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Legal Articles

Law firm Vaić & Dvorničić Ltd. > Legal Articles (Page 5)
12 March
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Contractual non-competition agreement and contractual penalty according to the Labor Law

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in 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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12 March
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Extraordinary termination of the employment contract

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in Labor law

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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09 March
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Stay and Work of Foreigners in Croatia

Posted by ja4my
in Administrative law, Labor law

Temporary Stay of Foreigners in Croatia Foreigners who wish to stay in Croatia for more than 3 months or work in Croatia must regulate their stay in the country. Reasons for which a temporary stay may be granted: Family reunification Education (secondary level) and studies Scientific research Humanitarian reasons Employment Work of a transferred worker The application for a temporary residence and work permit can be submitted by the employer to the police authority or police station at the foreigner’s future place of residence. The temporary stay permit is issued for a period of up to 1 year. The application for an extension of the temporary residence permit must be submitted...

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09 March
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Foreign Workers in the Republic of Croatia

Posted by ja4my
in Administrative law, Labor law

Regarding the legal regulations for foreign workers in Croatia, there are several categories of foreigners. 1. EU Citizens and Their Family Members This group also includes citizens of European Economic Area (EEA) countries as well as citizens of the Principality of Liechtenstein, the Kingdom of Norway, Iceland, and Switzerland, along with their family members. These individuals can work and provide services in Croatia without the need for a residence or work permit or registration, in accordance with the fundamental principles of freedom of services and free movement. If EEA citizens temporarily stay in Croatia for work (from 3 months up to a year),...

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09 March
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Dissolution of an Inheritance Community

Posted by ja4my
in Inheritance law

After a probate procedure, heirs generally become co-owners of a property, which may be a piece of land, a house, or an apartment. For an individual heir to use their inheritance, rent, sell, or mortgage the property independently and without the consent of the others, they must be the owner of the entire property. The co-owners can therefore try to amicably divide the property into parcels or the house into floors or apartments, so that each co-owner's share in the property forms a complete unit. However, if the amicable division does not occur, the co-owners can initiate an uncontested procedure to dissolve...

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09 March
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Exit of a Shareholder from the LLC

Posted by ja4my
in Commercial law

When a shareholder exits, their involvement in the company and all related rights and obligations end. Generally, the exit is associated with a valid reason for leaving, but a shareholder can also leave the company by selling their shares, provided there are no restrictions. The Croatian Companies Act (HGG) provides two types of exit from the LLC. One type is already included in the company's Articles of Association. The second type allows a shareholder to request an exit through a lawsuit if the legal conditions are met. Lawsuit for Exit from the LLC If the Articles of Association do not provide an exit option, any...

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09 March
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Apartment ownership of foreign natural persons in Croatia – practical issues

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in Property law, Real estate law

According to the positive regulations, foreign natural persons who are the apartment owners in Croatia still cannot categorise their apartments, neither rent them and pay tax for it. Therefore, foreign natural persons often use their apartments to host either their real friends or fictive friends, and that way illegally earn their weekly rent in cash. At the same time, one should bear in mind that a house owner can host his friends in apartment under condition of registering them with the tourist board or the police within 24 hours after the arrival and signing of within 24 hours after the departure as...

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09 March
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Bankruptcy in Croatia

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in Bankruptcy law, News

Financial instability is present in European as well as in Croatian capital market. Therefore legal persons are much more careful when entering into new business. One must always bear in mind the possibility of bankruptcy of his/her business associate. Thereat, all legal persons must be aware of certain legal consequences of bankruptcy: If the bankruptcy creditor, over the last sixty days prior to the bankruptcy petition or afterwards, by courts enforcement or by forced courts insurance, obtains a separate satisfaction right or similar right on debtors property within the bankrupt’s estate, this right ceases i.e. the ongoing procedure stops when bankruptcy...

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09 March
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Alterations in tax laws

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in News, Tax law

In February 2012, the Government of the Republic of Croatia adopted the whole package of tax law alterations that significantly change the taxpayer’s position. With the Value Added Tax (VAT) Act being changed and the current 23% tax rate increased on 25%, certain amendments to the Profit Tax Act, Income Tax Act and Contributions Act were also adopted. New, higher standard VAT tax rate of 25% entered into force on 1st March 2012 as well as a lower VAT tax rate of 10% set for edible oils and fats, children’s food, water and white sugar. From 1st January 2013 this lower...

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09 March
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Act on the time limit for performance of a monetary obligation

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in News

Act on the time limit for performance of a monetary obligation entered into force on 1st January 2012, and therefore, the provision from article 174 of the Civil Obligations Act, ceased to have effect. According to this, now invalid provision that refers to commercial contracts, the debtor was liable to fulfill his monetary obligation within 30 days, unless a (shorter) time period was determined by the commercial contract. This Act now defines the time limit for performance of monetary obligations among the entrepreneurs themselves, i.e. the entrepreneurs and corporate bodies under public law, it defines legal consequences of late payments, with...

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