Why work in
Grow your team in
Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in Croatia must have a local legal organization and use local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Croatia makes compliance with employment laws demanding.
With Gloroots’s global Employer of Record (EoR) service, you can let Gloroots do the heavy lifting of payroll, tax, benefits, and compliance and concentrate on what matters to you most: your employees and company growth.
Risks of misclassification
The term "misclassification of employees" refers to the inaccurate classification of workers by their employers. Misclassification occurs when an employer categorizes a worker as an independent contractor or exempts them from certain employment laws and benefits, even if the worker should be classified as an employee and entitled to legal protections, benefits, and rights.
Utilizing a PEO/EOR in Croatia helps mitigate the risks associated with misclassification by ensuring compliance with labour laws, proper employee classification, accurate payroll processing, and access to comprehensive benefits. This enables businesses to focus on their core operations while entrusting employment-related responsibilities to experienced professionals.
Croatia's employment regulations are shaped by various legal instruments, including the country's Constitution, international treaties, employment contract laws, federal statutes, and collective bargaining agreements.
To facilitate the process of hiring employees in Croatia, it is advisable to contact Gloroots for further information on available options.
Legal aspects of employing in
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Even though written employment contracts are not required by law in Croatia, it is recommended that parties enter into a written agreement that details the important aspects of their work relationship. The identification of both parties, the start date, the location of the job, the tasks, the remuneration, the perks, the working hours, the holidays, and the notice periods are all included in these.
It’s important for employers to understand the intricacies of these programs before making a hire.
This might sound overwhelming—but it doesn’t have to be. A solution like Gloroots eliminates the barriers for you. With Gloroots’ Employer of Record offering, hiring and managing employees globally is a piece of cake.
Get an overview of what you need to know when hiring in Croatia.
Work overtime is only authorized when it can be rationally justified by the demands of the firm, and the total amount of overtime worked in a given year should not exceed 180 hours. Employers must put their requests for overtime in writing.
Employees who normally put in 40 hours of work during the workweek are not permitted to work overtime more than 10 a week.
The country observes 14 public holidays employees can take as paid days off.
Croatia's current monthly minimum wage stands at EUR 700 per month.
Employees who are unable to work as a result of an injury or illness are entitled to receive payment from their employers in the form of sick pay. The employee should get at least 70 percent of their regular pay while on sick leave.
In the event that an employee is absent from work for more than 42 consecutive days, the Croatian Health Institute will issue sick pay to the employee.
It is the responsibility of the worker to provide immediate notification to his or her employer. In addition to that, they need to present a medical certificate.
Employees shall be entitled to 4 weeks of paid annual leave in a calendar year.
An employee who is employed for the first time or who has a break between two employment relationships longer than 8 days, acquires the right to annual leave, after six months of uninterrupted employment with that employer.
Paid sick leaves
An employer is mandated to offer up to 42 days of sick leave. The employee must be compensated at 70% of the regular salary. If the sick leave exceeds 42 days is still paid by the employer but can be reimbursed by Croatia’s health insurance fund.
Corporate tax & VAT
Social security contributions
Employment Termination and Severance
The law in Croatia acknowledges a number of different reasons for an employment relationship to come to an end, including but not limited to:
- Expiration of a fixed-term contract
- Employee's resignation
- Parties' mutual consent
- Serious misconduct
- Breach of employment contract
- Redundancy due to adverse economic conditions
- Unsatisfactory probation period
The notice period might be anywhere from seven days to four months long, depending on how long the employee has been with the company. Only workers with over two years of service who were let go for reasons other than misbehavior are required to receive severance compensation when their employment ends. The amount of the payout is determined by taking one-third of the typical monthly wage and multiplying that number by the number of years of service.
In Croatia, notice period varies with employment duration.
The probationary period should not exceed Six months.