PEO/Employer Of record in Croatia

Hire staff in Croatia while we manage all employment and HR operations. No local company needed! 

PEO/Employer of Record in Croatia - Hire Employees Compliantly

We are a Professional Employer Organization (PEO) that provides Employer of Record services in Croatia, also known as “employment solutions” or “PEO solutions”.

Many companies opt to outsource their employment to minimize costs and legal risk when expanding their business operations in Croatia.

We can help foreign companies navigate through Croatian employment laws and requirements, saving you time so you can focus on core business activities.

While all employment, HR, administrative and legal matters are outsourced to us, you are able to have a physical presence in Croatia without the need to set-up a legal entity.

Entity Not Required

Foreign clients do not need to register a legal entity in Croatia when using PEO services.

100% compliant

We strictly follow official compliance guidelines to ensure a safe legal environment for all clients.

Fast Market Entry

We will help you to hire and onboard employees within one week.

Complete PEO package for efficient and compliant employment

On-board staff in Croatia without any risks

Employment and payroll regulations in Croatia

Table of Contents

Employment contracts

Unless otherwise specified in the labor law, an employment contract is for an indeterminate period of time. Until it is terminated, an indefinite-term employment contract creates legal duties for the contracting parties. When an employment contract does not state how long it will last, it is considered an indefinite contract. Exceptionally, an employment contract may be formed for a set duration for the purpose of starting a job when the conclusion of the job is determined by objective factors such as meeting a deadline, finishing a task, or the occurrence of a specific event.

The employment contract shall be concluded in writing. If an employment contract is not in writing, the employer is required to deliver a letter of engagement to the employee prior to the commencement of employment.

The written employment contract or letter of engagement must include the following information:

  1. the parties’ identities, residences, and registered places of business;
  2. place of work; if there is no fixed or main place of work, a reference that the work is performed at various locations
  3. the title, nature, or category of the work for which the worker is employed, or a brief specification or description of the work;
  4. the date of the worker’s employment;
  5. the estimated period of a fixed-term job contract in the case of a fixed-term employment contract;
  6. the length of paid annual leave to which the employee is entitled, or, if this is not specified when the contract is signed or the letter of engagement is issued, the methods for assigning and deciding such annual leave;
  7. the length of the notice periods to be observed by both the worker and the employer, or, if this is not specified when the contract is signed or the letter of engagement is issued, the procedure for determining the notice periods;
  8. the worker’s base wage, incentives, and frequency of remuneration payments;
  9. duration of a regular working day or week.

Working hours

Full-time work shall not exceed 40 hours a week. Part-time work shall be any working time shorter than full-time work. The worker shall not be allowed to work at several employers with a working time exceeding forty hours a week. 

Annual leave

Each calendar year, the employee is entitled to paid annual leave. A worker is entitled to at least four weeks of annual leave in each calendar year, and a minor and a worker who is exposed to adverse effects notwithstanding the adoption of health and safety at work protection measures are entitled to at least five weeks of annual leave.

During yearly leave, the worker is entitled to remuneration in accordance with the collective bargaining agreement, working norms, or employment contract, but not less than his average monthly remuneration for the previous three months.

Maternity leave

Employed and self-employed pregnant women are eligible to maternity leave starting 28 days before the predicted due date (45 days if difficulties arise) and ending 70 days after the child is born. This is mandated leave for the mother, and it may also be used by the father in exceptional situations (for example, if the mother dies).

Additional maternity leave is available until the infant reaches the age of six months. During this time, the mother can return to work and shift her responsibilities to the father, either entirely or partially.

Sick leave

During the sick leave, the employee is entitled to sick pay based on his or her average wage for the previous six months, but not less than 70% [of the required basis] (depending on the type of sickness). However, in Croatia, it is usual practice for the employee to be paid his or her full (net) wage during the entire term of sickness.

Public holidays

  • New Year’s Day – January 1st
  • Epiphany – January 6th
  • Easter Monday – April 18th
  • Labour Day – May 1st
  • Statehood Day – May 30th
  • Corpus Christi – June 16th
  • Anti-Fascist Resistance Day – June 22nd
  • Victory and Homeland Thanksgiving Day – August 5th
  • Assumption Day – August 15th
  • Independence Day – October 8th
  • All Saints’ Day – November 1st
  • Remembrance Day – November 18th
  • Christmas Day – December 25th
  • St Stephen’s Day – December 26th

Probation period

The job contract may stipulate a probationary period. The probationary term cannot go more than six months. During the probationary phase, the worker’s inability to meet the position’s standards constitutes just cause for terminating the employment contract.

Termination and severance pay

The employment contract shall be terminated:

  1. upon the death of the worker;
  2. upon the death of the employer – natural person;
  3. upon the expiration of a fixed-term employment contract;
  4. when the worker reaches the age of 65 and 15 years of entitlement for retirement;
  5. by agreement between the employee and the employer;
  6. upon submission of a legally valid decision confirming the employee’s right to a disability pension owing to a permanent inability to work;
  7. by notice of dismissal;
  8. based on a competent court decision.

When an employer terminates a worker after a two-year tenure, the worker is entitled to severance compensation in an amount set by the worker’s tenure with that employer, unless the dismissal is due to the worker’s misconduct.

Severance compensation for each year of employment with that employer must not be less than one-third of the worker’s average monthly wage earned in the three months before the termination of the employment contract.

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