance
– Company cars and mobile phones
– Further education opportunities

As Croatia is a member of the EU, most European citizens can live and work in the country without requiring a visa. However, employees from outside the EU will need to secure a work permit through the nearest Croatian diplomatic mission. Most work and residence permits in Croatia are valid for up to 12 months.

Applications for residence and work permits can be submitted by:

– Third-country nationals (refer to the section on where to apply for temporary stay approval)
– Employers, through the local police department or station based on the intended residence or work location of the third-country national or the employer’s office
– Temporary employment agencies

A residence and work permit provides combined approval for temporary stay and employment in Croatia.

An employment contract in Croatia may be terminated under the following circumstances:

– Upon the expiration of a fixed-term employment contract
– When the employee reaches the age of 65 and has 15 years of service covered by pension insurance
– Upon receiving a valid decision on retirement due to work disability
– By mutual agreement between the employee and the employer
– By giving notice
– By a decision of a competent court

Types of Employment Terminations:

– Regular termination of an employment contract
– Extraordinary termination of an employment contract
– Termination of a fixed-term employment contract

Notice Periods for Regular Termination:

– Two weeks: if the employee has been with the same employer for less than one year
– One month: if the employee has been with the same employer for one year
– One month and two weeks: if the employee has been with the same employer for two consecutive years
– Two months: if the employee has been with the same employer for five consecutive years
– Two months and two weeks: if the employee has been with the same employer for ten consecutive years
– Three months: if the employee has been with the same employer for twenty consecutive years

If the employee terminates the employment contract, the notice period may not exceed one month, provided they have a particularly important reason for doing so.

Severance pay in Croatia is calculated as a minimum of 1/3 of the average monthly salary earned by the employee over the three months preceding the termination of the employment contract, for each full year of service with the employer. Unless otherwise specified by law, a collective agreement, company rulebook, or the employment contract, the total severance pay cannot exceed six times the average monthly salary earned by the employee in the three months before the contract termination.