Croatia
Fixed term contracts are permitted in Croatia. Consecutive fixed-term contracts may be concluded only for an objective reason and must not exceed three years total, including renewals. Croatian Labor Law limits the number of consecutive fixed-term contracts to three. If a Worker continues working after the expiration of a fixed-term contract, that contract will be considered converted to indefinite. Fixed-term contracts may only be terminated for reasons outlined in the contract. A maximum of 3 successive fixed-term contracts is allowed within the 3-year limit.
In Croatia, Workers recognize 14 paid public holidays. Some holidays like Easter and Christmas may have additional observances, such as Easter Monday and Boxing Day, which are also considered public holidays. Workers should not be required to work on a public holiday unless there is a special business need. If work is performed on a public holiday, it should be compensated at a premium. These holidays include: New Year's Day, Epiphany, Easter Sunday, Easter Monday, Labour Day, Statehood Day, Corpus Christi, Anti-Fascist Struggle Day, Thanksgiving, Assumption of Mary, All Saints' Day, Remembrance Day, Christmas Day, Saint Stephen's Day
Workers are entitled to at least four weeks of paid vacation each year. Leave is generally acquired after six months of continuous work. Workers cannot choose to ‘cash out’ their vacation. Vacation time does roll over to the next year but must be taken by 30 June the following calendar year. If an employment contract is terminated, the Worker is entitled to compensation for the unused part of their annual leave. A Worker may take one day of annual leave whenever they desire, provided that they inform the employer at least three days in advance, unless the collective agreement specifies a different period of advance notice.
Special categories of Workers in Croatia subject to some exemptions and changes to general labor law include Workers that are underage, in a seasonal role, in a particularly demanding role, and have child(ren) under the age of 8.
Probationary periods up to six months with a 7-day notice period for termination are permitted in Croatia. If a Worker is temporarily absent during this time, the probationary period is prolonged for the duration of the temporary absence.
Workers are entitled to paid leave for injury or illness, which is generally compensated by the employer for up to 42 days. The employer is still liable for payment after that period, but may apply for reimbursement from the Croatian Health Insurance Fund (HZZO).
A regular workweek is 40 hours. Workers are entitled to at least 24 consecutive hours of rest each week, which generally is taken on Sundays. Work performed on a rest day should be compensated at a premium. In case of work performed on Sundays, the minimum increase in pay is 50%. Night work for women in industry is generally prohibited, unless the minister responsible for labour approves the work under special circumstances.
Overtime is only permitted in extraordinary circumstances and should be compensated at a premium as outlined by the collective agreement or employment contract. For the first 10 hours of overtime per week, the Worker should receive at least 130% of their regular hourly wage. For overtime exceeding 10 hours, the Worker should be paid at least 150% of their regular hourly wage. Alternatively, instead of financial compensation, the employee and employer may agree on compensatory time off. However, this time off should be taken within a reasonable period. If a Worker works on a public holiday, they are entitled to at least double the regular pay (200% of the regular wage) or compensatory time off. A 12-hour rest period is required between shifts generally. Where a Worker is of legal age and is working a seasonal role, the daily rest may be shortened to 8 consecutive hours.
Except in cases of serious breach of duties or other extraordinary circumstances, Workers are entitled to written notice of termination specifying the reason for the termination. Pay in lieu is permitted. The period of notice ranges from two weeks to three months depending on the Worker's length of service with the same employer. After two years of continuous service, employees in Croatia are entitled to severance pay if dismissed for business or health-related reasons, unless termination occurs due to the employee’s misconduct or if the employee has reached the age of 65 and has at least 15 years of pensionable service. The minimum severance amount is one-third of the employee’s average monthly gross salary (calculated over the last three months) for each year of service. Higher severance may be provided through individual contracts or collective agreements.
Workers must follow the same notice requirements in order to resign, but they are not required to state a reason for resigning.
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