Temporary Employment Agency
The operation of temporary employment agencies in the Republic of Croatia is regulated by the Labor Law. According to Article 44, paragraph 1 of the aforementioned law, a temporary employment agency is an employer who, based on a worker assignment agreement, posts a worker to another employer (the user) for the temporary performance of tasks.
The posted worker is an employee whom the agency employs for posting to the user. The agency may carry out worker postings to users provided that it is registered in accordance with special regulations and entered in the records of the ministry responsible for labor. In addition to worker postings, the agency may also engage in activities related to employment, provided it, possesses the necessary permits according to special regulations and is registered in the appropriate ministry records.
The Labor Law does not contain provisions regarding the establishment process. Instead, the establishment process is governed by the Law on Business Companies or the Law on Craft activities, depending on whether the agency is established as a business company or a craft. The decision regarding this lies with the prospective founder of the temporary employment agency. It is important to note that the temporary employment agency must conduct worker postings to users as its sole activity (except for activities related to employment).
The agency enters into an employment contract with the worker, and with the user, the agency enters into a worker assignment agreement. The employment contract for temporary task performance can be concluded with the worker for a fixed or indefinite period.
Additionally, the agency is responsible for calculating and paying wages, making the necessary worker registrations with the relevant authorities, paying all tax obligations and contributions, etc., based on the payroll calculations provided by the user. The wage and other working conditions for the posted worker must not be lower than the wage or less favorable than the working conditions of workers employed by the user in the same positions.
Posting of Agency Workers abroad
The temporary employment agency is authorized to post workers abroad. In such cases, the agreement between the agency and the user must include additional provisions in addition to the mandatory elements stipulated by Article 45 of the Labor Law. Firstly, the mandatory components of the written assignment agreement between the agency and the user, along with the agency’s general terms of business, include information about the number of posted workers required by the user, the period for which workers are being posted, the place of work, the tasks the posted workers will perform, the method and period in which the user must provide the agency with the payroll calculation for wage payment, the regulations applicable to the user for determining wages, and details about the person authorized to represent the user towards the posted workers.
Additional provisions that must be included in the posting agreement for foreign users, as prescribed by Article 45, paragraph 3 of the Labor Law, include information about the legislation governing the employment relationship of the posted worker, the rights of the posted worker that are based on this and other laws of the Republic of Croatia and that the user must ensure for the posted worker, and the obligation to pay the costs of repatriation to the home country.
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