HUP: New Labor Law Aligned with EU Legislation

The Croatian Employers’ Association (HUP) reminds in today’s statement that the new Labor Law (ZOR) is a technical alignment with European legal acquis and announces that in the “second round” employers will insist on interest issues that they have already publicly presented.

HUP welcomes the adoption of the Labor Law after nearly two years of negotiations and emphasizes that the changes in the new Law are considered a technical alignment with European legal acquis."Namely, contrary to the interpretations of the unions, the new solutions introduced in the final proposal do not diminish workers’ rights, and it can be stated that they also represent an improvement compared to previous solutions," HUP states, reminding that the bill received a positive opinion from the European Commission and should be viewed as fulfilling the conditions for closing Chapter 19. Social Policy and Employment. The Law, HUP emphasizes, has not brought any revolutionary changes nor has it significantly affected the specific interests of employers or workers and trade union centers.

"With the new Law, workers’ rights are more protected than in previous solutions in the Labor Law," HUP emphasizes, noting that, for example, the number of allowed overtime weekly hours has been reduced from 10 to 8, the duration of annual leave has been increased to a minimum of four weeks, not counting non-working days and holidays, etc. HUP reminds that the Ministry of Economy, Labor and Entrepreneurship will submit additional amendments and supplements to the Labor Law to the Government within 60 days, which would align all additional interest and other issues initiated by social partners. They emphasize that the issue of fixed-term employment contracts, which trade union centers highlight as a contentious area, will also be addressed in that "second round" of negotiations.

Employers announce that in that round they will "come with demands to improve the current Labor Law, aiming to reduce the rigidity of some provisions." "Fixed-term contracts are concluded precisely because of the rigidity of provisions regarding the dismissal of workers, and employers should be allowed more flexible dismissals, as well as hiring of workers. The real problem is actually the control of fixed-term contracts, not the fixed-term contract itself. Additionally, it is necessary to regulate the issue of sick leave during the notice period, which is most abused by workers," they believe in HUP and emphasize that all these interest issues have already been publicly presented by employers and they will insist on them in the "second round." (H)