MINISTRY OF LABOUR AND PENSION SYSTEM__________________

Draft

LABOUR ACT, FINAL PROPOSAL

_______________________________________________________
Zagreb, June 2014
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LABOUR ACT, FINAL PROPOSAL

TITLE I

GENERAL PROVISIONS

Subject matter of the Act

Article 1

This Act regulates employment relationships in the Republic of Croatia unless

otherwise provided for by another law or a published and valid international agreement, as
concluded and ratified in accordance with the Constitution of the Republic of Croatia.

Article 2

(1) By virtue of this Act, the following European Union directives shall be transposed
into the Croatian legal order:
- Council Directive 91/533/EEC of 14 October 1991 on an employer's obligation to
inform employees of the conditions applicable to the contract or employment relationship (OJ
L 288, 18.10.1991),
- Directive 2002/73/EC of the European Parliament and of the Council of 23
September 2002 amending Council Directive 76/207/EEC on the implementation of the
principle of equal treatment for men and women as regards access to employment, vocational
training and promotion, and working conditions (OJ L 269, 05.10.2002),
- Council Directive 1999/70/EC of 28 June 1999 concerning the framework
agreement on fixed-term work concluded by ETUC, UNICE and CEEP (OJ L 175,
10.7.1999),
- Council Directive 94/33/EC of 22 June 1994 on the protection of young people at
work (OJ L 216, 20.8.1994),
- Council Directive 2010/18/EU of 8 March 2010 implementing the revised
Framework Agreement on parental leave concluded by BUSINESSEUROPE, UEAPME,
CEEP and ETUC and repealing Directive 96/34/EC (SL L 68, 18.3.2010),
- Directive 2008/104/EC of the European Parliament and of the Council of 19
November 2008 on temporary agency work (OJ L 327, 5.12.2008),
- Council Directive 97/81/EC of 15 December 1997 concerning the Framework
Agreement on part-time work concluded by UNICE, CEEP and the ETUC (OJ L 014,
20.1.1998),
- Directive 2003/88/EC of the European Parliament and of the Council of 4
November 2003 concerning certain aspects of the organisation of working time (OJ L 299,
18.11.2003),
- Directive 2006/54/EC of the European Parliament and of the Council of 5 July 2006
on the implementation of the principle of equal opportunities and equal treatment of men and
women in matters of employment and occupation (OJ L 204, 26.7.2006),
- Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the
Member States relating to collective redundancies (OJ L 225, 12.8.1998),
- Council Directive 2001/23/EC of 12 March 2001 on the approximation of the laws
of the Member States relating to the safeguarding of employees' rights in the event of
transfers of undertakings, businesses or parts of undertakings or businesses (OJ L 82,
22.3.2001),
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- Directive 2002/14/EC of the European Parliament and of the Council of 11 March

2002 establishing a general framework for informing and consulting employees in the
European Community (OJ L 80, 23.3.2002),
- Council Directive 2000/78/EC of 27 November 2000 establishing a general
framework for equal treatment in employment and occupation (OJ L 165, 27.6.2007),
- Council Directive 92/85/EEC of 19 October 1992 on the introduction of measures to
encourage improvements in the safety and health at work of pregnant workers and workers
who have recently given birth or are breastfeeding (tenth individual Directive within the
meaning of Article 16 (1) of Directive 89/391/EEC) (OJ L 348, 28.11.1992),
- Council Directive 91/383/EEC of 25 June 1991 supplementing the measures to
encourage improvements in the safety and health at work of workers with a fixed-duration
employment relationship or a temporary employment relationship (OJ L 206, 29.7.1991),
(2) The Government of the Republic of Croatia shall submit to the European
Commission unique reports on the implementation of Directive 94/33/EC, Directive
2008/104/EC, Directive 2003/88/EC, Directive 2002/73/EC, Directive 2006/54/EC, Directive
2000/78/EC, Directive 91/383/EEC and Directive 92/85/EEC, of the content and within the
deadlines as laid down by these directives.

Gender Equality

Article 3

Gender neutral language shall be used in this Act and shall apply equally to both men
and women.

Definition of terms worker and employer

Article 4

(1) Within the meaning of this Act, the term worker (employee, staff member,
labourer, officer, clerk and similar - hereinafter: the worker) shall mean an employed natural
person performing certain works for an employer.
(2) Within the meaning of this Act, the term employer shall mean a natural or legal
person employing a worker and for which an employed worker performs certain works.
(3) A natural person who is, in accordance with legal provisions on companies, as a
member of board or executive director, or a natural person in a different capacity who, in
accordance with specific provisions, individually and independently or jointly and severally,
is authorized to manage the operations of an employer may as an employed worker perform
certain works for the employer.
(4) The provisions of this Act on fixed-term employment contract, termination of
employment contract, periods of notice and severance pay shall not apply to the person
referred to in paragraph 3 of this Article.

Records on workers employed with employer

Article 5

(1) The employer shall be obliged to keep records on workers he employs.

(2) The records referred to in paragraph 1 of this Article must contain information on
workers and working time.
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(3) The employer shall upon request be obliged to submit to labour inspector
information referred to in paragraph 2 of this Article.
(4) A minister responsible for labour affairs (hereinafter: the Minister) shall by virtue
of an ordinance stipulate the contents and the manner of keeping records referred to in
paragraph 1 of this Article.
Electronic records on workers

Article 6

(1) An institution that is by virtue of specific provisions on pension insurance

responsible for keeping records on insured persons shall in an electronic data base keep
electronic records on persons being insured on the basis of employment relationship.
(2) The employer shall be obliged to deliver to the electronic data base of the
institution referred to in paragraph 1 of this Article information on workers, including any
change thereto as it may occur during the employment relationship, in a manner, of a content
and within the time period as stipulated by virtue of specific provisions on pension insurance.
(3) The Minister shall by virtue of an ordinance prescribe the manner of keeping
records on workers, including the exchange thereof between the institutions with public
authority in accordance with specific provisions on personal data protection.

Fundamental obligations and rights arising from employment relationship

Article 7

(1) The employer shall be obliged to ensure work for an employed worker and pay
remuneration for the work performed, and the worker shall be obliged to perform the work
following the instructions provided by the employer in line with the nature and type of work.
(2) The employer shall be entitled to determine the place and the manner of
performing the work, and shall respect the worker's rights and dignity.
(3) The employer shall be obliged to ensure safe working conditions with no
detrimental effects to the health of worker, in accordance with a special law and other
regulations.
(4) Any direct or indirect discrimination in the area of labour and working conditions
shall be prohibited, including the selection criteria and requirements for employment,
advance in employment, professional guidance, education, training and retraining, in
accordance with this Act and special laws and regulations.
(5) The employer shall be obliged to protect the worker's dignity during the work in
case of acts, uncalled for and contrary to this Act and special legal provisions, of superiors,
collaborators and persons with whom the worker contacts on a regular basis while performing
his tasks.

Obligation to comply with employment relationship legislation

Article 8

(1) In employment relationship, both the employer and the worker shall be obliged to
comply with the provisions of this Act and other laws, published and valid international
agreements concluded and ratified in accordance with the Croatian Constitution, other legal
provisions, collective agreements and working regulations.
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(2) Before the worker starts working, the employer shall be obliged to enable the
worker to acquaint himself with the employment-related regulations and inform the worker
about the organization of work as well as health and safety protection at work.
(3) The regulations on safety and health at work, collective agreements and working
regulations must appropriately be made available to the workers.
(4) The general provisions of the law of civil obligations shall apply to the
conclusion, validity and termination of employment contracts or to other issues related
thereto, collective agreements or agreements between the works council and the employer,
which are not regulated by this Act or any other laws and regulations, in accordance with the
nature of such contracts.

Freedom of contract

Article 9

(1) The employer, worker and works council, as well as trade unions and employer
associations, may agree on working conditions that are more favourable for the worker than
the conditions provided for by this Act or any other laws and regulations.
(2) The employer, employer associations and trade unions may by virtue of a
collective agreement agree on working conditions less favourable than the conditions
provided for by this Act only if it is explicitly regulated by this Act or any other laws and
regulations.
(3) Unless otherwise provided for by this Act or any other laws and regulations,
where a right arising from an employment relationship is differently regulated by the
employment contract or working regulations, an agreement concluded between the works
council and the employer, a collective agreement or by law, the most favourable right for the
worker shall apply.

TITLE II

INDIVIDUAL EMPLOYMENT RELATIONSHIPS

1. ESTABLISHING AN EMPLOYMENT RELATIONSHIP

Concluding an employment contract

Article 10

(1) An employment relationship shall be established by virtue of an employment

contract.
(2) Where an assignment contract with the worker concluded by the employer has the
features of employment, due to the nature and type of work and the employer's authority, it
shall be deemed that the employment contract has been concluded with the worker, unless the
employer proves otherwise.
(3) Where the employer has no need for a specific worker's work, he may post that
worker temporarily to a company associated with him, within the meaning of a specific
provisions on companies, for a maximum period of six consecutive months, on the basis of
an agreement between the associated employers and a written consent of the worker.
(4) The agreement referred to in paragraph 3 of this Article must contain information
concerning:
1) name and place of business of associated employers,
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2) full name and residence of the worker,

3) dates of commencement and termination of temporary post,
4) place of work and tasks to be performed by the worker,
5) remuneration, bonuses and pay periods, and
6) duration of a regular working day or week.
(5) The written worker's consent to the agreement referred to in paragraph 3 of this
Article shall be regarded as an appendix to the employment contract, for the purpose of
defining a fixed-term assignment at the associated employer.
(6) The provisions of paragraph 6 of this Act on temporary employment shall not
apply to the post referred to in paragraph 3 of this Article.
(7) In relation to the worker referred to in paragraph 3 of this Article, the associated
employer shall be regarded as the employer obliged to apply the provisions of this Act and
any other laws and regulations governing the safety and health protection at work.

Employment contracts of indefinite duration

Article 11

(1) Unless otherwise provided for by this Act, an employment contract shall be a
contract of indefinite duration.
(2) The employment contract of indefinite duration shall produce legal obligations for
the contracting parties until its termination, in a manner provided for by this Act.
(3) Where an employment contract does not define its duration, it shall be regarded as
a contract of indefinite duration.

Fixed-term employment contracts

Article 12

(1) Exceptionally, an employment contract may be concluded for a fixed term, for the
purpose of taking up an employment where the end of the employment is determined by
objective conditions such as reaching a specific date, completing a specific task, or the
occurrence of a specific event.
(2) The employer may enter into a successive fixed-term employment contract with
the same worker solely on objective grounds, which must be clarified in the same contract or
in a letter of engagement referred to in Article 14 (3) of this Act.
(3) The cumulative duration of all successive fixed-term employment contracts,
including the first employment contract, may not exceed three consecutive years, unless
where it is necessary for the purpose of replacing a temporarily absent worker or where it is
on objective grounds allowed by law or a collective agreement.
(4) The limitations referred to in paragraphs 2 and 3 of this Article shall not apply to
the first fixed-term employment contract.
(5) Any change or amendment to the fixed-term employment contract affecting its
prolongation shall be regarded as a next successive fixed-term employment contract.
(6) An interruption of less than two months shall not be regarded as the interruption of
the three-year period referred to in paragraph 3 of this Article.
(7) Where an employment contract is not concluded in compliance with the
provisions of this Act or where a worker continues to work at the employer's after the expiry
of the contract, it shall be deemed that the concluded contract was of indefinite duration.
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Working conditions for fixed-term workers

Article 13

(1) The employer shall be obliged to ensure to the fixed-term worker the same
working conditions comparable to a worker with an employment contract of indefinite
duration concluded with the same employer or, under a special regulation, with an employer
associated with him, with same or similar qualifications and skills, who is engaged in the
same or similar work.
(2) Where there is no comparable permanent worker with the employer referred to in
paragraph 1 of this Article with same or similar qualifications and skills who is engaged in
the same or similar work, the employer shall be obliged to ensure for the fixed-term worker
the conditions defined by collective agreement or any other regulation applicable to him, as
determined for the permanent worker who is engaged for the same or similar tasks and
possesses the same or similar professional knowledge and skills.
(3) Where the working conditions are not provided for in a manner referred to in
paragraph 2 of this Article by a collective agreement or another regulation applicable to the
employer, the employer shall ensure the appropriate working conditions for his fixed-term
worker comparable to the conditions for his permanent worker engaged in similar tasks and
who possesses similar qualifications and skills.
(4) The employer shall be obliged to inform his fixed-term workers about assignments
for which these workers could enter into an employment contract of indefinite duration and to
ensure training and education for them under the conditions comparable to those for
permanent workers.

Employment contract form

Article 14

(1) The employment contract shall be concluded in writing.

(2) The existence and validity of such a contract shall not be affected by the failure of
contracting parties to enter into a written contract.
(3) Where an employment contract is not concluded in writing, the employer shall be
obliged to deliver to the worker a letter of engagement prior to the start of employment.
(4) Where the employer fails to conclude a written employment contract with the
worker or fails to deliver to the worker the letter of engagement prior to the start of
employment, it shall be deemed that he entered into the employment contract of indefinite
duration with the worker.
(5) The employer shall be obliged to deliver to the worker two copies of the
application for mandatory pension and health insurances within fifteen days after the expiry
of the time limit for the application for mandatory insurances under specific laws and
regulations.
(6) The employment contracts for seafarers and workers on board seagoing fishing
vessels shall be registered with the county public administration office or the City of Zagreb
office responsible for labour.
(7) The Minister shall by virtue of an ordinance stipulate the registration procedure
and the contents of the registry of employment contracts for seafarers and workers on board
seagoing fishing vessels.
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Mandatory content of written employment contracts or a letter of engagement

Article 15

(1) The written employment contract or the letter of engagement referred to in Article
14 (3) of this Act must contain information concerning:
1) the identities of the parties and their residence and the registered place of business,
2) place of work; where there is no fixed or main place of work, a reference that the work
is performed at various places,
3) the title, nature or category of the work for which the worker is employed or a brief
specification or description of the work,
4) the date of commencement of employment,
5) in the case of a fixed-term employment contract, the expected duration thereof;
6) the duration of paid annual leave to which the worker is entitled or, where this cannot
be indicated when the contract is concluded or the letter of engagement is given, the
procedures for allocating and determining such annual leave;
7) the length of the periods of notice to be observed by the worker and the employer or,
where this cannot be indicated when the contract is concluded or the letter of
engagement is given, the method for determining the periods of notice;
8) the basic salary, the bonuses and the frequency of remuneration payment to which the
worker is entitled;
9) duration of a regular working day or week.
(2) The information referred to in paragraph 1 (6), (7), (8) and (9) of this Article may
in the employment contract or the letter of engagement be given in the form of a reference to
the laws, other regulations or administrative provisions, collective agreement or working
regulations governing those particular points.

Mandatory content of the written employment contract for permanent seasonal jobs

Article 16

(1) Where the employer is mostly engaged in seasonal activities, a fixed-term

employment contract may be concluded for permanent seasonal jobs.
(2) In the case of concluding the contract referred to in paragraph 1 of this Article, the
employer shall be responsible for the application for extended pension insurance, for
contributions and calculation and payment thereof.
(3) In addition to information referred to in Article 15 of this Act, the contract from
paragraph 2 of this Article must contain additional information concerning:
1) conditions for and time during which the employer shall pay contribution for extended
pension insurance,
2) time limit within which the employer is obliged to offer the worker entry into
employment contract for the next season,
3) time limit within which the worker is obliged to provide his feedback concerning the
offer from sub-paragraph 2 of this paragraph; this time limit may not be less than eight
days.
(4) Where the worker unjustifiably declines the employment contract, the employer
shall be entitled to claim a refund of contributions paid for the worker.
(5) The information referred to in paragraph 3 (1) of this Article may be contained in
the contract in the form of a reference to a collective agreement or working regulations
governing those particular points.
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Mandatory content of the written contract of employment at alternative workplace

Article 17

(1) In addition to information referred to in article 15 (1), sub-paragraphs 1 to 9 of

this Act, a written employment contract or a letter of engagement for works to be performed
at the worker's home or outside the employer's premises, must contain additional information
concerning:
1) working hours,
2) machinery, tools and equipment required that the employer is obliged to provide,
install and maintain,
3) the use of worker's own machinery, tools and other equipment, and reimbursement of
costs related thereto,
4) reimbursement of other worker's costs related to the performance of works,
5) method of worker's education and training.
(2) The provisions of Article 1 of this Act shall apply accordingly to the contract
referred to in paragraph 1 of this Article.
(3) The remuneration to the worker with whom the employer concludes the contract
referred to in paragraph 1 of this Article may not be determined in the amount below the
remuneration to the worker engaged in the employer's premises in the same or similar tasks.
(4) The contract from paragraph 1 of this Article may not be concluded either for the
works referred to in Article 64 (1) of this Act or any other works determined as such by this
Act or any other laws and regulations.
(5) The employer shall be obliged to ensure safe working conditions for the worker,
and the worker shall be obliged to comply with all safety and health protection measures in
accordance with specific provisions.
(6) The provisions of this Act concerning the organisation of working time, overtime,
reorganisation of working time, night work and break shall also apply to the contract referred
to in paragraph 1 of this Article, unless otherwise provided for in specific provisions, a
collective agreement, an agreement entered into between the works council and the employer
or in the employment contract.
(7) The amount of work and time periods for the works performed under the contract
referred to in paragraph 1 of this Article may not impact the worker's entitlement on daily,
weekly and annual periods of rest.

Mandatory content of the written employment contracts or the letter of engagement in the
case of expatriation of the worker

Article 18

(1) Where a worker is temporarily posted abroad for an uninterrupted period

exceeding thirty days, the written employment contract or the letter of engagement must, in
addition to the information referred to in Article 15 of this Act, contain the information
concerning:
1) the duration of employment abroad;
2) the organisation of working time;
3) paid non-working days and holidays;
4) the currency to be used for the payment of remuneration;
5) other benefits in cash or kind attendant on the employment abroad;
6) the conditions governing the worker's repatriation.
(2) The information referred to in paragraph 1 (2), (3), (4) and (5) of this Article may
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in the employment contract or the letter of engagement be given in the form of a reference to
the laws, other regulations or administrative provisions, collective agreement or working
regulations governing those particular points.
(3) The employer must hand over to the worker prior to his expatriation a copy of the
application for mandatory health insurance for the duration of work abroad, provided that
such insurance is the employer's obligation under specific provisions.
(4) Where his employer posts the worker to a company associated to the employer,
treated as such under specific provisions on companies, that has an establishment abroad, the
employer may post the worker, subject to the latters written consent, to that associated
company for a period of up to two years, subject to an agreement concluded between the
associated employers.
(5) The provisions of paragraph 6 of this Act on temporary employment shall not
apply to the post referred to in paragraph 4 of this Article.

The minimum employment age

Article 19

It shall be prohibited to employ a person under fifteen, of fifteen or above fifteen

years of age and under eighteen years of age who is still subject to compulsory full-time
elementary schooling.

Labour capacity of minors for entering into employment contract

Article 20

(1) Where a legal representative authorizes the conclusion of an employment contract

for a minor of or above fifteen years of age, with the exception of a minor who is still subject
to compulsory full-time elementary schooling, the minor shall have a labour capacity for the
purpose of concluding and terminating such contract and for taking any legal actions with
regards to the rights and obligations arising from or relating to such contract.
(2) The authorization referred to in paragraph 1 of this Article shall not apply to legal
actions for which the legal representative needs the consent of an authority responsible for
social welfare.
(3) The employer may not employ the minor referred to in paragraph 1 of this Article
with no authorization of the legal representative or the consent of the authority responsible
for social welfare.
(4) In the case of a dispute between the legal representatives or between the legal
representative(s) and the minor, the authorization for concluding an employment contract
shall be subject to the decision of the authority responsible for social welfare, with due
account taken of minor's interests.
(5) The legal representative may withdraw or limit the authorisation from paragraph 1
of this Article or terminate the employment relationship on behalf of the minor.
(6) The guardian may give the authorisation referred to in paragraph 1 of this Article
to the minor only with a previous consent of the authority responsible for social welfare.
(7) The authorisation referred to in paragraph 1 of this Article shall be given in
writing.
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Prohibition of certain works by minors

Article 21

(1) A minor may not be employed to perform works likely to harm their safety,
health, morals or development.
(2) The Minister shall stipulate the works referred to in paragraph 1 of this Article by
virtue of an ordinance.
(3) Without a prior health assessment the employer may not employ a minor for
works that can be performed by the minor only after such an assessment.
(4) The Minister shall by virtue of an ordinance stipulate the works to be performed
by minors only after the assessment of health conditions for performing those particular
works.

Supervising certain works by minors

Article 22

(1) Where a minor, his parent or guardian, works council or trade union have any
doubts that the works performed by the minor will put his safety, health, morals or
development into risk, they may request from the employer that an authorised physician
performs a health assessment of the minor and provides his findings and opinion of whether
the works performed by the minor indeed harm his safety, health, morals or development.
(2) The costs of the health assessment, findings and opinion referred to in paragraph 1
of this Article shall be borne by the employer.
(3) Where the results of findings and the opinion referred to in paragraph 1 of this
Article show that the works performed by the minor harm his safety, health, morals or
development, the employer shall be obliged to offer to the minor the conclusion of
employment contract for other appropriate works; where there are no such other works, he
may give him a notice of dismissal in a manner and under the conditions stipulated by this
Act.

Special requirements for entering into employment contract

Article 23

(1) Where specific employment relationship requirements are defined by law,

regulations or administrative provisions, collective agreements or working regulations, an
employment contract may be concluded only with a person meeting those particular
requirements.
(2) A foreign national or a stateless person may enter into an employment contract
under the conditions stipulated by this Act and specific provisions governing the employment
of these persons.

The worker's obligation to inform the employer about sickness or some other
circumstances

Article 24

(1) On the occasion of concluding the employment contract and during the
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employment relationship, the worker shall be obliged to inform the employer about sickness
or any other circumstances precluding or hindering the exercise of obligations arising from
the employment contract or harming the life or health of people that the worker makes
contact with while executing the employment contract.
(2) In order to assess health capacities for particular tasks, the employer may direct
the worker to a health assessment.
(3) The costs of health assessment referred to in paragraph 2 of this Article shall be
borne by the employer.

Information that may not be requested

Article 25

(1) In the process of selecting the applicants for a job (an interview, testing, survey or
similar) and concluding an employment contract as well as during the employment
relationship, the employer may not request from the worker any information that is not
directly related to the employment relationship.
(2) The answers to the questions referred to in paragraph 1 of this Article that are not
allowed may be sustained.

2. WORKING REGULATIONS

Obligation to adopt working regulations

Article 26

(1) The employer who employs a minimum of twenty workers shall be obliged to
adopt and make publicly available the working regulations governing remuneration,
organization of work, procedures and measures for protecting worker dignity, anti-
discrimination measures and any other issues of importance for the workers employed with
the employer, if these issues are not regulated by a collective agreement.
(2) Particular working regulations may also be adopted for a particular employer's
undertaking and parts thereof or for particular groups of workers.

The procedure of adopting working regulations

Article 27

(1) The adoption of working regulations by the employer shall be subject to

consultations with the works council in the cases, in a manner and under the conditions
stipulated by this Act.
(2) The working regulations referred to in paragraph 1 of this Article must contain the
date of entry into force.
(3) The working regulations from paragraph 1 of this Article may not enter into force
prior to the expiry of the eight-day period of its publication.
(4) The working regulations shall be amended in a manner stipulated by this Act.
(5) The Minister shall stipulate the method of publishing the working regulations
referred to in paragraph 1 of this Article by virtue of an ordinance.
(6) The works council may request the competent court to declare null and void the
unlawful working regulations or the parts thereof.
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3. PROTECTION OF LIFE, HEALTH AND PRIVACY

The employer's obligations to protect the life, health and morals of workers

Article 28

(1) The employer shall be obliged to provide and maintain plants, machinery,
equipment, tools, workplace and the access thereto, and to organize work in such a manner so
as to ensure the protection of life and health of workers, in accordance with specific
provisions and the nature of work performed.
(2) The employer shall be obliged to inform the worker about any dangers pertaining
to the work performed by the worker.
(3) The employer shall be obliged to train the worker for the work to be performed in
such a manner so as to ensure the protection of the worker's life and health and prevent
accidents.
(4) Where the employer is responsible for providing accommodation and food to the
workers, due account shall be taken of protecting the life, health, morals and religion of the
workers.

Protection of worker's privacy

Article 29

(1) The worker's personal data may be collected, processed, used or disclosed to third
parties only if it is regulated by this Act or any other law or where it is necessary for the
purpose of exercising the rights and obligations arising from the employment relationship or
pertaining thereto.
(2) Where the personal data referred to in paragraph 1 of this Article must be
collected, processed, used or disclosed to third parties for the purpose of exercising the rights
and obligations arising from the employment relationship or pertaining thereto, the employer
shall beforehand determine the data to be collected, processed, used or disclosed to third
parties for the said purpose by virtue of the working regulations.
(3) The worker's personal data may be collected, processed, used or disclosed to third
parties solely by the employer or a person duly authorized by the employer to do so.
(4) Wrong records of personal data shall be corrected immediately.
(5) Personal data for the keeping of which legal or material grounds cease to exist
shall be deleted or removed otherwise.
(6) The employer who employs a minimum of twenty workers shall be obliged to
appoint a person trustful to the workers who is, apart from the employer, authorized to
supervise whether the personal data is collected, processed, used or disclosed to third parties
in accordance with the law.
(7) The employer, the person referred to in paragraph 6 of this Article or any other
person to whom in the course of his duties the worker's personal data are revealed, shall
permanently keep the confidentiality of that data.
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4. PROTECTION OF PREGNANT WORKERS, PARENTS

AND ADOPTIVE PARENTS

Prohibition of discrimination of pregnant workers, women

who have recently given birth or are breastfeeding

Article 30

(1) The employer may not refuse to employ a woman due to her pregnancy or offer
her the conclusion of an amended employment contract under less favourable conditions on
the grounds of her pregnancy, recent childbirth or breastfeeding within the meaning of
specific provisions.
(2) The employer may not request any information whatsoever about pregnancy or
direct any other person to do so, unless the worker personally demands for a particular
entitlement provided for by laws, regulations and administrative provisions for the purpose of
protecting pregnant workers.

Protection of pregnant workers, women who have recently given birth or are breastfeeding

Article 31

(1) The employer shall be obliged to offer a pregnant worker, a worker who has
recently given birth or is breastfeeding within the meaning of a specific provisions, who
performs works that have harming effects on her or the child's life or health, an appendix to
the employment contract during the entitlement period providing for a fixed-term
performance of other appropriate tasks.
(2) In the event of dispute between the employer and he worker, only a physician
specialist in labour medicine shall be competent to assess the appropriateness of the tasks
performed by the worker or other works offered in the case referred to in paragraph 1 of this
Article.
(3) Where the employer is not in the position to act in a manner provided for in
paragraph 1 of this Article, the worker shall be entitled to take a leave in accordance with
specific provisions.
(4) With the expiry of entitlement in accordance with specific provisions the appendix
referred to in paragraph 1 of this Article shall also cease to take effects and the worker shall
continue performing the works she has previously performed under the employment contract.
(5) The appendix to the employment contract referred to in paragraph 1 of this Article
may not result in the reduction of the worker's remuneration.

Presumption of full time work

Article 32

Where the previous length of employment relationship is of relevance for acquiring

certain rights arising from the employment relationship or pertaining thereto, periods of
maternity, paternity or adoption leave, part-time work, periods of short-time work due to
intensified childcare, the leave of pregnant women or a breastfeeding mother, and the periods
of leave or short-time work having to care for a child with serious development disabilities
shall be regarded as full-time work.
 15

Maternity and parental rights

Article 33

The worker shall exercise their maternity and parental rights during the employment
relationship in accordance with specific provisions.

Prohibition of dismissal

Article 34

(1) During pregnancy, maternity, paternity or adoption leave, periods of part-time

work, periods of short-time work due to intensified childcare, the leave of pregnant women or
a breastfeeding mother, and the periods of leave or short-time work due to the care for a child
with serious development disabilities, that is within fifteen days after the end of pregnancy or
the end of use of such entitlements, the employer may not terminate the employment contract
of the pregnant woman and a person exercising any of these rights.
(2) The dismissal referred to in paragraph 1 of this Article shall be null and void if at
the date of dismissal the employer is aware of circumstances referred to in paragraph 1 of this
Article or if the worker within fifteen days after the delivery of notice informs the employer
about the circumstance referred to in paragraph 1 of this Article and supports it with an
adequate certificate issued by a competent physician or another competent authority.
(3) The employment contract for a person referred to in paragraph 1 of this Article
shall be terminated upon the death of the employer who is a natural person, upon the
termination of a small business by virtue of law or by the deregistration of a sole trader.
(4) The employment contract of the person referred to in paragraph1 of this Article
may during the liquidation procedure, in accordance with specific provisions, be terminated
on economic reasons.

The worker's right to terminate the employment contract

by an extraordinary notice of termination

Article 35

(1) A worker exercising the right on maternity, paternity or adoption leave, part-time
work, short-time work due to intensive childcare, leave of pregnant women or a breastfeeding
mother, and on the leave or short-time work having to care for a child with serious
development disabilities or a worker whose employment contract is held in abeyance until the
child's third year of age in accordance with specific provisions, may terminate the
employment contract by giving an extraordinary notice of termination.
(2) An employment contract may be terminated in a manner referred to in paragraph 1
of this Article fifteen days prior to the date of the worker's reinstatement, at the latest.
(3) A pregnant worker may terminate the employment contract by giving an
extraordinary notice of termination.

The right to reinstatement to the former or an equivalent position

Article 36

(1) On the expiry of maternity, paternity, adoptive lave, a leave for the purpose of
 16

taking care of and nursing a child with severe development disabilities and the abeyance of
the employment relationship until the child's third year of age in accordance with specific
provisions, the worker who exercised any of these rights shall be entitled to return to his
former position within one month after the date having notified the employer about the end of
exercising of such a right.
(2) Where there is no need for the works performed by the worker prior to the
exercise of rights referred to in paragraph 1 of this Article, the employer shall be obliged to
offer the conclusion of employment contract for an equivalent post with working conditions
not less favourable compared to those of the works performed by the worker prior to the
exercise of such a right.
(3) The worker who has exercised the right referred to in paragraph 1 of this Article
shall be entitled to additional training, where there has been a change in the technique or
method of work, and to benefit from any improvement in working conditions to which he
would have been entitled during his absence.

5. PROTECTION OF WORKERS SUFFERING FROM TEMPORARY OR

PERMANENT INCAPACITY FOR WORK

Obligation to report temporary incapacity for work

Article 37

(1) The worker shall be obliged to inform the employer about his temporary
incapacity for work as soon as possible and to deliver to him a medical certificate of temporary
incapacity for work and the expected duration thereof within three days at the latest.
(2) A competent physician shall be obliged to issue the certificate referred to in
paragraph 1 of this Article to the worker.
(3) If, due to justified reasons, the worker was not in the position to fulfil the
obligation referred to in paragraph 1 of this Article, he shall be obliged to do so as soon as
possible, but no later than three days after the reasons thereof cease to exist.
(4) The Minister shall stipulate the contents and the method of issuing the certificate
referred to in paragraph 1 of this Article by virtue of an ordinance.

Prohibition of dismissal due to temporary incapacity for work caused by

injury at work or a professional illness

Article 38

During the temporary incapacity for work due to medical treatment or recovery from
an injury at work or a professional illness the employer may not terminate the employment
contract of the worker who has suffered from an injury at work or a professional illness.

Prohibition of discrimination as regards advance in employment or

the exercise of other rights

Article 39

Injury at work or a professional illness may not constitute a ground for discrimination
as regards worker's advance in employment and the exercise of other rights and benefits
arising from the employment relationship or pertaining thereto.
 17

The right to reinstatement or to an equivalent position of the worker who

suffered from temporary incapacity

Article 40

(1) The worker who suffered from temporary incapacity for work due to injury or
injury at work, illness or professional illness, whose capacity for work following the medical
treatment or recovery has been established by a competent physician or a competent authority
pursuant to specific provisions, shall have the right to return to this job.
(2) Where there is no need for the works previously performed by the worker, the
employer shall be obliged to offer him a conclusion of an employment contract for an
equivalent post, which must to the greatest possible extent be comparable to the post
previously held by the worker.
(3) Where the employer is not in the position to offer the conclusion of employment
contract for an equivalent post, or where the worker refuses the offered change to the
employment contract, the employer may give him a notice of dismissal in a manner and under
the conditions prescribed by this Act.
(4) In the event of a dispute between the employer and the worker, only a specialized
medical physician shall be competent to assess the appropriateness of the offered post
referred to in paragraph 2 of this Article.
(5) The worker from paragraph 1 of this Article shall be entitled to additional training,
where there has been a change in the technique or method of work, and to benefit from any
improvement in working conditions to which he would have been entitled during his absence.

The right to employment in other jobs

Article 41

(1) If, in accordance with specific provisions a competent authority establishes the
worker's partial work capacity or a partial loss of work capacity or an immediate danger of
reduction of work capacity, the employer shall, taking into consideration the expert opinion
of that authority, offer the worker to conclude an employment contract for the performance of
a job that he is able to perform and which must, to the greatest possible extent, correspond to
the position previously held by the worker.
(2) In order to provide the position referred to in paragraph 1 of this Article, the
employer shall adjust the work to the abilities of the worker, alter the schedule of working
hours, and undertake other measures to provide appropriate work to the worker.
(3) Where the employer has undertaken all the measures referred to in paragraph 2 of
this Article without being able to ensure the adequate position to the worker or where the
worker has refused the offer to conclude an employment contract for the performance of a job
corresponding to his capabilities in accordance with the expert opinion of the competent
authority, the employer may, with the consent of the works council, terminate the
employment contract.
(4) In the event of a dispute between the employer and the worker, only a specialized
medical physician shall be competent to assess the appropriateness of the offered works
referred to in paragraph 1 of this Article.
(5) Where the works council does not consent to the notice of dismissal to the worker
referred to in paragraph 1 of this Article, the consent may be replaced by an arbitrary
decision.
 18

Severance pay in case of injury at work or professional illness

Article 42

(1) A worker who has suffered an injury at work or a professional illness, and
following any medical treatment and professional rehabilitation, to whom the employer is not
able to ensure an adequate position referred to in Article 41 of this Act, shall be entitled to a
severance pay equivalent to twice the rate for severance pay to which the worker is entitled,
provided that he fulfils the conditions for the severance pay entitlement stipulated by this Act.
(2) The worker referred to in paragraph 1 of this Article, who unjustifiably refuses the
offered job referred to in Article 41 of this Act, shall not be entitled to severance pay in
double amount.

Priority as regards training and education

Article 43

The worker who has suffered an injury at work or a professional illness shall have
priority as regards training and education organized by the employer.

6. TEMPORARY WORK

Temporary-work agency

Article 44

(1) Temporary-work agency (hereinafter: the agency) means an employer who, based
on worker assignment contract, assigns workers to another employer (hereinafter: the user
undertaking) to work there temporarily.
(2) Within the meaning of this Act, an assigned worker means the worker employed
by the agency in order to assign him to the user undertaking.
(3) The agency may perform the activity of assigning workers to the user
undertakings provided that it is established in accordance with specific provisions and
registered with the ministry responsible for labour affairs (hereinafter: the Ministry).
(4) In addition to the activities referred to in paragraph 1 of this Article, the agency
may perform economic activities pertaining to employment provided that it holds an
appropriate license under specific provisions.
(5) The agency may not perform the activities referred to in paragraph 1 of this
Article prior to the registration with the appropriate Ministry's registry.
(6) While performing the activities referred to in paragraph 1 of this Article, the
agency may not charge the worker a fee for being assigned to the user undertaking or a fee
for the entry into an employment contract between the assigned worker and the user
undertaking.
(7) The agency shall deliver to the Ministry the statistical data on the activities
referred to in paragraph 1 of this Article.
(8) The Minister shall stipulate the contents and the method of and time limits for the
submission of data referred to in paragraph 7 of this Article by virtue of an ordinance.
 19

Worker assignment contract

Article 45

(1) A worker assignment contract between the agency and the user undertaking shall
be in written form.
(2) In addition to the agency's general terms of operations, the elements of the contract
referred to in paragraph 1 of this Article shall include:
1) the number of assigned workers required by the user undertaking,
2) the period of assignment,
3) the place of work,
4) the works to be performed by assigned workers,
5) the method and period during which the user undertaking must deliver to the agency
the calculation for remuneration to be paid and the regulations applied at the user
undertaking for the purpose of determining the remuneration, and
6) the person authorized to represent the user undertaking before the assigned workers.
(3) In the event of assigning workers to the user undertaking located abroad, the
contract referred to in paragraph 1 of this Article shall, in addition to the data from paragraph
2 of this Article, contain information concerning:
1) the legislation applicable to the assigned worker's employment relationship,
2) the assigned worker's right to be exercised pursuant to this Act and other laws and
regulations of the Republic of Croatia, which shall be ensured to the assigned worker
by the user undertaking,
3) the obligation to bear the costs of repatriation.
(4) The contract referred to in paragraph 1 of this Article may not be concluded for the
purpose of:
1) replacing the workers in strike at the user undertaking,
2) performing works that were performed by workers subject to the collective
redundancy procedure referred to in Article 127 of this Act effected by the user
undertaking in a previous period of six months,
3) works that were performed by the workers whose employment contracts were
terminated by the user undertaking on economic reasons in a previous period of six
months,
4) works that are, under the regulations on safety protection at work, regarded as works
under special working conditions, and the assigned worker does not meet the
particular requirements,
5) assigning workers to another agency.
(5) By virtue of the contract referred to in paragraph 1 of this Article, the agency and
the user undertaking may agree that the user undertaking shall for the assignment period keep
records on assigned workers' working time, as well as the time limits and method for the
delivery of the records to the agency.

Temporary assignment contract

Article 46

(1) The agency may conclude a temporary assignment contract of fixed or indefinite
duration with the worker.
(2) In addition to the information from Article 15 (1), sub-paragraph 1 and sub-
paragraphs 4 to 7 of this Act or, in the case of assignment of worker by the agency to the user
 20

undertaking located abroad, from Article 18 (1) of this Act, the contract referred to in
paragraph 1 of this Article must contain information concerning:
1) the contract being concluded for the purpose of assigning a worker for temporary work
at the user undertaking,
2) a reference to works that the worker will be assigned to perform,
3) obligations of the agency to the worker during the period of the assignment.
(3) In the period when the assigned worker with an employment contract of indefinite
duration is not assigned to the user undertaking, he shall be entitled to the remuneration
determined in a manner referred to in Article 9 (5) of this Act.
(4) The contract referred to in paragraph 1 of this Article concluded for an indefinite
duration that is equal to the period of the worker's assignment to the user undertaking must
contain information concerning:
1) names of contracting parties and their residence or registered place of business,
2) the expected duration of the contract,
3) the registered place of business of the user undertaking,
4) the place of work,
5) the works to be performed by the assigned worker,
6) the date of the beginning and the end of employment,
7) remuneration, bonuses and pay periods,
8) the duration of a regular working day or week.
(5) The agreed upon remuneration and other working conditions applicable to the
assigned workers may not be lower or less favourable when compared to the remuneration or
working conditions applicable to the worker employed with the user undertaking for the
performance of the same tasks, which would be applicable to the assigned worker should he
have concluded an employment contract with the user undertaking.
(6) As for other working conditions applicable to the assigned worker within the
meaning of paragraph 5 of this Article, they include working time, breaks and rest periods,
safety at work protection measures, protection of pregnant workers, parents, adoptive parents
and youth, and non-discrimination, in accordance with specific anti-discrimination
regulations.
(7) By way of derogation from paragraph 5 of this Article, the less favourable
working conditions applicable to the worker assigned to the user undertaking when compared
to those applicable to the worker employed at the user undertaking may be agreed upon by
collective agreement concluded between the agency or an association of agencies and trade
unions.
(8) Where the remuneration and other working conditions cannot be determined in
accordance with paragraphs 5 and 6 of this Article, they shall be determined by the worker
assignment contract.

Termination of temporary assignment contract

Article 47

(1) The provisions of this Act on collective redundancies shall not apply to the
termination of temporary assignment contracts.
(2) The agency may extraordinarily terminate a temporary assignment contract in the
event of circumstances at the user undertaking referred to in Article 116 (1) of this Act and if
the user undertaking informs the agency thereof in writing within fifteen days of the date of
discovery of the fact providing for the grounds for an extraordinary notice of dismissal.
(3) The extraordinary notice of dismissal referred to in Article 116 (2) of this Act
 21

shall take effect as of the day of the written notification from paragraph 2 of this Article.
(4) The fact that the need for assigned worker at the user undertaking ceased to exist
prior to the expiry of assignment period may not constitute a ground for the termination of
temporary assignment contract.
(5) Where an assigned worker finds that during his assignment at the user undertaking
any of his rights arising from the employment relationship were violated, he shall seek
protection of the violated right with the employer in a manner determined in Article 133 of
this Act.

Restriction of worker assignment period

Article 48

(1) The user undertaking may not use the work of the assigned worker for the
performance of the same works for an uninterrupted period exceeding three years unless it is
necessary for the purpose of replacing a temporarily absent worker or where it is allowed by
collective agreement on the grounds of some other objective reasons.
(2) An interruption of less than two months shall not be regarded as the interruption
of the three-year period referred to in paragraph 1 of this Article.

Agency's obligation towards assigned workers

Article 49

(1) Prior to assigning the worker to the user undertaking, the agency shall hand over
an assignment letter, which shall contain the information referred to in Article 46 (2) of this
Act, to the worker.
(2) Prior to assigning the worker to the user undertaking, the agency shall inform the
worker about any specific professional qualifications or skills required for the performance of
works at the user undertaking, and about any work-related risks regarding health and safety
protection at work, and for that purpose it shall train the assigned worker in accordance with
the regulations on health and safety protection at work, unless it has been regulated as a user
undertaking obligation in the worker assignment contract.
(3) The agency shall train the assigned worker and inform him about new
technologies applicable to the works to be performed by the assigned worker, unless it has
been regulated as a user undertaking obligation in the worker assignment contract.
(4) The agency shall pay to the assigned worker the remuneration for the work
performed at the user undertaking as defined by contractual provisions even in the case where
the user undertaking fails to deliver to the agency the calculation of remuneration to be paid.

Obligations of user undertaking

Article 50

(1) In relation to the assigned worker the user undertaking shall be regarded as the
employer within the meaning of the obligation of implementing the provisions of this Act and
other laws and regulations governing the safety and health protection at work and a special
protection of particular categories of workers.
(2) In the course of concluding the contract referred to in Article 4 of this Act, the
user undertaking shall fully and truthfully and in writing inform the agency about the working
 22

conditions applicable to the permanent workers employed with the user undertaking
performing the works to be performed by the assigned worker.
(3) The user undertaking shall at least once a year notify the works council about the
number and reasons for taking assigned workers, and shall inform the assigned workers about
vacancies for which they meet the requirements.

Indemnity

Article 51

(1) Any damage to a third party caused by the assigned worker during his work at the
user undertaking or related thereto shall be indemnified by the user undertaking, who shall be
regarded as the employer considering the recourse liability of the assigned worker.
(2) The agency shall be held responsible for any damage caused by the assigned
worker to the user undertaking during his work or related thereto, pursuant to the general
provisions of the law of civil obligations.
(3) Where the assigned worker suffers any damage at work or in relation to the work
at the user undertaking, he may file a claim against the agency or the user undertaking, in
accordance with the provisions of Article 111 of this Act.

Record keeping

Article 52

(1) The application for the registration with the Ministry shall be submitted by the
agency in writing.
(2) The agency's application shall be supported by the evidence of having been
established in accordance with specific provisions.
(3) The Ministry shall issue the registration certificate containing the agency's
registration number and the date of registration.
(4) The agency shall in their legal transactions, business documents and letters
indicate their registration number with the Ministry.
(5) The Ministry shall issue three identical copies of the certificate referred to in
paragraph 3 of this Article; one of which shall be delivered to the public authority responsible
for labour inspection.

7. PROBATIONARY PERIOD, EDUCATION AND TRAINING FOR WORK

Contracting and duration of probationary period

Article 53

(1) A probationary period may be agreed upon by the employment contract.

(2) The length of the probationary period referred to in paragraph 1 of this Article may
not exceed six month.
(3) The failure of the worker to fulfil the position requirements during the
probationary period shall constitute a just cause for terminating the employment contract.
(4) The provisions of this Act on termination of employment contract shall not apply
 23

to the termination referred to in paragraph 3 of this Article, with the exception of Article 120,
Article 121 (1) and Article 125 of this Act.
(5) In the case of contracted probationary period, the period of notice shall be
minimum seven days.

Obligation to provide education and training for work

Article 54

(1) In line with his capacities and business requirements, the employer shall ensure
schooling, education, vocational as well as professional training for the worker.
(2) The worker shall, in line with his working abilities and business requirements, take
part in schooling, education, vocational and professional training.
(3) In the event of changes to or introduction of new patterns or organisation of work,
the employer shall, in line with capacities and requirements of work, provide the worker with
vocational or professional training.

Definition of trainee and the allowed period of employment contract with a trainee

Article 55

(1) The employer may employ a person employed for the first time in the occupation
for which he received schooling as a trainee worker (apprentice or any other trainee -
hereinafter: the trainee).
(2) The trainee from paragraph 1 of this Article shall be trained for independent work
in the occupation for which he received schooling.
(3) A fixed-term employment contract may be concluded with a trainee.

Traineeships

Article 56

(1) The methods for training a trainee for independent work shall be stipulated by
working regulations or defined in the employment contract.
(2) In order to get trained for independent work, the trainee may be temporarily
assigned to another employer.

Duration of traineeship

Article 57

Unless otherwise provided for by law, the length of the traineeship shall be one year
at the most.

Qualification examination

Article 58

(1) After the expiry of traineeship, the trainee shall take a qualification exam,
provided that it is laid down by laws and regulations, collective agreement or working
 24

regulations.
(2) Where the content of and methods for taking a qualification examination are not
laid down by laws and regulations, collective agreement or working regulations, the content
of and methods for taking a qualification examination shall be laid down by working
regulations.
(3) The employer shall be allowed to give a regular notice of dismissal to a trainee
who has not passed the qualification examination.

Unremunerated traineeships

Article 59

(1) Where a qualification examination or work experience is laid down by laws and
regulations as a prerequisite for the performance of jobs within a certain occupation, the
employer may admit a person who completed schooling for such an occupation to
professional training without entering into an employment relationship with him
(unremunerated traineeship).
(2) The period of traineeship referred to in paragraph 1 of this Article shall be counted
in the traineeship and the work experience period when they are stipulated as a prerequisite
for the performance of jobs within a certain occupation.
(3) The unremunerated traineeship referred to in paragraph 1 of this Article shall not
exceed the traineeship period.
(4) Unless otherwise provided for by this Act or another law, the provisions of this
Act and other laws and regulations governing employment shall apply to unremunerated
trainees, with the exception of the provisions on concluding employment contracts,
remuneration and compensation, and termination of employment contracts.
(5) An unremunerated traineeship contract shall be concluded in writing.

8. WORKING TIME

Definition of working time

Article 60

(1) Working time shall mean any period during which the worker is obliged to be at
work, at the employer's disposal (on stand-by) to carry out his duties in accordance with the
employer's instructions, at his working place or another place determined by the employer.
(2) The period during which the worker is available for the employer's request for
performance of works, should a need arise, shall not be regarded as working time, where the
worker is neither located at his working place nor at another place determined by the
employer.
(3) The availability period and remuneration shall be regulated by the employment
contract or collective agreement.
(4) The period during which the worker is at work upon the employer's request shall
be deemed working time, notwithstanding whether the works are performed at the place
determined by the employer or the place selected by the worker.
 25

Full-time work

Article 61

(1) Full-time work shall not exceed 40 hours a week.

(2) Where the working time is not laid down by law, collective agreement, agreement
between the works council and the employer or by employment contract, it shall be deemed
that full-time work means 40 hours a week.
(3) A full-time worker shall be allowed to conclude an employment contract with
another employer for a maximum period of 8 hours a week or up to 180 hours a year only
with the written consent of the employer or the employers with whom the worker already has
a concluded employment contract.

Part-time work

Article 62

(1) Part-time work shall be any working time shorter than full-time work.
(2) The worker shall not be allowed to work at several employers with a working time
exceeding forty hours a week.
(3) The worker referred to in paragraph 2 of this Article, whose total working time is
forty hours a week, shall be allowed to conclude an employment contract with another
employer for a maximum period of eight hours a week or up to one hundred and eighty hours
a year only if with the written consent of the employers with whom the worker has the
employment contract already concluded.
(4) When concluding a part-time employment contract, the worker shall inform the
employer about part-time employment contracts concluded with other employer or
employers.
(5) Where a previous duration of the employment relationship with the same
employer is of importance for the exercise of rights arising from the employment
relationship, the periods of part-time work shall be regarded as full-time work.
(6) Unless otherwise provided for by collective agreement, working regulations or
employment contract, the remuneration and other substantial rights of workers (long-service
award, annual leave pay and Christmas bonus, etc.) shall be regulated and paid in proportion
to the contracted working time.
(7) The employer shall be obliged to take into consideration the request of a full-time
worker who is a contracting party in an employment contract for the entry into a part-time
employment contract, and vice-versa, provided that there is such a work option at the
employer's.

Working conditions for part-time workers

Article 63

(1) The employer shall be obliged to ensure to the part-time worker working
conditions comparable to the full-time worker with an employment contract concluded with
the same employer or, under specific provisions, with an employer associated to him, having
the same or similar qualifications and skills, who is engaged in the same or similar work.
(2) If the employer referred to in paragraph 1 of this Article has not employed a
comparable full-time worker with the same or similar qualifications and skills who is engaged
 26

in the same or similar work, the employer shall be obliged to ensure his part-time worker an
employment contract with the conditions regulated by collective agreement or any other
regulation applicable, as are determined for an employed full-time worker engaged in the
same or similar tasks with the same or similar qualifications and skills.
(3) Where the working conditions are not defined in a manner referred to in paragraph
2 of this Article by collective agreement or another regulation applicable to the employer, the
employer shall ensure the appropriate working conditions to his part-time worker comparable
to the conditions for his full-time worker with the employment contract who is engaged in
similar work and who possesses similar qualifications and skills.
(4) The employer shall make possible to his part-time workers to take part in training
and education under the same conditions applicable to his full-time workers.

Short-time work

Article 64

(1) For jobs involving exposure to harmful effects in spite of the implementation of
health and safety at work protection measures, the working time shall be shortened in
proportion to the harmful effects on the worker's health and capacity for work.
(2) The jobs referred to in paragraph 1 of this Article and working time related thereto
shall be regulated by specific provisions.
(3) The worker engaged in the jobs from paragraph 1 of this Article shall be allowed
to perform those particular works only for the duration of working time as defined in
paragraph 2 of this Article and shall not be allowed to perform such works at another
employer.
(4) It may be laid down in collective agreement or employment contract that the
worker who is not engaged full-time in the jobs referred to in paragraph 1 of this Article may
work part-time in other jobs of different nature than the jobs referred to in paragraph 1 of this
Article, but for no longer than the full-time limit.
(5) As for the remuneration and the exercise of other rights arising from the
employment relationship or relating thereto, a short-time work referred to in paragraph 1 of
this Article shall be equal to the full-time work.

Overtime work

Article 65

(1) In the case of force majeure, an extraordinary increase in the scope of work and in
other similar cases of a pressing need, the worker shall, at the employer's request, work
longer than the full-time or part-time working hours (overtime work).
(2) By way of derogation from paragraph 1 of this Article, where the employer, due to
the nature of a pressing need, is not in a position to hand over a written request for overtime
work before it begins, he shall be obliged to confirm the oral request in writing within seven
days starting from the date overtime work was requested.
(3) If the worker works overtime, the total working time of the worker may not
exceed 50 hours a week.
(4) The overtime work per worker may not exceed 180 hours a year, unless otherwise
provided for in collective agreement, in which case it may not exceed 250 hours a year.
(5) Overtime work by minor workers shall be prohibited.
(6) A pregnant worker, a parent of a child under three years of age and a single parent
 27

of a child under six years of age who works part-time at several employers, and the worker
referred to in Article 63 (3) and Article 62 (3) of this Act, may work overtime only when their
written consent to such work is given to the employer, except in the case of force majeure.

Patterns of working time

Article 66

(1) The duration of worker's working time may be either evenly or unevenly
distributed over days, weeks or months.
(2) Where working time is unevenly distributed, its duration may in one period be
longer than full-time work or part-time work, and shorter in another.
(3) The patterns of working time shall be laid down by laws and regulations,
collective agreement, agreement between the works council and the employer, working
regulations or by employment contract.
(4) Where the pattern of working time is not laid down as defined in paragraph 3 of
this Article, it shall be determined by virtue of the employer's written decision.
(5) Where the working time is unevenly distributed, the period covered by such a
pattern may not be less than three months nor may it exceed one year, and such a pattern of
working time must correspond either to the worker's full-time or part-time work, as
applicable.
(6) Where the working time is unevenly distributed, the worker may work up to 50
hours a week, including overtime work.
(7) Where the working time is unevenly distributed, the worker may work up to 60
hours a week, if it is agreed upon by collective agreement, including overtime work.
(8) Where the working time is unevenly distributed, the worker may not, in any
period of four successive months, work more than 48 hours a week on average, including
overtime work.
(9) Uneven distribution of working time may be regulated under collective agreement
as a total number of working hours during the period of uneven distribution of working time,
with no restriction referred to in paragraph 6 of this Article applicable, but the total number of
working hours, including overtime work, may not exceed the average of 45 hours a week
within the four month period.
(10) The period referred to in paragraphs 8 and 9 of this Article may be six months
under collective agreement.
(11) During the period of uneven distribution of working hours, the worker's pattern
of working hours may be changed only for the remaining part of defined period of uneven
distribution of working hours.
(12) Where prior to the expiry of defined period of uneven distribution of working
hours the worker's working hours already correspond to the full-time or part-time work, as
applicable, the employer shall request the worker to work overtime during the remaining part
of the defined period, should there be a need for the work of that particular worker.
(13) Where the worker, whose fixed-term employment contract is about to expire, has
worked more than the average full-time or part-time, as applicable, the number of hours
exceeding the average full-time or part-time work as defined by the contract shall be regarded
as overtime work.
(14) The period of annual leave and temporary unavailability for work shall not be
counted in the four month period, or six month period, as referred to in paragraphs 8, 9 and
10 of this Article.
(15) The employer must inform the worker of his pattern of working hours or any
 28

change thereto at least three days in advance, except in the event of a pressing need for that
particular worker's work.

Redistribution of working time

Article 67

(1) Where the nature of work requires so, the full-time or part-time work may be
reorganized so that during the period, which is not to exceed twelve successive months, it
exceeds full-time or part-time work in one period, and is less than full-time or part-time work
in another period; this must be done in such a manner that the average working time under the
redistribution scheme may not exceed the full-time or part-time work.
(2) Where the redistribution of working time is not agreed upon and provided for in a
collective agreement or an agreement between the works council and the employer, the
employer shall establish the redistribution of working time scheme including the reference to
the works and number of workers covered by the redistribution of working time scheme, and
shall submit that redistribution scheme to a labour inspector in advance.
(3) The redistributed working time shall not be regarded as overtime work.
(4) The redistributed working time may not exceed 48 hours a week during the period
in which it lasts longer than full-time or part-time work, including overtime work.
(5) By way of derogation from the provision of paragraph 4 of this Article, the
redistributed working time during the period in which it lasts longer than full-time or part-
time work may exceed 48 hours a week, but it may not exceed 56, or 60 hours a week if the
employer performs seasonal business activities, under the assumption that it is provided for in
collective agreement and that the worker gives to the employer a written statement of his
voluntary consent to such work.
(6) The worker who does not agree to work longer than 48 hours a week under the
redistributed working time scheme must not suffer any adverse consequences.
(7) The employer shall deliver to the labour inspector, upon his request, the list of
workers who gave their written consent referred to in paragraph 5 of this Article.
(8) The redistributed working time in the period during which it exceeds either the
full-time or part-time work may last up to four months, unless otherwise provided for in
collective agreement, in which case it may not exceed six months.
(9) The fixed-term employment contract for works performed under redistributed
working time scheme shall be concluded for such a period so as to worker's average working
time must correspond to the full-time or part-time work defined by the contract.

Protection of vulnerable categories of workers

Article 68

(1) Minors may not work more than 8 hours in a 24-hour period.
(2) The worker working part-time for two or more employers, a pregnant worker, a
parent with a child under three years of age and a single parent with a child under six years of
age may work under the uneven distribution of working time scheme referred to in Articles
66 and 67 of this Act only if they hand over to the employer a written statement of their
voluntary consent to such work.
 29

Night work

Article 69

(1) Unless otherwise provided for by this Act, any other law or regulation, collective
agreement or an agreement between the works council and the employer, night work means
any work performed between 10 p.m. and 6 a.m., an in agriculture sector between 10. p.m.
and 5 a.m.
(2) In the case of minors working in industry, any work in the period between 7 p.m.
and 7 a.m. shall be regarded as night work.
(3) In the case of minors not working in industry, any work in the period between 8
p.m. and 6 a.m. shall be regarded as night work.
(4) The Minister shall lay down which business activities shall be regarded as
industry within the meaning of paragraph 2 of this Article by virtue of an ordinance.
(5) Night worker means any worker who regularly works at least three hours of his
daily working time as a normal course during night time, and any worker who works at least
one third of his daily working time during the period of twelve successive months during
night time.
(6) Normal working hours for night workers shall not, in the period of four months,
exceed an average of 8 hours in any 24-hour period.
(7) Where, based on danger assessment carried out pursuant to specific provisions on
protection at work, the night worker is exposed to special hazards or heavy physical or mental
strain, the employer shall ensure that such a worker does not work more than 8 hours in any
period of 24 hours during which they perform night work.

Prohibition of night work

Article 70

(1) Night work by minors shall be prohibited, unless such a work is a pressing need in
business activities regulated by special legislation and where it may not be performed by
adult workers; in such a case the minor may neither work between midnight and 4 a.m. nor
may he work longer than 8 hours in any period of 24 hours during which they perform night
work.
(2) In the event of night work referred to in paragraph 1 of this Article, the employer
shall ensure that such a work is performed under the surveillance of an adult.

Shift work

Article 71

(1) Shift work means any method of organising work in shifts, whereby workers
succeed each other at the same work station according to a certain pattern, which may be
continuous or discontinuous.
(2) Shift worker means any worker who performs his work in different shifts, at the
employer whose work is organized in shifts, based on patterns of working time, during the
period of one week or one month.
(3) Where the work is organized into shifts that include night work, the change of
shifts shall be ensured so as to limit the uninterrupted work in night shift to maximum one
week.
 30

Employer's obligations towards shift and night workers

Article 72

(1) In organizing night or shift work, the employer shall be obliged to take special
care so as to adapt the organization of work to the worker and ensure that safety and health
protection is adapted to the nature of night or shift work.
(2) The employer shall be obliged to ensure safety and health protection to night and
shift workers adapted to the nature of their work, as well as that the functioning of sufficient
protection and prevention services applicable to all other workers are available at any time.
(3) The employer shall be obliged to provide night workers with a health assessment
before their assignment and thereafter at regular intervals, in accordance with the regulation
from paragraph 8 of this Article.
(4) By way of derogation from paragraph 3 of this Article, the health assessment of
night worker performing works under specific working conditions provided for in regulations
or administrative provisions on protection at work, shall be conducted in accordance with
those provisions.
(5) The costs of health assessment referred to in paragraph 3 of this Article shall be
borne by the employer.
(6) Where a health assessment referred to in paragraph 3 of this Article establishes
that the night worker suffers from health problems connected with the fact that he performs
night work, the employer shall be obliged to ensure such a pattern of working time so that the
worker can perform the same job in day work.
(7) Where the employer is not able to ensure for the worker referred to in paragraph 6
of this Article the transfer to day work, he shall be obliged to offer to the worker the
employment contract for day work to which he is suited and which to the greatest possible
extent shall be comparable to the works previously performed by the worker.
(8) The Minister shall stipulate the content, the method of and time limits for
conducting health assessment referred to in paragraph 3 of this Article by virtue of an
ordinance.
9. REST AND LEAVE

Break

Article 73
(1) Unless otherwise provided for by specific provisions, the worker who works at
least 6 hours a day shall be entitled to a daily period of rest (a break) of minimum 30 minutes.
(2) The minor who works at least 4 hours a day shall be entitled to a daily period of
rest (a break) of minimum 30 consecutive minutes.
(3) The part-time worker or minor at two or more employers with total daily working
hours at all employers of at least 6 or 4.5 hours, shall be entitled to a break at each employer
proportionate to his contracted part-time work.
(4) The rest period referred to in paragraph 1, 2 and 3 of this Article shall be counted
in working time.
(5) Where, due to its specific nature it is not possible to interrupt the work in order to
take a rest referred to in paragraph 1 of this Article, the period and method of taking the rest
shall be provided for in collective agreement, agreement between the works council and the
employer or employment contract.
 31

Daily rest

Article 74

(1) The worker shall be entitled to a minimum daily rest period of 12 consecutive
hours per 24-hour period.
(2) By way of derogation from paragraph 1 of this Article, the employer shall be
obliged to ensure that his adult seasonal worker performing works that involve two periods of
work split up over the day, is entitled to a minimum daily rest period of 8 consecutive hours.
(3) The worker referred to in paragraph 2 of this Article shall be afforded equivalent
periods of compensatory rest right after his working time with no rest, or with a shorter
period of rest.

Weekly rest

Article 75

(1) The worker shall be entitled to a weekly minimum uninterrupted rest period of 24
hours plus the hours of daily rest referred to in Article 74 of this Act.
(2) The minor shall be entitled to a weekly minimum uninterrupted rest period of 48
hours.
(3) The rest referred to in paragraph 1 and 2 of this Article shall be used by the worker
on Sundays or the day before or day after Sunday.
(4) Where the worker is not in a position to use the rest period referred to in
paragraphs 1 and 2 of this Article, he shall be afforded equivalent periods of compensatory
weekly rest right after his working time with no weekly rest, or with a shorter period of rest.
(5) As an exception, the shift workers or workers who due to objective reasons or
organization of work cannot use the rest period referred to in paragraph 1 of this Article, shall
be afforded a weekly minimum uninterrupted rest period of 24 hours, without counting in the
daily rest referred to in Article 74 of this Act.

Entitlement to annual leave

Article 76

The worker shall be entitled to a paid annual leave in each calendar year.

Duration of annual leave

Article 77

(1) The worker shall be entitled to a paid annual leave of at least four weeks in each
calendar year, and the minor engaged in works involving exposure to harmful effects in spite
of the implementation of health and safety at work protection measures shall be entitled to at
least five weeks of paid annual leave.
(2) A period of paid annual leave longer than the minimum period laid down in
paragraph 1 of this Article may be defined by collective agreement, agreement between the
works council and the employer, working regulations or employment contract.
(3) The first-time worker or the worker with the interruption period between two
 32

employments exceeding eight days shall acquire the entitlement to annual leave provided for
in paragraphs 1 and 2 of this Article after six consecutive months of employment with the
same employer.

Proportion of annual leave

Article 78

(1) The worker who does not satisfy the condition for the acquisition of entitlement to
annual leave as laid down by Article 77 (3) of this Act, shall be entitled to a proportion of
annual leave, which shall be determined as a period of one twelfth of annual leave referred to
in Article 77 (1) and (2) of this Act, for each elapsed month of employment relationship.
(2) By way of derogation from Article 77 of this Act, the worker whose employment
relationship is terminated shall be entitled to the proportion of annual leave in that calendar
year.
(3) The employer who grants to the worker referred to in paragraph 2 of this Article
annual leave in a period longer than the period to which he would have been entitled prior to
the termination of employment relationship, shall not have right to claim any refund of
remuneration paid for the use of annual leave.

Determination of annual leave

Article 79

(1) The annual leave referred to in Articles 77 and 78 of this Act shall be determined
for the worker as a number of working days depending on the worker's weekly working time
pattern.
(2) National holidays and non-working days stipulated by law, periods of temporary
incapacity for work assessed by competent physician and days of paid leave shall not be
counted in the period of annual leave.
(3) By way of derogation from paragraph 2 of this Article, where the worker should
work on the day of holiday or a non-working day stipulated by law, but instead upon his
request uses annual leave, that day shall be counted in the period of annual leave.
(4) In calculating the duration of annual leave as provided for in Article 78 (1) and (2)
of this Act, at least one half of the days of annual leave shall be rounded up to a whole day of
annual leave, and at least one half of the month of work shall be rounded up to the whole
month.
(5) Where the worker's employment relationship is terminated exactly in the middle
of a month that has an even number of days, the right to one twelfth of annual leave for that
month shall be exercised at the employer with whom his employment relationship is being
terminated.

Nullity of waiver of annual leave entitlement

Article 80

An agreement under which a worker waives his entitlement to annual leave in return
for compensation shall be null and void.
 33

Remuneration during annual leave

Article 81

During annual leave the worker shall be entitled to remuneration in the amount
defined by collective agreement, working regulations or employment contract, which may not
be less than his average monthly remuneration over the previous three months (counting in
any benefits in cash or in kind representing compensation for work).

Allowance in lieu of annual leave

Article 82

(1) In the case of termination of employment contract, the employer shall be obliged
to pay to a worker who did not use his annual leave an allowance in lieu of annual leave.
(2) The allowance referred to in paragraph 1 of this Article shall be determined in
proportion to the number of days of unused annual leave.

Taking portions of annual leave

Article 83

Where the worker uses his annual leave in portions, he must use at least two
consecutive weeks of annual leave in the calendar year for which he exercises the right to
annual leave, unless otherwise agreed upon by the worker and the employer, provided that the
worker has acquired the entitlement to annual leave exceeding two weeks.

Carrying over annual leave to the next calendar year

Article 84

(1) The worker shall be entitled to carry over the unused portion of annual leave
longer than the portion of annual leave referred to in Article 83 of this Act, and use it by 30
June of the following calendar year, at the latest.
(2) The worker who has acquired the right to a proportion of annual leave shorter than
the portion of annual leave referred to in Article 83 of this Act, may carry it over and use it by
30 June of the following calendar year, at the latest.
(3) The worker may not carry over to the next calendar year a portion of annual leave
referred to in Article 83 of this Act if he was allowed to use that leave.
(4) The worker shall be entitled to use the annual leave or a portion thereof which is
either interrupted or unused in the year it was acquired due to illness or maternity leave,
parental or adoption leave, or the leave for having to take care of a child with serious
development disabilities, after returning to work, and by 30 June of the following calendar
year, at the latest.
(5) By way of derogation from paragraph 4 of this Article, the worker shall be entitled
to use the annual leave or a portion thereof which is either interrupted or unused in the year it
was acquired due to illness or maternity leave, parental or adoption leave, or the leave for
having to take care of a child with serious development disabilities, because he was not in a
position to use it or he was not allowed by the employer to use it by 30 June of the following
calendar year, by the end of calendar year in which he returned to work.
 34

(6) A seafarer, worker abroad or a worker on duty in national defence forces may use
the annual leave in full in the following calendar year.

Annual leave schedule

Article 85

(1) The annual leave schedule shall be prepared by the employer, in accordance with
collective agreement, working regulations and this Act, by 30 June of the current year, at the
latest.
(2) The two or more employers of the same part-time worker who fail to agree upon
his annual leave in the same period shall be obliged to afford him the use of annual leave on
his request.
(3) In preparing the annual leave schedule, the organization of work requirements and
the options for rest available to the workers shall be taken into account.
(4) The employer must inform the worker of the duration and the period of use of
annual leave at least 15 days before annual leave is to be taken.
(5) The worker shall be entitled to take one day of annual leave at his convenience,
provided that he inform the employer thereof at least three days in advance, with the
exception of cases in which it is not possible for specific justified reasons on the employer's
part.

Paid leave

Article 86

(1) During the calendar year, the worker shall be entitled to be free from work with
remuneration (paid leave) for important personal purposes, and, in particular for those related
to marriage, childbirth, serious illness or death of an immediate family member.
(2) Unless otherwise provided for by collective agreement, working regulations or
employment contract, the worker shall be entitled to the leave referred to in paragraph 1 of
this Article for seven working days a year in total.
(3) Member of the immediate family referred to in paragraph 1 of this Article shall
mean a spouse, blood relatives in the direct line and their spouses, brothers and sisters, step-
children and adopted children, children in foster care, step-father and step-mother, adoptive
parent and person to whom the worker is obliged to provide statutory maintenance, and a
person with whom the worker is in a non-marital cohabitation
(4) The worker shall be entitled to paid leave during education, vocational or
professional training or during education for the purposes of engaging in the works council or
trade union work, under the conditions, for the duration and with remuneration determined by
collective agreement, agreement between the works council and the employer or working
regulations.
(5) For the purpose of acquiring the rights arising from employment or related thereto,
the periods of paid leave shall be regarded as time spent at work.
(6) Unless otherwise provided for by collective agreement, working regulations or
employment contract, the worker who is a voluntary blood donor shall be entitled to one day
off work on the day of blood donation.
 35

Unpaid leave

Article 87

(1) The employer may grant the worker unpaid leave, at the worker's request.
(2) Unless otherwise provided for by law, during unpaid leave, the rights and
obligations arising from employment or related thereto shall be held in abeyance during
unpaid leave.

10. DIFFERENT REGULATION OF WORKING TIME,

NIGHT WORK AND REST

Different regulation for specific categories of workers

Article 88

(1) The provisions of this Act on working time, breaks, daily and weekly rest shall not
apply to workers on board seagoing fishing vessels.
(2) The Minister shall, alongside a prior opinion of the minister responsible for
maritime affairs and the minister responsible for fishery, adopt working regulations on
working time, breaks and leave for workers on board seagoing fishing vessels.
(3) The provisions of this Act on maximum duration of weekly working time, period
referred to in Article 66 (8) of this Act, night work and daily or weekly rest shall not apply to
those workers whose duration of the working time cannot be measured and/or predetermined
or whose working time can be determined by the workers themselves (managing executive or
a family worker with the employer - natural person, living in the same household with the
employer and performing certain works for the employer under employment contract, etc.),
provided that they have contracted with the employer their autonomous decision-taking
powers in that respect.
(4) A managing executive referred to in paragraph 3 of this Article shall mean the
worker authorized to manage the employer's operations, to autonomously conclude legal acts
in the name and on the account of the employer, whose duration of the working time cannot
be measured and/or predetermined or can be determined by the worker himself and who is
autonomous in decision-making about organisation of working time.
(5) The employer shall be obliged to inform the works council about contracts
concluded with the workers referred to in paragraph 3 of this Article.

Different regulation by means of laws or collective agreement

Article 89

(1) Unless otherwise provided for by specific provisions, the employer may for his
adult workers provide for derogations from the provisions on duration of working time for
night worker, daily or weekly rest, provided that the worker is afforded equivalent periods of
compensatory rest in accordance with paragraphs 2
and 3 of this Article, and particularly:
1) when the worker's place of work and his place of residence are distant from one
another, or where the worker's different places of work are distant from one another,
 36

2) in the case of security and surveillance activities requiring a permanent presence in

order to protect property and persons,
3) in the case of activities involving the need for continuity of service or production,
particularly:
services relating to the reception, treatment and/or care provided by hospitals or
similar establishments, residential institutions and other legal entities performing
social care-related activities, and prisons,
dock or airport workers,
in the case of services directly related to the press, radio, television,
cinematographic production, postal and telecommunications services,
ambulance, fire and civil protection services,
gas, water and electricity production, transmission and distribution, household
refuse collection and incineration plants,
industries in which work cannot be interrupted on technical grounds,
research and development activities,
workers concerned with the carriage of passengers on regular urban transport
services,
4) where there is a foreseeable surge of activity, particularly in:
- agriculture,
- tourism,
- postal services,
5) in the case of workers in railway transport, whose activities are intermittent, and who
spend their working time on board trains or whose activities are linked to transport
timetables,
6) in the case of force majeure and where occurrences are due to unusual and
unforeseeable circumstances.
(2) In the case referred to in paragraph 1 of this Article, a daily rest afforded to the
worker may not be less than 10 consecutive hours, or a weekly rest of less than 20
consecutive hours.
(3) By way of derogation from paragraph 2 of this Article, a daily rest of at least 8
hours may be provided for by means of collective agreement.
(4) The worker shall be afforded periods of compensatory daily or weekly rest right
after the end of period at work due to which the worker used a shorter daily or weekly rest.

11. REMUNERATION AND COMPENSATION

Determining pay

Article 90

(1) The employer shall be obliged to calculate and pay remuneration to the worker in
the amount provided for by means of law, collective agreement or employment contract.
(2) Where bases and benchmarks for remuneration are not provided for by collective
agreement, the employer employing at least 20 workers shall be obliged to determine them by
means of working regulations.
(3) Where the remuneration is not determined in a manner referred to in paragraphs 1
and 2 of this Article, and the employment contract does not contain sufficient information to
be used for that purpose, the employer shall be obliged to pay the worker adequate
remuneration.
(4) Adequate remuneration means remuneration regularly paid for equal work or,
 37

where it is not possible to establish such remuneration, a remuneration determined by the

court on a case by case basis.

Equal pay for women and men

Article 91

(1) The employer shall be obliged to pay equal remuneration to female and male
workers for the same work or for work to which equal value is attributed.
(2) For the purposes of paragraph 1 of this Article, two persons of different sex
perform the same work or work to which equal value is attributed if:
1) they perform the same work under the same or similar conditions or if they could
substitute one another at the workplace,
2) the work one of them performs is of a similar nature to that performed by another, and
the differences between the work performed by them and conditions under which it is
performed have no significance in relation to the overall nature of the work or they
appear so rarely that they have no significance in relation to the overall nature of the
work,
3) the work one of them performs is of equal value as that performed by another, taking
into account criteria such as qualifications, skills, responsibilities and conditions
under which the work is performed and whether the work is of manual nature or not.
(3) Within the meaning of paragraph 1 of this Article, remuneration shall mean a
basic or minimum salary plus any additional charges of any kind paid by the employer to the
female or male worker for the work performed, either directly or indirectly, in cash or in kind,
under an employment contract, collective agreement, working regulations or any other laws
and regulations.
(4) Any provision in an employment contract, a collective agreement, working
regulations or any other legal act contrary to paragraph 1 of this Article shall be null and
void.

Payment of remuneration

Article 92

(1) Remuneration shall be paid after the work has been performed.
(2) Remuneration and compensation shall be paid in money.
(3) Unless otherwise provided for by the collective agreement or employment
contract, remuneration and compensation for the previous month shall be paid no later than
within the fifteenth day of the current month.
(4) Within the meaning of this Act, remuneration and compensation means a
remuneration and compensation in gross amount.

Documentation on remuneration, compensation and severance pay

Article 93

(1) The employer shall be obliged to hand over to the worker a payroll account, no
later than 15 days after the remuneration, compensation or severance pay is paid, evidencing
the method of determining these amounts.
(2) The employer who fails to make the payment of remuneration, compensation or
severance pay within their due dates, or who fails to pay them in the full amount, shall be
 38

obliged to provide the worker with a payroll account for the amounts he was required to pay,
by the end of month in which the payment of remuneration, compensation or severance pay
was due.
(3) The payroll accounts referred to in paragraph 2 of this Article shall be instruments
permitting enforcement.
(4) The Minister shall stipulate the contents of payroll accounts referred to in
paragraphs 1 and 2 of this Article by virtue of an ordinance.

Entitlement to remuneration increase

Article 94

The worker shall be entitled to an increased remuneration for arduous working

conditions, overtime and night work, and for work on Sundays, holidays, and on other days
that are not working days according to the law.

Compensation

Article 95

(1) The worker shall be entitled to compensation for periods in which he does not
work due to legitimate reasons established by law, regulations or administrative provisions,
collective agreement, working regulations or employment contract.
(2) The period referred to in paragraph 1 of this Article that is subject to
compensation at the expense of the employer shall be established by law, regulations or
administrative provisions, collective agreement, working regulations or employment contract.
(3) The worker shall be entitled to compensation during the period of work
interruption due to the fault of the employer or due to other circumstances beyond the
worker's responsibility.
(4) The worker who refuses to work due to non-compliance with the laws and
regulations on protection of the safety and health of workers shall be entitled to compensation
for the period until the prescribed measures are implemented, unless the worker has been
assigned to other comparable position during this period.
(5) Unless otherwise provided for by this Act or another law, regulations or
administrative provisions, collective agreement, working regulations or employment contract,
the worker shall be entitled to compensation amounting to the average remuneration he
received over the preceding three months.

Prohibition of offsetting

Article 96

(1) The employer may not, without the worker's consent, settle his claims against the
worker by withholding payment of remuneration or compensation, or a part thereof.
(2) The worker may not give his consent referred to in paragraph 1 of this Article
prior to the occurrence of claims.

Protection of remuneration against forced execution

Article 97
 39

Worker's remuneration or compensation may be subject to forced execution under

specific provisions.

12. INVENTIONS AND TECHNICAL INNOVATIONS CREATED BY WORKERS

Inventions created at work or in relation to work

Article 98

(1) The worker shall be obliged to inform his employer on his invention created at the
workplace or in relation to work.
(2) The information about the invention referred to in paragraph 1 of this Article shall
be covered by the worker's obligation on business secrecy and he may not disclose it to third
parties without the employer's agreement.
(3) Any invention referred to in paragraph 1 of this Article shall be the property of the
employer, and the worker shall be entitled to a reward established by collective agreement,
employment contract or special agreement.
2. By way of derogation from paragraph 3 of this Article, an invention created by the
assigned worker referred to in Article 44 (2) of this Act shall be the property of the user
undertaking, while the assigned worker shall be entitled to a reward established by special
agreement.
(4) Where the award is not established in a manner referred to in paragraphs 3 and 4
of this Article, the court shall establish an adequate reward.

Invention connected with employer's economic activity

Article 99

(1) Where the worker's invention is neither created at the workplace nor in relation to
the work, but is rather connected with the employer's economic activity, the worker shall be
obliged to inform the employer thereon and make a written offer to the employer concerning
the assignment of invention rights.
(2) The employer shall be obliged to respond to the worker's offer from paragraph 1
of this Article within one month.
(3) The provisions of statutory pre-emption rights shall apply accordingly to the
assignment of invention rights referred to in paragraph 1 of this Article.

Technical innovations

Article 100

(1) Where the employer agrees to apply a technical innovation suggested by the
worker, the employer shall be obliged to pay the worker the reward established by collective
agreement, employment contract or special agreement.
(2) By way of derogation from paragraph 1 of this Article, where the user undertaking
referred to in Article 44 (1) of this Act agrees to apply a technical innovation suggested by an
assigned worker, he shall be obliged to pay the worker the reward established by means of
special agreement.
 40

(3) Where the award is not established in a manner referred to in paragraphs 1 and 2
of this Article, the court shall establish an adequate reward.

13. BAN OF COMPETITION BETWEEN WORKER AND HIS

EMPLOYER

Legal ban of competition

Article 101

(1) Without the employer's agreement, the worker may not on his own account or on
the account of third parties enter into business transactions in the field of economic activity
pursued by his employer (legal ban of competition).
(2) If the worker fails to comply with the ban referred to in paragraph 1 of this Article,
the employer may either claim indemnification for damage or require that the business
transaction be considered concluded on the employer's account, i.e. that the worker transfers
to the employer any profit earned from such transaction or any claims resulting from this
transaction.
(3) The employer's right referred to in paragraph 2 of this Article shall cease to exist
three months after the date on which the employer learnt that the business transaction had
been concluded, and in any case five years after the date on which the transaction was
concluded.
(4) If, at the time of commencement of employment, the employer was aware of the
fact that the worker was engaged in certain business activities, and did not require from the
worker to stop engaging in such activities, it shall be deemed that the employer gave the
worker approval for performing such activities
(5) The employer may revoke the approval referred to in paragraphs 1 and 4 of this
Article, in compliance with the time limit, prescribed or contracted, for notice of dismissal.

Contractual ban of competition

Article 102

(1) The employer and the worker may establish in their contract a period of time
following the termination of employment contract, during which the worker shall not be
allowed to take employment with the employer's market competitor or to enter into business
transactions, on his account or on the account of third parties, which are regarded as
competition to the employer (contractual ban of competition).
(2) The contract referred to in paragraph 1 of this Article may not be concluded for a
period exceeding two years after the date of termination of the employment relationship.
(3) The contract referred to in paragraph 1 of this Article may be an integral part of
the employment contract.
(4) The contract referred to in paragraph 1 of this Article shall be concluded in
writing.
(5) The contract referred to in paragraph 1 of this Article shall not be binding on the
worker if the purpose of the contract is not to protect the legitimate business interests of the
employer or if, taking into account the area, time and aim of the ban in relation to the
legitimate business interests of the employer, the contract disproportionately limits the work
and promotion of the worker.
(6) The contract referred to in paragraph 1 of this Article shall be null and void if
 41

concluded by a minor worker or a worker who, at the time the contract is concluded, is
receiving remuneration below the average salary in the Republic of Croatia.
(7) In the case from paragraph 6 of this Article, the employer may not invoke the
nullity of contractual ban of competition.

Allowance in case of contractual ban of competition

Article 103

(1) Unless otherwise stipulated by this Act for a specific case, the contractual ban
shall be binding on the worker only where the employer is contractually committed to
compensate the worker for the duration of the ban in the amount of at least a half of average
salary paid to the worker in the period of three months prior to the termination of
employment contract.
(2) The employer shall be obliged to pay the allowance from paragraph 1 of this
Article until the 15th day of the current month for the previous month.
(3) Where a portion of the worker's remuneration is intended to cover specific costs of
work, the allowance may be proportionately reduced.

Termination of contractual ban of competition

Article 104

(1) Where the worker terminates his employment contract by means of extraordinary
notice on the grounds of employer's serious breach of the employment contract obligation, the
contractual ban of competition shall cease to apply to the worker who within a months after
the termination of employment contract gives a written statement that he does not consider
himself bound by this contract.
(2) The contractual ban of competition shall cease to apply if the employer terminates
the employment contract without having just cause under this Act, unless the employer
notifies the worker, within fifteen days of the termination of the contract, that he shall pay the
worker, for the duration of the contractual ban of competition, the allowance referred to in
Article 103 of this Act.

Waiver of the contractual ban of competition

Article 105

(1) The employer may surrender contractual ban of competition provided that he
informs the worker thereon in writing.
(2) In the case referred to in paragraph 1 of this Article, the employer shall not be
liable to the allowance referred to in Article 103 of this Act after the expiry of three month
period of the day of submitting to the worker the written statement surrendering contractual
ban of competition.

Contractual sanctions

Article 106

(1) Non-compliance with the contractual ban of competition may be subject to

contractual sanction.
 42

(2) Where only a contractual sanction has been provided for the case of non-
compliance with contractual ban of competition, the employer may, in accordance with
general provisions of the law of civil obligations, require only the settlement of this sanction
rather than the fulfilment of the obligation or a compensation for greater damages.
(3) The contractual sanction referred to in paragraph 1 of this Article may also be
determined if the employer does not undertake to pay an allowance for the duration of the
contractual ban of competition, provided that at the moment of the conclusion of such an
employment contract the worker was receiving a salary exceeding the average salary in the
Republic of Croatia.

14. INDEMNIFICATION

Worker's liability for damages caused to the employer

Article 107

(1) The worker, who, either intentionally or due to gross negligence, causes the
employer to suffer damage at the workplace or in relation to the work, shall be obliged to
indemnify the employer for such damage.
(2) In the case of damage caused by several workers, each worker shall be held liable
for the part of the damage that he caused.
(3) Where it is not possible to determine which part of the damage each worker
caused, all workers shall be held equally liable, and they shall equally bear the compensation
for damages.
(4) Where several workers committing a premeditated criminal offence cause the
damage, they shall be held jointly liable for the damage caused.

Predetermined amount of compensation for damages

Article 108

(1) Should the valuation of damage entail disproportionate costs, the amount of
indemnification for certain harmful acts may be determined in advance.
(2) The harmful acts and indemnification referred to in paragraph 1 of this Article
may be provided for in collective agreement or working regulations.
(3) Where the damage caused by harmful action from paragraph 2 of this Article
exceeds the foreseen indemnification, the employer shall be allowed to claim indemnity
equivalent to the damage actually suffered and assessed.

Recourse liability of workers

Article 109

The worker who, either intentionally or due to gross negligence, causes damage to a
third party indemnified by the employer at the workplace or in relation to the work, shall be
obliged to compensate the employer for the indemnification paid to the third party.
 43

Limitation of worker's liability to indemnify or exemption of the worker from liability to

indemnify against damages

Article 110

Collective agreement, working regulations or employment contract may contain

provisions regulating the conditions and the method of limiting the worker's liability to
indemnify, including the exemption of the worker from liability to indemnify against
damages.

Employer's liability for damages caused to the worker

Article 111

(1) In the case of any damage caused to the worker at the workplace or in relation to
his work, the employer shall be obliged to indemnify the worker in accordance with the
general provisions of the law of civil obligations.
(2) The indemnification right referred to in paragraph 1 of this Article shall also apply
to any damage caused by the employer to the worker on the grounds of violation of his rights
arising from employment relationship.

15. TERMINATION OF EMPLOYMENT CONTRACTS

Reasons for employment contract termination

Article 112

The employment contract shall be terminated:

1) upon the death of the worker,
2) upon the death of employer - natural person, upon the termination of a small business
by virtue of law or the deregistration of sole trader in accordance with special
legislation,
3) upon the expiry of a fixed-term employment contract,
4) when the worker reaches the age of 65 and 15 years of entitlement for retirement
pension, unless otherwise agreed upon between the employer and the worker,
5) by means of agreement between the worker and the employer,
6) upon the submission of a legally valid decision confirming the entitlement to disability
pension due to permanent incapacity for work,
7) by means of a notice of dismissal,
8) based on a decision of a competent court.

Form of employment contract termination agreement

Article 113

The employment contract termination agreement shall be concluded in writing.

 44

Termination of employment contracts

Article 114

Both the employer and the worker shall be allowed to terminate the employment
contract.

Regular notice of dismissal

Article 115

(1) The employer shall be allowed to terminate the employment contract by giving
either the statutory notice or the notice stated in the contract of employment (regular notice of
dismissal), in the following cases:
1) where there is no need to perform certain work due to economic, technological or
organisational reasons (dismissal on economic grounds),
2) where the worker is not able to fulfil his obligations from the employment relationship
due to his specific characteristics or capacities (dismissal on personal grounds), or
3) the worker violates his obligations from the employment relationship (dismissal due to
the worker's misconduct), or
4) the workers did not satisfy during probationary period (dismissal due to incompetence
during probationary period).
(2) When making a decision about a dismissal on economic grounds, the employer
shall take into account the worker's tenure, age and his family responsibilities.
(3) The provisions of paragraph 2 of this Article shall not apply to employers
employing less than 20 workers.
(4) The worker shall be allowed to terminate the employment contract subject to
either the statutory notice period or the notice stated in the contract of employment, without
specifying any reasons for doing so.
(5) The employer who has dismissed the worker for economic, technological or
organisational reasons shall not employ another worker at the same post during the period of
six months of the date of giving notice of dismissal.
(6) Should within the period referred to in paragraph 5 of this Article a need for
employment for the same work arise, the employer shall be obliged to offer an employment
contract to the worker he has dismissed on economic grounds.

Extraordinary notice of termination

Article 116

(1) Both the employer and the worker shall have a just cause to terminate the
employment contracts of indefinite duration or fixed-term employment contracts without
observing the statutory notice or the notice stated in the contract (extraordinary notice of
termination) where the continuation of employment relationship is regarded as impossible due
to a severe breach of obligations from the employment relationship or any other fact of
critical importance, and recognising all the circumstances or interests of both contracting
parties.
(2) The employment contract may be subject to an extraordinary notice of termination
solely within 15 days of the date when the party concerned gained knowledge of the fact
constituting the grounds for extraordinary notice of termination.
 45

(3) A party to the employment contract that, in the case referred to in paragraph 1 of
this Article, gives an extraordinary notice of termination shall have right to claim indemnity
for the damage caused by the breach of the obligations from the employment contract.

Unfair dismissal

Article 117

(1) Temporary absence from work due to illness or injury shall not constitute a just
cause for terminating the employment contract.
(2) An appeal or civil action, or participation in a proceeding against the employer due
to violation of laws, regulations or administrative provisions, collective agreement or working
regulations, or the worker's approach to the competent state authorities shall not constitute a
just cause for terminating the employment contract.
(3) The worker's approach to the competent state authorities on the grounds on
reasonable suspicion of corruption or his report in good faith on the said suspicion to the
competent persons or state authorities shall not constitute a just cause for terminating the
employment contract.

Termination of fixed-term employment contract

Article 118

A fixed-term employment contract may be terminated by means of regular notice only

if such an option is provided for by the contract.

Dismissal procedure

Article 119

(1) Prior to giving regular notice of dismissal due to the worker's misconduct, the
employer shall be obliged to alert the worker in writing to his obligations arising from the
employment contract indicating possible dismissal should the breach of obligations persists,
unless circumstances exist due to which the employer cannot be reasonably expected to do so.
(2) Prior to giving a regular notice of dismissal or extraordinary notice of termination
due to the worker's misconduct, the employer shall be obliged to give the worker an
opportunity to present his defence, unless circumstances exist due to which the employer
cannot be reasonably expected to do so.

Form, explanation and service of notice of dismissal

Article 120

(1) The notice of dismissal shall be in writing.

(2) The employer shall explain in writing the reasons for dismissal.

(3) The notice of dismissal shall be handed over to the worker it pertains to.
 46

Period of notice

Article 121

(1) The notice shall begin as on the date of notice of termination of the employment
contract.
(2) The notice shall be suspended during pregnancy, maternity, paternity or adoption
leave, half-time work, part-time work due to intensive childcare, leave of pregnant or
breastfeeding worker, and during leave or part-time work due to having to take care of a child
with severe development disabilities, under specific provisions, as well as in the case of
temporary incapacity for work during treatment or recovery from injury at work or a
professional illness, and during service in national defence forces.
(3) The notice shall be suspended during the period of temporary incapacity for work.
(4) In the case of suspension of notice due to temporary incapacity for work, the
worker's employment relationship shall be terminated at the latest on expiry of six months
after the date of notice of termination of the employment contract.
(5) Unless otherwise provided for in collective agreement, working regulations or
employment contract, the notice shall not be suspended during annual and paid leave, and the
period of temporary incapacity for work of the worker released by the employer from
obligation to work during the notice period.

Minimum notice period

Article 122

(1) In case of regular notice of dismissal, the notice period shall be a minimum of:
1) two weeks, for less than one year of tenure with the same employer,
2) one month, for one year of tenure with the same employer,
3) one month and two weeks, for two years of tenure with the same employer,
4) two months, for five years of tenure with the same employer,
5) two months and two weeks, for ten years of tenure with the same employer,
6) three months, for twenty years of tenure with the same employer.
(2) For the worker with twenty years of tenure with the same employer, the period of
notice referred to in paragraph 1 of this Article shall be increased by two weeks if the worker
has reached the age of 50 or by one month if the worker has reached the age of 55.
(3) In case of termination of the employment contract due to the breach of obligations
arising from the employment relationship (dismissal due to the worker's misconduct) the
period of notice shall be two times shorter than the notice periods established in paragraphs 1
and 2 of this Article.
(4) The employer shall be obliged to pay compensation and recognize all other rights
to the worker released from the obligation to work during the notice period, as if he had
worked until the expiry of notice period.
(5) During the notice period the worker shall be entitled to be absent from work for at
least four hours a week, for the purpose of seeking for new employment.
(6) In case of termination of the employment contract by the worker, a shorter notice
period for the worker than for the employer, compared to the period provided for in
paragraph 1 of this Article, may be laid down by collective agreement or employment
contract.
(7) Where the employment contract is terminated by the worker for a serious reason,
the period of notice may not exceed one month.
 47

Dismissal with the offer of alternative employment

Article 123

(1) The provisions of this Act on dismissal shall also apply to the termination of
contract by the employer concurrently with his offer to the worker to conclude an
employment contract under different terms (dismissal with the offer of alternative
employment).
(2) If in the situation referred to in paragraph 1 of this Article the worker agrees to
accept the employer's offer, he shall retain the right to challenge the permissibility of such
termination of the contract before a competent court.
(3) The worker must provide feedback concerning the offer of alternative employment
within the time limit determined by the employer, which may not be shorter than eight days.
(4) In case of dismissal referred to in paragraph 1 of this Article, the time limit from
Article 133 (1) of this Act takes effect as of the date of the worker's refusal of the offer of
alternative employment, or, if the worker fails to provide the feedback or fails to provide it
within the time limit, as of the date of expiry of the time limit for the feedback as determined
by the employer.

Reinstatement option for the worker following unfair dismissal

Article 124

(1) Where the court establishes that a dismissal was not permissible and that
employment was not terminated, it shall order the employer to reinstate the worker.
(2) The worker who has challenged the permissibility of dismissal may move the
court to issue an interim measure ordering his reinstatement pending a final judicial decision
on the merits.

Judicial cancellation of employment contracts

Article 125

(1) When the court establishes unlawfulness of the dismissal effected by the
employer, and the worker finds it unacceptable to resume the employment relationship, the
court shall, upon the worker's request, determine the date of termination of employment and
award him an indemnity in an amount not less than three and not more than eight average
monthly salaries that were paid to the worker over the preceding three months, depending on
the tenure, age and family responsibilities of the worker.
(2) The court may also render the decision referred to in paragraph 1 of this Article at
the request of the employer, if there are circumstances that reasonably demonstrate that, in
view of all the circumstances and interests of both contracting parties, the continuation of
employment relationship is not possible.
(3) Both the employer and the worker may file a request for the cancellation of
employment contract in the manner referred to in paragraphs 1 and 2 of this Article, until the
conclusion of the hearing before the court of first instance.
 48

Severance pay

Article 126

(1) When the employer dismisses the worker following a two-year tenure, and unless
dismissal is given due to the worker's misconduct, the worker shall be entitled to severance
pay in an amount determined on the basis of the worker's tenure with that employer.
(2) Severance pay for each year of tenure with the same employer must not be agreed
upon or determined in an amount lower than one-third of the average monthly salary earned
by the worker in a period of three months prior to the termination of the employment contract
(3) Unless otherwise provided for by the law, collective agreement, working
regulations or employment contract, the aggregate amount of severance pay referred to in
paragraph 2 of this Article may not exceed six average monthly salaries earned by the worker
in a period of three months preceding the termination of the employment contract.

Collective redundancies

Article 127

(1) The employer who in the period of 90 days might have at least 20 redundancies,
out of which at least 5 employment contracts were terminated on economic grounds, shall be
obliged to begin consultations with the works council in good time and in the manner laid
down by this Act, with a view to reaching an agreement aimed at avoiding redundancies or
reducing the number of workers affected.
(2) The redundancies referred to in paragraph 1 of this Article include the workers
whose employment contract is to be terminated due to business reasons and by means of an
agreement between the employer and the worker, as proposed by the employer.
(3) In order to fulfil the obligation of consultations referred to in paragraph 1 of this
Article, the employer shall be obliged to supply the works council with all relevant
information and notify them in writing of the reasons for the projected redundancies, the
number of workers normally employed, the number and categories of workers to be made
redundant, the criteria proposed for the selection of the workers to be made redundant, the
amount and method for calculating any redundancy payments and other pays to the workers,
and the measures designed to alleviate the consequences of redundancy for workers.
(4) During the consultations with the works council, the employer shall consider ways
and means of avoiding the projected collective redundancies.
(5) The employer shall be obliged to notify the competent public authority responsible
for employment of the consultations referred to in paragraph 3 of this Article, and the
notification shall contain the information on the duration of consultations with the works
council, outcomes and conclusions resulting therefrom, with a statement of the works council
attached thereto, should he receive it.
(6) The works council may send any comments and suggestions they may have to the
competent public authority responsible for employment and to the employer, with regards to
the notification referred to in paragraph 5 of this Article.
(7) The employer shall be obliged to carry out the consultations referred to in
paragraph 1 of this Article irrespective of whether the decision on collective redundancies is
being taken by an undertaking controlling the employer, in accordance with specific
provisions.
 49

Termination of employment contracts in the process of collective redundancies

Article 128

(1) Projected collective redundancies notified to the competent public authority

responsible for employment shall take effect not earlier than 30 days after the notification
referred to in Article 127 (5) of this Act.
(2) The competent public authority responsible for employment may, until the last
day of the time limit referred to in paragraph 1 of this Article, at the latest, request the
employer to postpone either collective or individual redundancies for maximum 30 days, if
he is able to ensure the continuation of employment for the workers during this extended
period.

Specific rights of expatriate workers

Article 129

(1) The employer who posts a worker to work abroad, in another company or
undertaking owned by this employer shall be obliged, in the event of termination of the
contract of employment concluded between this worker and the foreign company or
undertaking, either on economic or personal grounds, to compensate the worker for
relocation costs and provide him with adequate employment in the country.
(2) When determining the notice period and severance pay, the period of expatriation
of the worker referred to in paragraph 1 of this Article, shall be regarded as the period of
tenure with the same employer.

Certificate on employment and return of documents

Article 130

(1) At the worker's request, the employer shall be obliged to issue a certificate on the
type of works performed by the worker and the length of employment.
(2) In case of employment termination, the employer shall be obliged to return all the
documents to the worker within 15 days as of the termination date, including the copy of the
worker's deregistration from mandatory pension and health insurance schemes, and to issue a
certificate on the type of works performed by the worker and the length of employment.
(3) The certificate referred to in paragraphs 1 and 2 of this Article may not contain
any information indicated by the employer which could adversely impact the worker's new
employment contract.

16. EXERCISE OF THE RIGHTS AND OBLIGATIONS ARISING FROM

EMPLOYMENT

Deciding on the rights and obligations arising from employment

Article 131

(1) The employer who is a natural person may, by virtue of a written power of
attorney, authorise another adult person with legal capacity to represent him in the exercise of
rights and obligations arising from employment or related to employment
(2) When the employer is a legal entity, the powers referred to in paragraph 1 of this
 50

Article shall be vested in a chief executive or a body authorised by its constitutional

documents or other rules of this legal entity.
(3) The person or body referred to in paragraph 2 of this Article may, by virtue of a
written power of attorney, delegate its powers to another adult person with legal capacity.

Service of decision on the rights and obligations arising from employment

Article 132

The civil procedure provisions on the service of communications shall apply

accordingly to the service of decisions on the termination of employment contracts and
decisions made in the procedures referred to in Article 133 of this Act, unless the service of
communication procedure is provided for by collective agreement, agreement between the
works council and the employer or working regulations.

Judicial protection of the rights arising from employment

Article 133

(1) The worker who considers that his employer has violated any of his rights arising
from employment may require from the employer the exercise of this right within fifteen days
following the receipt of a decision violating this right, or following the day when he gained
knowledge of such violation.
(2) If the employer does not meet the worker's request referred to in paragraph 1 of
this Article within fifteen days, the worker may within another fifteen days seek judicial
protection before the court having jurisdiction in respect of the right that has been violated.
(3) A worker who has failed to submit a request referred to in paragraph 1 of this
Article, may not seek judicial protection before the competent court, except in the case of the
worker's claim for indemnification for damages or another financial claim pertaining to the
employment.
(4) When the laws, regulations or administrative provisions, collective agreement or
working regulations provide for an amicable dispute resolution, the deadline of fifteen days
for filing a request with the court starts as of the date when the procedure for such resolution
ended.
(5) The provisions of this Article shall not apply to the procedure for the protection of
workers' dignity referred to in Article 134 of this Act.
(6) Unless otherwise provided for by this Act or any other law, the competent court
within the meaning of this Act shall be the court that has jurisdiction over labour disputes.

The protection of workers' dignity

Article 134

(1) The procedure and measures for the protection of workers' dignity from
harassment or sexual harassment shall be regulated by special legislation, collective
agreement, agreement between the works council and the employer or working regulations.
(2) The employer employing at least 20 workers shall be obliged to appoint a person
who would, in addition to him, be authorised to receive and deal with complaints related to
the protection of the workers' dignity.
(3) The employer or person referred to in paragraph 2 of this Article shall, within the
time limit prescribed by the collective agreement, the agreement between the works council
 51

and the employer or working regulations, and within a maximum of eight days from the day
of filing the complaint, examine the complaint and take all the necessary measures
appropriate for a particular case, to stop the harassment or sexual harassment, if he has
established that harassment has taken place.
(4) Where the employer fails to take measures for the prevention of harassment or
sexual harassment within the time limit referred to in paragraph 3 of this Article, or if the
measures taken are clearly inappropriate, the worker who is a victim of harassment or sexual
harassment shall have the right to stop working until he is ensured protection, provided that
he sought protection in the court that has jurisdiction, within the following eight days.
(5) If there are circumstances under which it is not reasonable to expect that the
employer will protect a worker's dignity, the worker shall not be obliged to file a complaint
with the employer and shall have the right to stop working, provided that he sought protection
before the competent court and notified the employer thereof, within eight days of the date of
work interruption.
(6) During the period of interruption of work referred to in paragraphs 4 and 5 of this
Article, the worker shall be entitled to remuneration in the amount he would have earned if he
had actually worked.
(7) In the event of a valid judicial decision ruling that the worker's dignity was not
violated, the employer may request the refund of remuneration referred to in paragraph 6 of
this Article.
(8) All information collected in the procedure for the protection of workers' dignity
shall be confidential.
(9) The worker's behaviour constituting harassment or sexual harassment shall be
regarded as the breach of obligations arising from employment.
(10)The worker's resistance to the behaviour constituting harassment or sexual
harassment shall not be regarded as the breach of obligations arising from employment and
must not be grounds for discrimination against the worker.

Burden of proof in labour disputes

Article 135

(1) In the event of an employment-related dispute, the burden of proof shall lie with
the person claiming the violation of his rights arising from employment relationship or the
person initiating the dispute, unless otherwise provided for by this Act or any other law.
(2) In the event of a dispute related to the discrimination of the worker on the grounds
of the worker's approach to the competent state authorities due to reasonable suspicion of
corruption or his report in good faith on the said suspicion to the competent persons or state
authorities, which resulted in the violation of worker's rights arising from employment, and
where the worker presents a reasonable case of him being discriminated and of violation of
his rights arising from employment, the burden of proof shall lie with the employer, who
must prove the non-discrimination of the worker and non-violation of his rights arising from
employment.
(3) In the event of a dispute related to the employment contract termination, the
burden of proving justified reasons for the termination shall lie with the employer, where the
termination was effected by the employer; the burden of proof shall lie with the worker only
where the termination of employment contract was effected by the worker by means of an
extraordinary notice of termination.
(4) In the event of a dispute related to working time, the burden of proof shall lie with
the employer, if he fails to keep records referred to in Article 5 (1) of this Act.
 52

Arbitration and mediation

Article 136

(1) Parties to an employment contract may, for the purpose of resolving a labour
dispute and subject to their mutual consent, use arbitration or mediation services.
(2) The composition, procedure and other issues relevant for the arbitration or
mediation may be laid down by collective agreement.

Transfer of contracts to a new employer

Article 137

(1) In the event of transfers of undertakings, businesses or parts of undertakings or

businesses, retaining their economic integrity, to a new employer, as a result of the change of
status or a legal transaction, all contracts of employment of the workers employed with the
undertaking or part of undertaking being transferred, or of those who are connected with the
business or part of business being transferred.
(2) The worker whose employment contract has been transferred as provided for in
paragraph 1 of this Article shall retain all the rights arising from the employment relationship
he had acquired until the employment contract transfer date.
(3) The transferee employer to whom labour contracts are transferred as provided for
in paragraph 1 of this Article shall assume all the rights and obligations arising from the
transferred employment contracts in unaltered form and scope, as of the transfer date.
(4) The transferor employer shall be obliged to inform the new employer in writing,
fully and accurately, about the rights of the workers whose employment contracts are being
transferred.
(5) The failure of the transferor employer to inform in writing the transferee employer
about the rights of the workers whose employment contracts are being transferred shall not
impact the entitlements of the workers whose employment contracts are being transferred to
the new employer.
(6) The transferor employer shall be obliged to notify, in a good time and prior to the
date of transfer, the work council and all the workers affected by the transfer about the
transfer of the undertaking, business or part of the undertaking or business to a new employer.
(7) The notification referred to in paragraph 6 of this Article must contain the
information concerning:
1) the date of transfer of employment contracts,
2) the reasons for the transfer of the employment contracts,
3) the legal, economic and social implications of the transfer for the workers,
4) any measures envisaged in relation to the workers whose employment contracts are
being transferred.
(8) The contracts of employment referred to in paragraph 1 of this Article shall be
transferred to the new employer as on the date of legal effect of the transfer, in accordance
with laws and regulations regulating the legal transaction resulting in the transfer of the
undertaking, business or part of the undertaking or business.
(9) Where the transfer of the undertaking, business or part of the undertaking or
business is effected in bankruptcy proceedings or resolution procedure, the rights being
transferred to the new employer may be impaired in accordance with specific provisions,
collective agreement or agreement between the work council and the employer.
(10) Where in the undertaking, business or part of the undertaking or business being
 53

transferred and retaining its economic integrity, a work council has been established, it shall
continue with its activities until the expiry of its mandate, at the latest.
(11) Where the undertaking, business or part of the undertaking or business being
transferred is not retaining its economic integrity and where it is not possible for the work
council to continue with its activities, the workers whose employment contracts are being
transferred shall retain their right on representation until the circumstances arise allowing for
the appointment of the new work council or until the expiry of mandate of their existing
representative.
(12) Where at the undertaking or part of undertaking being transferred a collective
agreement was concluded pertaining to business or part of business carried out, it shall
continue to apply to the workers until the new collective agreement is concluded, but no
longer than one year.
(13) Where the undertaking, business or part of the undertaking or business is
transferred to the new employer, the transferee and the transferor shall be jointly and
severally liable in respect of obligations that arose before the date of transfer from a contract
of employment or an employment relationship existing on the date of the transfer.
(14) The provisions of paragraphs 1 to 10 shall apply accordingly to institutions and
other legal persons.
(15) The person who fraudulently avoids fulfilling his obligations towards the
workers by transferring the undertaking, business or part of the undertaking or business or in
any other way, shall be ordered by the competent court, upon the workers' request, to fulfil
his obligations even if the employment contract was not concluded with this person.

Presumed consent to the employer's decision

Article 138

(1) Where the employer requested consent to his decision from works council or
trade union, they shall be obliged to respond within eight days as of the date of request, either
by granting or denying such consent, unless otherwise laid down by this Act for a specific
case.
(2) If the work council or trade union fail to respond to the employer's request within
the time limit referred to in paragraph 1 of this Article, either by granting or denying their
consent, they shall be presumed to have consented to the employer's decision.

Statute of limitations for claims arising from employment relationships

Article 139

Unless otherwise laid down by this Act or any other law, the period of statute of
limitations for the claims arising from employment relationship shall be five years.
 54

TITLE III

PARTICIPATION OF WORKERS IN DECISION-MAKING

1. WORKS COUNCIL

Right to participate in decision-making

Article 140

Workers employed with an employer who employs at least 20 workers, with the
exception of workers employed at public administration bodies, shall have the right to take
part in decision-making on issues related to their economic and social rights and interests, in
the manner and under the conditions prescribed by this Act.

Right to elect a works council

Article 141

(1) Workers shall have the right to elect, in free and direct elections, by secret ballot,
one or more of their representatives (hereinafter: the works council) which shall represent
them before their employer in relation to the protection and promotion of their rights and
interests.
(2) The procedure for the establishment of a works council shall be initiated upon the
proposal of a trade union or at least twenty per cent of the workers employed with an
employer.

Number of members of the works council

Article 142

(1) The number of members of the works council shall be determined in accordance
with the number of workers employed with an employer in the following manner:
1) up to 75 workers: 1 representative,
2) 76 to 250 workers: 3 representatives,
3) 251 to 500 workers: 5 representatives,
4) 501 to 750 workers: 7 representatives,
5) 751 to 1000 workers: 9 representatives.
(2) For each further 1000 of workers, the number of the members of the works
council shall be increased by two.
(3) When members of the works council are elected, account must be taken of equal
representation of all organizational units and groups of employees (by gender, age,
qualifications, jobs they perform, etc.).

General works council

Article 143

(1) If the employers operations are organized through several organizational units,
workers may establish one works council on the level of all organizational units or they may
 55

establish works councils in each individual organizational unit.

(2) In case elections are organized after the establishment of works councils in
individual organizational units and a works council is established on the level of the
employer, the term of the established works councils in individual organizational units shall
be terminated on the day of the establishment of the works council on the level of the
employer.
(3) When workers establish a works council in an individual organizational unit, the
General works council may by organized only if the works councils are established in all
organizational units, where such a works council is composed of representatives of works
councils of all organizational units.
(4) The composition, powers and other issues important for the operation of the
General works council shall be established by an agreement between the employer and works
councils.
Electoral term

Article 144

(1) A works council is elected for a term of four years from the announcement date of
final election results.
(2) By way of derogation from paragraph 1 of this Article, the electoral term may be
shorter in case the elections for a works council have been performed due to cancellation of
previous elections or dissolution of the works council during the term duration, and it shall
last until the expiry of the electoral term of the dissolved works council, namely the one
elected at the cancelled elections.
(3) When there are changes in the membership during the electoral term of the works
council, the term of a new member of the works council shall last until the term of that works
council expires.
(4) Regular elections shall be generally held in the period between 1 March and 31
May.
Voting rights

Article 145

(1) All workers of an employer shall have the right to elect and be elected.
(2) Members of management and supervisory bodies and their family members, as
well as workers referred to in Article 131 (1) and (2) of this Act, shall not have the right to
elect and be elected.
(3) Family members referred to in paragraph 2 of this Article are considered to be
members of the immediate family referred to in Article 86 (3) of this Act.
(4) The provision of paragraph 2 of this Article shall not apply to workers
representatives in employers bodies.
(5) An electoral committee shall establish a list of workers having voting rights.

Lists of candidates

Article 146

(1) Lists of candidates for worker representatives may be proposed by trade unions
whose members are employed with a respective employer, or a group of workers enjoying the
 56

support of at least twenty per cent of the workers employed with a respective employer.
(2) Each list of candidates shall contain the same number of candidates and deputies
as the number of worker representatives elected.
(3) The procedure for the election of works councils, responsible persons, deadlines
and manner of submitting the information on elected works councils shall be prescribed by
the Minister by virtue of an ordinance.

Determination of election results

Article 147

(1) Where one representative is to be elected, a candidate who has received the
majority of votes cast shall be elected.
(2) If, in the case referred to in paragraph 1 of this Article, two or more candidates
receive the same number of votes, a candidate with a longer tenure with the employer shall be
elected.
(3) Where three or more representatives are to be elected, the number of elected
representatives shall be determined in the following way:
- The total number of votes cast for each list (the electoral list aggregate) is divided
into numbers from 1 to, inclusively, the number of representatives to be elected. The
results obtained in this way are ordered in descending order. The result that according
to the order corresponds to the number of representatives to be elected is a common
factor. The number of votes cast for each electoral list aggregate is divided by the
common factor. If votes are distributed in such a way that it is not possible to establish
from which of the lists a candidate is to be elected, the candidate on the list which has
received a higher number of votes shall be elected.
(4) The lists that receive less than five per cent of the votes cast shall not be included
in the distribution of representatives posts.
(5) In the case referred to in paragraph 3 of this Article, elected candidates are those
listed from ordinal number 1 to the ordinal number equivalent to the number of posts allotted
to their respective lists.
(6) Deputy representatives are those candidates from each list who were not elected,
beginning from the first non-elected representative, up to the equal number of elected
representatives from their respective lists. When the list of candidates is exhausted, deputies
shall be elected from the list of deputy candidates.
(7) The electoral committee provides information about the elections that have been
conducted to the employer and the trade unions that proposed the lists of candidates.

Basic powers of a works council

Article 148

(1) The works council shall safeguard and promote the interests of workers employed
with an employer, by advising, participating in decision-making and negotiating with the
employer or the person authorized by the employer on the issues important for the workers.
(2) The works council shall monitor the compliance with this Act, working
regulations, collective agreements and other provisions.
(3) The works council shall monitor whether the employer fulfils, orderly and
accurately, his obligations related to the calculation and payment of social security
contributions in accordance with specific provisions, and for this purpose the works council
 57

shall be entitled to get insight into the relevant documentation.

(4) The works council shall not participate in the organization or performance of
strike actions, lockouts or other industrial actions, nor shall it in any other way interfere with
a collective labour dispute which may result in such an action.

Duty to inform

Article 149

(1) The employer shall be obliged to inform the works council at least every three
months about:
1) business situation, results and work organization,
2) expected business developments and their impact on the workers economic and social
status,
3) trends and changes in salaries.
4) the extent of and the reasons for the introduction of overtime work,
5) the number and type of workers employed, employment structure (the number of
fixed-term workers, workers at alternative workplaces, workers assigned by
temporary-work agencies, workers temporarily posted to/from an associated company,
etc.) as well as employment development and policy,
6) the number and type of workers to whom they have given a written consent to
additional job referred to in Article 61 (3) and Article 62 (3) of this Act,
7) health protection and safety at work policy and measures taken in order to improve
working conditions,
8) outcomes of inspections of work and safety at work conditions,
9) other issues bearing particular importance for the economic and social position of
workers.
(2) The employer shall be obliged to inform the works council about the issues from
paragraph 1 of this Article in such a manner in terms of timeliness and the level of detail so as
to enable the members of the works council to evaluate possible impact and prepare for
negotiations with the employer.

Duty to consult before rendering a decision

Article 150

(1) Before rendering a decision that is relevant for the position of workers, the
employer must consult the works council about the proposed decision and must communicate
to the works council the information important for rendering a decision and understanding its
impact on the position of workers.
(2) In cases referred to in paragraph 1 of this Article, the employer shall be obliged to
enable the works council to organize meetings, upon their request and before their final
response about the employers intended decision, in order to obtain additional answers and
explanations related to their statement.
(3) Important decisions referred to in paragraph 1 of this Article shall include in
particular decisions on:
1) the adoption of working regulations,
2) employment policy development plan, and dismissal,
3) transfers of undertakings, businesses or parts of undertakings or businesses, as well as
transfer of workers employment contracts to a new employer, and its impact on
 58

workers affected by the transfer,

4) the measures related to the protection of health and safety at work,
5) the introduction of new technologies and change of organization and method of work,
6) annual leave schedules,
7) working hours patterns,
8) night work,
9) compensations for inventions and technical innovations,
10) collective redundancies referred to in Article 127 of this Act and all other decisions
that, under this Act or a collective agreement, must be rendered in consultation with
the works council.
(4) The complete information related to the proposed decision must be delivered to
the works council in good time, so as to enable the works council to put forward comments
and proposals stemming from the discussion that could have substantial effect on decision-
making process.
(5) Unless otherwise specified by an agreement between the employer and the works
council, the works council shall provide the employer with a feedback concerning the
proposed decision within eight days. In case of an extraordinary dismissal, the deadline shall
be five days.
(6) If the works council does not provide its feedback on the proposed decision
within the deadline referred to in paragraph 5 of this Article, it shall be presumed that it has
no comments or proposals.
(7) The works council may oppose to a dismissal if the employer does not have just
cause for the dismissal, or if the dismissal procedure is not conducted in compliance with this
Act.
(8) The works council must give reasons for its opposition to the employers
decision.
(9) If the works council opposes to an extraordinary notice of dismissal and the
worker brings legal action to challenge the permissibility of dismissal and requests the
employer to retain him at work, the employer shall be obliged to admit the worker to work
within eight days of the information about the initiation of legal action and retain him at work
pending the final judicial decision on the merits.
(10) In cases referred to in paragraph 9 of this Act, if the employer terminates an
employment by giving extraordinary notice of dismissal, the employer shall be allowed to
suspend the worker pending the final judicial decision on permissibility of dismissal. In this
case, the employer shall be obliged to pay the worker monthly remuneration in the amount of
one-half of the average salary paid to the worker in the preceding three months.
(11) If the works councils opposition to an extraordinary notice of dismissal is
manifestly not founded on the provisions of this Act, the employer may move the court to
issue an interim measure releasing him from the obligation to admit the worker to work and
pay the worker remuneration, pending the final judicial decision on the merits.
(12) A decision rendered by the employer contrary to the provisions of this Act
governing consultations with the works council shall be null and void.

Co-decision making

Article 151

(1) The employers decisions that may be rendered only with a prior consent of the
works council shall include the decisions on:
1) dismissing a member of the works council,
 59

2) dismissing a candidate for the works council who was not elected, for a period of three
months following the establishment of the election results,
3) dismissing a worker with reduced capacity for work due to an injury at work or
professional illness,
4) dismissing a worker over 60 years of age,
5) dismissing a workers' representative in an employers body,
6) including persons referred to in Article 34 (1) of this Act in collective redundancy,
except in cases when the employer has initiated or is conducting liquidation
proceedings in accordance with specific provisions,
7) collecting, processing, using and disclosing the information about a worker to third
parties,
8) appointing a person authorized to supervise whether personal information about
workers is collected, processed, used or disclosed to third parties in accordance with
the provisions of this Act.
(2) By way of exception, an employer may, without previous consent of the works
council, render a decision from paragraph 1, subparagraphs 1 to 6 of this Article, if the
decision pertains to the rights of a worker who is also a trade union commissioner subject to
the protection referred to in Article 188 of this Act.
(3) If the works council fails to grant or deny its consent within eight days, it shall be
presumed to have consented to the employers decision.
(4) If the works council refuses to give its consent, the refusal shall be explained in
writing, and the employer may, within fifteen days of the receipt of the statement on refusal
to give consent, ask that such consent be replaced by an arbitration award.
(5) The arbitration referred to in paragraph 4 of this Article shall be conducted by an
arbiter who is selected from the list defined by the Economic and Social Council, or
determined in agreement by the opposing parties.
(6) The list of arbiters shall be determined and managed by the Economic and Social
Council.
(7) The Minister shall, alongside a prior opinion of the Economic and Social Council,
regulate the method of arbiter selection, arbitral proceedings and method of performing
administrative tasks related to these proceedings, by virtue of an ordinance.
(8) The minister shall, alongside a prior opinion of the Economic and Social Council
and opinion of the minister responsible for finance, determine an amount and payment
method for costs of the arbitral proceedings as well as the compensation for the arbiter, by
virtue of a decision.
(9) An agreement between the employer and the works council may also regulate
other issues in which the employer may render a decision only subject to prior consent of the
works council.

Duty to inform workers

Article 152

The works council shall be obliged to regularly inform the workers and trade union
about its work and obtain their initiatives and proposals.
 60

Relations with trade unions

Article 153

(1) With a view of protecting and promoting the rights and interests of workers, the
works council shall cooperates, with full trust, with all trade unions whose members are
employed by the employer.
(2) A member of the works council may freely continue to work for a trade union.
(3) If no works council has been established with an employer, all the rights and
obligations pertaining to works councils under this Act shall be exercised by a trade union's
representative, apart from the rights referred to in Article 164 (2) of this Act related to the
appointment of workers representatives in an employer's body referred to in Article 164 (1)
of this Act.
(4) If several trade unions operate with an employer, these trade unions shall reach an
agreement concerning one or more trade union representatives who shall exercise the rights
and obligations referred to in paragraph 3 of this Article and they shall inform the employer
thereof in writing.

Work of the works council

Article 154

(1) If the works council consists of three or more members, it shall work in sessions.
(2) The works council shall adopt its own rules of procedure.

(3) Trade union members whose members are employed with the employer may

attend sessions of the works council, but have no right to participate in decision-making.
(4) The works council may consult experts regarding issues falling within the scope of
their activities.
(5) The costs of expert consultations referred to in paragraph 4 of this Article shall be
covered by the employer, in accordance with the agreement between the employer and the
works council.

Judicial standing

Article 155

(1) The works council may sue and be sued subject only to the authority or obligations
set forth by this Act or other laws and regulations or collective agreement.
(2) The works council may not acquire assets.
(3) The works council and its members shall not have civil liability for its decisions.

Conditions for the work of the works council

Article 156

(1) The works council shall hold sessions and pursue its affairs during working hours.
(2) Each member of the works council shall be entitled to a compensation for six
 61

working hours per week.

(3) Members of the works council may transfer their entitlement to working hours
referred to in paragraph 2 of this Article to each other.
(4) If the number of available working hours permits so, the function of the president
or a member of the works council may be carried out on a full time basis.
(5) The employer shall provide the works council with the necessary premises,
personnel, resources and other working conditions.
(6) The employer shall permit members of the works council to undergo training
necessary for work in the council.
(7) The employer shall also bear other costs incurred as a result of the works
councils activities under this Act, another regulation or collective agreement.
(8) Following the expiration of his term of service, the president or a member of the
works council who had worked in the works council on a full time basis shall be reinstated to
his former position, and if the need of such a job no longer exists, the employer shall offer
him another equivalent position.
(9) The conditions for the work of the works council shall be specified by an
agreement between the employer and the works council.
(10) The relationship between the works council and the employer shall be based on
trust and mutual cooperation.

Prohibition of discrimination of the members of the works council

Article 157

The employer must neither favour nor disfavour members of the works council as
against other workers.

Prohibition of discrimination of workers by the works council

Article 158

In pursuance of its activities, the works council must not favour or disfavour any
individual worker or any group of workers as against other workers.

Confidentiality of business information

Article 159

(1) A member of the works council shall be obliged to keep confidential business
information he became aware of in the course of exercise of his powers under this Act.
(2) The confidential business information referred to in paragraph 1 of this Article
means information that is defined as trade secret by law, another regulation or a legal act of
company, institution or another legal entity, that represents a production secret, results of
research or construction or any other information which disclosure to an unauthorized person
might endanger the entitys economic interests.
(3) The obligation referred to in paragraph 1 of this Article shall continue to exist
even after the expiration of their mandate.
 62

Agreement between the works council and the employer

Article 160

(1) The works council may conclude a written agreement with the employer, which
may contain legal rules governing employment matters.
(2) The agreement referred to in paragraph 1 of this Article shall be directly
applicable and binding on all workers employed with the employer who is a party thereto.
(3) The agreement referred to in paragraph 1 of this Article must not regulate
remuneration, working hours and other matters which are, as a rule, regulated by a collective
agreement, except when parties to a collective agreement have authorized parties to this
agreement to do so.

Increase in membership and authority of the works council

Article 161

(1) The number of members of the works council may be increased to exceed the
number prescribed by this Act by virtue of an agreement between the works council and the
employer. The extent of exempting members of the works council from work obligation may
also be increased, with compensation.
(2) The authority of the works council may be expanded by virtue of an agreement
between the works council and the employer, or by virtue of a collective agreement.

Invalidating elections, disbanding a works council and

expulsion of its member

Article 162

(1) In case of serious breach of obligations provided for by this Act on conducting the
elections for works councils which affected election results, the works council, electoral
committee, employer, trade unions whose members are employed with the employer or
candidate for works council may, within twenty days from the day of announcement of final
election results, move the court having jurisdiction to invalidate the conducted elections.
(2) If the works council or any of its members severely breach obligations imposed on
them by this Act, another regulation or collective agreement, or if during the electoral term
there are any obstructions for a membership of any member in the works council, trade
unions whose members are employed with the employer may move the court having
jurisdiction to disband the works council or to expel a particular member. The same motion
may be put forward by at least 25% of the workers or by the employer.
(3) If application of the provisions of Article 142 (3) of this Act is not ensured during
election of members of the works council, disbanding of the works council may be requested
by at least 25% of all workers employed with the employer.
(4) Court jurisdiction and deadlines for rendering decisions invalidating elections,
disbanding works councils and expelling any of their members shall be determined by
appropriate application of the provisions of Article 220 of this Act.
 63

2. WORKERS MEETINGS

Workers meetings

Article 163

(1) In order to ensure full scale reporting and discussions on employers status and
development and on activities of the works council, meetings of workers employed with an
employer shall be held twice a year, in equal time intervals.
(2) If the size of the employer or other particularities have such requirements,
meetings referred to in paragraph 1 of this Article may be held by divisions or other
organizational units.
(3) Workers meetings referred to in paragraph 1 of this Article shall be convened by
the works council, with prior consultations with the employer, taking into account that the
time and place of a workers meeting do not harm employers business activities.
(4) If there is no works council established with an employer, the workers meetings
referred to in paragraph 1 of this Act shall be convened by the employer.
(5) Not interfering with the right of the works council to convene workers meetings
referred to in paragraph 1, the employer may, if he believes it to be necessary, convene a
workers meeting, taking into account that works councils authorities determined by this Act
are not restricted.
(6) The employer shall consult with the works council in regard to convening a
meeting referred to in paragraph 5 of this Article.

3. WORKERS REPRESENTATIVE IN AN
EMPLOYER'S BODY

Workers' representative in the employers body

Article 164

(1) In a company or a cooperative society, where a body (supervisory board,

management board, namely another appropriate body) that supervises business management
is established in accordance with specific provisions, and in a public institution, a workers
representative shall be one member of the companys or cooperatives body that supervises
business management, namely one member of a public institutions body (governing council,
namely another appropriate body).
(2) Workers representative in a body referred to in paragraph 1 of this Article shall
be appointed and recalled by the works council.
(3) If no works council has been established with an employer, the workers
representative in a body referred to in paragraph 1 of this Article shall be appointed and
recalled by the workers, among workers employed with the employer, in free and direct
elections, by secret ballot, in the manner prescribed by this Act for the election of a one-
member works council.
(4) The member of the body referred to in paragraph 1 of this Article appointed in
accordance with paragraph 2, or elected as prescribed by paragraph 3 of this Article, shall
have the same legal position as other appointed members of that body.
 64

TITLE IV

COLLECTIVE INDUSTRIAL RELATIONS

1. TRADE UNIONS AND EMPLOYERS ASSOCIATIONS

Right to associate

Article 165

(1) Workers shall have the right, according to their own free choice, to found and join
a trade union, subject to only such requirements which may be prescribed by the articles of
association or internal rules of this trade union.
(2) Employers shall have the right, according to their own free choice, to found and
join an employers association, subject to only such requirements which may be prescribed
by the articles of association or internal rules of this association.
(3) The associations referred to in paragraphs 1 and 2 of this Article (hereinafter: the
associations) may be founded without any prior approval whatsoever.

Non-compulsory membership of associations

Article 166

(1) Workers and employers, respectively, may freely decide on their membership in
an association and leaving such association.
(2) No one shall be discriminated on the ground of his membership or non-
membership in an association or participation or non-participation in its activities.
(3) Actions contrary to paragraphs 1 and 2 of this Article shall constitute
discrimination within the meaning of specific provisions.

Temporary or permanent prohibition of activities by virtue of an

executive authorities decision

Article 167

The operations of an association may not be temporarily prohibited nor may an

association be disbanded by virtue of a decision by executive authorities.

Higher-level associations

Article 168

(1) Associations may create their own federations or other forms of association in
order to pursue their interests at a higher level (higher-level associations).
(2) Higher-level associations shall enjoy all the rights and freedoms granted to
associations.
(3) Associations and higher-level associations shall have the right to freely join
federations and cooperate with international organizations established for the purpose of the
promotion of their common rights and interests.
 65

Powers of associations

Article 169

(1) An association may be a party to a collective agreement only if it has been

established and registered in accordance with the provisions of this Act.
(2) An association may represent its members in employment-related disputes with
the employer, before a court, an arbitration body or a state body.

Establishment of other legal entities

Article 170

In pursuance of their goals and tasks as provided under their articles of association or
internal rules, associations may establish other legal entities, subject to specific provisions.

2. ESTABLISHMENT AND REGISTRATION OF

ASSOCIATIONS

Establishment of an association

Article 171

(1) A trade union may be established by at least ten adult persons with legal capacity.
(2) An employers association may be established by at least three legal entities or
adult persons with legal capacity.
(3) A higher-level association may be established by at least two associations referred
to in paragraphs 1 and 2 of this Article.
(4) The name of an association or higher-level association must be clearly
distinguishable from the names of already registered associations or higher-level associations.

Articles of association

Article 172

(1) An association or a higher-level association must have articles of association

based and adopted according to principles of democratic representation and democratic
exercise of its members' will.
(2) The articles of association shall regulate the purpose of the association, its name,
seat, indication whether it operates in one or more counties, or on the territory of the Republic
of Croatia, logo, bodies, method for the election and recall of members of these bodies,
powers given to the associations bodies, procedure for acceptance to membership and
termination of membership, methods for adopting and amending the articles of association,
rules and other regulations, and termination of the associations operations.
(3) The articles of association must include the provisions on the bodies authorized to
conclude collective agreements and requirements and procedures for organizing industrial
actions.
(4) Entering into collective agreements must be specified in the articles of association
as one of the purposes of an association.
 66

Legal personality of an association

Article 173

(1) An association and a higher-level association shall acquire legal personality as of

the date of their registration in the register of associations.
(2) The articles of association shall state whether an association has branch offices or
other internal organizational forms and specifies the authorities with which such branch
offices or other organizational forms are vested for the purpose of legal transactions.
(3) A branch office or other internal organizational form acquire authorities to engage
in legal transactions referred to in paragraph 2 of this Article as from the date indicated in its
deed of foundation, in accordance with the articles of association.

Register of associations

Article 174

(1) Associations and higher-level associations which operate on the territory of a

single county shall be registered in the register of associations at the public administration
office in the county, or at the office of the City of Zagreb responsible for labour affairs.
(2) Associations and higher-level associations which operate on the territory of the
Republic of Croatia or two or more counties shall be registered in the register of associations
at the ministry responsible for labour.
(3) The following information shall be entered in the register: date of foundation,
name, seat, indication whether the association operates in one or more counties, or on the
territory of the Republic of Croatia, name of executive body, names of authorized
representatives, and termination of operations of an association or a higher-level association.
(4) The minister shall regulate the contents and methods for maintaining the register
of associations, by virtue of an ordinance.

Application for registration in a register of associations

Article 175

(1) An association shall be registered upon the application of its founder.

(2) The application must be accompanied by the following documents: the deed of
foundation, the minutes taken at the founding assembly, the articles of association, the list of
founders and member of the executive body, and full name(s) of the person(s) authorized to
represent the association.
(3) The founders shall file an application for registration in a register of associations
within thirty days following the date of the founding assembly.
(4) The body responsible for registration shall issue a certificate stating that an
application for registration has been received at a register of associations.
(5) The regulation on general administrative procedure shall be applied to the
procedure of registration in a register of associations.

Decision on application for registration in a register of associations

Article 176

(1) A decision shall be issued on an application for registration of an association in a

 67

register.
(2) The decision referred to in paragraph 1 of this Article shall include: registration
number, name of association, seat, information on whether the association operates in one or
more counties, namely on the territory of the Republic of Croatia, and name and family name
of the person or persons authorized to represent the association.

Removal of deficiencies in the articles of association or foundation procedure

Article 177

(1) If the body authorized for registration finds that the attached articles of association
do not comply with this Act, or that the application does not contain evidence of compliance
with the requirements for the foundation of an association specified by this Act, it shall invite
the applicants to bring the articles of association into conformity with this Act or to produce
adequate evidence, and shall set a deadline for this purpose which may not be shorter than
eight days and longer than fifteen days.
(2) If, within the deadline referred to in paragraph 1 of this Article, the applicants fail
to remove the deficiencies in the articles of association or produce evidence of compliance
with the requirements for the foundation of an association specified by this Act, the body
authorized for registration shall issue a decision rejecting the application for registration in a
register of associations.

Time limit for issuing a decision on registration in a register of associations

Article 178

(1) The body authorized for registration shall issue a decision on an application for
registration in a register of associations within a maximum of thirty days following the filing
of a compliant application.
(2) If the authorized body fails to issue a decision within the deadline referred to in
paragraph 1 of this Article, it shall be considered that the association is registered as of the
day following the expiration of this deadline.
(3) In cases referred to in paragraph 2 of this Article, the body authorized for
registration shall issue a certificate of registration of an association, containing particulars set
forth in Article 176, paragraph 2 of this Act, within seven days following the expiration of the
deadline for issuing a decision.

Rejection of application for registration

Article 179

(1) If an association has not been established in accordance with Articles 171 and 172
of this Act, the body authorized for registration shall issue a decision rejecting its registration
in a register of associations.
(2) Reasons must be given for a decision rejecting an application for registration.
(3) An appeal lodged against the decision of the public administration office of a
county, or the City of Zagreb office responsible for labour affairs, shall be decided upon by
the ministry.
(4) If the ministry issues a decision in the first instance, such a decision shall be final
and may be challenged before an administrative court.
 68

Registration in the event of change of information

Article 180

(1) Any change of the name of an association, its seat, information on whether it
operates in one or more counties, or on the territory of the Republic of Croatia, name of the
body, authorized representatives, and termination of its operations must be registered in the
register of associations.
(2) A person authorized to represent an association must communicate any changes
referred to in paragraph 1 of this Article to the body maintaining the register of associations
within thirty days following the occurrence of the change.
(3) The registration of change of information referred to in paragraph 1 of this Article
shall be subject to this Acts provisions applicable to the registration of associations.

3. ASSETS OF ASSOCIATIONS

Collection and protection of assets from enforced execution

Article 181

(1) Associations may acquire assets by collecting enrolment and membership fees, by
purchase, from donations or in any other legal manner, without any prior authorization.
(2) Immovable and movable assets of associations necessary for convening meetings,
carrying out educational activities and libraries may not be subject to enforced execution

Division of associations assets

Article 182

(1) If an association splits, or a substantial number of its members form a separate

association, the assets of this association shall be divided proportionate to the number of
members, unless otherwise provided by the articles of association, a contract or other
agreement.
(2) If an association ceases to operate, its assets shall be dealt with in the manner
prescribed by its articles of association.
(3) If an association ceases to operate, its assets may not be allocated to its members.

4. OPERATION OF ASSOCIATIONS

Prohibition of control

Article 183

(1) Employers and their associations must not exercise control over forming and
operations of trade unions, or their higher-level associations, nor must they finance or in any
other way support trade unions or trade union associations of a higher level in order to
exercise such control.
(2) The prohibition of control referred to in paragraph 1 of this Article is also
applicable to relations of trade unions and their higher-level associations with employers and
their associations.
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Judicial protection of membership rights

Article 184

A member of an association may seek judicial protection in the event of violation of

his rights guaranteed by the articles of association or other rules.

Judicial protection of the right to associate

Article 185

(1) An association or a higher-level association may move the court to prohibit the
operations violating the right of workers and employers to freely associate.
(2) An association or a higher-level association may claim compensation for damages
suffered as a result of activities referred to in paragraph 1 of this Article.

Prohibition of discrimination on the ground of membership in a trade union or

participation in trade union activities

Article 186

(1) A worker must not be placed in a less favourable position than other workers on
the ground of his membership in a trade union. It is, in particular, prohibited to:
1) conclude an employment contract with a worker, under the condition that he does not
join a trade union or that he leaves a trade union,
2) terminate an employment contract or place a worker in a less favourable position than
other workers in some other way because of his membership in a trade union or
participation in trade union activities after working hours, or during working hours
subject to the consent of the employer.
(2) The employer must not take into consideration membership in a trade union and
participation in trade union activities when rendering a decision whether or not to conclude
an employment contract, on the assignment of a worker to a particular job or to a particular
workplace, on training, advance in employment, pay, social benefits and termination of an
employment contract.
(3) An employer, a chief executive or another body, and an employers representative,
must not use coercion in favour of or against any trade union.

Trade union commissioner and representative

Article 187

(1) Trade unions shall decide autonomously on the methods for their representation
before an employer.
(2) Trade unions which have at least five members employed with an employer may
appoint or elect one or more trade union commissioners.
(3) Trade unions whose members are employed with a particular employer may
appoint or elect one or more trade union representatives.
(4) A trade union commissioner shall be a worker employed by the employer.
(5) Trade union commissioners or representatives shall have the right to safeguard
and promote interests of trade union members in relations with the employer.
(6) The employer shall make it possible for a trade union commissioner or
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representative to exercise, duly and effectively, the right referred to in paragraph 5 of this
Article, and shall provide them with access to information necessary for the exercise of this
right.
(7) A trade union commissioner or representative must exercise his right referred to in
paragraph 5 of this Article in the manner which is not harmful to employers business
operations.
(8) The trade union must inform the employer in writing about the appointment of a
trade union commissioner or representative.
(9) A trade union representative has all the rights and obligations pertaining to trade
union commissioners under this Act, except for trade union commissioners' rights and
obligations arising from employment or related to employment, and rights referred to in
Article 153, paragraph 3 of this Act.

Protection of trade union commissioners

Article 188

(1) During the trade union commissioners performance of his duty and six months
after the termination of this duty it is not allowed without prior consent of the trade union:
1) to terminate an employment contract, or
2) to place him in a less favourable position than his previous working conditions or than
other workers.
(2) If the trade union fails to grant or denies its consent within eight days, it shall be
presumed to have consented to the employers decision.
(3) If the trade union refuses to give its consent to dismissal, the refusal shall be
explained in writing, and the employer may, within fifteen days of the receipt of the statement
on refusal to give consent, ask that such consent be replaced by an arbitration award.
(4) The arbitration referred to in paragraph 3 of this Article is subject to the
provisions of Article 151 (4) to (8) of this Act.
(5) The protection referred to in paragraph 1 of this Article shall be enjoyed by at
least one trade union commissioner, whereas the maximum number of trade union
commissioners with an employer who enjoy protection is determined by applying this Acts
provisions governing the number of members of the works council as regards to the number
of workers organized in a trade union with the employer.

Trade union membership fees

Article 189

At the request and in accordance with the instructions of the trade union, and with the
prior written consent of the worker who is a trade union member, the employer shall calculate
and deduct from the workers salary trade union membership fees and regularly pay such fees
to the trade unions account.

5. TERMINATION OF AN ASSOCIATIONS OPERATIONS

Methods for terminating an associations operations

Article 190
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(1) An association may cease operating:

1) upon a decision of the associations body authorized by the articles of association to
decide on termination of its operations,
2) if the highest body of an association has not convened during a period which is twice
as longer as the period specified by the articles of association,
3) if the associations operations are banned by the court.
(2) After the highest body of an association has convened, the association shall submit
a report on the session of the associations highest body and information on the total number
of associations members, to a body authorized for registration.
(3) If the report referred to in paragraph 2 of this Article indicates that the number of
associations members specified by this Act for the foundation of an association has
decreased, the body authorized for registration shall delete the association from the register.
(4) The body authorized for registration shall render a decision on deletion of the
association referred to in paragraph 3 of this Article.
(5) In cases referred to in subparagraphs 2 to 4, paragraph 1 of this Article, a decision
terminating the associations operations shall be rendered by the court having jurisdiction,
and based on a final judicial decision, the body responsible for maintaining the register shall
delete the association from its register.
Ban on associations operations

Article 191

(1) The operations of an association shall be banned by a decision of a county court

having territorial jurisdiction, if the operations of an association are contrary to the
Constitution of the Republic of Croatia and its laws.
(2) The proceedings to ban the associations operations shall be initiated upon a
motion by the body authorized for registration or by the authorized public attorney.
(3) The judgment banning the operations of an association must include a statement of
reasons indicating the activities because of which the associations operations were banned.
(4) The judgement banning the operations of an association must include a decision
on the associations assets, in accordance with the articles of association.
(5) The enacting terms of a final judgment banning the operations of an association
shall be published in the Official Gazette.

6. COLLECTIVE AGREEMENTS

The subject-matter of a collective agreement

Article 192

(1) A collective agreement shall regulate the rights and obligations of the parties to
the agreement. It may also contain legal rules governing the conclusion, contents and
termination of employment, issues related to works councils, social security issues, and other
issues arising from or related to employment.
(2) The legal rules contained in a collective agreement shall be directly applicable and
binding on all persons who are subject to the collective agreement, in accordance with the
provisions of this Act.
(3) A collective agreement may contain rules related to the composition and methods
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of work of the bodies authorized for amicable collective labour dispute resolution.
Obligation to collective negotiations in good faith

Article 193

The persons, who, under specific provisions, may be parties to a collective agreement,
shall in good faith engage in negotiations over the conclusion of a collective agreement, in
relation to the issues that, under this Act, may be a subject matter of a collective agreement.
Persons bound by a collective agreement

Article 194

(1) A collective agreement shall be binding on all persons who have concluded it, and
on all persons who, at the time of the conclusion of such an agreement, were or subsequently
became members of the association that is a party to the collective agreement.
(2) A collective agreement shall specify the level of its application.

Form of a collective agreement

Article 195

A collective agreement must be concluded in written form.

Obligation of good faith in performing obligations arising from a collective agreement

Article 196

(1) The parties to a collective agreement and the persons to whom it applies shall in
good faith comply with its provisions.
(2) A claimant or a person to whom a collective agreement applies may claim
compensation for damages he suffered as a result of non-compliance with the obligations
arising from the collective agreement.

Power of attorney for negotiating and concluding a collective agreement

Article 197

(1) Persons representing the parties to the collective agreement must have a written
power of attorney for collective bargaining and concluding a collective agreement.
(2) If a party to a collective agreement is a legal entity, the power of attorney referred
to in paragraph 1 of this Article must be issued in compliance with the articles of association
of this legal entity.
(3) If one of the parties to a collective agreement is an employers association or a
higher-level employers association, the persons representing it must, in addition to a written
power of attorney referred to in paragraph 1 of this Article, also provide to the other party a
list of employers which are members of the association on whose behalf they negotiate or
conclude a collective agreement.
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Duration of a collective agreement

Article 198

(1) A collective agreement may be concluded for a definite or an indefinite period.

(2) A collective agreement concluded for a definite period shall not be concluded for a
period longer than five years.

Extended application of legal rules contained in a collective agreement

Article 199

(1) Following the expiration of the period for which this collective agreement was
concluded, the legal rules contained therein relating to conclusion, the contents and
termination of employment contracts shall continue to apply, as a part of previously
concluded employment contracts, until a new collective agreement is concluded, in the period
of three months until the expiration of the period for which the collective agreement was
concluded or three months from the expiration of the termination period.
(2) By way of derogation from paragraph 1 of this Article, a collective agreement may
stipulate a longer period of extended application of legal rules contained in the collective
agreement.
Cancellation of a collective agreement

Article 200

(1) A collective agreement concluded for an indefinite period may be cancelled.

(2) A collective agreement concluded for a definite period may be cancelled only if it
contains a cancellation clause.
(3) A collective agreement concluded for an indefinite period and a collective
agreement concluded for a definite period containing a cancellation clause must also contain
clauses on the reasons for cancellation and cancellation periods.
(4) If a collective agreement may be cancelled, but does not contain a clause on a
cancellation reason, the provisions of the law of obligations on amendment or termination of
a contract due to changed circumstances shall be applied to the cancellation reason, as
appropriate.
(5) If a collective agreement may be cancelled, but does not contain a clause on the
cancellation period, the cancellation period shall be three months.
(6) A notice of cancellation must be submitted to all the parties to a collective
agreement.
(7) A collective agreement must contain the provisions on the amendment and renewal
procedures.
Submission of a collective agreement to the competent body

Article 201

(1) Every collective agreement and every change (amendment, supplement or

cancellation) to a collective agreement must be submitted, depending on the area of its
application, to the ministry or a state administrative office of a county or the City of Zagreb
 74

office responsible for labour affairs.

(2) A collective agreement or a change thereto applicable within the entire Republic
of Croatia, or within two or more counties, shall be submitted to the ministry. All other
collective agreements and changes to collective agreements shall be submitted to county
public administration offices or the City of Zagreb office responsible for labour affairs.
(3) A collective agreement or a change to a collective agreement shall be submitted to
the competent body by the party which is listed first in this agreement and, in case of
cancellation, by the cancelling party.
(4) An employers association or a higher-level employers association shall provide
the competent body with a list of employers bound by the collective agreement concluded by
the employers association or the higher-level employers association, as well as all changes
to the associations membership that may have occurred during the period of the collective
agreements validity.
(5) The minister shall regulate the procedure for submitting collective agreements and
changes thereto to the competent state body, as well as the methods for keeping records of the
collective agreements and changes thereto that have been submitted, by virtue of an
ordinance.
Publication of a collective agreement

Article 202

(1) A collective agreement shall be published.

(2) The Minister shall regulate the methods for publishing collective agreements
referred to in paragraph 1 of this Article, by virtue of an ordinance.
(3) The employers failure to publish the collective agreement by which he is bound
shall not affect the fulfilment of his obligations arising from the collective agreement.
Extension of the application of a collective agreement

Article 203

(1) The Minister may, at the proposal of all parties to a collective agreement, extend
the application of a collective agreement concluded with an employers association or a
higher-level employers association, to an employer who is not a member of the employers
association or higher-level employers association that is a signatory of this collective
agreement.
(2) The decision referred to in paragraph 1 of this Article shall be rendered by the
Minister if there is a public interest for extension of a collective agreement and if the
collective agreement was concluded by trade unions which have the highest number of
members and an employers association which has the highest number of workers, at the level
for which it is extended.
(3) Based on the information on a number and structure of employers to which a
collective agreement will be extended, based on the information on a number of workers
employed with them and the level of workers material rights, and following consultations
with representatives of the employers to which the collective agreement will be extended, the
minister shall determine whether there is a public interest referred to in paragraph 2 of this
Article.
(4) In the decision referred to in paragraph 2 of this Article, the minister shall specify
 75

the level of application of a collective agreement whose application is extended.

(5) The extended application of a collective agreement referred to in paragraph 4 of
this Article shall cease after the expiration of a cancellation period of a collective agreement
to be cancelled, or the expiration of the deadline for which the collective agreement was
concluded, in which case the legal rules of this collective agreement shall not be applied
under Article 199 of this Act.
(6) The Minister may revoke a decision on extension of a collective agreement, and if
the application of a collective agreement has been extended, and there have been changes,
amendments or renewals after its extension, for which a proposal for extension has not been
submitted within thirty days following the submission of the change, amendment or renewal
to the competent body, the minister shall render a decision on revoking the decision on
extension of a collective agreement that has been changed, amended or renewed.
(7) A decision to extend the application of a collective agreement and the collective
agreement to be extended or a decision on revoking the extended application of a collective
agreement shall be published in the Official Gazette.
(8) When an employer has to apply two or more extended collective agreements and
in the event of any dispute on application of a collective agreement, the collective agreement
applied in business activities where the employer is classified according to the official
statistical classification shall be applied.
Judicial protection of the rights arising from a collective agreement

Article 204

(1) A party to a collective agreement may seek judicial protection of the rights arising
from such an agreement, by a complaint filed with the court having jurisdiction.
(2) In the event of any dispute due to cancellation of a collective agreement, the
provisions of Article 219 of this Act shall be applied, as appropriate.

7. STRIKE AND COLLECTIVE LABOUR DISPUTE RESOLUTION

Strike and solidarity strike

Article 205

(1) Trade unions shall have the right to call and undertake a strike in order to protect
and promote the economic and social interests of their members or on the ground of non-
payment of remuneration and compensation, or a part thereof, if they have not been paid by
their maturity date.
(2) In the event of any dispute related to conclusion, amendment or renewal of a
collection agreement, the right to call and undertake a strike shall have trade unions which
have been determined as representatives, under specific provisions, for collective bargaining
and conclusion of a collective agreement and which have negotiated the conclusion of a
collective agreement.
(3) A strike must be announced to the employer, or to the employers association,
against which it is directed, whereas a solidarity strike must be announced to the employer on
whose premises it is organized.
(4) A strike may not begin before the conclusion of the mediation procedure, when
such a procedure is provided for by this Act, or prior to the completion of other amicable
dispute resolution procedures agreed upon by the parties.
 76

(5) A solidarity strike may begin even if the mediation procedure has not been
conducted, but not before the expiration of two days from the date of commencement of the
strike in whose support it is organized.
(6) A letter announcing the strike must state the reasons for the strike, the place, date
and time of its commencement, as well as the method of its execution.

Disputes in which mediation is mandatory

Article 206

(1) In case of dispute which could result in a strike or other form of industrial action,
the mediation procedure must be conducted as prescribed by this Act, except when the parties
have reached an agreement on an alternative method for its resolution.
(2) The mediation referred to in paragraph 1 of this Article shall be conducted by the
mediator selected by the parties to a dispute from the list established by the Economic and
Social Council or determined by mutual agreement.
List of mediators

Article 207

(1) The Economic and Social Council shall keep a list of mediators established by it.
(2) A decision on the level of mediators fees shall be made by the minister, with a
prior opinion from the Economic and Social Council and consent from the minister of
finance.
(3) The Minister shall, alongside a prior opinion of the Economic and Social Council,
adopt an ordinance regulating the methods for the selection of mediators, conduct of the
mediation procedure and performance of administrative work necessary for this procedure.
Time limit for the completion of the mediation procedure

Article 208

Unless otherwise agreed by the parties to a dispute, the mediation provided by this Act
must be completed within five days following the submission of information about the
dispute to the Economic and Social Council, or to a state administrative office in a county or
the City of Zagreb responsible for labour affairs.
A decision made by the parties and its effects

Article 209

(1) Parties may finalize the mediation procedure with an agreement.

(2) The agreement referred to in paragraph 1 of this Article reached in the event of
dispute related to conclusion, amendment or renewal of a collective agreement shall have
legal force and effects of a collective agreement.
(3) The agreement referred to in paragraph 1 of this Article reached in the event of
dispute over remuneration and compensation, or a part thereof, if not paid by their maturity
dates, may be used to agree upon the method and dynamics of their payment.
 77

Resolution of disputes by arbitration

Article 210

(1) Parties to a dispute may agree to bring their collective labour dispute before an
arbitration body.
(2) The appointment of an individual arbiter or an arbitration board and other issues
related to the arbitration procedure may be regulated by a collective agreement or by an
agreement of the parties made after the dispute has arisen.

Issues to be decided by arbitration

Article 211

(1) In their agreement to bring a dispute before an arbitration body, the parties shall
define the issue to be resolved.
(2) The arbitration body may decide only upon the issues brought before it by the
parties to a dispute.
Arbitration award

Article 212

(1) If a dispute concerns the application of laws and regulations or collective

agreement, an arbitration body shall base its decision on such law, another regulation or
collective agreement.
(2) If a dispute concerns the conclusion, amendment or renewal of a collective
agreement, an arbitration body shall base its decision on equitable grounds.
(3) Unless the parties to a dispute specify otherwise in a collective agreement or an
agreement to bring a dispute before an arbitration body, an arbitration award must include the
reasons for the award.
(4) No appeal is permitted against an arbitration award.
(5) If a dispute concerns the conclusion, amendment or renewal of a collective
agreement, an arbitration award shall have the legal force and effects of such an agreement.

Lockout

Article 213

(1) Employers may engage workers in a lockout only as a response to a strike already
in progress.
(2) A lockout must not commence prior to expiration of eight days from the date of the
commencement of a strike.
(3) The number of workers locked out must not be higher than one half of the workers
on strike.
(4) With respect to the workers who are locked out, employers must pay contributions
prescribed by specific regulations on the base equivalent to the minimum salary.
(5) This Acts provisions applicable to strikes are also applicable, as appropriate, to
the employers right to lock the workers out in the course of a collective labour dispute.
 78

Rules applicable to activities which must not be stopped

Article 214

(1) Upon a proposal by the employer, the trade union and the employer shall prepare
and adopt, by an agreement, the rules applicable to maintenance of production activities and
essential activities which must not be stopped during a strike or a lockout.
(2) The rules referred to in paragraph 1 of this Article include, in particular, the
provisions concerning activities and the number of workers who must perform such activities
during a strike or a lockout, with the aim of enabling the restoration of regular work
immediately after the strike (the maintenance of production activities), or with the aim of
performance of work which is essential for the prevention of risks to life, personal safety or
health of the population (essential activities).
(3) The definition of the activity referred to in paragraph 1 of this Article must not
deny or substantially restrict the right to strike.
(4) If the trade union and the employer do not reach an agreement on activities
referred to in paragraph 1 of this Article within fifteen days of the day when the employers
proposal was submitted, the employer or the trade union may, within the next fifteen days,
request that these activities be defined by an arbitration body.
(5) The arbitration body referred to in paragraph 4 of this Article consists of one
representative of the trade union, one representative of the employer and an independent
chairperson who is appointed subject to an agreement between the trade union and the
employer.
(6) If the trade union and the employer fail to reach an agreement as to the
appointment of the chairperson of the arbitration board, and these issues are not otherwise
regulated by a collective agreement or an agreement between the parties, the chairperson
shall be appointed by the president of the court which, according to the provisions of this Act,
has first-instance jurisdiction to hear cases related to the prohibition of a strike or a lockout.
(7) If one of the parties refuses to participate in an arbitration procedure for defining
activities which must not be stopped, the procedure shall be completed without the
participation of that party, and a decision on activities referred to in paragraph 1 of this
Article shall be rendered by the chairperson of the arbitration board.
(8) The arbitration body must render a decision on activities referred to in paragraph 1
of this Article within fifteen days following the initiation of the arbitration procedure.
(9) If the employer proposed the definition of the activities referred to in paragraph 1
of this Article after the day when the mediation procedure had commenced, the procedure for
defining these activities may not be initiated until the end of the strike.
Effects of organization of a strike or participation in a strike

Article 215

(1) Organization of a strike or participation in a strike, which is organized in

compliance with the law, collective agreement and trade union rules, do not constitute a
violation of an employment contract.
(2) A worker shall not be discriminated because of his involvement in organization or
participation in a strike, organized in compliance with the law, collective agreement and trade
union rules.
(3) A worker may be dismissed only if he organizes or participates in a strike non-
compliant with the law, collective agreement or trade union rules, or if in the course of a
 79

strike he commits some other grave violation of an employment contract.

(4) A worker must not, by any means, be coerced to participate in a strike.

Proportional reduction of remuneration and compensation

Article 216

The employer may reduce the remuneration and compensation of a worker who has
participated in a strike. The reduction must be proportionate to the time spent on strike.

Judicial prohibition of an illegal strike and indemnity

Article 217
(1) An employer or an employers association may move the court having jurisdiction
to prohibit the organization and undertaking of a strike which is contrary to the provisions of
the law.
(2) An employer may claim compensation for damages suffered as a result of a strike
organized and undertaken contrary to the provisions of the law.

Judicial prohibition of an illegal lockout and indemnity

Article 218
(1) A trade union may move the court having jurisdiction to prohibit the organization
and undertaking of a lockout that is contrary to the provisions of the law.
(2) A trade union may claim compensation for damages suffered by this trade union
or the workers as a result of a lockout organized and undertaken contrary to the provisions of
the law.
Judicial jurisdiction to prohibit a strike or a lockout

Article 219

(1) If a strike or a lockout is undertaken in the territory of only one county, the first-
instance jurisdiction over prohibition of a strike or a lockout shall have a competent county
court, sitting as a chamber composed of three judges.
(2) If a strike or a lockout is undertaken in the territory of two or more counties, the
first-instance jurisdiction over prohibition of a strike or a lockout shall have the Zagreb
County Court, sitting as a chamber composed of three judges.
(3) An appeal against a decision rendered under the provisions of paragraphs 1 and 2
of this Article shall be decided upon by the Supreme Court of the Republic of Croatia.
(4) A first-instance decision on whether or not to prohibit a strike or a lockout must be
rendered within four days following the filing of the request.
(5) A decision on the appeal referred to in paragraph 3 of this Article must be
rendered within five days following the submission of the first-instance case.
Strikes in the armed forces, police, public administration and public services

Article 220

Strikes in the armed forces, police, public administration and public services shall be
regulated by specific provisions.
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8. ECONOMIC AND SOCIAL COUNCIL

Powers of the Economic and Social Council

Article 221

(1) The Economic and Social Council may be established at the national level for
purposes of defining and carrying out coordinated activities aimed at the protection and
promotion of economic and social rights and interests of both the workers and the employers,
in pursuance of coordinated economic, social and development policies, fostering the
conclusion and application of collective agreements and harmonizing these agreements with
the measures of economic, social and development policies.
(2) The activities of the Economic and Social Council shall be based on the concept
of tripartite cooperation among the Government of the Republic of Croatia (hereinafter: the
Government), trade unions and employers associations, whose representation has been
determined at the national level, with the aim of solving economic and social issues and
problems.
(3) The Economic and Social Council shall, at the national level:
1) monitor, study and evaluate the effects of the economic policy and the measures
undertaken in pursuance thereof on the social stability and development,
2) monitor, study and evaluate the effects of the social policy and the measures
undertaken in pursuance thereof on the economic stability and development,
3) monitor, study and evaluate the effects of the fluctuation of prices and salaries on the
economic stability and development,
4) give reasoned opinions to the Minister regarding any problems relating to the
conclusion and application of collective agreements,
5) make proposals to the Government, employers and trade unions, or to their
associations and higher-level associations, aimed at achieving a coordinated price and
salary policy,
6) establish a list of potential mediators,
7) give opinions on ordinance governing the methods for the election of mediators and
procedure for conducting mediation,
8) give opinions on ordinance governing the methods for the election of arbiters and
procedure for conducting arbitration,
9) encourage amicable dispute resolution of collective labour disputes,
10) give opinions on draft legislation in the area of labour and social security,
11) promote the concept of tripartite cooperation among the Government, trade unions and
employers associations for the purpose of resolving economic and social issues and
problems,
12) give opinions and proposals to the minister regarding other issues regulated by a
specific law.
(4) The Economic and Social Council shall be established subject to an agreement
between the Government, trade unions and higher-level employers associations.
(5) The powers and structure of the Economic and Social Council shall be specified in
more details in the agreement referred to in paragraph 4 of this Article.
(6) The Economic and Social Council may establish committees to deal with specific
questions falling within its competence.
(7) The Economic and Social Council shall adopt rules of procedure in order to
regulate the procedures for making decisions from its competence.
 81

(8) Every member of the Economic and Social Council may make a proposal for
discussing an issue or for making a decision falling within the competence of the Economic
and Social Council.
(9) If the Economic and Social Council has not been established or it has ceased to
perform its activities, and for these reasons it has not established a list of mediators, a list of
arbiters or arbitration board members, or if for any of these reasons it has not given its
opinion on an ordinance governing the methods for the election of mediators and procedure
for conducting mediation referred to in Article 207 (3) of this Act or on an ordinance
governing the methods for the election of arbiters and procedure for conducting arbitration
referred to in Article 151 (7) of this Act, these issues shall be regulated by the Minister.
(10) If the Economic and Social Council has not be established or has ceased to
perform its activities, the Minister shall, in compliance with the regulations referred to in
paragraph 9 of this Article, render a decision on appointment of a mediator in a collective
labour dispute or an arbiter in an arbitration procedure.

TITLE V

SUPERVISION OF THE APPLICATION OF LABOUR REGULATIONS

Administrative supervision

Article 222

The administrative supervision of the application of this Act, and regulations adopted
in pursuance thereof, as well as the application of other laws and regulations governing the
relations between employers and workers shall be exercised by the central public
administration body responsible for labour affairs, unless otherwise specified by another law.

Inspection

Article 223

(1) The inspection of the enforcement of this Act, and regulations adopted in
pursuance thereof, as well as the enforcement of other laws and regulations governing the
relations between employers and workers shall be exercised by the central public
administration body responsible for labour inspections, unless otherwise specified by another
law.
(2) In exercising inspections, a labour inspector shall have powers set forth by law or
by a regulation enacted in pursuance thereof.
(3) The worker, the works council, trade union and employer may request from a
labour inspector to undertake an inspection.
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TITLE VI

SPECIAL PROVISIONS

National defence-related services and employment relationship

Article 224

(1) The rights and obligations arising from employment shall be held in abeyance during
national defence-related service, in accordance with the Defence Act.

(2) By way of derogation from paragraph 1 of this Article, the employed reserve officers
shall, during their absence from work due to military service or service in reserve forces,
exercise their rights arising from employment as if they were at their workplaces.

(3) The costs of the entitlement referred to in paragraph 2 of this Article shall be borne by
the Ministry of Defence.

(4) A worker who, following his military service or service in reserve forces, wishes to
continue to work for the same employer shall, as soon as he learns of the date on which his
liability with military or reserve forces is to cease, but no later than 30 days of that date,
notify the employer about his intention.

(5) The employer shall be obliged to reinstate the worker who made a statement within
the meaning of paragraph 2 of this Article to a position he held prior to his military service or
service in reserve forces, and, if the need for such job no longer exists, the employer shall
offer the worker to conclude an employment contract for another equivalent job.

(6) If, in the case referred to in paragraph 5 of this Article, the employer is not in the
position to reinstate the worker, he shall compensate the worker for a notice period, either
statutory or agreed upon and, if the eligibility criteria are met, the applicable severance pay.

(7) The employer shall be obliged to reinstate the worker referred to in paragraph 1 of this
Article within 30 days following the receipt of his notification of reinstatement; otherwise the
worker shall be given priority for employment with the same employer within one year
following his military service or service in reserve forces.

(8) Performing defence-related services shall not constitute a just cause for dismissal, and
during that period, the employer shall not be allowed to
terminate the employment contract by regular notice of
termination. If the employer terminates the employment
contract contrary to the provisions of this Article, the
worker shall be entitled to all the rights provided for by
this Act for cases of unfair dismissal.
(9) The provisions of this Article shall apply accordingly to the workers participating in a
voluntary military training, in accordance with the Defence Act.
 83

Rights of candidates for President of the Republic of Croatia, members of Parliament, and
representatives in assemblies and councils

Article 225

(1) During the electoral campaign, candidates for President of the Republic of Croatia
shall be entitled to unpaid leave for a period of up to 20 working days.
(2) During the electoral campaign, a candidate for a seat as representative in the
Parliament of the Republic of Croatia shall be entitled to unpaid leave for a period of up to 15
working days.
(3) During the electoral campaign, a candidate for a seat as representative in a county
assembly shall be entitled to unpaid leave for a period of up to 10 working days.
(4) During the electoral campaign, a candidate for a seat as representative in a city or
a municipal council shall be entitled to unpaid leave for a period of up to 10 working days.
(5) The worker shall notify his employer about the exercise of the right to leave
referred to in paragraphs 1 to 4 of this Article at least 24 hours in advance.
(6) The leave referred to in paragraphs 1 to 4 of this Article may not be used in
periods shorter than one working day.
(7) Instead of taking the leave referred to in paragraphs 1 to 4 of this Article, the
worker may, at his request and under the same conditions, take the annual leave in the
duration to which he is entitled, until the first day of elections.
(8) Where the tenure with the same employer is of relevance for acquiring certain
rights arising from the employment relationship, the period of unpaid leave referred to in
paragraphs 1 to 4 of this Article shall be regarded as full-time work and shall be calculated in
the total employment period required for the exercise of certain rights arising from the
employment relationship or related thereto.

TITLE VII

ADMINISTRATIVE MEASURES

Article 226

(1) During labour inspection, an inspector shall, by means of oral decision, which
shall be stated in the inspection report, order the employer to perform, within the time limits
determined by the inspector, the following activities:
1) to deliver to the data base of the institution responsible for keeping records on insured
persons, in accordance with specific provisions on pension insurance, in a manner, of the
contents and within the time limits, information on the worker or any change thereto
during the employment relationship (Article 6, paragraph 2),
2) to enable the worker to acquaint himself with the employment regulations and to inform
the worker about the organization of work and as well as health and safety protection
measures at work (Article 8, paragraph 2),
3) to make the regulations on safety and health at work, collective agreements and working
regulations appropriately available to the workers (Article 8, paragraph 3),
4) to register the employment contracts for seafarers and workers on board seagoing fishing
vessels with the county public administration office or the City of Zagreb office
responsible for labour (Article 14, paragraph 6),
5) to offer to the worker with whom he has concluded an employment contract that does not
contain all the elements prescribed by this Act, to amend the contract or the certificate of
engagement so as to include the missing elements (Article 15),
 84

6) to offer to the worker with whom he has concluded an employment contract for
permanent seasonal works that does not contain all the elements prescribed by this Act, to
amend the contract or the certificate of engagement so as to include the missing elements
(Article 16),
7) to offer to the worker with whom he has concluded a contract of employment at
alternative workplace that does not contain all the elements prescribed by this Act, to
amend the contract or the certificate of engagement so as to include the missing elements
(Article 17, paragraph 1),
8) to offer to the worker with whom he has concluded a contract of temporary employment
abroad that does not contain all the elements prescribed by this Act, to amend the contract
or the letter of engagement so as to include the missing elements or, to hand over to the
worker prior to his expatriation a copy of the application for mandatory health insurance,
provided that such insurance is the employer's obligation (Article 18, paragraphs 1 and 3),
9) to direct a minor for a health assessment to be performed by an authorised physician if the
minor, his parent or guardian, works council or trade union had any doubts that the works
performed by the minor will put his safety, health, morals or development into risk, and if
they requested from the employer that an authorised physician performs a health
assessment of the minor and provides his findings and opinion of whether the works
performed by the minor indeed harm his safety, health, morals or development (Article
22, paragraph 1),
10) to offer to the minor the conclusion of employment contract for other appropriate works,
where he is obliged to do so under the findings and opinion of an authorised physician
(Article 22, paragraph 3),
11) to adopt and make publicly available the working regulations or to regulate all the issues
that must be regulated by working regulations (Article 26, paragraph 1),
12) to deliver to the Ministry the statistical data on worker assignment-related activities, of a
content, in a manner and within a time limit prescribed by this Act (Article 44, paragraph
7),
13) to amend the contract concluded between the user undertaking and the agency that does
not contain all the elements prescribed by this Act so as to include all the missing
elements (Article 45, paragraph 2),
14) to offer to the worker with whom he has concluded a temporary assignment contract that
does not contain all the elements prescribed by this Act, to amend the contract or the
certificate of engagement so as to include the missing elements (Article 46, paragraphs 2
and 4),
15) to amend the assignment letter that does not contain all the information prescribed by this
Act so as to include the missing elements (Article 49, paragraph 1),
16) to notify the works council about the number and reasons for taking assigned workers or
to inform the assigned workers about vacancies for which they meet the requirements
(Article 50, paragraph 3),
17) to prepare the annual leave schedule in accordance with this Act or to inform the worker
of the duration and the period of use of annual leave (Article 85),
18) to hand over to the worker a payroll account evidencing the method of determining the
amounts of remuneration or severance pay or an account of a prescribed content (Article
93, paragraphs 1 and 4),
19) to hand over to the worker a payroll account evidencing the method of determining the
outstanding amounts of remuneration or severance pay or an account of a prescribed
content (Article 93, paragraphs 2 and 4),
20) to issue to the worker, on his request, a certificate on the type of job performed and the
length of employment (Article 130, paragraph 1),
21) to return all the documents to the worker in case of employment termination, including
 85

copy of the worker's deregistration from mandatory pension and health insurance
schemes or to issue a certificate on the type of job performed by the worker and the
length of employment (Article 130, paragraph 2),
22) to appoint a person who would, in addition to him, be authorised to receive and deal with
complaints related to the protection of the workers' dignity (Article 134, paragraph 2),
23) to notify the works council and all the workers affected by the transfer about the transfer
of the undertaking, business or part of the undertaking or business to a new employer
(Article 137, paragraphs 6 and 7),
24) to make a collective agreement publicly available in a prescribed manner (Article 202,
paragraphs 1 and 2),
(2) During labour inspection, an inspector shall, by means of a oral decision noted in
the inspection report, prohibit the following:
1) engagement of a person under fifteen, of fifteen or above fifteen years of age and under
eighteen years of age who is still subject to compulsory full-time elementary schooling
(Article 19),
2) engagement of a minor for works likely to harm his safety, health, morals or development
(Article 21, paragraph 1),
3) engagement of a minor for works that can be performed only after a medical assessment,
if his medical statement were not assessed yet (Article 21, paragraph 3),
4) engagement of a minor where the findings and opinion of an authorised physician show
that the works performed by the minor indeed harm his safety, health, morals or
development (Article 22, paragraph 1),
5) worker assignment activities of a temporary-work agency if the agency is not established
in accordance with specific provisions or registered with the registry of the ministry
responsible for labour affairs (Article 44, paragraph 3),
6) works involving exposure to harmful effects in spite of the implementation of health and
safety at work protection measures, performed by workers during a period exceeding the
short working time (Article 64, paragraph 3),
7) overtime work by minors (Article 6, paragraph 5),
8) overtime work by a pregnant worker, a parent of a child under three years of age and a
single parent of a child under six years of age who works part-time at several employers,
and by the worker referred to in Article 61 (3) and Article 62 (3) of this Act, without their
written agreement to perform such work (Article 65, paragraph 6),
9) work by minors for a period exceeding 8 hours in a 24-hour period (Article 68, paragraph
1),
10) engagement of a part-time worker at two or more employers, a pregnant worker, a parent
with a child under three years of age and a single parent with a child under six years of
age under a flexible work schedule without their written agreement to perform such work
(Article 68, paragraph 2),
11) engagement of a night worker for a period exceeding an average of 8 hours in any 24-
hour period during which they perform night work, during a 4-month period (Article 69,
paragraph 6),
12) engagement of a night worker exposed to special hazards or heavy physical or mental
strain for a period exceeding 8 hours in any 24-hour period during which they perform
night work (Article 69, paragraph 7),
13) night work by minors if it is contrary to the provisions of this Act or without the
surveillance of an adult (Article 70),
14) night work at the employer's in the case of the work organised into shifts involving night
work, exceeding an uninterrupted period of one week (Article 71, paragraph 3).
(3) An appeal against the decision referred to in paragraphs 1 and 2 of this Article
does not postpone the enforcement of the decision.
 86

TITLE VIII

PENAL PROVISIONS

Minor offences by employers

Article 227

(1) A fine in an amount ranging from HRK 10,000.00 to 30,000.00 shall be imposed
on the employer who is a legal person:
1) for concluding an employment contract in which the duration of probationary period is
longer than permitted by law (Article 53, paragraph 2),
2) for concluding an employment contract in which the duration of traineeship is longer
than permitted by law (Article 57),
(2) An employer who is a natural person and the responsible person in the employer
who is a legal person shall be fined in an amount ranging from HRK 1,000.00 to 3,000.00 for
an offence referred to in paragraph 1 of this Article.
(3) Where the offence referred to in paragraph 1 of this Article is committed in respect
of a minor worker, the fine shall be double the amount prescribed.

Serious offences by employers

Article 228

(1) A fine in an amount ranging from HRK 31,000.00 to 60,000.00 shall be imposed
on the employer who is a legal person for:
1) concluding a successive fixed-term employment contract with the same worker with
no objective grounds, or for failing to state the objective grounds in such contract or
letter of assignment, or for allowing the cumulative duration of all successive fixed-
term employment contracts, including the first one, exceeding an uninterrupted period
of 3 years, unless where it is necessary for the purpose of replacing a temporarily
absent worker or where it is on objective grounds allowed by law or a collective
agreement (Article 12, paragraphs 2 and 3),
2) concluding the employment contract with a worker who does not meet the particular
employment requirements laid down by laws, regulations or administrative provisions,
collective agreement or working regulations (Article 23),
3) requesting from the worker any information that is not directly related to the
employment relationship, in the process of selecting the applicants for a job (an
interview, testing, survey or similar) and concluding an employment contract (Article
25, paragraph 1),
4) collecting, processing, using or disclosing to third parties the worker's personal data
contrary to the provisions of this Act, or for failing to appoint a person who is, apart
from the employer, authorized to supervise the collecting, processing, using or
disclosing of such data to third parties (Article 29, paragraphs 1 and 6),
5) requesting any information about pregnancy or directing any other person to do so,
unless the worker personally demands for a particular entitlement provided for by law
or another regulation for the purpose of protecting pregnant workers (Article 30,
paragraph 2),
6) failing to reinstate a worker after the expiry of maternity, paternity, adoptive lave, a
leave for the purpose of taking care of and nursing a child with severe development
 87

disabilities and the abeyance of the employment relationship until the child's third
year of age in accordance with specific provisions, under the conditions stipulated by
this Act, or for failing to offer the conclusion of employment contract for another
equivalent job, or for failing to reinstate the worker within one month after the date of
having notified the employer about the end of exercising of such a right (Article 36,
paragraphs 1 and 2),
7) failing to reinstate a worker who suffered from temporary incapacity for work due to
injury or injury at work, illness or professional illness, or for failing to offer to the
worker the conclusion of an employment contract for another equivalent position
(Article 40),
8) failing to offer, in writing, to a worker with reduced capacity for work or a partial loss
of capacity or where there is an immediate danger of reduction of his capacity for
work, the conclusion of an employment contract for the performance of tasks in line
with the worker's capacity, if the employer is in the position to ensure such tasks
(Article 41),
9) assigning to the user undertaking a worker for the performance of the same works for
an uninterrupted period exceeding three years unless it is necessary for the purpose of
replacing a temporarily absent worker or where it is allowed by collective agreement
on the grounds of some other objective reasons (Article 48),
10) failing to indicate the agency's registration number with the Ministry in their legal
transaction, business documents, letters and contracts (Article 52, paragraph 4),
11) failing to conclude a contract in writing with an unremunerated trainee (Article 59,
paragraph 5),
12) failing to permit a break to the worker in a manner and under the conditions laid down
by this Act (Article 73),
13) failing to permit a daily rest to the worker in a manner and under the conditions laid
down by this Act (Article 74),
14) failing to permit a weekly rest to the worker in a manner and under the conditions laid
down by this Act (Article 75),
15) failing to permit the use of annual leave to the worker in a manner and under the
conditions laid down by this Act (Articles 77, 78, 84 and Article 85, paragraph 2),
16) failing to permit the use of paid leave to the worker in a manner and under the
conditions laid down by this Act (Article 86),
17) collecting his claims against the worker by withholding payment of remuneration or
compensation, or a part thereof without the worker's agreement (Article 96, paragraph
1),
18) employing another worker at the same post prior to the expiry of a 6-month period
without offering an employment contract to the worker he dismissed on economic
reasons (Article 115, paragraphs 5 and 6),
19) failing to treat as confidential information collected in the procedure for the protection
of workers' dignity (Article 134, paragraph 8),
20) failing to permit to the workers to elect the works council (Article 141),
21) failing to communicate information on the election of works council or to
communicate such information within a stipulated deadline and in a stipulated manner
(Article 146, paragraph 3),
22) failing to notify the works council of issues that he is obliged to notify of in a manner
stipulated by this Act (Article 149),
23) failing to consult the works council about the issues that he is obliged to consult about
in a manner stipulated by this Act (Article 150),
24) adopting a decision without the works council agreement where the adoption of such
decision is subject to the works council agreement (Article 151, paragraph 1),
 88

25) failing to ensure the conditions for the works council activities (Article 156),
26) failing to enable the appointed or selected workers' representative to be a member of
the employer's management body or another equivalent body of a company,
cooperative society or a public institution (Article 164),
27) attempting to gain or for gaining the prohibited control over forming and operations of
trade unions or trade union associations of a higher level (Article 183, paragraph 1),
28) failing to calculate, deduct or deposit trade union membership fees (Article 189),
29) failing to comply with his obligation, if there is any, to place the collective agreement,
or any changes thereto, at the disposal of the competent authority, where he is obliged
to do so (Article 201, paragraphs 1 and 3),
30) refusing to participate in mediation as provided for in this Act (Article 206, paragraph
1),
31) discriminating the worker who has organized or has participated in a strike organised
in compliance with the law, collective agreement and trade union rules (Article 215,
paragraph 2),
(2) An employer who is a natural person and the responsible person in the employer
who is a legal person shall be fined in an amount ranging from HRK 4,000.00 to 6,000.00 for
an offence referred to in paragraph 1 of this Article.
(3) Where the offence referred to in paragraph 1 of this Article is committed in respect
of a minor worker, the fine shall be double the amount prescribed.
(4) The employer who is a legal person shall be held liable for offences referred to in
paragraph 1, sub-paragraph 27 of this Article even when there is no offence liability of the
person responsible.

Most serious offences by employers

Article 229

(1) A fine in an amount ranging from HRK 61,000.00 to 100,000.00 shall be imposed
on the employer who is a legal person for:
1) failing to keep records on workers and working time or for failing to keep records in a
stipulated manner, or for failing to deliver information on workers and working time
upon labour inspector's request (Article 5),
2) posting his worker temporarily to a company that is not associated with him within the
meaning of a specific regulation on companies, or for posting his worker for am
uninterrupted period exceeding 6 months, or for posting his worker without
concluding an agreement thereon (Article 10, paragraph 3),
3) failing to deliver to the worker a letter of engagement prior to the start of employment,
where the employer fails to conclude a written employment contract with the worker,
or for failing to deliver to the worker two copies of the application for mandatory
pension and health insurance within the stipulated deadline (Article 14, paragraphs 3
and 5),
4) concluding a contract of employment at alternative workplace for works that may not
be subject to such agreement (Article 17, paragraph 4),
5) expatriating his worker to a company that is not associated with him within the
meaning of a specific regulation on companies or to a company that has not an
establishment in a country to which the worker is posted, or for expatriating his
worker for a period exceeding one year or without concluding an agreement thereon
(Article 18, paragraph 4),
6) employing a person under fifteen, of fifteen or above fifteen years of age and under
eighteen years of age who is still subject to compulsory full-time elementary
 89

schooling, or for employing a minor without the authorisation of his legal

representative or the consent of the authority responsible for social welfare (Article
19, paragraph 1 and Article 20, paragraphs 1 and 2),
7) employing a minor for works likely to harm his safety, health, morals or development
(Article 21, paragraph 1),
8) refusing to employ a woman due to her pregnancy or, contrary to the provisions of this
Act, for offering her the conclusion of an amended employment contract under less
favourable conditions on the grounds of her pregnancy, recent childbirth or
breastfeeding within the meaning of specific provisions (Article 30, paragraph 1),
9) terminating the employment contract of the pregnant worker, or of any person
exercising any of the rights listed below, during pregnancy, maternity, paternity or
adoption leave, periods of part-time work, periods of short-time work due to
intensified childcare, the leave of pregnant women or a breastfeeding mother, and the
periods of leave or short-time work due to the care for a child with serious
development disabilities, i.e. within fifteen days after the end of pregnancy or the end
of exercise of any of such rights (Article 34, paragraph 1),
10) terminating the employment contract of the worker during his temporary incapacity
for work due to medical treatment or recovery from an injury at work or a professional
illness (Article 38, paragraph 1),
11) assigning workers to user undertakings prior to the registration with the appropriate
registry of the Ministry, or for charging the worker a fee for his assignment or a fee
for the entry into an employment contract between the assigned worker and the user
undertaking (Article 44, paragraphs 5 and 6),
12) assigning workers without concluding assignment contracts or for concluding such
contracts when he is not allowed to do so (Article 45, paragraphs 1 and 4),
13) concluding a full-time employment contract in which the duration of working time is
longer than permitted by law (Article 61, paragraph 1),
14) concluding a full-time employment contract for a period exceeding 8 hours a week or
180 hours a year, or for concluding such contract without a written consent of the
worker's employer(s) (Article 61, paragraph 3 and Article 62, paragraph 3),
15) requesting the worker to perform the works involving exposure to harmful effects in
spite of the implementation of health and safety at work protection measures for a
period exceeding the short working time (Article 64, paragraph 3),
16) allowing overtime work for a period exceeding in total 50 hours a week, or 180 hours
a year per worker or 250 hours a year, where overtime work exceeding 180 hours a
year is laid down by collective agreement (Article 65, paragraphs 3 and 4),
17) requesting overtime work by minors (Article 6, paragraph 5),
18) requesting overtime work by a pregnant worker, a parent of a child under three years
of age and a single parent of a child under six years of age who works part-time at
several employers, and by the worker referred to in Article 61 (3) and Article 62 (3) of
this Act, without their written agreement to perform such work, except in the case of
force majeure (Article 65, paragraph 6),
scheduling, in the case of uneven working time, the worker's
working time so as to exceed 50 hours a week on average,
including overtime work, or to exceed 60 hours, including
overtime work, where it is agreed upon in collective
agreement, or to exceed 48 hours, including overtime work, for
a period of four months, i.e. six months, where it is agreed
so in collective agreement (Article 66, paragraphs 7 and 8),
19) failing to inform the worker on his pattern of working hours or any change thereto at
least three days in advance, except in the event of a pressing need for that particular
 90

worker's work (Article 66, paragraph 15),

20) failing to prepare a working time redistribution plan of a stipulated contents, where the
redistribution of working time is not provided for by a collective agreement or an
agreement concluded between the works council and the employer, or for failing to
deliver such plan to a labour inspector in advance (Article 67, paragraph 2),
21) allowing the worker's redistributed working hours to last longer than it is allowed by
the Act (Article 67, paragraphs 4, 5 and 8),
22) failing to deliver to the labour inspector, upon his request, the list of workers who
gave their written consent to such redistributed working hours (Article 67, paragraph
7),
23) allowing work by minors for a period exceeding 8 hours in a 24-hour period (Article
68, paragraph 1),
24) requesting a part-time worker at two or more employers, a pregnant worker, a parent
with a child under three years of age and a single parent with a child under six years of
age to work, full-time or part-time, under a redistributed working time scheme,
without their written agreement thereon (Article 68, paragraph 2),
25) requesting a night worker to work longer than 8 hours on average in any 24-hour
period during a 4-month period (Article 69, paragraph 6),
26) failing to prepare a pattern of work for a night worker exposed to special hazards or
heavy physical or mental strain so as to not to work during night longer than 8 hours
in any 24-hour period (Article 69, paragraph 7),
27) requesting, contrary to the provisions of this Act, night work by minors or for failing
to ensure that the night work by minors is performed under the surveillance of an adult
(Article 70, paragraphs 1 and 2),
28) failing to ensure the change of shifts so as to limit the uninterrupted work in night shift
to maximum one week, where the work is organized into shifts which include night
work (Article 71, paragraph 3),
29) failing to provide night workers with a health assessment before their assignment and
thereafter at regular intervals, in accordance with specific provisions (Article 72,
paragraph 3),
30) failing to ensure to the night worker who suffers from health problems connected with
the fact that he performs night work, as established by a health assessment before his
assignment or by a regular health assessment during the assignment, such a pattern of
working time so that the worker can perform the same job in day work (Article 72,
paragraph 6),
31) failing to offer to the night worker who suffers from health problems connected with
the fact that he performs night work, as established by a health assessment before his
assignment or by a regular health assessment during the assignment, to conclude the
employment contract for day work to which he is suited and which to the greatest
possible extent is comparable to the works previously performed by the worker, where
the employer is not able to ensure for the worker the transfer to day work (Article 72,
paragraph 7),
32) concluding an agreement with the worker under which a worker waives his
entitlement to annual leave in return for compensation (Article 80),
33) failing to deliver to the worker a payroll account concerning the outstanding
remuneration or severance pay due, or for delivering the account which does not
contain all the elements stipulated by law (Article 93, paragraphs 2 and 4),
34) failing to provide a notice of dismissal in writing, or for failing to explain the grounds
for dismissal, or for failing to hand over the notice of dismissal to the worker (Article
120),
35) indicating in the certificate on employment, apart from information about the type of
 91

works performed and the length of employment, any information which could
adversely impact the worker's new employment contract (Article 130, paragraph 3),
36) failing to notify the new employer in writing, fully and accurately, about the rights of
the workers whose employment contracts are being transferred in the event of
transferring the undertaking, business or part of the undertaking or business to a new
employer (Article 137, paragraph 4).
(2) A fine in an amount ranging from HRK 7,000.00 to 10,000.00 for an offence
referred to in paragraph 1 of this Article shall be imposed on the employer who is a natural
person and the responsible person in the employer who is a legal person.
(3) A fine in an amount ranging from HRK 61,000.00 to 100,000.00 for an offence
referred to in paragraph 1 (1) of this Article shall be imposed on the user undertaking who is
a legal person, and who is under the worker assignment agreement responsible for keeping
records on working time of the assigned workers (Article 45, paragraph 5).
(4) A fine in an amount ranging from HRK 7,000.00 to 10,000.00 shall be imposed on
the user undertaking who is a natural person, and who is under the worker assignment
agreement responsible for keeping records on working time of the assigned workers during
their assignment, as well as on the responsible person in the employer who is a legal person
(Article 45, paragraph 5).
(5) A fine in an amount ranging from HRK 61,000.00 to 100,000.00 shall be imposed
on the user undertaking who is a legal person, and who, at the moment of concluding the
contract referred to in Article 45 of this Act fails to notify the agency in writing, fully and
accurately, about the working conditions applicable to the workers employed with the user
undertaking performing the works to be performed by the assigned worker (Article 50,
paragraph 2).
(6) A fine in an amount ranging from HRK 7,000.00 to 10,000.00 shall be imposed on
the user undertaking who is a natural person, and who, at the moment of concluding the
contract referred to in Article 45 of this Act, fails to notify the agency in writing, fully and
accurately, about the working conditions applicable to the workers employed with the user
undertaking performing the works to be performed by the assigned worker, as well as on the
responsible person in the employer who is a legal person (Article 50, paragraph 2).
(7) Where the offence referred to in paragraph 1 of this Article is committed in
respect of a minor worker, the fine shall be double the amount prescribed.

Offences by trade unions and trade union associations of a higher level

Article 230

A fine for an offence in an amount ranging from HRK 5,000.00 to 20,000.00 shall be
imposed on trade unions or a trade union association of a higher level for:
1) failing to report any changes in the statute, including the changes of authorised
representatives and the termination of the association, within 30 days after the date of
the change in question (Article 180, paragraph 2),
2) failing to provide a report every four years to a competent authority responsible for
registration, on the sessions of the association's highest body or information on total
number of the association's members (Article 190, paragraph 2),
3) failing to submit, if there is such obligation, a collective agreement or any change
thereto to the Ministry or a county public administration office or the City of Zagreb
office responsible for labour affairs (Article 201, paragraph 1),
4) failing to announce a strike (Article 205, paragraph 3),
5) beginning a strike before the conclusion of the mediation procedure, when such a
procedure is provided for by this Act, or prior to the completion of other amicable
 92

dispute resolution procedures agreed upon by the parties (Article 205, paragraph 4),
6) failing to state in the letter announcing the strike the reasons for the strike, the place,
date and time of its commencement, as well as the method of its execution (Article
205, paragraph 6),
7) refusing to participate in the mediation procedure provided for in this Act (Article
206).

Offences by employer associations and employer

associations of a higher level

Article 231

A fine for an offence in an amount ranging from HRK 5,000.00 to 20,000.00 shall be
imposed on the employer association or the employer association of a higher level for:
1) failing to report any changes in the statute, including the changes of authorised
representatives and the termination of the association, within 30 days after the date of
the change in question (Article 180, paragraph 2),
2) failing to provide a report every four years to a competent authority responsible for
registration, on the sessions of the association's highest body or information on total
number of the association's members (Article 190, paragraph 2),
3) failing to submit, if there is such obligation, a collective agreement or any change
thereto to the Ministry or a county public administration office or the City of Zagreb
office responsible for labour affairs (Article 201, paragraph 1),
4) failing to make a collective agreement publicly available in a prescribed manner
(Article 202, paragraphs 1 and 2),
5) refusing to participate in mediation as provided for in this Act (Article 206),
6) organising or engaging in a lockout which is not a response to a strike already in
progress (Article 213, paragraph 1),
7) starting the use of a lockout prior to the expiry of a deadline laid down by this Act
(Article 213, paragraph 2),
8) locking out a greater number of workers than it is allowed by this Act (Article 213,
paragraph 3),
9) locking out workers contrary to the provisions of this Act (Article 213, paragraph 5),
10) failing to ensure the performance of activities which must not be stopped during a
lockout (Article 214).

TITLE IX

TRANSITIONAL AND FINAL PROVISIONS

Article 232

(1) The procedures concerning the exercise and the safeguarding of workers' rights
initiated before the entry into force of this Act shall be finalized under the provisions of the
Labour Act (Official Gazette 149/2009, 61/2011, 82/2012 and 73/2013).
(2) The provisions of this Act on the statute of limitations for claims shall not apply to
the claims resulting from the employment relationship, for which the 3-year statute of
limitations has expired prior to the entry into force of this Act.
(3) Until the adoption of implementing regulations referred to in Articles 151 and
188, the procedures of replacing the consent of works council on the termination of a
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worker's employment contract, or the replacement of consent of the trade union on the
termination of employment contract of a trade union representative, initiated prior to the
adoption of this Act, shall be governed by the provisions of the Labour Act (Official Gazette
149/2009, 61/2011, 82/2012 and 73/2013).
(4) The procedures concerning the election of works councils initiated before the
entry into force of this Act shall be finalized under the provisions of the Labour Act (Official
Gazette 149/2009, 61/2011, 82/2012 and 73/2013), and the works councils members elected
before the entry into force of this Act shall keep their mandate until its expiry.
(5) The legal rules from collective agreements that either expired or were terminated
before the entry into force of this Act, whose application is extended on the grounds that they
make an integral part of previously concluded employment contracts, shall cease to apply
after the expiry of a period of three months of the date of expiry of the collective agreement.
(6) The decision on the extension of collective agreements made until the date of
entry into force of this Act shall cease to be valid after the expiry of a six month period of the
date of entry into force of this Act.

Article 233

(1) Employers shall harmonise their working regulations with the provisions of this
Act within six months following the entry into force of this Act.
(2) The Minister shall, within six months following the entry into force of this Act,
adopt an ordinance referred to in Article 5 (4), Article 6 (3), Article 14 (7), Article 21 (2) and
(4), Article 27 (5), Article 37 (4), Article 44 (8), Article 69 (4), Article 72 (8), Article 88 (2),
Article 93 (4), Article 146 (3), Article 151 (7), Article 174 (4), Article 201 (5), Article 202
(2) and Article 207 (3) of this Act.
(3) Until the date of the adoption of the implementing regulations referred to in
paragraph 2 of this Article, the following implementing regulations shall remain in force, in
the part thereof that is not contrary to the provisions of this Act:
1) Ordinance on prohibiting certain works by minors (Official Gazette 62/2010),
2) Ordinance on permitting certain works and activities by minors (Official Gazette
62/2010),
3) Ordinance on the method of publishing working regulations (Official Gazette
67/2010),
4) Ordinance on economic activities regarded as industry (Official Gazette 67/2010),
5) Ordinance on jobs subject to pre-employment and regular medical assessments of
workers (Official Gazette 70/2010),
6) Ordinance on the registration and the registry of employment contracts of seafarers
and workers on-board seagoing fishing vessels (Official Gazette 70/2010),
7) Ordinance on the submission, the contents and the method of keeping records on
collective agreements (Official Gazette 70/2010),
8) Ordinance on the method of publishing collective agreements (Official Gazette
70/2010),
9) Ordinance on the contents and the method of recordkeeping on associations (Official
Gazette 70/2010),
10) Ordinance on the contents and the method of issuing the certificate on temporary
incapacity for work (Official Gazette 74/2010),
11) Ordinance on the method of electing works council (Official Gazette 81/2010),
12) Ordinance on working time, breaks and rests applicable to workers on-board seagoing
fishing vessels (Official Gazette 82/2010),
13) Ordinance on the contents and the method of recordkeeping on workers (Official
Gazette 37/2011),
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14) Ordinance on the contents of accounts of payroll and severance pay (Official Gazette
120/2012),
15) Ordinance on electronic recordkeeping on employment (Official Gazette 79/2013),
16) Ordinance on the contents and the method of and the time limits for medical
assessments of night workers (Official Gazette 122/2013),
17) Ordinance on the contents, the manner and the time limits for the submission of
statistical data on temporary agency work (Official Gazette 122/2013),
18) Ordinance on the method of selecting the mediators and the employment dispute
mediation procedure (Official Gazette 122/2010 and 56/2011),
19) Decision on the list of mediators of the Economic and Social Council for collective
labour disputes (Official Gazette 146/2011),

Article 234

On the date of the entry into force of this Act, the Labour Act shall cease to have
effect (Official Gazette 149/2009, 61/2011, 82/2012 i 73/2013), excluding Articles 222, 223,
224 and 225, regulating the participation of workers in decision-making process concerning
cross-border transfers and mergers of employers, which shall cease to have effect as on the
day of adoption of specific provisions regulating this issue.

Article 235

This Act shall enter into force on the eighth day following its publication in the
Official Gazette.
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EXPLANATORY STATEMENT

I. JUSTIFICATION OF THE ADOPTION OF THE ACT

The Labour Act in force has been adopted on 4 December 2009, and was published in
the Official Gazette 149/09 of 15 December 2009; it was amended by the Act on
Amendments to the Labour Act, adopted on 20 May 2011 and published in the Official
Gazette 61/2011, and by the Act on Amendments to the Labour Act, adopted on 14 June 2013
and published in the Official Gazette 73/2013.
The Labour Act was also amended by the Act on Criteria for Participation in Tripartite Bodies
and Representativeness for Collective Bargaining, as adopted on 13 July 2013 and published
in the Official Gazette 82/2012.

In the same period, many horizontally related changes to the field regulated by the
Labour Act, were introduced into the national legislation, including amendments to the Act on
Maternity and Paternity Allowances, the Act on Financial Transactions and Pre-Bankruptcy
Settlement, Employment Incentive Act, Forced Execution Act, new Act on Pension Insurance,
new Act on Protection at Work, etc., and horizontal harmonisation of the Labour Act
therewith is necessary.
Particular attention should also be paid to the transposition of extensive case-law including a
number of legal positions on the methods of implementing particular legal concepts, adopted
since the introduction of the new approach to employment relationships in 1996.

By the end of 2011, amendments to the labour and social policy-related legislation of
the Republic of Croatia were primarily focused on achieving a full harmonization and
implementing the relevant legislation of the European Union; consequently, the already
necessary reform measures were not implemented by means of the adopted legislation.
Particularly, the adverse effects of the economic and financial crisis in the last few years have
caused negative trends in the labour market, resulting in the decline of employment and an
increase of unemployment, while the employment rate continues to show a negative trend.
The employment rate of the population aged 15-64 decreased from 53.2% in the third quarter
of 2011 to 52.5% in the same quarter of 2012. The employment rate of the population aged
20-64 dropped from 57.7% to 57.2%. The unemployment rate increased from 12.2% in the
third quarter of 2011 to 14.5% in the same quarter of 2012. The unemployment rate of men
increased from 12.5% to 14.7%, while the unemployment rate of women has increased from
11.9% to 14.3%. The unemployment rate of young people aged 15-64 increased from 31.3%
to 37.6%. Hence, the unemployment rate increased among all gender and age groups.
In 2012 the registered unemployment also increased. Compared to the previous year, the
average number of unemployed people rose 6.2%.

Economic trends in Croatia continued to show negative trends in 2013 as well.

The first assessment of gross domestic product (GDP) showed a decline of economic activity
in 2013 of 1.0% as compared with 2012, which is a cumulative decrease of 11.9% as
compared with 2008. The household consumption (6%) and the gross fixed capital formation
(-0.2%) contributed the most to the drop of real GDP. In 2013 nearly all GDP components
witnessed a decline. The only increase came from a rise in the government consumption of
0.5%, due to debt settlement in the health sector. In 2013 the declining trend in wages in real
terms continued, in spite of their nominal increase. The average gross wage decreased by
1.4% in real terms, and the average net wage by 1.5%. A continued decline of economic
activity in 2013 was mirrored on the labour market as well. The average number of employed
people decreased by 2.7%, primarily due to a reduced employment in processing industry,
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construction, trade, small enterprises and liberal professions. In 2013, a survey-based average
unemployment rate was 17.2%, which is 1.4 per cent points above the value of the previous
year.

II. THE ISSUES BEING RESOLVED BY THE ACT

According to the World Economic Forum, the competitiveness of the Republic of

Croatia has not yet reached the satisfactory stage, and the efficiency of labour market, part of
which is determined by labour legislation, also influences the level of competitiveness, as one
of twelve elements of measuring the level of competitiveness. In order to alleviate the adverse
effects of the economic crisis in the labour market, while aiming to preserve a certain level of
competitiveness in the global market, a huge number of European Union Member States, as
well as the countries in our region, have implemented a number of reform measures in the
recent period, including the particularly important reforms of labour and social policy-related
legislation, focused on enabling employers' greater internal as well as external flexibility.

The Labour Act in force, the most important general provision on labour that stipulates
the rights and obligations arising from national, individual employment relationships as well
as collective industrial relations, has been additionally burdened with a comprehensive
prescriptive part that regulates the area of notifying, consulting with and co-decision making
of the workers, on a transnational and European level alike.
Consequently, and because of various addressees this Act pertains to, it would be better to
cover the said area through specific provisions and administrative provisions, and to provide
for a more reasonable labour legislation, including a chronological order, and to facilitate its
implementation on a national level and a more efficient inspection.
Also, for the area of cross-border mergers and the participation of workers in the European
Company and the European Cooperative Society, the provisions on the participation of
workers in decision making should be incorporated in a separate legislation, due to the fact
that they are horizontally connected with the Companies Act, The Act on the introduction of
the European company - Societas Europaea (SE) as well as the European Economic Interest
Grouping (EEIG), and the Act on the introduction of the European Cooperative Society,
which regulate the management bodies, methods of and requirements for company
registration, European companies and cooperative societies with appropriate registries.
In addition, concurrently with the procedure of this legal proposal, there is a pending
procedure of adopting regulations and administrative provisions strongly connected with the
labour Act, such as a new law on the representativeness of employer associations and trade
unions.

Taking into account the above illustrated developments on the Croatian labour market,
the necessary reforms should be undertaken in order to accelerate employment, fight against
the shadow economy and provide for an adequate legal framework providing a way for
employers to adapt quickly and operate flexibly, while affording appropriate protection and
safety to workers during their employment relationship.

The representativeness of flexible forms of employment in Croatia, including part-

time work, seasonal work and temporary agency work, shows a negative trend. The share of
part-time workers in total number of employed people has decreased from 10.8% to 8.9%.
According to the data of the Croatian Pension Insurance Institute, the total number of insured
part-time workers is 73.000, but there are twice as many, i.e. 45.400 persons insured on the
basis of employment with two or more employers, mainly in education sector, which leads to
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the conclusion that these workers are actually full-time employed. There are only 27.600
persons insured as part-time workers. One of the obstacles to part-time work is an inconsistent
application of the pro rata temporis principle, which is in practice applied only to worker
remuneration, while other substantial rights ensuing from other legal mechanisms have been
provided to the workers to the full extent. Therefore, the proportionality of all substantial
rights of the workers as compared with the part-time work will be promoted by the present
legal proposal, for the current obstacles will be removed.

The option of alternative working place, usually meaning work at home, is not used,
because the State Inspectorates (now Labour Inspection) data on inspections of this form of
employment show that only a small proportion of people with an employment contract
actually work at alternative working places.
Such a situation is also influenced by the regulations and administrative provisions in the field
of protection at work, because dislocated working places are not suitable for works requiring
for special working conditions; in addition, this field has been regulated by an implementing
act from the '80s of the last century, inadequate for today's technological development and
labour market needs. In addition, the obligation to report on each and every form of such
employment to the Labour Inspection, as well as the implementing regulations for the Labour
Act, regulating the record keeping on workers and their working time, makes it difficult for
the employer to use such a form of employment.

One of the goals of Directive 104/2008/EC on temporary agency work is to promote

such a flexible form of employment, while respecting the principle of equal treatment of
temporary agency workers, in order to avoid the dumping of unit labour cost of temporary
agency workers and workers employed with the user undertaking, with possible exemptions
from the application of this principle, by means of regulations and administrative provisions
or collective agreement. According to the estimates of agencies for temporary work, the share
of temporary agency workers in the labour market is around 0.3%, which a negligible
percentage. In order to remove the obstacles to such a form of employment, the European
Union requires from the Member States to make a review of any restrictions or prohibitions
which may have been imposed by national law on temporary agency work. In addition, the
practice of collective bargaining at the level of temporary-work agencies is not present in the
Republic of Croatia, and the provisions on equal treatment principle with regards to
remuneration and working conditions are a limiting factor in that respect. Employment
contracts of an indefinite duration should be the basic form of employment with temporary-
work agencies as well, and due to the safety of employment for workers with such a type of
contract, the European legislator, aiming at promoting this form of employment, permitted to
the Member States to provide exemption to the equal treatment principle, which would be
implemented into the Croatian legislation in a manner that the lowest substantial rights for the
temporary agency workers for the period during which the temporary agency worker is not
assigned at a user should be prescribed.

A very complex economic situation and dynamics of business processes in specific

businesses requires for a variable working time, which could respond to various business
needs, their dynamics and requirements of business processes organisation. Due attention
should be given to the fact that the highest revenue in Croatia has been generated in tourism
and catering, two industries which are unfortunately still of seasonal nature. Also, overtime
work is often neither recorded nor paid in a prescribed manner, although the data of the State
Inspectorate shows that violations by employers with regards to overtime work make only 2%
of the total number of violations.
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We find that the above mentioned information does not reflect the actual situation and that
this phenomenon is present on a wider scale, because in practice the records on working time
are adapted in order to conceal overtime work whose duration is longer than allowed.
In order to enable a more efficient control and inspection of overtime work and to fight
against illicit overtime work, the obligation of ordering overtime work in writing should be
stipulated, so that overtime work may not be concealed by altering the records of workers
time spent at work. By doing so, and by taking into account the basic principles of Directive
2003/88/EC concerning certain aspects of the organisation of working time, the overall
intensity of work performed by the overtime worker would be limited in a manner that the
total length of weekly working time may not exceed fifty hours.

The provisions of the Labour Act in force do not provide the employers with sufficient
options for internal flexibility and adaptability to the labour market needs, because the
provisions of the Act in force provide for diverse working patterns during certain periods only
for a rather small number of employers. The current provisions of the Labour Act on diverse
pattern of work could have been applied only by the employers organising work in shifts,
while the restriction of diverging from a full monthly working time was a factor limiting the
organisation of working time. Such a regulation is completely inadequate for medium and
small entrepreneurs, including craftsmen, who are the generators of economic growth. Such a
method of organising working time does not allow for an organisation of working time which
would enable employers to respond to short-term fluctuations in business processes, leading
indirectly to a possible loss of jobs due to the lack of capacity for maintaining business orders
and the increase of costs pertaining to the organisation of working time. The reduction of
labour costs produces direct impact on competitiveness, achievement of better business
results, economy growth, and consequently on new employment. The provision of average
working time, allowed under Directive 2003/88/EC concerning certain aspects of the
organisation of working time would indirectly impact labour costs, being continuously on a
high level of 50% of GDP over the past decade. The purpose of the change to the working
pattern mechanism that would encourage diverse weekly working time is to provide for
flexibility in organising working time, while limiting the intensity of work, as well as to
introduce transparency in organising working time by aiming to ensure simpler control and
inspection of compliance with these provisions in practice, which would prevent the incidence
of fraud in the application of working time mechanism in practice. As with overtime work, a
diverse weekly pattern of work has been restricted in two ways, i.e. to 50 hours with regards
to total weekly working time, and to the average weekly working time of 48 hours with
regards to total number of working hours allowed in a period of four consecutive months. At
the same time, there is an option for the increase of the total weekly working time from 50 to
60 hours, but only by means of collective agreement, which is a way of ensuring the
supervision by trade unions, as a party in a collective agreement, of the organisation of time
allowing for a 60 hour weekly working time. At the same time, it is possible to use collective
agreement to broaden the reference period of monitoring the intensity of work performed by
workers, i.e. the total number of working hours allowed during that reference period, from
four to six consecutive months.

The application of working time redistribution mechanism, the so-called big redistribution,
shows that it has been well accepted by businesses that depend on climate conditions or those
of seasonal nature, and that the limitation of maximum working time to 56 or 60 hours a week
fully matches the current regulation of minimum length of rest; therefore, in that sense the
application of the mechanism should remain unchanged.
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In order to prevent all forms of shadow economy, with the prevalence of one-time
temporary jobs of short duration, and because of the great interest on the part of full-time
workers in additional work that would ensure them additional revenue, and because of a
demand for such a form of employment in the labour market, it has hereby been proposed to
allow for such an option for work, while protecting the rights of workers. The maximum
allowed duration of additional work would be 8 hours a week and up to 180 hours a year in
total, provided that the employer or employers of the full-time worker grant their consent for
such work; otherwise, it would be subject to the ban of competition with the employer. By
limiting the number of hours of additional work allowed and, at the same time, by prohibiting
their overtime work, the workers are granted protection from excessive work, the same way
they are protected from overtime work. The positive results of the application of the new
mechanism of temporary employment of seasonal workers in agriculture support our position
that a regulation of additional jobs could be another tool for combating shadow economy.

Also, in aiming at preserving as many jobs as possible and retaining workers in the
labour market and employment status, it has been proposed to allow the employers to assign
particular workers whose work is not required by the employer during certain period to an
associated company of the employer's, treated as such under specific provisions, either in the
country for a maximum period of six months or abroad, for maximum two years, based on a
written agreement of the associated employers.

The flexibility of labour market is determined by a broad spectrum of various factors,

such as laws, collective agreements, social norms, case law, as well as any other element of
the labour market institutional environment. The labour legislation makes only one, yet the
most important factor encompassing many other elements, and due to that fact the
amendments to the Labour Act and the changes to the legal protection of employment in
particular, impact to a great extent the overall environment. The employment protection
legislation pertains to the provisions limiting the employer's freedom in adapting the level of
employability according to their needs; and although it leads to higher costs of new
employment, with stronger legal limitations comes a better protection for currently employed
workers is provided. This has a direct impact on the reduced demand for work, particularly of
young people on the labour market, a fact evidenced by the data of the Croatian Employment
Service, showing that in 2012 the unemployment rate of young people aged 15-24 has reached
36.1%, which is more than one third of the total number of unemployed people in the
Republic of Croatia.

The indirect impact of employment protection legislation on the trends in labour

market is clearly reflected in the data on unemployment and the changes to labour legislation
in 2003. Until 2003, employment protection legislation index was 3.5 points, and in 2002 the
registered unemployment rate was 22.3%, the highest ever, i.e. 14.8%, according to the labour
force survey. In 2003, the changes to the labour legislation started, providing for, inter alia,
reduced severance pay amounts and shorter notice periods, which has led to the decrease of
the employment protection legislation index by 0.8 percentage point, i.e. 23%, and the index
dropped to 2.7 points.

A fall in the value of the index, a continuous economic growth, more favourable
macroeconomic trends and market stability have led to the decrease of unemployment rate,
which has declined until 2007 down to the registered unemployment rate of 14.8%, i.e. 9.6%
according to a labour force survey. The most sensitive issues of labour legislation are the
length of the notice periods, numerous protected categories of workers covered by an absolute
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prohibition of dismissal, i.e. a relative prohibition of dismissal where a dismissal is possible

only with the consent of the work council, and the complexity and length of the very dismissal
procedure, particularly in the case of collective redundancies which directly impact the
employment protection legislation index. It should be noted that notices may be considerably
lengthy, due to the current regulation interrupting the notice period on the grounds of the
workers every justified absence from work (including temporary incapacity for work, annual
leave, paid leave, national defence-related duties, etc.), and that is in practice often the case
that legal consequences of dismissal, i.e. the expiry of notice period and deregistration from
mandatory insurances, take effect following a long period after of the date of making decision
on dismissal. The above mentioned may have additional adverse effects on the complexity
and the duration of necessary restructuring and on the adaptation of the employer to the
market conditions; therefore it would be necessary to make it possible for the employer to
adapt quickly, while, by horizontal harmonisation, protecting the rights of the workers by
means of the systems of aid for safeguarding jobs.

For above-described reasons, it is proposed to reduce and shorten administrative

procedures for employers and to enable for a regular termination of an employment contract,
excluding the obligation to train or educate workers for other works.
As for the notice, its suspension is proposed in case of the worker's temporary incapacity for
work; but, where the notice period is interrupted, the worker's employment relationship
should be terminated after the expiry of 6 months following the date when the decision on
dismissal was communicated to the worker. The notice will be effective during annual leave,
paid leave and the period of the workers release from the obligation to work during the notice
period, as well as during the workers temporary incapacity for work. According to settled
case-law, when the worker is released by the employer from obligation to work during his
temporary incapacity for work, the incapacity for work cannot be a reason for interrupting the
notice period, because the worker has no obligation whatsoever to come to the working place
or to perform the works. Consequently, the conclusion of the relevant court decision is that
the provisions on the interruption of notice period shall not apply when the employer releases
the worker from obligation to work during the notice period (the Supreme Court of the
Republic of Croatia, Revr-615/08, and the Bjelovar County Court, G-3239/11).

Current experience in the field of employer's restructuring demonstrates that the

prescribed procedure of collective redundancies has been lengthy, a fact that makes it rather
impossible for the employer to maintain the healthy part of his business. In that regard, it is
proposed that the collective redundancies procedure should be additionally shortened and
simplified. Doing so should include terminating the employers obligation to prepare a social
plan to mitigate the effects of redundancy, and by shortening the time limits within which the
employers will be allowed to terminate the employment contracts. Namely, bearing in mind
that the purpose of Directive 98/59/EC of 20 July 1998 on the approximation of the laws of
the Member States relating to collective redundancies is to avoid collective redundancies as
early as the phase when an employer is contemplating collective redundancies, as opposed to
the phase when the employer's decision on redundancies has already been made, it is
necessary to strengthen the advisory role of both the works council and the competent public
authority responsible for employment in that initial phase in order to avoid the termination of
employment contracts or to find a way to mitigate the effects of redundancy. Therefore, any
administrative requirement, such as the preparation of a social plan to mitigate the effects of
redundancy, for the employer who is not in a position to avoid the termination of employment
contracts, makes it impossible for him to expedite the restructuring process. Accordingly, the
notice period for collective dismissals has been shortened, and the 30 day notice period is not
 101

calculated as of the date of presenting the social plan to mitigate the effects of redundancy,
but as of the date the competent public authority responsible for employment has been
notified of his intention to effect collective dismissal.

Another difficulty in addition to the above-described problems of the existing

dismissal system lies with the mechanism of judicial rescission of employment contracts.
More specifically, it lies with the prescribed amount of indemnity.
Where the court establishes the unlawfulness of the dismissal effected by the employer and
the worker finds it unacceptable to resume the employment relationship, the court shall, upon
the request of the worker or the employer, determine the date of termination of employment
and award him an indemnification for damages in an amount no less than 3 and no more than
18 average monthly salaries, depending on the length of employment, age and maintenance
obligations lying with the worker. According to the available case law, there have so far been
no court decisions ruling on an indemnification amounting to 18 average salaries; the highest
amounts, at the level of 12 salaries, have been awarded to workers with a very long period of
service.

Having regard to the changes to fixed-term employment contracts, i.e. the possibility
of extending the duration of such a contract so that it may exceed three years, it is necessary
to extend the period of statute of limitation for the exercise of rights arising from employment
relationship before a court, particularly due to the fact that fixed-time workers are rather
insecure and discouraged from exercising their employment rights before a court; therefore, it
is necessary to harmonize the statute of limitations with the general statute of limitations as
defined by the law on civil obligations.

The entry into force of the Act on Criteria for Participation in Tripartite Bodies and
Representativeness for Collective Bargaining (Official Gazette 82/2012 and 88/2012) has
raised many dilemmas over the application of specific mechanisms in the area of collective
industrial relations, in particular the issue of parties in collective agreement and the rights to a
strike. If only the representative trade unions have the right to negotiate and enter into a
collective agreement, a conclusion may be drawn that the parties to such collective agreement
may either be a number of representative trade unions or all of them. In that regard, the
mechanism of accessing a collective agreement has become questionable and redundant,
because only the trade unions that may become parties to a collective agreement may access
the collective agreement, and if non-representative trade unions may not be parties to the
collective agreement, they too may not access it. The issue of collective bargaining and
parties to collective agreements raises the question of whether non-representative trade unions
that may not negotiate a collective agreement, may in turn initiate a strike action for the
purpose of concluding, amending or renewing a collective agreement. These open issues in
the area of collective industrial relations should be harmonized with the above-mentioned
regulations governing the issues of representativeness for collective bargaining. There is no
doubt whatsoever that all trade unions may organize a strike in order to protect the economic
and social interests of their members, including any other legal issues, irrespective of their
representativeness, and in that respect a strike due to non-payment of salaries is the most
relevant one. Therefore, it is proposed that the right to organize a strike because of a dispute
concerning the interests of workers or a dispute concerning the conclusion, amendments to or
renewal of a collective agreement should be stipulated only to the trade unions designated as
representative for the purpose of negotiating and concluding the collective agreement in
question. It would make an unsustainable solution if a strike action on the grounds of a
dispute concerning a collective agreement could be initiated by trade unions that are not
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representative for negotiating such an agreement or by those that are representative, but refuse
to participate in the negotiations, consequently excluding themselves from the right to strike.
As for legal disputes or those concerning the non-payment of salaries, all trade unions have a
possibility of calling their members out on strike, if salaries are not paid out within the
maturity date. The existing solution - that a strike may be organized no earlier than 30 days
after the salary payment maturity date, which practically means 45 days after the expiry of the
months in which the salary was earned seems inadequate.

The current mechanism of extended application of collective agreements creates, in

practice, obligations for employers to comply with two or more collective agreements of
extended application due to carrying out economic activities (for example construction and
trade) covered by two collective agreements. In such a situation, and due to the right to
exercise the most favourable right for workers, the workers are in a position to choose the
right arising from both collective agreements they find more favourable. Therefore, in the
case of a dispute concerning the implementation of collective agreements, it is necessary to
stipulate the implementation of a collective agreement applicable to the employers carrying
out the same activity, as per statistical classification of economic activities. In addition, it is
proposed to change the criteria for and the procedure of making a decision to extend a
collective agreement, in a way that the decision is to be made by the Minister, provided all the
parties to a collective agreement present such a proposal, if the collective agreement was
concluded between trade unions that have the largest number of members and an employer
association having the largest number of workers at the level the agreement is being extended
to, and if there is a public interest for its extension, as established based on information about
the number and structure of employers subject to extending the collective agreement, number
of workers and the level of their substantial rights. The decision may not be made prior to
consulting with the employers subject to the extension, and the extended implementation will
cease to take effect not only in the case of the expiry of the period covered by the collective
agreement and by the expiry of the notice of termination, in the case of its termination, but
also in the case amending or renewal of the collective agreement with no request for
extension, and in that case the Minister will make a decision repealing the decision on
extension.

A judicial protection of the rights arising from collective agreements, particularly in

case of disputes concerning the termination of collective agreement, in practice has often led
to a shift of jurisdiction from lower instance courts to higher or specialized courts, and the
proceedings, from the beginning to the valid decision, have been very lengthy. Therefore, in
order to enable for a fast and efficient protection of workers collective rights, it is necessary
to assign jurisdiction over disputes concerning the termination of collective agreements to
county courts and the Supreme Court of the Republic of Croatia, and apply the same
procedure and time limits as those applicable to a dispute concerning the judicial prohibition
of strike.

Due to lengthy court proceedings in criminal and civil cases filed under the Labour
Act, it is necessary to provide for a more efficient protection of worker rights so as to give
broader powers to inspectors, enabling them to issue oral decisions and administrative
measures for the purpose of ordering or prohibiting unlawful acts of employers; it should be
noted that appeal to such decisions would not have the effect of suspending the effects of the
decision. With this approach, the protection of workers rights should be more efficient and
purposeful compared to filing information to a competent court, because many civil actions
that are initiated based on information remain unresolved due to the statute of limitations.
 103

As a consequence of all the above mentioned problems regarding the implementation

of the Labour Act in force, including the comprehensiveness and structure of the Act as such,
and of the new or amended legislation calling for the horizontal harmonisation of the Labour
Act in force, the objectives pursued by the new Labour Act are as follows:

1. To allow full-time workers to perform additional one-time temporary works up to 8

hours a week or up to 180 a year in total, subject to the consent of their employer or
employers.
2. To allow employers the posting of workers to the companies associated to them and
treated as such under a special legislation, for up to six months for the posts abroad or
up to two years for the posts in the country, on the basis of a written agreement
between the associated employers.
3. By amending the provisions on the organisation of working time, support the
employer's internal flexibility, retain jobs and reduce the employer's operational costs
by allowing an organisation of working time that would enable the employers to
respond to short-time fluctuations in business processes.
4. To stipulate remuneration for workers employed by temporary-work agencies during
the period of their non-assignment so as to support the employment of these workers
under employment contracts of indefinite duration.
5. To allow the derogation from equal treatment principle for assigned workers if there is
a collective agreement applicable to the agency.
6. To support part-time employment that is additionally supported by the active labour
market measure share a workplace, implemented by the Croatian Employment
Service, by amending the mechanism of part-time work so as to make the substantial
rights of the workers subject to a consistent application of the pro rata temporis
principle.
7. To amend the organisation of work at alternative workplaces, particularly with
regards to the requirement for reporting such form of work to the Labour Inspection
and for keeping records on working time, in order to support a more flexible
management of human resources. Having regard to the fact that this form of work is
well accepted by both the workers and the employers, it is necessary to simplify the
provisions on working time record keeping and to allow the record keeping of actual
performance at work instead of a formal presence at work. Also, such form of work
should be allowed for jobs performed under specific working conditions, because they
are still regulated by an out-dated Ordinance on jobs performed under specific
conditions dating from 1984. In that respect, absolute prohibition should be replaced
with a minimal requirement for alternative workplaces to be verified by authorised
experts for protection at work.
8. To reduce the employment protection legislation index in order to encourage new
employment, of young people in particular, by means of simplifying and accelerating
the dismissal procedures, amending the provisions on the interruption of notice period,
reducing the number of categories of workers protected against dismissal, changing
the amount of indemnity in case of judicial cancellation of employment relationship,
and by simplifying and accelerating collective redundancy procedure.
9. To amend the provisions on the statute of limitations so as to stipulate applying the
general statute of limitations in order to encourage part-time workers to exercise,
before a court, their rights arising from employment relationship.
10. To reduce the maximum amount of indemnity in case of judicial cancellation of
employment contract to 8 average salaries.
 104

11. By stipulating a mandatory arbitration, disburden labour courts and reduce the costs of
lengthy court proceedings concerning the consent of the works council to the
termination of employment contracts of numerous particularly protected workers.
12. By amending the absolute protection against terminating employment contracts of
workers who exercise their maternity and paternity rights, to allow the termination of
their employment relationship upon the death of the employer who is a natural person,
upon the termination of a small business by virtue of law or upon deregistration of a
sole trader and upon the liquidation of the employer.
13. By stipulating non-interruption of the notice period during annual and paid leave and
by stipulating the maximum duration of the period of notice during which the worker
was temporarily incapable of working, to make it impossible that legal consequences
of dismissal may produce effects following a very long period since the date of the
notice of dismissal.
14. To simplify and enhance the collective redundancy procedure in order to enable a
faster restructuring of the employer, which would be in line with market and business
requirements.
15. To harmonise the trade unions' right to strike with the Final proposal of the Act on the
representativeness of employer associations and of trade unions, and to allow the
initiation of a strike due to non-payment of salaries upon the expiry of payment
maturity date.
16. To harmonise the definition of persons subject to obligations arising from a collective
agreement with the provisions of the Act on representativeness of employer
associations and of trade unions on the parties to a collective agreement, which is
undergoing the Parliament procedure, and consequently to repeal the mechanism of
assessing a collective agreement.
17. To define criteria for an extended implementation of collective agreements and define
a collective agreement applicable to employers who are obliged to comply with two or
more collective agreements of extended application.
18. To harmonise penal provisions with the amendments to misdemeanour legislation and
to allow labour inspectors to apply a more efficient and broader administrative
measures, as well as to collect on-the-spot fines for non-compliance.
19. In order to clear the Act of the provisions on the rights regulated by special legislation,
such as the Act on Maternity and Paternity Allowances, it is proposed to delete such
provisions from the Labour Act.
20. In order to disburden a rather comprehensive text of the Labour Act, to stipulate a part
thereof pertaining to European works councils, European companies and European
Cooperative Society, and cross-border mergers, by mans of specific provisions.

In addition, the Act has been structured into two parts, regulating individual employment
relationships and collective industrial relations (including, within each of them, a
chronological and logical provisions, starting with the provisions on taking up employment,
then on rights and obligations, and finally on the termination of employment relationship),
facilitating both its application and inspection of compliance with the Act.
 105

III. EXPLANATION OF PROVISIONS OF THE PROPOSED ACT

Articles 1 to 9

The subject matter of the Act is prescribed (Article 1), including the list of the European
Union directives the Act is being harmonised with (Article 2), pursuant to point V of the
Decision on instruments for harmonising the legislation of the Republic of Croatia with the
EU acquis.
It is prescribed that gender-neutral language is used throughout the text of the Act (Article 3).
The terms worker and employer are defined (Article 4); the obligation of keeping records
on workers employed with the employer and on working time (Article 5); the authority
responsible for electronically keeping data on workers and persons responsible to submit the
data, and the obligation of the Minister to prescribe the method of keeping records on workers
by virtue of an ordinance, including the exchange thereof among institutions with public
authority in accordance with a special legislation on personal data protection (Article 6).
Fundamental obligations and rights arising from an employment relationship are prescribed
(Article 7), obligation to comply with employment-related legislation (Article 8), and freedom
of contract in respect of working conditions (Article 9).

Articles 10 to 25

The take up of employment is prescribed; also, in accordance with a special legislation, i.e.
company law, associated employers are allowed to post workers to an associated company,
when there is no need for their services at the employer, for up to six months, which is a
measure to support the preservation of as many jobs as possible and to retain workers in the
labour market and in employed status (Article 10). It is defined that an employment contract
shall be a contract of indefinite duration and that its indefinite duration shall be presumed if it
is not specifically defined (Article 11). It is prescribed that, as an exception, an employment
contract may be concluded for the purpose of taking up an employment whose termination is
determined in advance either by a specific deadline or performance of a specific task or
occurrence of a specific event, for a definite period of time. An employer may conclude a
successive fixed-term employment contract with the same worker only for an objective reason
that must be contained either in the contract or in the letter of engagement referred to in
Article 14 (3) of this Act; the total duration of all successive fixed-term employment
contracts, including the first one, is limited to three years, unless otherwise permitted by law
or collective agreement for the purpose of replacing a temporarily absent worker or for
another objective reason, and in that case the duration of successive fixed-term employment
contracts may exceed three years. The restrictions in terms of objective reasons and duration
do not apply to the first fixed-term employment contract. Any change or amendment to the
fixed-term employment contract that would affect the extension of the duration of such a
contract shall be regarded as a next successive fixed-term employment contract. In that
respect, an interruption of less than two months shall not be regarded as the interruption of the
three-year period. Where an employment contract is not concluded in compliance with the
provisions of this Act or where a worker continues to work at the employer's following the
expiry of the contract, it shall be deemed that the concluded contract was of indefinite
duration (Article 12).
Working conditions for fixed-term workers are prescribed, as well as the equal treatment of
fixed-term workers compared to permanent workers with regards to working conditions; also,
the notion of comparable worker is defined (Article 13).
 106

Also, the employment contract form is prescribed (Article 14), including the mandatory
contents of an employment contract and letter of engagement (Article 15), mandatory contents
of employment contract for seasonal works (Article 16), mandatory contents of a contract of
employment at alternative workplaces, including the termination of the obligation of the
employer to inform the competent public authority responsible for labour inspection about
every such employment contract concluded, and the simplification of the contract of
employment at alternative workplaces (Article 17).
The mandatory content of a written employment contract and letter of engagement in the case
of expatriation of the worker are prescribed.
With regards to the fact that an option of posting a worker to an associated company was not
stipulated thus far, the Act prescribes that an employer may post his worker to an associated
company, treated as such under a special legislation, having a permanent establishment
abroad, for a period of two years maximum and on the basis of an agreement between the
associated employers.
The provisions on temporary employment shall not apply to the secondment of the worker to
an associated company (Article 18).
Also, the minimal employment age is prescribed (Article 19); it is defined when a minor is
capable of entering into and terminating an employment contract (Article 20); certain works
by a minor are prohibited, when it is likely that such works could harm their safety, health,
morals or development (Article 21); it is prescribed that labour inspectors are authorised to
supervise certain works by minors and to request from the employer that an authorised
physician perform a health assessment of the minor and provide his findings and opinion of
whether the works performed by the minor are harmful to his safety, health, morals or
development (Article 22).
The provisions of the Act concerning the works by minors are harmonised with the Council
Directive 94/33/EC of 22 June 1994 on the protection of young people at work. The
obligation of complying with special requirements for entering into employment contract is
prescribed (Article 23), and the obligation of the worker to inform his employer about
sickness or any other circumstances precluding or hindering the exercise of obligations from
the employment contract (Article 24).
The employer is prohibited from requesting from the worker any information not directly
related to the employment relationship, both when concluding an employment contract and
during the employment relationship (Article 25).

Articles 26 to 27

The employer who employs a minimum of twenty workers shall be obliged to adopt and make
publicly available the working regulations governing important issues pertaining to
employment relationship, unless these issues are regulated by a collective agreement (Article
26). Prior to the adoption of working regulations, the employer is obliged to consult the works
council, which is authorised to request the competent court to declare null and void the
unlawful working regulations or parts thereof (Article 27).

Articles 28 to 29

It is prescribed that the employer is obliged to ensure safe working conditions, i.e. to organise
the work in such a manner so as to ensure the protection of life and health of the workers, to
inform the worker about any dangers pertaining to the work he performs, and, if the employer
is responsible to provide accommodation and food to the workers, due account should be
taken to protect the life, health, moral and religion of the workers (Article 28).
 107

The protection of the worker's privacy is prescribed, by way of limiting the collection,
processing, use and disclosure of the worker's personal data to third parties (Article 29).

Articles 30 to 36

For the purpose of horizontal harmonisation of the Act with national legislation, and taking
into account the regulation of paternity rights and allowances by special legislation, the
provisions of this Title of the Act stipulate a prohibition of discriminating pregnant women
(Article 30), and the protection of pregnant women as well as women who have recently
given birth or are breastfeeding (Article 31).
Where the previous length of employment relationship is of relevance for acquiring certain
rights arising from the employment relationship or pertaining thereto, periods of maternity,
paternity or adoption leave, periods of short-time work shall be regarded as full-time work
(Article 32).
For the purpose of normative clarity of the Act, it is prescribed that the rights of workers to
maternity and paternity allowances are to be exercised in accordance with specific legal
provision (Article 33).
It is prescribed that during pregnancy, maternity, paternity or adoptive leave, periods of part-
time work, periods of shorter working hours due to intensified childcare, the leave of pregnant
women or a breastfeeding mother, and the periods of leave or shorter working hours due to
having to care for a child with serious development disabilities, that is, within fifteen days
following the end of pregnancy or the end of the exercise of such rights, the employer may
not terminate the employment contract of the pregnant woman and a person exercising any of
these rights (Article 34).
The worker's right to terminate the employment contract by an extraordinary notice of
dismissal is prescribed (Article 35), as well as the right to return to previous or adequate
works (Article 36).

Articles 37 to 43

It is prescribed that the worker is obliged to inform the employer about his temporary
incapacity for work and to deliver an adequate medical certificate (Article 37).
Due to the legitimacy of the option to terminate an employment contract, and for the purpose
of protecting a worker who is temporarily incapable of working on the grounds of
employment, it is prohibited to terminate the employment contract of such workers, and it is
prescribed that injury at work or a professional illness may not constitute a ground for
discrimination of the worker as regards his rights (Articles 38 and 39).
Worker's right to reinstatement after temporary incapacity has been recognized (Article 40).
Also, the worker's right to employment in other jobs is recognized (Article 41), as well as his
right to severance pay in double amount to the worker who suffered an injury at work or a
professional illness who is not returned to work after medical treatment and professional
rehabilitation (Article 42).
The worker who suffered an injury at work or a professional illness shall have priority for
training and education organized by the employer (Article 43).

Articles 44 to 52

The activities of temporary-work agencies as employers have been regulated. Temporary-

work agency (hereinafter: the Agency) means an employer who, based on the worker
assignment contract, assigns workers to another employer (hereinafter: the User) to work
 108

there temporarily. Also, the term assigned worker is defined for the purposes of this Act,
and assigned worker means the worker employed by the agency in order to assign him to the
user undertaking. The agency may perform the activity of assigning workers to the Users
provided that it is established in accordance with specific provisions and registered with the
ministry responsible for labour; in addition to worker assignment activities, the Agency may
perform economic activities pertaining to employment provided that it holds an appropriate
license in accordance with specific provisions. The Agency is obliged to deliver to the
Ministry statistical data on worker assignment activities (Article 44); non-compliance
demands sanctions.
Temporary agency work implies a tripartite relationship: the agency - the user undertaking -
the worker, and the agency acts as an employer. The agency - user undertaking relationship is
regulated by assignment contract that is also a basis for the assignment of agency workers at
the user undertaking; in the case of expatriation of the worker, the contract must contain
specific information. It is prescribed in which cases the temporary agency work is not
allowed. A temporary-work agency contract is not allowed in the following cases: when
temporary-work agency workers substitute workers on strike; when the user employer during
the last 6 months has dismissed workers of the same occupational category in the course of
collective redundancies or on economic grounds; when the employment by its nature falls
within the scope of specific provisions on protection at work covering works under specific
working conditions, not met by the worker, and when the worker is to be assigned to another
agency (Article 45).
Temporary-work agency employment is subject to either an indefinite or fixed-term
employment contract between the agency and the worker. Mandatory contents of these
contracts is stipulated, and in addition to information contained in each and every
employment contract, they must contain some additional particulars pertaining to specific
features of temporary works under fixed-term employment contract. The temporary-work
agency worker with a contract of indefinite duration is entitled to receive a pay between the
assignments at the user undertaking amounting to the average 3-month salary, unless
otherwise provided for by other legal provisions, collective agreement, working regulations or
employment contract. Also, equal treatment of assigned workers is prescribed, including that
the remuneration and other working conditions applicable to the assigned workers may not be
lower or less favourable comparable to the remuneration or working conditions applicable to
the worker employed with the user undertaking for the same job, which would apply to the
assigned worker if he had been recruited directly by the user employer. Other working
conditions applicable to the assigned worker include working time, break and rest periods,
safety at work protection measures, protection of pregnant workers, parents, adoptive parents
and youth, and ban of discrimination in accordance with specific anti-discrimination
provisions. Exception from the principle of equal treatment can be made through collective
agreement between the agencies, or agency association, and trade unions in accordance with
specific provisions, but the working conditions may not be less favourable than those
provided for in specific provisions (Article 46).
Specific conditions for the termination of temporary employment contract are prescribed, i.e.
unfair dismissal (Article 47), as well as the restriction of assignment period, which is
extended from one to three years, so as to limit the user undertaking to use the same assigned
worker for the same tasks for a period exceeding three years, unless it is necessary for the
purpose of replacing a temporarily absent worker or where it is allowed by collective
agreement on the grounds of some other objective reasons (Article 48).
The obligations of the agency as an employer and those of the user undertaking towards the
worker are prescribed (Articles 49 and 50), as well as the right to indemnification for damages
caused by the assigned worker to a third party during his assignment at the user undertaking
 109

or related thereto, and the obligation of the agency to get registered with the Ministry
(Articles 51 and 52).

Articles 53 to 59

A probationary period of maximum six months is provided for (Article 53), and the
employer's obligation to ensure schooling, education and training for the worker, in line with
his capacities and requirements of work (Article 54).
In line with the current practice, the option of employing trainees is envisaged (Article 55),
traineeship (Article 56), maximum duration of probationary period, unless otherwise provided
for by law (Article 57), and the qualification examination after the expiry of probationary
period (Article 58).
Also, an option of unremunerated traineeship is provided for, which is subject to certain
employment protection provisions (Article 59).

Articles 60 to 72

For the purpose of harmonising the Act with Directive 2003/88/EC of the European
Parliament and of the Council of 4 November 2003 concerning certain aspects of the
organisation of working time, and Council Directive 97/81/EC of 15 December 1997
concerning the Framework Agreement on part-time work concluded by UNICE, CEEP and
the ETUC, the term working time is defined (Article 60), a maximum duration of full-time
work is prescribed so as not to exceed 40 hours a week, including the option of additional
work for full-time workers up to 8 hours a week and up to 180 hours a year, subject to the
consent of their employer or employers (Article 61).
The option of part-time employment contract is provided for, including the equality of part-
time work with full-time work as regards the acquisition of rights arising from employment
relationship, but what is provided for is that remuneration and other substantial rights of the
worker will be proportionate to his working time under the contract, unless otherwise
provided for in collective agreement, agreement with the works council, working regulations
or employment contract (Article 62).
The equal treatment principle is prescribed as regards full-time and part-time workers,
including the definition of comparable worker (Article 63).
The presumptions and procedure for shorter working time, which is made equal to full-time
work, are standardised (Article 64), as well as overtime work. Where the employer, due to a
pressing need, is not in a position to hand over a written request for overtime work before it
begins, he shall be obliged to confirm his oral request in writing within seven days of the date
of overtime work request. The total overtime work performed by the worker may not exceed
50 hours a week.
The overtime work per worker may not exceed 180 hours a year, unless it has been provided
for in collective agreement, in which case it may not exceed 250 hours a year. Overtime work
by minors is prohibited, as well as by full-time workers performing additional works with the
consent of their employer(s), pregnant women, parents of a child under three years of age and
single parents of a child under six years of age and part-time workers may work overtime only
with a written consent to such work handed over to the employer, except in the case of force
majeure (Article 65). In order to provide for a flexible organisation of working time, the
mechanism of working time patterns has undergone significant changes. A pattern of working
time shall be determined by virtue of the employer's written decision, unless it is determined
by legal provisions, collective agreement, working regulations or by employment contract.
The period covered by a pattern of working time may not be less than three months nor may it
 110

exceed one year. The employer is allowed to apply flexible work schedule policy as regards
full-time and part-time workers, i.e. weekly or monthly working hours may vary, so as to be
longer than full-time or part-time work in one period, and shorter in another. During the
period of flexible work schedule, the worker's schedule may be changed only for the
remaining period of flexible work schedule. During the period of flexible work schedule, the
worker's flexible work schedule must be equal to the workers full-time or part-time working
hours as defined by the contract. Where, prior to the expiry of period of flexible work
schedule, the worker's working hours already match his full-time or part-time working hours,
as applicable, the employer shall request the worker to work overtime during the remaining
part of such a period, if there is a for service of that particular worker. In the case of flexible
work schedule, the worker may work up to 50 hours a week or, provided that it is defined so
by collective agreement, up to 60 hours a week, including overtime work. Also, the Act limits
the intensity of work by limiting the total number of hours worked by the worker during a
period of four consecutive months. Therefore, in the case of flexible work schedule, in a
period of four consecutive months the worker may not work more than 48 hours a week on
average, including overtime work, while the period of work intensity monitoring may be
extended by virtue of collective agreement to a maximum of six months. Also, it is made
possible to define, by collective agreement, the so called working hours bank, i.e. the
accumulated working hours, in such a manner that during the period of flexible work schedule
workers may work for longer than 50 hours, but the accumulated working hours may not
exceed the weekly average of 45 hours in a four month period. The period of annual leave and
temporary unavailability for work shall not be counted in for the four or six-month period. It
remains the employer's obligation to informing the worker on his work schedule or any
change thereto at least one week in advance, except in the event of an urgent need for
overtime work (Article 66).
Where the nature of business or seasonal work requires so, the employer remains allowed to
reorganize working hours at the level of twelve consecutive months (Article 67); also, the
prohibitions and restrictions regarding flexible work schedule of vulnerable worker categories
are prescribed (Article 68).
Night work is stipulated, including specific provisions regulating the length of night work by
minors, in accordance with the Council Directive 94/33/EC of 22 June 1994 on the protection
of young people at work. For the purpose of harmonising the Act with Directive 2003/88/EC,
the term night worker is defined, and it means any worker who during night time regularly
works at least three hours of his daily working time as a normal course, and any worker who
during night time work at least one third of his daily working time during the period of twelve
consecutive months (Article 69). The ban of night work by minors is specifically stipulated
(Article 70).
For the purpose of harmonising the Act with Directive 2003/88/EC, shift-work and shift-
workers are defined, including the employer's obligation to ensure to both night-workers and
shift-workers safety and health protection adapted to the nature of their work, and the
functioning of sufficient protection and prevention services, and the right of night workers to
a health assessment before their assignment and thereafter at regular intervals, in accordance
with specific provisions (Articles 71 and 72).

Articles 73 to 87

The worker's right to a break is prescribed (Article 73); the right to daily rest between two
consecutive working days (Article 74), and the right to a weekly minimum of uninterrupted
rest period of 24 hours plus the hours of daily rest (Article 75).
For the purpose of harmonising the Act with Directive 2003/88/EC of the European
 111

Parliament and of the Council of 4 November 2003 concerning certain aspects of the
organisation of working time, the worker's right to annual leave of at least four weeks in each
calendar year is prescribed. For minors engaged in works involving exposure to harmful
effects in spite of the implementation of health and safety at work protection measures, the
right to annual leave of at least five weeks is prescribed. The duration of annual leave
exceeding the minimum prescribed period and a number of working days to be counted in the
annual leave are to be defined by collective agreement, working regulations or employment
contract (Articles 76 and 77).
The mechanism of determining a proportion of annual leave is envisaged (Article 78).
National holidays and non-working days stipulated by law, periods of temporary incapacity
for work assessed by competent physician and days of paid leave shall not be counted in the
period of annual leave (Article 79).
Aiming to ensure both safety and health protection at work and worker's capacity for work, it
is prescribed that the worker may not waive his right to annual leave by stipulating the nullity
of such a waiver (Article 80), and the worker's right to paid annual leave (Article 81) and to
an allowance in lieu of annual leave in the case of employment contract termination (Article
82). The option of taking portions of annual leave is provided for (Article 83).
Also, having regard to the commitments arising from the Holidays with Pay Convention of
the International Labour Organisation from 1970, it is prescribed that the worker is entitled to
carry over the unused portion of annual leave to the next calendar year, including the
conditions and deadlines (Article 84).
It should be noted that, under the Act, the worker is entitled to use annual leave which was
unused due to maternity leave, parental or adoption leave or due to the employer who did not
make it possible for the worker to use it by 30 June of the following year by the end of the
year in which he was reinstated, while under the Act in force the worker has to use such
annual leave by 30 June, like all other workers, and this is the reason why these workers often
did not have a chance to use their annual leave (Article 84).
It is prescribed that the employer will prepare the annual leave schedule, in accordance with
by-laws or by means of employment contract, taking into account the organization of work
requirements and the options for rest and leisure available to the workers (Article 85).
The cases of paid leave are provided for, as well as a clearer provision on the entitlement to
paid leave for blood donors. Unless otherwise provided for by collective agreement, the
agreement between the works council and the employer or employment contract, the worker
who is a voluntary blood donor shall be entitled to a day off work on the day of blood
donation (Article 86).
Also, the cases of unpaid leave are envisaged, and that, unless otherwise provided for by law,
during unpaid leave the rights and obligations arising from employment or related thereto
shall be held in abeyance (Article 87).

Articles 88 to 89

Particular regulation of working time, night work and rest for certain categories of workers is
prescribed. The provisions of this Act on working time, breaks, daily and weekly rest shall not
apply to workers on board seagoing fishing vessels, and these issues will be regulated by
means of an ordinance to be adopted by the Minister.
The provisions of this Act on the maximum duration of weekly working time, night work,
daily and weekly rest and the period referred to in Article 66 (9) of this Act, shall not apply to
workers whose duration of working time, due to the specific nature of their work, cannot be
measured and/or predetermined or can be determined by the workers themselves, (managing
executives or an employed family member of the employer-natural person who lives in the
 112

same household with the employer and performs certain works for him, etc.), provided that
they agreed with the employer upon their autonomous decision-making powers in that
respect; the employer is obliged to inform the works council about these contracts (Article
88).
It is prescribed that, unless otherwise provided for by specific provisions, the employer may
ensure for his adult workers derogations from the provisions on duration of working time for
night worker, daily or weekly rest applicable in certain economic activities, provided that the
worker is afforded equivalent periods of compensatory rest after the end of period at work due
to which the worker used a shorter daily or weekly rest.
In that case, the weekly rest may not be less than 12 hours, and the daily rest may not be less
than 10 hours, unless otherwise provided for in collective agreement, and in that case it may
not be less than 8 hours (Article 89).

Articles 90 to 97

The method of determining the pay is prescribed, and it is underlined that if bases and
benchmarks for remuneration are not provided for by collective agreement, the employer
employing at least 20 workers is obliged to determine them by means of working regulations;
in addition, it is prescribed that, if the remuneration is not determined in a prescribed manner,
the employer is obliged to pay to the worker an appropriate remuneration (Article 90).
In accordance with Directive 2002/73/EC of the European Parliament and of the Council of
23 September 2002 amending Council Directive 76/207/EEC on the implementation of the
principle of equal treatment for men and women as regards access to employment, vocational
training and promotion, and working conditions, it is prescribed that the employer is obligated
to pay equal remuneration to female and male workers for the same work or for work to
which equal value is attributed, including the criteria for determining the same work and
work to which the equal value is attributed (Article 91); the payment periods are determined
(Article 92), and it is prescribed that the payroll accounts as regards outstanding remuneration
and severance pay which are due, shall be instruments permitting enforcement (Article 93).
That the worker shall be entitled to an increased remuneration for arduous working
conditions, overtime and night work, and for work on Sundays, holidays, and on other days
that are not working days according to law is provided for (Article 94).
It is made possible that periods in which the worker does not work due to legitimate reasons,
and during which he is entitled to remuneration, be agreed upon by means of employment
contract (Article 95).
In principle, it is prohibited to the employer to settle his claims against the worker by
withholding payment of remuneration or compensation or a part thereof; the employer may do
so only with the worker's consent (Article 96).
It is prescribed that the remuneration is protected against forced execution, which is exercised
in accordance with specific provisions (Article 97).

Articles 98 to 100

It is envisaged that a worker's invention created at the workplace belongs to the employer, and
that the worker is entitled to an adequate reward (Article 98).
Where the worker's invention is neither created at the workplace nor in relation to the work,
but is rather connected with the employer's business activity, the worker is obliged to inform
the employer thereon and make a written offer to the employer concerning the assignment of
invention rights, subject to the provisions of the law on civil obligations on statutory pre-
emption rights (Article 99).
 113

Also, it is envisaged that the worker has the right to an adequate reward if the employer
agrees to apply a technical innovation suggested by the worker, and it is prescribed that the
employer who agrees to apply a technical innovation suggested by assigned worker is obliged
to pay the worker a reward established by means of a specific agreement (Article 100).

Articles 101 to 106

A legal ban of competition between worker and his employer during the employment (Article
101) is introduced, including a possibility of extending such a ban by means of a contract in
order to cover a period after the termination of the employment relationship (Articles 102 to
105).
An option of contractual sanctions is prescribed, including that a contractual sanction may
also be determined if the employer does not undertake to pay an allowance for the duration of
the contractual ban of competition, provided that at the moment of the conclusion of such an
employment contract the worker was receiving a remuneration exceeding the average salary
in the Republic of Croatia (Article 106).

Articles 107 to 111

The liability of the worker who, at the workplace or in relation to the work, either
intentionally or due to gross negligence, causes the employer to suffer damage is prescribed
(Article 107), as well as the employer's liability for damages caused to the worker (Article
111).
Also, an option to determine an amount of indemnification for damages for certain harmful
acts in advance is prescribed (Article 108), and the recourse liability of the worker who causes
damage to a third party indemnified by the employer (Article 109).
The conditions and methods for limiting the worker's liability to indemnify or for exempting
the worker from liability to indemnify against damages may be provided for in collective
agreement or working regulations (Article 110).

Articles 112 to 130

The Act stipulates the forms of termination of employment contracts (Article 112) and, in
addition to the currently valid methods for terminating employment contracts, it is also
prescribed that it may be terminated upon the death of employer - natural person, upon the
termination of a small business by virtue of law or the deregistration of sole trader in
accordance with specific provisions. Both the employer and the worker shall be allowed to
terminate the employment contract (Article 114). The Act stipulates the written form of the
employment contract termination agreement (Article 113) as well as of the notice of dismissal
(Article 120).
The protection of workers against dismissal has been harmonised with the employer's need to
employ the workers he really needs, while ensuring the protection of workers against unfair
dismissals where due account has not been taken of social considerations. The Act provides
for grounds for regular dismissal subject to a mandatory period of notice. For the purpose of
enhancing the employer's restructuring operations the employer is empowered to terminate an
employment contract on economic reasons or on personal grounds irrespective of whether it
would be reasonable for the worker to be redeployed or retrained (Article 115).
The reasons and time limits for an extraordinary notice of termination of the employment
contract are stipulated, with no obligation to comply with a mandatory period of notice
(Article 116).
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Unjustified reasons for dismissal are prescribed (Article 117), as well as the termination of
fixed-term employment contract (Article 118) and the employer's obligations prior to the
termination (Article 119).
The procedure and duration of the period of notice are stipulated. For the purpose of
enhancing the employer's restructuring operations it is prescribed that the notice takes effect
during annual and paid leave, unless otherwise provided for in collective agreement, working
regulations or employment contract. The notice does not take effect during temporary
incapacity for work; rather, the employment relationship of the worker who was temporarily
incapacitated for work during the period of notice will be terminated with the expiry of a six-
month period of the notice of termination at the latest, irrespective of the duration of
incapacity and the applicable period of notice (Articles 121 and 122).
Having regard to the contractual nature of employment relationship, a dismissal accompanied
with an offer of redeployment is envisaged (Article 123), including the judicial protection of
the worker, as in the case of employment contract termination.
In the case of unfair dismissal, the employer may be ordered by the court to reinstate the
worker (Article 124), but if it happens that it is not in the interest of the worker or the
employer, it is envisaged that, with due account taken of all the circumstances of the case, an
adequate compensation in lieu of reinstatement may be ordered; the maximum amount of
compensation in lieu of reinstatement is reduced from 18 average salaries to a maximum of 8
monthly salaries, either statutory or agreed upon by means of the contract, depending on the
tenure, age and family obligations lying upon the worker (Article 125). The worker's right to
severance pay after two years of tenure is prescribed. The amount of severance pay depends
on the years of tenure, and its total amount is limited unless otherwise provided for by law,
collective agreement or working regulations (Article 126).
The mechanism of collective redundancies is provided for, including the participation of the
works council and a competent public authority responsible for employment in the procedure.
The purpose of this provision of the Act is the harmonisation with Council Directive
98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to
collective redundancies; it is focused on the participation of workers' representatives in all
stages of the procedure of collective redundancies and on ensuring the implementation of
active labour market measures designed to mitigate or alleviate the consequences of worker
redundancy. The employer's obligation to prepare a social compensation plan is terminated,
and the duration of collective redundancy procedure is reduced in such a manner that the 30-
day period in which the employer is not allowed to terminate the employment contracts is not
counted as of the date of communication of a social compensation plan to the competent
public authority responsible for employment, but instead as of the date of redundancy
notification to the competent public authority responsible for employment (Articles 127 and
128).
Specific rights of expatriate workers are prescribed (Article 129), as well as the employer's
obligation to return all of the documents to the worker, including the copy of the worker's
deregistration from mandatory pension and health insurance schemes, and to issue a
certificate on the type of job performed by the worker and the duration of the employment
(Article 130).

Articles 131 to 139

The employer is granted the option to authorise another adult person with legal capacity to
represent him in the exercise of rights and obligations arising from employment or related to
employment by virtue of a written power of attorney (Article 131).
The service of the decision on the termination of employment contracts and decisions made in
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the procedures pertaining to the protection of worker's rights arising from employment
relationship is stipulated, s well as it being subject to civil procedure provisions on the
communications, unless it is provided for by collective agreement, agreement between the
works council and the employer or working regulations (Article 132).
Also, a preclusive period is prescribed for the exercise of judicial protection of the rights
arising from employment, except in the case of the worker's claim for indemnification for
damages or another financial claim pertaining to the employment (Article 133), which is
made subject to a statute of limitations period extended from three to five years, unless
otherwise provided for by any other laws and regulations (Article 139); also, an 8-day period
is stipulated within which the works council or trade unions have to respond to the employer's
decision, where the employer is obliged to obtain their consent (Article 138).
The protection of workers' dignity is regulated, as a specific protection against harassment or
sexual harassment, which is regarded as the breach of obligations arising from employment.
The employer's obligations in the procedure for the protection of workers' dignity are defined,
including the procedure applicable to the worker's complaint about harassment or sexual
harassment, and the worker's right to stop working until he receives protection from the
employer. In order to prevent the misuse of the right to stop working, it is also stipulated that
the employer may claim a refund of the remuneration paid to the worker in the event of a
valid judicial decision ruling that the worker's dignity was not violated (Article 134).
The burden of proof in labour disputes is defined, i.e. the cases when it rests with the
employer and when with the worker (Article 135).
The option of arbitration and mediation in a labour dispute is envisaged (Article 136).
For the purpose of harmonising the Act with the Council Directive 2001/23/EC of 12 March
2001 on the approximation of the laws of the Member States relating to the safeguarding of
employees' rights in the event of transfers of undertakings, businesses or parts of undertakings
or businesses, it is stipulated that in cases when it is allowed to transfer the contracts of
employment to the new employer, the rights of the worker are to be retained, as an obligation
of the employers, as well as that the existing collective agreement will continue to apply for
one year (Article 137).
The purpose of this provision is to safeguard the tenure and all workers rights stemming from
the transferred employment contract, including the prohibition of terminating the employment
contract on the grounds of the transfer of undertakings, businesses or parts of undertakings or
businesses to a new employer.

Articles 140 to 162

Workers rights to participate in decision-making, to be informed and consulted, as well as to

be co-decision makers, are regulated by the provisions concerning works councils (Chapter
1), workers meetings (Chapter 2) and workers representative in an employers body
(Chapter 3).
Workers employed with an employer, who employs at least 20 workers, with the exception of
workers employed at public administration bodies, have the right to take part in decision-
making on issues related to their economic and social rights and interests (Article 140).
It is prescribed that workers have the right to elect, in free and direct elections, by secret
ballot, their representatives who shall represent them before their employer in relation to the
protection and promotion of their rights and interests (Article 141).
The Act determines the number of members of a works council (Article 142), and that if the
employers operations are organized through several organizational units, several works
councils may be established, where the General works council may by organized only if the
works councils are established in all organizational units, where such a works council is
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composed of representatives of works councils of all organizational units (Article 143).

The electoral terms have been prolonged from three to four years (Article 144); the Act
prescribes who shall have voting rights (Article 145) as well as the method of running as a
candidate (Article 146). The election of a single representative is to be decided by a relative
majority, and if more representatives are to be elected, the system of proportionate
representation is applied (Article 147).
Basic powers of a works council are defined (Article 148), as well as the issues about which
an employer has a duty to inform the works council (Article 149), and about which the
employer must consult the works council before rendering a decision (Article 150). The Act
also defines cases in which an employer may render a decision only subject to prior consent
of the works council (Article 151).
Furthermore, in order to expedite the proceedings of replacing the consent for dismissal of
protected categories of workers, a mandatory arbitration is introduced. Therefore, if the works
council refuses to give its consent, the refusal shall be explained in a written form, and the
employer may, within fifteen days of the receipt of the statement on refusal to give consent,
ask that such consent be replaced by an arbitration award. The arbitration is conducted by an
arbiter who is selected from the list defined by the Economic and Social Council, namely
determined in agreement, by the opposing parties. The list of arbiters is determined and
managed by the Economic and Social Council which shall define in an ordinance the method
of arbiter selection, arbitral proceedings and method of performing administrative tasks
related to these proceedings.
Prescribing an exception in co-decision making or in employers decision-making with works
councils consent, a unique protection method is achieved in cases when the function of a
works council is taken over by trade union commissioners where they have protection as
protected trade union commissioners in accordance with provisions of Article 249 of the Act,
and not as members of a works council.
The works council is obliged to regularly inform the workers (Article 152) and with a view of
protecting and promoting the rights and interests of workers, it cooperates with trade unions.
If no works council has been established with an employer, all the rights and obligations
pertaining to works councils shall be exercised by a trade union's representative, apart from
the rights related to appointment of workers representatives in an employers body. If several
trade unions operate with an employer, these trade unions shall reach an agreement
concerning one or more trade union representatives who shall exercise the rights and
obligations of a works council and they shall inform the employer thereof in writing. In that
case, provisions on elections for a works council are no longer applied (Article 153).
The work of a works council is prescribed (Article 154), and the works council may sue and
be sued subject only to the authority or obligations set forth by this Act or another law,
another regulation or collective agreement (Article 155). An employer is obliged to provide
the works council with the necessary premises, personnel, resources and other working
conditions (Article 156). Discrimination of members of a works council is prohibited (Article
157), but also a works council is prohibited to discriminate workers (Article 158). Members
of the works council must not disclose confidential business information which is defined by
the Act (Article 159).
The works council may conclude a written agreement with the employer, which may contain
legal rules governing employment matters, apart from matters which are, as a rule, regulated
by a collective agreement, except when parties to a collective agreement have authorized
parties to this agreement to do so (Article 160). Authorities and a number of members of a
works council may be expanded by virtue of an agreement between the works council and the
employer (Article 161). If the works council or any of its members severely violate
obligations imposed on them by this Act, the works council may be disbanded or a particular
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member expelled by virtue of a judicial decision (Article 162).

Article 163

In order to ensure reporting on employers work and business operations, meetings of

workers have to be held at least twice a year.

Article 164
In a company or cooperative society, where a body (supervisory board, management board,
or another appropriate body) that supervises business management is established in
accordance with specific provisions, and in a public institution, a workers representative
shall be one member of the companys or cooperatives body that supervises business
management, i.e. one member of a public institutions body (governing council or another
appropriate body).

Articles 165 to 170

Trade unions and employers are guaranteed their right to associate and freely join
associations and higher-level associations (Articles 165 and 166). An association may be a
party to a collective agreement only if it has been established and registered in accordance
with the provisions of this Act and it may represent its members in employment-related
disputes with the employer, before a court, an arbitration body or a state authority (Article
169).
The operations of an association may not be temporarily prohibited nor may an association be
disbanded by virtue of a decision by executive authorities (Article 167).
Associations may establish other legal entities in accordance with their articles of association
or internal rules (Article 170).

Articles 171 to 180

A body responsible for registration of associations is prescribed; the procedure of founding
and registering associations is regulated as well as the documents required for this procedure
and registration.

Articles 181 and 182

Associations may acquire assets, and immovable and movable assets of associations
necessary for convening meetings, carrying out educational activities, and libraries may not
be subject to forced execution (Article 181). If an association splits, the assets of this
association is divided proportionate to the number of members, unless otherwise provided by
the articles of association, a contract or other agreement (Article 182).

Articles 183 to 189

Control over an association that represents opposite interests is prohibited (Article 183),
judicial protection is ensured for members in the event of violation of their rights (Article
184), and judicial protection is guaranteed for rights to associate (Article 185). Particular
forms of discrimination related to trade union operations and membership is especially
prohibited (Article 186). Trade unions are given independence in appointing trade union
commissioners or representatives and in deciding on the methods of their representation
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before an employer, where trade union representatives and trade union commissioners are
strictly differentiated with regard to their position and protection. In order to avoid misuses in
practice with regard to protection of trade union commissioners, trade unions which have at
least five members employed with an employer may appoint or elect one or more trade union
commissioners (Article 187). The protection of trade union commissioners is ensured during
their performance of their trade union duties and six months after the termination of these
duties (Article 188), and the employer is obliged, at the request and in accordance with the
instructions of the trade union, and with the prior written consent of the worker who is a trade
union member, to calculate and deduct from the workers salary trade union membership fees
and regularly deposit such fees to the trade unions account (Article 189).

The conditions and procedure for terminating associations operations are defined (Article
190). The obligation is introduced for associations to submit a report on the session of the
associations highest body and information on the total number of associations members, to
a competent body responsible for registration. If the submitted report indicates that the
number of associations members specified by this Act for the foundation of an association
has decreased, the competent body responsible for registration shall deregister the
association. The operations of an association can only be banned by a decision of a county
court having territorial jurisdiction (Article 191).

Articles 192 to 204

A subject-matter of a collective agreement is defined (Article 192), obligation to collective
bargaining in good faith (193), as well as persons bound by a collective agreement (Article
194).
The Act prescribes that a collective agreement must be in a written form (Article 195),
obligation of compliance with obligations arising from a collective agreement in good faith
(Article 196), mandatory power of attorney for collective negotiating and concluding a
collective agreement (Article 197), that a collective agreement may be concluded for a
definite or an indefinite period (Article 198), as well as a possibility of extended application
of legal rules contained in a collective agreement following the expiration of the period for
which this collective agreement was concluded (Article 199).
A collective agreement concluded for an indefinite period may be cancelled, and the Act
prescribes that a collective agreement concluded for an indefinite period and a collective
agreement concluded for a definite period containing a cancellation clause must also contain
clauses on the reasons for cancellation and cancellation periods. If a collective agreement
may be cancelled, but does not contain a clause on a cancellation reason, the provisions of the
law of obligations on amendment or termination of a contract due to changed circumstances
shall be applied to the cancellation reason, as appropriate.
Furthermore, a collective agreement must be submitted, depending on the area of its
application, to the ministry or a county public administration office or the City of Zagreb
office responsible for labour affairs (Article 201), but it is not a prerequisite for legal effect of
the collective agreement. The Act prescribes an obligation of publishing a collective
agreement, as prescribed by specific provisions on safety and health protection (Article 202),
as well as extensibility of the application of a collective agreement if decided by the minister
responsible for labour affairs. Additionally, in order to avoid any problems, the Act
prescribes that when an employer is bound by more collective agreements, the collective
agreement applicable to the employers carrying out the same activity, as per statistical classification
of economic activities, shall be applied. The criteria and procedure of rendering a decision on
extension of a collective agreement have been changed, where the Minister may, at the
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proposal of all parties to a collective agreement, render this decision, if the collective
agreement was concluded by trade unions which have the highest number of members and an
employers association which has the highest number of workers, at the level for which it is
extended and if, based on the information on a number and structure of employers to which a
collective agreement will be extended, on a number of workers employed with them and the
level of workers substantial rights, a public interest for extension was determined. The
decision may not be rendered prior conducted consultations with the employers to which the
collective agreement will be extended, and the extended application of a collective agreement
ceases not only after the expiration of a cancellation period of a collective agreement, or the
expiration of the deadline if the collective agreement was cancelled, but also when the
extended collective agreement was changed, amended or renewed, for which a proposal for
extension has not been submitted, the Minister shall render a decision on revoking the
decision on extension (Article 203). The right to judicial protection of the rights arising from
a collective agreement is also defined, and with the view of expediting judicial protection
proceedings in the event of any dispute due to cancellation of a collective agreement, the
provisions of Article 220 of this Act shall be applied as appropriate with regard to judicial
jurisdiction, proceedings and judicial protection deadlines (Article 204).

Articles 205 to 220

Trade unions or their associations have the right to call and undertake a strike in order to
safeguard and promote the economic and social interests of their members, in the event of
any dispute with an employer or employers association related to conclusion, amendment or
renewal of a collective agreement or some other similar dispute, and on the ground of non-
payment of remuneration and compensation, or a part thereof, if they have not been paid by
their maturity date A strike may not begin before the conclusion of the mediation procedure,
when such a procedure is provided for by this Act or agreed upon by the parties, and it must
be announced in writing, where the announcement must include specific contents as
prescribed by the Act (Article 205).
The Act also prescribes that in case of dispute related to conclusion, amendment or renewal
of a collective agreement or some other similar dispute, and on the ground of non-payment of
remuneration and compensation, or a part thereof, if they have not been paid by their maturity
date, the mediation procedure must be conducted (Article 206), as well as the deadline of
eight days for completion of this procedure (Article 208). The Economic and Social Council
defines a list of mediators (Article 207).
Parties may complete the mediation procedure with an agreement (Article 209), and they may
agree to bring their collective labour dispute before an arbitration body (Articles 210 to 212).
The Act also prescribes a possibility that employers may engage workers in a lockout only as
a response to a strike already in progress (Article 213). Methods for adopting rules on
assignment that cannot be interrupted during a strike or a lockout are defined, and the Act
prescribes that if an employer has not proposed a definition of assignments not be interrupted
during a strike until completion of the mediation procedure, the procedure of defining these
assignments cannot be initiated until the end of a strike (Article 214). Workers must not be
discriminated because of their involvement in organization or participation in a permitted
strike, nor does it represent violation of employment contract (Article 215). A consequence of
the participation in a strike shall be a proportional reduction of the remuneration and
compensation (Article 216).
Judicial prohibition of an illegal strike is prescribed as well as employers right to claim
compensation for damages suffered as a result of an illegal strike (Article 217). Additionally,
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the possibility of judicial prohibition of an illegal lockout is prescribed, as well as trade

unions right to claim compensation for damages suffered by this trade union or the workers
as a result of an illegal lockout (Article 218).
The Act provides for court jurisdiction over prohibition of a strike action or a lockout (Article
219); and strikes in the armed forces, police, public administration and public services shall
be regulated by specific provisions (Article 220).

Article 221

The Economic and Social Council may be established at the national level with a view to
promote cooperation between employers, trade unions and the Government of the Republic of
Croatia in pursuance of promoting economic and social development, and conducting
coordinated economic, social and development policies, fostering the conclusion and
application of collective agreements, in accordance with the concept of tripartite cooperation.
The Act also prescribes that if the Economic and Social Council has not established a list of
mediators, a list of arbiters or arbitration board members, or if it has not adopted an ordinance
governing the methods for the election of mediators and procedure for conducting mediation
and an ordinance governing the methods for the election of arbiters and procedure for
conducting arbitration, these issues shall be regulated by the Minister within thirty days
following the foundation day. If the Economic and Social Council has not been established or
it has ceased to perform its activities, the Minister shall render decisions necessary for the
mediation procedure in collective labour disputes or the arbitration procedure (Article 221).

Articles 222 and 223

The administrative supervision of the application of this Act, and regulations adopted in
pursuance thereof, as well as the application of other laws and regulations governing the
relations between employers and workers shall be exercised by the central public
administration body responsible for labour affairs, unless otherwise specified by another law
(Article 222).
The inspection supervision of the application of this Act, and regulations adopted in
pursuance thereof, as well as the application of other laws and regulations governing the
relations between employers and workers shall be exercised by the central public
administration body responsible for labour inspections, unless otherwise specified by another
law (Article 223).

Articles 224 and 225

The rights and obligations of the citizens in defence are as a Constitutional category regulated
by the Defence Act with which this Act is horizontally harmonized, where workers right to
hold the employment relationship in abeyance during military service and the rights of
reserve officers who are absent from work due to a military service or service in reserve
forces (Article 224). The rights of candidates for representatives in the Parliament, members
of assemblies or councils are defined in such a way that the Act prescribes their right to a
special, unpaid leave of absence during an election campaign (Article 225).

Article 226
Powers of labour inspectors are prescribed, where they can render an oral decision to order,
or prohibit, an employer to correct any deficiencies determined during an inspection and to
determine a deadline within which these deficiencies have to be eliminated. It is also defined
 121

that an appeal in these cases does not postpone the execution of the decision.

Articles 227 to 231

Minor, severe and the most severe offences by employers are defined, which are harmonized
with the Criminal Code, offences by trade unions and high-level trade union associations are
also prescribed, as well as offences by employers associations and higher-level employers
associations.

Articles 232 to 235

Interim and final provisions regulate the application of a material regulation related to
outstanding debts from a workers employment contract, whose statute of limitations of three
years expired before the entry into force of this Act and the application of a substantive law in
procedures started before coming into force of this Act (Article 232). Deadlines for adoption
of implementing regulations of this Act are prescribed (Article 233), termination of the
Labour Act is defined (Official Gazette 149/2009, 61/2011, 82/2012 and 73/2013), as well as
the date of the entry into force of this Act (Article 235).

IV. ESTIMATION OF RESOURCES REQUIRED FOR IMPLEMENTATION OF

THIS ACT

The resources needed for the realization of the rights regulated by this Act, and for
execution of the envisaged arbitration procedure that will replace judicial proceedings
pertaining to the substitute of the consent to the termination of employment contracts of
protected categories of workers, have been ensured in the State Budget for this year, as well
as for 2015 and 2016, in the amount of HRK 80,000.00 at the position of the Ministry of
Labour and Pension System.

V. DIFFERENCES BETWEEN SOLUTIONS PROPOSED IN THE FINAL

DRAFT ACT WITH RESPECT TO SOLUTIONS IN THE DRAFT ACT AND
THE REASONS BEHIND THESE DIFFERENCES

Following the discussions about the Draft Act on working bodies of the Croatian
Parliament, as well as the discussion at the plenary session, and in accordance with the
Conclusion of the Croatian Parliament dated 28 February 2014 where the Labour Draft Act
was accepted, but social partners were invited to reopen a social dialogue and reach an
agreement related to points of issue of the proposed Act that led to a deadlock in negotiations,
the Government of the Republic of Croatia continued intensive discussions with both social
partners, so that at the first tripartite meeting dated 1 April 2014 the social partners agreed
upon legal mechanisms that constituted points of issue.

This way an agreement was reached that the points of issue relate to the operations of
temporary-work agencies, with regard to an assignment deadline, workers remuneration in a
period when they are not assigned and cases when a user undertaking is prohibited to use the
assigned workers. A point of issue is also an uneven distribution of working hours by
comparison with the highest limit of working hours per week and the intensity of workers
activities which may be used to determine exceptions with respect to regulations on working
hours, night work, daily and weekly rest. The last point of issue is the termination of
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employment contracts by small employers who employ up to five workers.

After the intensive social dialogue and consultations, which lasted full two months
regarding the points of issue, changes to the solutions in the Draft Act have been introduced
in the Final Draft Act, concerning the legal mechanisms mentioned above.

Thereby, the provision of Article 45 (4) has been amended by introducing a new sub-
paragraph 3, where a workers assignment contract cannot be concluded for works performed
by workers whose employment contracts were terminated by a user undertaking on economic
grounds in a previous period of six months. The provision of Article 46 (3) has been amended
in a way that the provision of Article 95 (5) is applied to the remuneration of assigned worker
employed for an indefinite period, in a period when he is not assigned, or that in that period
the assigned worker will be entitled to a compensation in the amount of an average salary
received in the last three months, unless otherwise specified by laws, regulations or
administrative provisions, collective agreement, working regulation or employment contract.

The pattern of work mechanism is prescribed by the provision of Article 66, in a way
that when an employer unilaterally renders a written decision in which he defines an uneven
distribution of working hours, a worker may work not more than 50 hours per week,
including overtime, and exceptionally, when agreed upon in a collective agreement, a worker
may work not more than 60 hours a week. Additionally, with the amendment of this Article,
with a new paragraph 9, a collective agreement may be used to agree upon the so called
hours bank, or the total number of hours, in such a way that during the work under the
uneven distribution of working hours scheme, workers may work longer than 50 hours, but
the total number of hours cannot be higher than the average 45 hours per week in the period
of four months.

Since the former regulation related to the method of defining exceptions from the
application of provisions on duration of night work as well as the daily and weekly rest in
certain economic activities raised concern due to possible excessive daily intensity of the
work (up to 16 hours per day), the provision of Article 89 (2) has been changed, and the Act
prescribes that the daily rest cannot be defined in uninterrupted duration shorter than 10 hours
per day, and the new paragraph 3 ensures that a collective agreement may define that the
shortest duration of the daily rest is 8 hours per day.

Provisions on a regular termination of an employment contract have been amended in

Article 115 with a new paragraph 3, which prescribes that small employers, i.e. the employers
who employ up to five workers may terminate an employment contract without any of the
reasons for the regular termination of an employment contract.

Taking into account recommendations of the European Commission related to the

participation of the Republic of Croatia in the European Semester, the Final Draft Act has
been amended with two new mechanisms, one of which may have impact on preservation of
jobs, and the other represents a measure for combating undeclared work.

The amendment of the provisions of Article 10 of the Final Draft, with paragraphs 3
and 4, makes it possible for employers, when they do not need services of certain workers, to
assign them to an associate company, treated as such in accordance with company law, for
not longer than six months, based on a written agreement between the associated employers.

In order to combat all forms of undeclared work, where performance of one-time

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temporary jobs of shorter duration is the most often one, the provisions of Articles 61 and 62
of the Final Draft Act have been amended with new paragraphs 3 that enable additional jobs
to full-time workers, but not more than 8 hours a week and up to the total of 180 hours a year,
subject to the consent of their employer or employers to such work. Restrictions in the hours
of an additional job and at the same time prohibition of overtime work for workers who work
on the additional job in the provision of Article 65 (5) protect workers from overtime the
same way as the workers are protected from excessive overtime work.

All other comments and proposals regarding the standard-technical improvements of

certain provisions have been accepted and included in the text of the Final Draft Act.

VI. PROPOSALS AND OPINIONS ON THE DRAFT ACT WHICH THE

LEGISLATOR HAS NOT ACCEPTED, WITH EXPLANATIONS

During the discussion of the Draft Act on working bodies of the Croatian Parliament,
as well as the discussion at the plenary session, there were no substantial comments and
proposals requiring a specific statement from the legislator.