Fixed-term consecutive contracts only for a reason

Representatives of trade unions and employers have reached a consensus on part of the amendments to the Labor Law (ZOR) so that they will be included in the first round of adapting the ZOR to the needs of the labor market, the Ministry of Labor and Pension System reported today.

– Part of the amendments relates to alignment with EU directives, and a consensus has been reached between unions and employers regarding part of the amendments so that they will be included in the first round of adapting the ZOR to the needs of the labor market, with the aim of removing obstacles and problems that have arisen in the application of the existing ZOR. No previous amendment to the Labor Law has reached consensus among stakeholders, unions, employers, and the Government in such a short time – states the Ministry’s statement in which the last meeting was held to prepare the first phase of the ZOR amendments.

Minister Mirando Mrsić expressed satisfaction with the willingness and readiness to reach an agreement, protect workers, while simultaneously adapting the Labor Law to the needs faced daily by workers and employers.

Explaining what changes in the first phase of the ZOR, the Ministry lists seven points.

– In order to prevent abuse in the use of fixed-term work, the employer will be able to conclude a consecutive fixed-term contract only if there is an objective reason for it, which must be stated in the employment contract – it is emphasized in the statement.

The Ministry also points out that the limitation on the total duration of fixed-term employment contracts to three years is only related to consecutive fixed-term contracts.

– Accordingly, a longer duration of fixed-term employment contracts than the previous three years is anticipated if it is the first contract and provided that during that period the worker is not consecutively employed on a fixed-term basis. Thus, the first fixed-term employment contract may last longer than three years in cases of project employment, mandates, etc. – states the statement.

Regarding replacement rest, it is proposed to reduce the minimum allowed number of hours of uninterrupted daily rest from 10 to 8 hours for adult workers engaged in seasonal jobs, which are performed in two shifts during the working day.

– In such cases, the employer must provide the worker with the unused part of the rest immediately after the completion of the period spent working for which they used a shorter rest. This will resolve organizational problems in the agriculture, tourism, and hospitality sectors, which require workers to work in two shifts during the day – the Ministry emphasizes.

For overtime work, the law abolishes the monthly limit on the number of overtime hours, while maintaining the limit on the number of overtime hours on a weekly and annual basis.

– Social partners have also agreed to facilitate the dismissal of workers during the probationary period, given that existing case law has rigidly interpreted the reasons for terminating a contract with a worker during the probationary period. Failure of the probationary period is introduced as a special reason for terminating the employment contract in case the worker does not meet the requirements during the probationary period – the Ministry emphasizes.

The law also simplifies the definition and procedure for collective dismissal of surplus workers and reduces the notice period for terminating contracts for all or individual workers for whom a redundancy program has been developed from 90 to 30 days, the statement notes, adding that this will enable faster restructuring of employers and their quicker adaptation to market conditions.

The changes in the first phase also relate to temporary employment agencies, which will, in addition to lending jobs, also be allowed to perform employment mediation tasks.

The mentioned tasks will not be able to be performed by agencies before being registered in the appropriate records of the ministry, and an agency that is not registered will be prohibited by the labor inspector from performing lending and employment mediation tasks.

– For the purpose of controlling the work of agencies and preventing possible abuses in respecting workers’ rights, agencies are required to submit statistical data on their operations to the ministry responsible for labor. The temporary employment agency will not be allowed to charge the worker a fee for their assignment to the client – the Ministry emphasizes.

The ZOR is aligned with the Directive on European Works Councils, ensuring the effectiveness of the implementation of information and consultation procedures at the transnational level, facilitating the establishment of new European Works Councils, and ensuring legal certainty in the establishment and operation of European Works Councils. Workers from Croatia will participate in the EU multinational companies’ works councils and vice versa.