Do you not have a company registered in Croatia, yet aspire to engage the services of a worker within Croatia? Here, you will discover a comprehensive repository of information and guidance.
What is it? Temporary employment is a contractual arrangement facilitated by an agency, functioning as the primary employer, wherein an employment agreement is established with a worker, followed by their assignment to another employer (referred to as the “user”), where the worker actively executes the job, thereby constituting a tripartite relationship.
Legal Regulations
The regulatory framework governing temporary employment in Croatia is regulated in the Labor Law. The two most recent iterations of this law were enacted in 2014 (https://narodne-novine.nn.hr/clanci/sluzbeni/2014_07_93_1872.html) and 2019 (https://narodne-novine.nn.hr/clanci/sluzbeni/2019_10_98_1940.html). The latest revision, denoted as the Law on Amendments and Supplements to the Labor Law, was enacted and took effect in 2023 (https://narodne-novine.nn.hr/clanci/sluzbeni/2022_12_151_2343.html).
Outlined below are the provisions of this legal framework:
- Entities offering temporary employment services are mandated to be officially registered within the Agency Register.
- Prior to assigning a worker to the user, the agency is legally obligated to furnish a referral note to the user. This note must encompass information stipulated in Article 46, paragraph 2, of the Labor Law.
- The user is precluded from consecutively employing the same assigned worker for identical tasks for a continuous duration exceeding three (3) years, except when necessitated by the substitution of a temporarily absent worker or other valid grounds endorsed by a collective agreement. A hiatus of less than three months does not constitute an interruption within the context of the three-year timeframe referenced in paragraph 1 of this Article.
- In relation to the assigned worker, the user is considered the employer in terms of obligations related to the application of the provisions of this and other laws and regulations governing workplace safety, health protection, and special protection for certain groups of workers.
Rights and Obligations of Workers
An employment agreement for temporary work may be established by the agency with the worker, either for a fixed or indefinite period. The mutually agreed-upon compensation and associated working conditions for the assigned worker must not fall below or be less advantageous than the working conditions accorded to a worker engaged by the user to perform the same tasks. This holds true regardless of whether the assigned worker is under a fixed-term or indefinite-term employment arrangement.
The termination of the user’s requirement for the assigned worker before the expiration of the designated assignment period should not serve as grounds for the termination of the temporary employment contract.
Workers engaged on a temporary basis are vested with the same rights as permanent employees, including the right to receive compensation, annual leave, health insurance, and other benefits. It is imperative that all these particulars be specified within the temporary employment contract.
Worker Registration
Upon the execution of a Transfer Agreement between the Agency and the client, along with an Employment Contract between the Agency and the worker, the Agency undertakes the responsibility of collating the required documentations for the purpose of enrollment with the Pension and Health Insurance authorities.
Required documents:
- A copy of the personal ID card or a copy of the residence permit (registration of residence with the Ministry of Internal Affairs)
- Tax card (obtained at the tax office based on the place of residence or domicile)
- Pension insurance record (e-workbook)
- Copy of the school certificate or diploma for the latest completed education
- Current bank account for salary payment (payment instructions from the bank)
Salary in Croatia
There are significant differences in salaries in Croatia. The salary level depends on the region where the worker is employed, years of experience, qualifications, and the field of work of the company. While a significant portion of workers still earns below the average salary, there is an increasing number of workers whose salaries are closer to those in neighboring Western European Union nations.
For the month of May 2023, the mean monthly net salary to employees within legal entities operating within the Republic of Croatia amounted to 1,133 euros, while the corresponding gross salary averaged 1,562 euros.
In the fiscal year 2023, the minimum wage has been stipulated at 700.00 euros gross or 560.00 euros net, exclusive of tax and additional levies.
The government passed the Decree on the amount of the minimum wage for 2024, which sets this wage at 840 euros gross, and the net minimum should be around 677 euros.
Salaries in Croatia are paid retrospectively until the 15th day of the ensuing month. To illustrate, the payment for the month of August is disbursed to the worker between the 1st and the 15th day of September. If you would like a free informational salary calculation or need additional information about temporary employment, please contact us at info@profesio.hr.
