New Labor Law in the Second Half of the Year

The Minister of Labor and Pension System, Mirando Mrsić, announced that the new Labor Law could be adopted in the second half of the year.

– The Labor Law as it is written does not correspond to the current moment, and de facto we must adopt a new Labor Law – said Mrsić in today’s show ‘In 4 Eyes’ on Media Service.

He noted that in the first phase of discussions, an agreement was reached on amendments to this law, which both unions and employers could agree on, and tomorrow the final meeting will be held after which these amendments will go to the Government and the Croatian Parliament.

The amendments to the Labor Law foresee that fixed-term contracts cannot be extended indefinitely, but also that for the first indefinite contract ‘things will be simpler, especially when it comes to the reasons for its signing,’ said Minister Mrsić.

He believes that Croatia should enable easier employment, but also protect workers. – The Labor Law is a law that primarily needs to protect the weaker party, and in this case, workers are always the weaker side – he said.

When asked whether a severance fund will be established, Minister Mrsić said he would propose a modality that would facilitate employers, but also ensure that workers are protected. Reflecting on the unique employment contract, he believes that the previous divisions will remain – into fixed-term and indefinite employment.

Minister Mrsić also announced that in the second phase, negotiations will be held regarding salaries, and he believes that there should be only one gross salary introduced, which would facilitate the payment of contributions and similar matters. ‘We will insist that the net salary does not go down,’ he emphasized.

When asked how he will solve the problem of 370,000 unemployed, Minister Mrsić said that the number of unemployed is a reflection of Croatia and through this, one can see what the Croatian economy is like. ‘Our economy is simply stagnant and it needs to be activated,’ he emphasized.

Pointing out that jobs have been continuously lost in Croatia since 2008, Minister Mrsić said that last year more than 170,000 people were employed through the Croatian Employment Service, which is more than ever since 2008, ‘but more jobs are being lost than created.’

In his estimation, by the end of the year, this negative trend should be reversed and more jobs should start opening than closing.

– For a significant decrease in the number of unemployed, GDP growth above two percent is needed – concluded Minister Mrsić.