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.