In December 2009, the Croatian Parliament released a new Labour Law which will become effective on 1 January 2010, but provides for a provisional period of 6 months. It brings some important changes, which include the following:
Registered management members, executive directors and other managers who in accordance with the law are authorised to independently or jointly represent the company, are exempted from the provisions of the Labour Law regulating the termination of an employment relationship. In future these rights and obligations should be regulated internally by the parties.
There is the possibility to agree an exemption of registered management members and general management from the provisions of the Labour Law regarding working hours as well as daily and weekly breaks.
There is an obligation of employers to keep employment records in a certain manner. The details will be given by a special by-law that should be enacted by the Ministry of Economy, Labour and Entrepreneurship within the first six months of 2010.
There will be the possibility to conclude fixed term employment agreements for a period of up to three years. The maximum permitted overtime is reduced from 10 hours to 8 hours in one week, with a monthly overtime maximum of 32 hours and an annual overtime maximum of 180 hours.
The minimum period of vacation will be increased from 18 days to 4 weeks. In case of the termination of an employment, the employer must pay the employee any outstanding vacation.
Depending on the nature of the work, weekly working hours may be distributed unevenly for a period of four months or if prescribed by a collective agreement for a period of six months.