Hiring in Croatia : Need to Know Before Hiring in Croatia For Employers
Before hiring employees in Croatia, there are a few important things you’ll need to know. Firstly, it’s a legal obligation in Croatia to include details of any sick or vacation leave on a payslip. It’s important for employers to know that all time off must be recorded and approved.
Good To Know
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Under Croatian law, an Employer of Record is able to engage in an indefinite employment contract but the assignment of the person to your company must be limited to a period of no more than three years. After three years of continuous working, the employee must take a break of at least two months before he can be registered to work for you again.
Employees must be registered for mandatory health insurance with the Croatian Health Insurance Fund (HZZO). This entitles them to sick pay or income replacement benefit, and sick leave as needed.
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There are various tax free allowances available to be paid entirely at the employer’s discretion. These include a 5,000 kuna bonus allowance, 3,000 Easter/Christmas Bonus and a 5,000 kuna tax free food allowance.
Employment in Croatia
Working Hours and Overtime
In Croatia, full-time employment cannot be more than 40 hours per week. An employee can work up to 48 hours in a week, but eight of these will be overtime.
It is a legal obligation in Croatia to include details of any leave on a payslip, so all time off must be recorded and approved.
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Two weeks for more than one year
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One a half months months for more than two years employment
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Two months for more than five years employment
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Two and a half months for more than 10 years employment
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Three months for more than 20 years employment
In Croatia, an employer’s social contributions total 16.5%. Health Insurance is paid at 16.5% of an employee’s gross salary, and is not capped.
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Notice for business reasons: This can include redundancy of an employee’s role due to economic, technical, or organisational reasons. The employer must first check that they cannot engage the employee in another role and is not allowed to hire someone in the same role for at least six months.
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Notice for personal reasons: This means the employee is unable to fulfil their contractual duties due to a permanent characteristic or capabilities. Again, the employer must check that they can’t engage the employee in another suitable role first
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Notice for employee’s misconduct: This refers to breach of contract. The employee should get a written warning with the possibility of termination in case of continuing breach of contract—unless circumstances mean it is reasonable not to give this warning.
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Notice due to failing probationary period: This type of termination means that an employee does not perform to expectation during the probationary period.
Exceptional terminations can be executed with only 15 days’ notice from learning about an issue where there is a serious breach in employment relationship or other highly important fact.
Start Hiring Employees in Croatia
Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast.
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