Recently, the general environment of work regulations [Pravilnik o radu] has gone through some changes in Croatia, meaning that this is an area HR professionals and organizational leaders need to be informed about. All these updates are compulsory to know for the HR recruiters, hiring managers, and CEOs as well as having a significant legal aspect; the other essential goals include creating a beneficial working environment and avoiding worst-case scenarios.
In this blog post, the focus will be on the latest changes in the Croatian work regulations [Pravilnik o radu] and Occupational safety regulations for workplaces [pravilnik o zaštiti na radu za mjesta rada] and what makes them worth sharing for any HR professional and business leader for that matter.
As work from home or remotely gains ground in many organizations, Croatia has adopted new policies to deal with this sort of employment. The updated labor laws [radno pravo/zakon o radu] emphasize specific criteria for remote work arrangements:
The employer is now required to make a written contract for the performance of work with the remote worker that combines working hours, duties, and wages.
Data security is therefore sacrosanct, and employers have to spell out how IT, data communication/sharing, and privacy, especially in remote work arrangements.
The changes made in the law have intended to shield employer interests together with serving employee rights hence requiring the HR managers to develop practical policies that would address the new changes.
A study conducted by the Croatian Chamber of Commerce in 2023 revealed that 68% of the companies have incorporated remote work into their working model, whereas 45% have incorporated hybrid models.
The Change in the minimum wage [minimalna plaća] requirements has been established to reflect the degree of the European standard to the welfare of the employees in the expanding Croatian economy [gospodarstvo hrvatske]. Increasing the minimum wages that accord with workers’ purchasing capacity has been done incrementally beginning from January 2024.
The legal federal minimum employment wage has been increased to 4500 HRK for full-time employees up from HRK 4200 in the previous year an increase of 7%.
This is a problem for HR departments to rebalance the payroll budgets and make suitable changes to pay for roles nested at entry levels of organizations to correspond to the legal specifications.
This rise aligns with Croatia’s economic development plans and the HR needs to ensure that compensation changes occur regularly to the new minimum legal requirements.
According to the Ministry of Finance of Croatia, the wage increase might impact up to 25% of the employees, in particular, those in the services sector, including restaurants and shops.
The Croatian government has also put in place new measures of worker protection as a sign of promoting the aspect of health, safety, and fair treatment at the workplace.
Policies have now been realized to offer parents flexible, more liberal, and longer leave when it comes to leave duration.
The latest regulations cause a focus on more severe anti-discrimination measures, including staff training and information campaigns.
Now is the time for HR professionals to revisit organizational practices on safety, diversity, and family-related issues to ensure they are consistent with the guidelines. All these measures play a pivotal role in the creation of a professional relationship free from harassment, and equality at the workplace, which helps in the avoidance of litigation costs and improves employee turnover.
The statistics of the Institute of Public Health of Croatia suggest that better worker rights could lead to 12% annual turnover rates lower amongst employees in sectors associated with escalated health risks.
Other measures have also aimed at enhancing work-life balance in renewed Croatian labor law: working time and overtime have been differentiated. Key changes include:
While the number of hours one can work overtime has been regulated, any additional working hours over and above 180 hours in a year may only be allowed under a collective agreement.
Employ owners are mandated to make sure that workers understand the right time to rest and they ensure those who work for long hours like in the health sector or manufacturing firms provide workers with specific time to rest.
HR teams must rethink the existing working hours policies and ensure that these breaks and limitations to working hours are complied with. Measures of this sort not only serve a preventive purpose but also promote improved work conditions in organizations.
According to scholars using regulated breaks can even improve productivity by as much as 15%, according to findings from the Croatian Employment Service.
Regulating the EU guidelines, Croatia is gradually promoting skill development programs to create a better-qualified populace. In this process, Croatian employers are now allowed to provide continuing professional education.
It has also been found that companies that engage in upskilling of their workers may also be eligible for state incentives and tax credits.
To retain firewall presence for necessary background checks in industries such as IT, finance, & healthcare, mandatory specialized training sessions that focus on compliance with the new regulations should be recommended.
This directive doesn’t only have positive implications for the employees but also a positive impact on the organization’s growth which makes organizations most favored. Experience & new evidence also suggest that such benefits should be exploited by HR departments by seeking out funding opportunities for professional training programs.
Staying updated on work regulations [Pravilnik o radu] in Croatia is crucial so that HR practitioners as well as other business executives can stay abreast with the change while ensuring that force is on the side of the organization, workforce, and general work environment. Neither increasing payrolls nor dealing with remote work regulations [Pravilnik o radu] are passive; these recent changes are no exception. Thus, the best practices in HR management of policies, communication, and skills can be additional strategies for success for HR managers and CEOs in their organizations and prevent the negative impact of changing regulations.
These changes are needed to maintain compliance with the constantly improving labor laws in Croatia and to develop a strong adaptable population for the country’s future economy.
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