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Employment Conditions in Croatia

Terms & Conditions of Employment in Croatia

Intellectual property

Employees must inform their employers about their inventions at work or related to work. If the creation is connected to the employer’s economic activity, the employee must notify the employer of the invention. They can make a written offer to the employer to assign the invention rights to them. The employer must respond to the employee’s request within one month.

The information about the invention must be covered by the employee’s obligation on business secrecy, and they cannot disclose it to third parties without the employer’s consent. Any invention is the employer’s property, and the employee is entitled to compensation provided by a collective agreement, employment contract, or a special agreement.

Restraint of trade

Restriction of activities

Employees must not, without the employer’s approval, conclude business transactions for their account or the account of another company in the employer’s field of activity. If the employee fails to comply with this statutory prohibition, the employer can, within three months and up to five years, do the following:

  • Claim compensation for damages from the employee
  • Require that the business transaction be considered carried out for the employer’s account
  • Require the employee to give the employer the profit earned from the trade or transfer to the employer any claims for profits earned from it

The employer is seen as approving of side business activities the employee is engaged in if the employer was aware and did not require them to stop it at the start of the employment.

Post-employment restrictive covenants

In addition to the statutory prohibition of competition, the employer and the employee can stipulate that for up to two years after employment ends, the employee must not do the following:

  • Take employment with a market competitor of the employer
  • Conclude business transactions that constitute competition with the employer, neither for their own account nor for the account of another

Employees are entitled to compensation for the duration of the post-employment restraint of at least half of their average wage paid three months before the termination of the employment contract.

It is not binding on the employee if the aim of the contract is not to protect the legitimate business interests of the employer or if, taking into account the area, time, and aim of the prohibition and in relation to the legitimate business interests of the employer, the contract disproportionately limits the work and promotion of the employee.

Probation period

Probationary periods can last a maximum of six months, with a notice period of at least seven days during the probationary period. If the employee is temporarily absent, especially due to temporary incapacity for work, use of maternity and parental rights according to a special regulation and use of the right to paid leave, the probation period is prolonged for the duration of temporary absence.

Management representation

Employees have the right to management representation and meeting held at least twice a year to consider the employer’s business conditions and development. The works council or the employer must convene meetings of employees. Depending on the type of employment issue concerned, the employer can be required to provide information, enable consultations, carry out a co-decision-making process, and obtain the works council’s consent before proceeding with the dismissal that falls in special categories.

If the employer has a supervisory board or similar body supervising the company’s management, one member of the board must be the employees’ representative. The works council or the employees appoint the employees’ representative.

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