LABOUR ACT: Croatian Employers against Proposed Amendments to Labour Act

mudrinic-veci-17 July 2014, LPJ Croatia Issue 92

On 2 July, the Croatian Employers’ Association (HUP) issued a statement, saying the final version of the proposed Labour Act does not contribute to mitigating the effects of the economic crisis; it does not improve the conditions for doing business and will not facilitate job creation.

The incumbent government has been trying to reform the labour legislation since the beginning of its mandate.  In 2012, the government first announced it would amend the Labour Act, in order to increase labour market flexibility.   The bill was sent to the Sabor regular procedure, but was retracted in June the same year due to strong resistance from unions.  In January 2013, the Ministry of Labour and Pension System re-started the process and began drafting the amendments to the legislation, which were subsequently adopted by the Sabor in June 2013 (see LPJ 037).

Since the changes were not as far-reaching as initially expected, the Labour Ministry opened another public debate in September 2013.  Since then, the government has had difficulties in reaching a compromise with both the employers and trade unions…

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