Zagreb - Croatian MPs on Tuesday debated and broadly supported amendments aimed at curbing undeclared work, with the government and ruling HDZ arguing the changes strengthen worker protection and enforcement tools, while opposition MPs warned that weak implementation remains the key problem.
SDP MP Irena Dragić said the issue is not the legal framework but its enforcement, arguing that the State Inspectorate remains the system’s weakest link. She called for its restructuring and modernisation, warning that inspections disproportionately target small businesses while more complex cases involving larger systems receive less scrutiny.
SDSS MP Anja Šimpraga said undeclared work strips employees of basic rights such as pensions and healthcare, citing inspectorate data showing nearly 2,000 undeclared workers identified since the law was adopted in 2023, including a large number of third-country nationals. She supported stricter penalties and a shorter period on the employer blacklist but warned enforcement capacity is insufficient, noting only 96 labour inspectors are currently employed.
Independent MP Nino Raspudić backed the bill but said it fails to address patterns of abuse where firms accumulate debts and re-emerge under new names.
Bridge MP Božo Petrov said the grey economy cannot be curbed through fines alone, arguing that citizens turn to undeclared work when formal employment no longer guarantees a living wage.
HDZ MP Majda Burić said the amendments introduce a clearer legal framework, higher fines of up to €15,000 for platforms, and restrictions for blacklisted employers, including bans on hiring foreign workers. She said the reforms will “strengthen workers’ position in the long term."