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Written Agreements

The labor code of Croatia mandates that employment contracts be concluded in writing. However, the failure to conclude an employment contract in writing does not impact the existence or validity of the employment contract. If the employer does not put an employment contract in writing, it is considered to be a contract for an indefinite period.

Employers who conclude contracts with seasonal employees, employees sent abroad for work, or employees working from home must include additional mandatory terms in writing.

Employers can include a non-compete clause in employment contracts, which must be agreed upon in writing, either within the employment contract or in a separate document. These restrictions cannot exceed 2 years. The clause is not binding if the employer does not agree to pay the employee at least 50% of their average monthly salary from the last 3 months of employment, for the duration of the restriction. If the employee violates the non-compete clause, the employer can seek compensation for any damages incurred.

Oral Agreements

According to the labor laws of Croatia, the failure of contracting parties to conclude an employment contract in written form does not affect the existence and validity of that contract.

If the employer fails to prepare contract in a written form or does not issue a written confirmation of the conclusion of the contract before the beginning of the employment, it will be considered the employment agreement for an indefinite period.

Implied Agreements

The failure of the contracting parties to conclude an employment contract in writing does not affect the existence and validity of that contract. If the employment contract has not been completed in writing, the employer is obliged to issue a written confirmation of the concluded employment contract to the employee before the commencement of work.

If an employer does not conclude a written employment agreement with the employee before the start of work or does not issue a written confirmation of the concluded employment contract, it will be considered an employment contract for an indefinite period.

The best practice in the industry is to be cautious of implied contracts and utilize written agreements whenever possible.

Per the labor law of Croatia, the standard workweek is 40 hours, unless otherwise stated in a collective bargaining agreement. Employees who work over this number of hours are eligible for overtime. Overtime must not exceed 180 hours a year unless contractually agreed, in which case it must not exceed 250 hours. An employee may not work for more than one employer with a total working time of more than 40 hours per week except when the employee is working abroad.

Part-time work is any working time below the standard 40 hours per week. An employee whose total working time is 40 hours per week, may enter into an employment contract with another employer for a maximum of 8 hours per week, or up to 180 hours per year. The existing employer with whom the employee has already concluded a contract must give written consent for such work.

The following are observed as public holidays and non-working days in the Republic of Croatia:

• New Year's Day - January 1
• Epiphany or Holy Three Kings - January 6
• Easter and Easter Monday - date subject to change annually
• Tijelovo - date subject to change annually
• Labor Day - May 1
• Statehood Day - May 30
• Anti-Fascist Struggle Day - June 22
• Victory and Homeland Thanksgiving Day and Croatian Veterans Day - August 5
• Assumption - August 15
• All Saints Day - November 1
• Day of Remembrance for the Victims of the Homeland War and Day of Remembrance for the Victims of Vukovar and Škabrnja - November 18
• Christmas - December 25
• The first day after Christmas, St. Stephen's Day - December 26

In Croatia, the parties to an employment contract may agree to a probationary period of up to 6 months. The probationary period may last longer than 6 months if the employee is temporarily absent due to temporary incapacity, maternity and parental rights, or the use of paid leave. It may be extended in proportion to the duration of the absence. If a probationary period is agreed upon, the employee must be given 7 days' notice before termination. An employer has the right to terminate an employee during the probationary period if the employee's performance is not satisfactory.

Notice Period

The Croatian Labor Code provides that, in the case of dismissal, the employer must give prior notice to the employee in writing.

The duration of the notice period depends on how long the employee has been working for the same employer:

• 2 weeks' notice: employed for less than 1 year
• 1 month: employed for 1 year
• 1.5 half months: employed for 2 years
• 2 months: employed for 5 years
• 2.5 months: employed for 10 years
• 3 months: employed for 20 years

An employee whose employment contract is terminated due to employee misconduct is entitled to a notice period in the amount of half of the notice periods listed above.

Severance Benefits

An employee who is dismissed by the employer after 2 years of uninterrupted work (unless dismissed due to misconduct) is entitled to severance pay in the amount determined by the length of their previous continuous service with that employer.

The severance pay may not be less than one-third of the average monthly salary earned by the employee in the 3 months before the termination of the employment contract, multiplied by each completed year of service with the same employer.

Minimum Wage

From January 1, 2024, to December 31, 2024, the minimum wage in Croatia is set at EUR 840 (euros) per month, and is increased to EUR 970 from January 2025.

Salary must be paid monthly or as per the terms set in an individual or collective agreement, and no later than the 15th day of the current month for the previous month.

Overtime, Holiday & Vacation Pay

The labor law of Croatia limits overtime for cases of emergency or any extraordinary reasons for work increase. The total duration of overtime must not exceed 10 hours in a week and 180 hours in a year (250 hours in a year if it has been provided by the collective agreement).

For difficult working conditions, overtime, and night work, and for work on Sundays, holidays, and non-working days determined by a special law, the employee has the right to an increased salary. The amount is determined by the collective agreement, labor regulations, or labor contract. Work performed on Sunday must be paid at a minimum of 50% wages for each hour of work.

Visas

Croatia is a member of the European Union, and of the Schengen Area, which means that third-country nationals require a Schengen visa to enter Croatia. There are the following types of visas issued:

• Transit visa (Type A) - issued for transit through the international airport, and is valid for 24 hours
• Short term visa (Type C) - issued for foreign national's stay in the Schengen Area for up to 90 days within a 180-day period, used for tourism, business, or visiting family and friends. It can be issued for single, double, or multiple entries
• National visa (Type D) - issued for stays exceeding 90 days in Croatia. It's typically issued for work, study, or family reunification purposes. The validity cannot exceed 5 years

Work Permits

A foreign national who wishes to work in Croatia has to obtain a work permit. The work permit is issued for a maximum of 2 years and can be extended by submitting an application at least 45 days prior to the expiry of the current work permit.