Croatia has introduced changes to its employment legislation from the 1st of January 2023, affecting Fixed Term Contracts, Probation Periods or the employees Right to Disconnect
Fixed Term Contracts
Croatian lawmakers have made significant changes to the duration and justification to Fixed Term Contracts (FTC):
- Permanent (or indefinite) contracts should be the norm and be prioritized. Employers should use Fixed Term Contracts as an exception with a maximum total duration of 3 years.
- FTCs may be concluded only if one of the following reasons applies:
- The work and need for an employee to provide it is limited in time by a deadline or an event, specific project
- To replace another worker who would be temporarily absent (for example for maternity cover or sick leave cover)
Probation Period
New sets of rules have been implemented for the regulation of Probationary periods in Croatia:
- Probationary periods can now be extended (up to certain limits) if the employee was absent from work during the period for causes such as sick leave, maternity or paternity leave.
- FTC employees may request an indefinite contract once they have worked for the employee for 6 months and the probation period has passed. The employer would then have 30 days to answer in written with explanations to its decision to the employee. The Employee will have the right to repeat such request after another 6 months (so after a year of employment).
New Ways of Working
Croatian laws are being adapted to answer the need for new regulations around remote working, Leave and work-life balance.
- Right to Disconnect: A first in Croatia in an attempt to regulate remote working, employers are asked to not contact employees outside working hours unless it is required by the nature of the work provided by the employee or the services of the company, or unless there is some urgency in the matter. Individual employment agreements will prevail. For now, there is no financial fine if not followed, but we can expect in the future to see advances in legislation around Work Life balance in Europe.
- Remote Work: Legislation is put in place to regulate a growing part of the labor force in Croatia which works from home or outside the employer’s premises:
- With this new legislation, employees are free to choose their place of work.
- Remote workers are entitled to reimbursement of some working costs (if they work outside the employer premises more than 7 working days per month)
- The employer is allowed to enter the employee’s home for the purpose of equipment maintenance or supervision of the employee’s working conditions
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee in Croatia
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Croatia is estimated around 16.5% (may vary depending on circumstances)
- Health Insurance
- Not applicable for 5 years if employee hired on Indefinite contract and under 30
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