Information for service providers performing temporary services in the Republic of Croatia


Is there any limitations of the right of companies- service providers established in the Member State of the European Economic Area to post workers to the Republic Croatia in the context of the provision of services?

Regarding the provision of services, there is no national measures taken with a view to limit posting of workers by service providers established in any Member State of the European Economic Area, including companies from Germany and Austria (which have limited posting the workers from Croatia in certain sectors).

That means that posted workers who are EEA nationals and third-country nationals legally employed in the country in which the foreign employer is established,  do not need a work permit, but if their work should last more than three months, they should register temporary stay for the purpose of work of a posted worker.

Temporary stay shall be granted to an alien who intends to stay or staying in the Republic of Croatia for the following purpose of the work of the posted worker (temporary stay permission) if:

  1. he proves the purpose of temporary stay,
  2. he holds a valid travel document;
  3. he has funds to support himself,
  4. he holds health insurance,
  5. he is not prohibited entry and stay in the Republic of Croatia,
  6. he is not considered to be a threat to public policy, national security or public health.

If you are an undertaking (foreign employer) posting the workers in Croatia, you must during the period of posting, comply with a number of minimum mandatory rules set by the labour law applicable in Croatia, relating to the following labour and employment conditions:

  • minimum wage, including increased salaries for overtime ( salary paid to a posted worker during the period of posting may not be less than the Croatian minimum wage guaranteed at level of  the rights laid down by legal regulations of the Republic of Croatia, that is, collective agreements which have been declared universally applicable to all employers and workers in a specific area, branch or activity, under a special regulation)
  • the prescribed maximum duration of working hours and the minimum duration of rest;
  • minimum duration of paid annual leave (you are entitled to holidays);
  • health and safety at work;
  • protective measures for work of pregnant women, women who have recently given birth or are breastfeeding and minors;
  • rules prohibiting discrimination  and for protection and promotion of gender equality.

Those working conditions shall be guaranteed at the level of the rights laid down by legal regulations of the Republic of Croatia, that is, collective agreements which have been declared universally applicable to all employers and workers in a specific area, branch or activity, under a special regulation.

„A system for declaring collective agreements universally applicable exists in  Croatia, and such collective agreements are applicable (and binding) on all employers, and employees in a particular area, branch or activity.  At the moment, 2 branch collective agreements were declared universally applicable: for catering industry, published in the Official Gazette No. 44/2015 and for construction  sector, published in the Official Gazette No. 115/2015 of 23 October 2015, universally applicable from 19 December 2015.

During posting, in relation to posted workers guaranteed rights,  employers – foreign providers should also respect universally applicable collective agreement in that particular sector.

 

LINK for catering collective agreement:  http://www.stuh.hr/upload_data/site_files/kolektivni-ugovor-ugostiteljtva.pdf

LINK for construction collective agreement available:  here.

 

More information available at:  http://www.sgh.hr/

http://www.constructionworkers.eu/hr

http://www.constructionworkers.eu/en

http://www.constructionworkers.eu/sl

http://www.constructionworkers.eu/bg

http://www.constructionworkers.eu/cs

http://www.constructionworkers.eu/de

http://www.constructionworkers.eu/hu

 

All other sectors: Minimum wage determined by the law should be applied.

The gross (bruto) minimum wage determined by the law  for 2017, for the period from the 1 January 2017. until the 31 December 2017  is 3.276,00 kunas.

Minimum wage determined by the law is set on annual basis and covers all workers and sectors.

Minimum wage is determined by the law as the lowest monthly amount belonging to the worker for a work in a full-time working hours, which is in Croatia 40 hours a week, while the minimum wage for part-time work is determined in proportion to the minimum wage for full-time and working hours to which the worker is reported.

All workers working in Croatia have the right on minimum wage, irrespecting of the employer’s seat or registration.  It is the same for all workers, irrespecting of their qualification.

By the way of exception, the lower amount of the minimum wage can be established by the collective agreement, but not lower than 95 % of the amount prescribed by the Regulation on the Minimum Wage.

The gross minimum wage for 2016, from the 1 January 2016. until the 31 December 2016, was 3.120,00 kunas.

What if the those guaranteed working conditions (including pay) are more favourably regulated by the regulations of a State in which service provider (an employer) is established and which apply to working relationship ?

In that case, pursuant to the Article 86, paragraph 12 of the Aliens Act, more favourable right shall apply to the posted worker.

That means that Croatian legislation is applicable only if the guaranteed working conditions are more favourably regulated by the regulations of the Republic of Croatia than by the regulations of a State in which the employer is established and which apply to the working relationship (a principle of aplication of the more favourable right to  the posted worker).

To which categories of posted workers are guaranteed those rights under the Croatian labour law?

The working conditions referred above are also guaranteed to posted workers assigned through temporary employment agencies.

The working conditions referred above are also guaranteed to posted workers who are not citizens of EEA Member States ( third country nationals), provided that they are legally employed by a undertaking posting the worker (according to the regulations of a state in which employer is established), and it usually it refers to obtaining a work permit in a state of the employer’s establishment.

The employer is also obliged to confirm in the posting declaration that third country nationals are legally employed according to the regulations of a State in which employer is established.

Is there any category of posted worker which is exempted of the guaranteed rights?

When the period of posting is less than 8 days and if the provision of services consists in work pertaining to the the initial assembly and/or the initial set-up essential for making the products delivered available and agreed as an essential component of a supply of goods contract,  performed by a qualified worker, the employer does not have to observe the minimum rate of pay or the minimum duration of paid annual leave as prescribed in the Republic of Croatia.

This exemptions does not apply to workers posted to the Republic of Croatia by a foreign employer to carry out work in civil engineering relating to construction, repairs, maintenance, adaptations or demolition of buildings, and especially excavations, earth works, actual construction works, assembly and disassembly of prefabricated elements, the positioning of installations, alterations, renovation, repairs, disassembly, demolition, regular maintenance, maintenance, painting and cleaning or improvements.

Is an undertaking posting the workers (employer) obliged to submit a posting declaration before the commencement of posting and to which authority?

Yes, when providing services in the Republic of Croatia, a service provider (an employer) is obliged to submit a posting declaration before the commencement of posting to inform Croatian authorities about his intention to post workers.

To which authority should it be submitted?

Posting declaration  should be submitted in writing  and electronically to the following address:

e-mail:  postingdeclaration.inspektorat@mrms.hr

Address:
Ministarstvo rada i mirovinskoga sustava
(za Inspektorat rada)
Petračićeva 4, 10 000 Zagreb
CROATIA

The form of the Posting declaration is available here.

The content of the Posting declaration

The Posting declaration must include the following:

  1. the name and registered office, that is, the name and surname, address of the foreign employer and contact details, such as telephone and telefax numbers, and electronic mail address,
  2. the name and surname of the posted worker and information on the state in which the worker habitually works,
  3. commencement and the foreseen duration of posting,
  4. the name and seat or the name and surname, address of the service user, the place of providing services and a short description of the service,
  5. information on the date of issuing, the term of validity, the number and the competent body that issued the valid stay and work permit of the posted worker who is a third-country national, according to the regulations to the state in which the foreign employer is established.

What if submitted data changes during the posting?

The employer shall also report any change of  those data, by sending the official letter with all relevant data needed to identify the change in matter.

e-mail:  postingdeclaration.inspektorat@mrms.hr

Address:
Ministarstvo rada i mirovinskoga sustava
(za Inspektorat rada)
Petračićeva 4, 10 000 Zagreb
CROATIA

What if an employer does not comply with the obligation to submit a posting declaration prior to posting or submits an incomplete or inaccurate posting declaration?

A fine in an amount from HRK 10,000.00 to HRK 30,000.00 shall be imposed for a misdemeanour on an employer – legal person if he fails to submit prior to the posting or submits an incomplete or inaccurate Posting declaration.

A fine in an amount from HRK 1,000.00 to HRK 3,000.00 shall be imposed for a misdemeanour on an employer natural person and the responsible person of the legal person.

What is the position of the employer established in a state which is not an EEA Member State when he posts workers to the Republic of Croatia?

The employer established in a state which is not an EEA Member State may not be placed in a position more favourable than the foreign employer established in an EEA Member State.

It means that that such employer also has to comply with the basic rules on employees protection laid down by legal regulations of the Republic of Croatia, that is, collective agreements which have been declared universally applicable to all employers and workers in a specific area, branch or activity, under a special regulation.

(for example, salary paid to posted worker may not be less than the Croatian minimum wage at the the level of the rights laid down by legal regulations of the Republic of Croatia, that is, collective agreements which have been declared universally applicable to all employers and workers in a specific area, branch or activity, under a special regulation.)

Responsibility of the employer in the case of non-compliance

Inspectional supervision of the implementation of provisions relating to the conditions of work and the rights of posted workers is carried out by the state administration body competent for the labour inspection, that is  the Ministry of Labour and Pension System.

Competent inspection body can impose a fine/penalty on the employer, in accordance to the provisions of the Labour Act  (Official Gazette No 93/2014): Part VII. Administrative  measures (Article 226) and Part VIII. Penal provisions (Articles 227-231)¸.

Ovo djelo, čiji je autor Ministarstvo rada i mirovinskoga sustava, ustupljeno je pod licencom Creative Commons Imenovanje-Dijeli pod istim uvjetima 3.0.