Recruiting and hiring is a complex process in any country, especially in one where you are trying to expand. In Croatia, strong laws protect against discrimination and other employment practices. To stay compliant, a company needs to understand every aspect of these laws before hiring employees in Croatia.
Recruiting in Croatia
If you’re in charge of hiring for your business in Croatia, you need to know the right places to post jobs. Many potential candidates will share their resume directly with a company through email. A company should post available positions on its website and have current employees refer talented candidates.
The country has many different job portals that organize listings into separate categories depending on the business branch. Some of the most popular job posting websites include Bika, MojPosao, Oglasnik, and Nova Karijera.
Background checks
Employers may carry out background checks as long as the information requested is available through government bodies or is publicly available and related to employment. Unless authorized by law or legally necessary for the role, an employer generally cannot require a criminal background check. Employers should not use criminal checks as a routine screening step for all applicants. It is common to talk to a candidate’s previous employers and ask for written school reports, a university degree, and recommendations.
Your candidates must notify you about any disease or other health condition that could interfere with their ability to do the job. During the application process, you can ask a potential employee to undergo a medical exam if it is required for the role by the employer or Croatian occupational health and safety rules. The employer should pay the cost, and the exam should be limited to role-specific fitness requirements.
Laws against discrimination in Croatia
Croatia’s employment laws include provisions against discrimination. The Anti-Discrimination Act prohibits discrimination in work and employment, and the Employment Act separately reinforces employment-related equality protections based on:
- Race
- Gender
- Language
- Religion
- Politics
- Property
- Trade union membership
- Education
- Marital and family status
- Sexual orientation
Make sure that you don’t ask any questions in an interview or on an application that could lead to discrimination. Only ask questions that relate to a person’s qualifications and ability to do the job they are applying for. The same pertains to any third party you work with, as you could face penalties for their actions.
How to hire employees in Croatia
A company generally needs a registered presence, such as a Croatian subsidiary or registered branch, to hire employees locally in its own name and operate as the direct employer. Alternatives may be available depending on the arrangement, including an Employer of Record, a registered Croatian group company, or a genuine independent contractor model. The process to set up a subsidiary takes months to a year, but once you’re ready, hiring starts with getting specific personal information from your prospective employees. In line with Croatia employment law, you’ll then need to draft an employment contract that includes the employee’s salary or remuneration terms and working hours. Where these terms are covered by a collective bargaining agreement, work rules, or employer policy, the contract may refer to those sources, but the employee should still receive clear written information.
- The employee’s permanent residence
- A description of the job
- Place of work
- Date of hiring and termination for a definite duration contract
- Amount of paid annual leave
- Salary
- Working hours
- Notice periods
Croatia employment laws
Employment law forbids discrimination, so employers need to make sure all policies are legally compliant. Before hiring employees in Croatia, make sure to have the right procedures and training to handle discrimination and harassment and other employment issues in the office.
The law generally requires a written employment contract, or written confirmation of the employment terms before work starts. The document should be in Croatian, or bilingual with Croatian normally prevailing. All wages and compensation amounts should be stated in euros (EUR). A foreign-currency equivalent may be included for reference, but the binding pay amount should be in EUR.
Onboarding in Croatia
After hiring employees, you’ll need to figure out the best way to onboard them. While there is no right or wrong way, it’s best to go over the employment contract with employees before their first day, as well as provide the employee with any internal regulations or company policies.
Benefits of using an EOR in Croatia
Waiting to set up a subsidiary before hiring take months and potentially over a year. Top talent may look to other places instead of waiting for you to set up your subsidiary. Alternatively, you can work with G-P for your Croatia expansion.
We use our already-established subsidiaries to hire employees in Croatia on your behalf. Our Global Growth Platform™ allows us to run payroll, handle HR processes and taxes, and more. We ensure you remain compliant with local laws so you can grow your company with peace of mind.
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