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A Minute’s Delay in Submitting Employer’s Application Can Result in Fines of Up to 100,000 HRK

Due to unpaid wages, non-payment of taxes and contributions, large companies, especially state-owned ones, generally will not find themselves under judicial scrutiny. However, a small trader was fined the amount of his total profit for a one-day delay in submitting the employment contract application.

In a country where it is a public secret that a large part of wages is paid in cash, where some are allowed to avoid paying VAT and other contributions for months and years (notably depending on who is the chairman of the supervisory board and the CEO), where driving a car at a speed of 250 kilometers per hour is penalized with a maximum fine of approximately seven thousand kuna (što is the value of one wheel on such a car, while in Švicarska the fine is so high that even the wealthy must take out a loan to pay it), others must be perfect payers who settle their obligations to the last lip and minute just to survive. Since no one is perfect, this means that someone ends up in bankruptcy for the same or slight oversight, while another is gently asked to pay their debt. Of course, it is undisputed that an employee must be paid for their work, that they must receive an employment contract, and that contributions and taxes must be paid… However, the essence is also to encourage employers to act lawfully, that their complete destruction is not desired, and, of course, that the same rules apply to everyone. More in the Advisor written by Prof. Dr. Hrvoje Kačer.

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