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Labor law

Works Council

The works council represents one of the mechanisms through which the Labour Act enables employees to actively participate in making decisions regarding significant economic and social matters that affect their rights and interests. By establishing a works council, employees are given the opportunity to be involved, through their elected representatives, in the decision-making process concerning issues of particular importance to their working conditions. The establishment of a works council is not mandatory. A works council may be established at employers employing at least 20 workers. The initiative can be launched by a trade union or by at least twenty percent of...

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Croatian employment service – rights and obligations of unemployed persons

The status of an unemployed person in the Republic of Croatia entails certain rights and obligations, which are regulated by legislation and the regulations of the Croatian Employment Service (HZZ). One of the key rights is the right to financial compensation, with clearly defined conditions for its entitlement. Additionally, unemployed persons have access to counseling services, education, and health insurance. Right to financial compensation The right to financial compensation during unemployment in the Republic of Croatia is regulated by the Labour Market Act and represents a key form of financial protection for unemployed persons during periods without employment. To be eligible for financial...

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Croatian employment service – active employment policy measures

The Croatian Employment Service (Hrvatski zavod za zapošljavanje) is a public institution that regulates the labor market in Croatia, providing support to unemployed individuals and employers through counseling, financial assistance, and training programs. Active employment policy measures are introduced at the beginning of each calendar year. For each measure, the Croatian Employment Service determines the following: target groups, the amount of support (which depends on the education level of the subsidized individual), the minimum gross wage, and the duration of the measure Measures catalog for 2025 Employment support and Green/Digital employment support – This support is intended for employers who hire vulnerable groups,...

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Immigration to Croatia

Croatia is positioned centrally in Europe, which means that the majority of Central European countries can be easily reached by car from northwestern Croatia. For example, from Rijeka you can reach by car in 6-8 hours Milan in Italy, Lugano in Switzerland, Munich, Germany, Vienna in Austria, Bratislava in Slovakia, Budapest in Hungary. Also has a very mild climate suitable for life, and a very low rate of street crime. Considering the above mentioned, Croatia has very good preconditions for immigration, especially business people outside the EU who want to create a new business and the vital center of the EU,...

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Termination due to employee misconduct

Termination due to employee misconduct is a type of regular termination as prescribed in Article 115 of the Labor Act. It can be issued to an employee if the employer has a valid reason, such as when the employee violates their obligations under the employment relationship, or when the employee fails to follow the employer's instructions, as the employee is obligated to personally perform the work they have undertaken according to the employer's instructions, given in accordance with the nature and type of work. The Labor Act does not explicitly define what constitutes a breach of obligations under the employment relationship...

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Personal-conditioned termination

Personal-conditioned termination is a type of regular terminaton which is regulated under Article 155 of the Labor Act. It allows the employer to protect themselves from the negative consequences of the employment contract when an employee, through no fault of their own, is unable to perform their job duties properly. This type of termination is applicable when an employee is incapable of fulfilling their duties due to permanent changes in their abilities or characteristics that prevent them from doing so. For a decision of personal-conditioned termination to be valid, two key conditions must be met: first, the employee must be unable...

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BUSINESS-RELATED TERMINATION

An employment relationship established through an employment contract can only be terminated in a manner prescribed by law. The termination of an employment contract can be either regular or extraordinary. The legislator, considering the interests of both the employer and the employee, has provided for the possibility of the employer terminating the employment contract due to economic, technical, or organizational reasons, which is known as a business-related termination. This type of termination is a form of regular dismissal and is regulated by Article 155, Paragraph 1, Point 1 of the Labor Act. As stipulated by the law, this type of termination...

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Stay and work of third-country nationals in the Republic of Croatia

We aim to lead in each practice and area of law we work in. Coming from in-depth understanding of the law and the industry, capitalizing on extensive experience, we provide hands-on advice that speaks the language of our client’s business. Whether in aviation, sales and distribution, antitrust, corporate and M&A, finance, employment, energy, IP, litigation, TMT, real estate, or any other area of law, our clients can expect excellence and commitment to their objectives. Ensuring the operational functioning of the organisation, the development of external relations, management of press relations and constant communication with the press....

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Contractual non-competition agreement and contractual penalty according to the Labor Law

Non-compete agreement A contractual non-competition agreement exists when the employer and the employee agree that for a certain period after the termination of the employment contract, the employee may not be employed by another person who is in market competition with the employer, and that he may not, for his own account or for the account of a third party, enter into business with which he competes with the employer. It must be concluded in writing and cannot last longer than two years from the date of termination of the employment relationship. It does not bind the employee if the purpose of...

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Extraordinary termination of the employment contract

Extraordinary termination is termination without the obligation to comply with the prescribed or agreed notice period. The employer and the employee have a justified reason for the extraordinary termination of the employment contract concluded for an indefinite or fixed period, if due to a particularly serious violation of an obligation from the employment relationship or some other particularly important fact, while considering all the circumstances and interests of both contractual parties, the continuation of the employment relationship is not possible. Each party has the right to demand compensation for damages due to non-fulfilment of the obligations assumed by the employment contract...

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