Posting of employees in Croatia which exceeds 12 months, or exceeds 18 months on the basis of an extension to a posting that originally lasted less than 12 months, is considered ‘Long-term posting’ unless otherwise specifically provided by the law. During the posting period, the posted employee is entitled to rights, benefits, and compensation exhaustively listed in the new law (including changes regarding employees’ accommodation quality and internal travel expenses), however, after 12 months of posting, the posted employee is entitled to all mandatory remuneration and employment terms which apply to employees employed in Croatia in accordance with the Croatian Labour Act, with the exception of : provisions on entering and termination of the employment contract; non-compete obligations; and voluntary contributions to pension schemes (the so-called ‘third pillar’ of pension insurance).
A foreign employment agency posting employees to Croatia must apply provisions of the Croatian Labour law regulating employment conditions (e.g. minimum salary, overtime work, working hours and schedule, paid annual leave, health and safety rules, etc.), if those provisions are more beneficial for the posted employee. Before concluding a temporary assignment agreement with a foreign employment agency, the local employer must inform the foreign employment agency (in writing) about salary and other work conditions that would apply to an employee employed with the local employer at the same workplace.
If more beneficial for the posted employee, he/she is entitled to receive guaranteed compensation for work performed consisting of all mandatory salary elements to which employees employed in Croatia are entitled, including mandatory social contributions (i.e. health and pension insurance) as well as salary increments for overtime work, night-time work. etc. This compensation must not be lower than that received by an employee employed with the local employer at the same workplace.
The new legislation was adopted by the Croatian Parliament on 11 November 2020 following public consulation.
A general rule is that more beneficial provisions apply to posted employees if these apply in the jurisdiction of the foreign employer, local jurisdiction, or the applicable collective agreement. This general rule applies to all specific rights, benefits, contributions, and compensations of posted employees. The new legislation does not apply to road transport employees .