New Craft Law Soon in Parliament

The proposal for the new craft law will be submitted to parliamentary procedure in two to three weeks, and it is expected to be adopted in April. The new law aims to stimulate the development of crafts and bring craftsmen into a more equal position with other economic entities, as learned from the Ministry of Entrepreneurship and Crafts.

According to the new law, craftsmen will no longer guarantee their entire property for the operation of their craft, but the law will determine the assets necessary for conducting the craft (a minimum of 5,000 kuna). In this way, the relevant ministry believes that craftsmen will be equal to other entrepreneurs regarding liability for obligations in conducting registered activities, ensuring equal status for all, regardless of their status.

Another innovation is the introduction of the craft transfer institute, which will allow a craft to be transferred to any third party (not just relatives), which is not possible under the current law. Namely, the current craft law does not allow the transfer of a craft during the craftsman’s lifetime, but only in the event of their death.

The law also anticipates a reform of the system of the Croatian Chamber of Crafts (HOK), establishing a uniform rate of chamber contributions, which in a lump sum cannot exceed 4 percent of the basic personal deduction from income for the entire chamber system, meaning at the level of the association of craftsmen, regional craft chambers, and HOK.

For craftsmen engaged in seasonal crafts, there will be an obligation to pay chamber contributions to HOK only during the period of seasonal work.

There will also be direct elections for the president of HOK, who will be elected by all HOK members, and HOK will submit an annual report on its work to the Croatian Parliament.

Thus, for the first time, the work of a chamber institution will be opened to the public, and transparency in the payment of chamber contributions will be introduced, according to the relevant ministry.

The new law aims to enable the conduct of all permitted economic activities in terms of home-based work and secondary occupations (primarily for retirees and the unemployed), to stimulate registered activities and thereby reduce the share of the gray economy.

The expansion of activities conducted through the home-based work institute and secondary occupations is particularly aimed at retirees who wish to remain active and secure additional income (a maximum of 10 average gross salaries per year, or about 75,000 kuna).

The ministry also emphasizes that they insist on including the payment of contributions for employment in the law, which is currently not allowed for craftsmen, but this needs to be coordinated with the Ministry of Labor and Pension System.

Namely, craftsmen do not have the right to unemployment benefits because they cannot pay contributions for employment, which they pay for their workers, so in the event of closing the craft, workers have the right to benefits, while the craftsman does not, the Ministry of Entrepreneurship and Crafts explains.