Croatia: Insights into Posted Workers Regulation
A posted worker is a worker who is sent by a foreign employer established in a Member State of the European Economic Area or the Swiss Confederation to carry out a service in another member state on a temporary basis.A posted worker can be a citizen of the EEA, the Swiss Confederation, or a third country who is lawfully employed by a foreign employer in the territory of another EEA member state or the Swiss Confederation.
A posted worker must be employed and have a contract with the employer throughout the posting period.
Additionally, a posted worker who is a third country national must hold a work and residence permit in the country where their employer is based.
The core rules for posted workers are established by EU directives, specifically the Posted Workers Directive - Directive 96/71/EC and it’s amended Directive - (EU) 2018/957. These directives set a common framework that all EU member states must follow. Considering that there could be variations among countries related to the application process and enforcement of these rules, the rest of our article will refer to the posting procedure in the Republic of Croatia.There are few grounds based on which the posting of an employee can occur:
-
framework of a contract between the employer and a client in the host country
-
fending a worker to a branch or company owned by the employer or
-
assigning a worker to a user in Republic of Croatia by an agency for temporary employment – applicable only if there is employment relationship between the agency and worker
The worker remains employed by the foreign employer in the home country but is subject to certain legal and regulatory protections in the host country during the posting period.
The employer is required to adhere to the minimum employee protection standards set by the legal regulations of the Republic of Croatia, which includes the following working conditions:
-
minimum wage
-
duration of working hours and the minimum duration of rest
-
minimum duration of paid annual leave
-
health and safety regulations at work
-
rules prohibiting discrimination at work
-
protective measures for work of pregnant women, women who have recently given birth or are breastfeeding
The foreign employer is required to submit an advance posting declaration before the commencement of posting for the purpose of notifying Croatian authorities of the intention to post the worker in the Republic of Croatia. Any change of the provided data must be reported by the employer to the authority in a timely manner.
Posted workers must have an A1 certificate, issued by the home country from which they are posted, in addition to the employment contract concluded with a foreign employer.
Exceptionally, a third-country national posted from Norway, Iceland, Liechtenstein, Denmark, or the Swiss Confederation will provide payment slips instead of an A1 certificate.
Posted workers can work in the Republic of Croatia for up to 90 days without obtaining a work registration certificate, or a residence and work permit.
However, if posting is longer than 3 months a worker must regulate a temporary stay with the competent authorities in Croatia.
Depending on the home country legislation, workers might need a S1 form which can be requested from the healthcare authority in the country from which worker was posted or a European health insurance card which will enable worker to use a healthcare system in Croatia.
The procedure for posting workers in Croatia is designed to ensure compliance with both national and EU regulations, aiming to protect the rights and working conditions of posted employees while facilitating the mobility of labor within the European Union. Adhering to these procedures is crucial for maintaining the integrity of the labor market and ensuring that Croatia remains a desirable destination for businesses operating within the EU framework.