Parliament amends Labour Act which brings series of novelties

Zagreb - The Croatian Parliament on Friday, by a majority of votes, with 77 in favor and 54 against, amended the Labor Act (ZOR), which introduces a number of novelties in the regulation of individual rights and obligations in employment relations.

The concept of salary is clearly defined, it prevents unjustified consecutive conclusion of fixed-term employment contracts, increases the hourly rate for work on Sundays, namely it stipulates that work on Sundays must be paid 50 percent more.

Also better defined is work at a remote workplace. By accepting the HDZ-sponsored amendment, the originally proposed period of 10 working days is shortened to seven working days per month after which the employer is obliged to reimburse the costs of working at a remote workplace.

Additional work for another employer is arranged without the consent of the parent employer. It is prescribed that the salary is contracted in the gross amount and paid to the employee's transaction account.

The law also regulates a new form of work through digital work platforms (e.g. Glovo, Bolt, Uber, etc.) with the aim of protecting such workers.

The absence of the right to a notice period and severance pay is being introduced for workers who fulfill the conditions for old-age pension (65 years of age, 15 years of pensionable service) in order to encourage employers to keep older workers in their employment.

Also introduced is the possibility that union members who have negotiated a collective agreement can arrange certain more favorable material rights for themselves.

Regulation of platform work enters into force on January 1, 2024

The law enters into force at the beginning of next year, except for the part concerning the regulation of platform work, which enters into force on 1 January, 2024.

The law on the prevention of undeclared work was also passed, which, in addition to the effective fight against undeclared work, should enable the transition from undeclared to registered work.

Before the vote on ZOR, Erik Fabijanić (Social Democrats) said that it guarantees neither predictable conditions nor transparency, which is foreseen by the EU directive with which the law is harmonized.

"Minimum rights are not guaranteed, for example work related to difficult working conditions, work on Sundays, holidays and night work," he said.

Amendments to the Trade Act were sent to the second parliamentary reading, under which shops will be able to work 16 Sundays a year, as they owners choose, that is, 30 percent of all Sundays a year, but with numerous exceptions.

Author: Hina