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Factsheet for case HR-2020-10/342 Updated – measures in Croatia

Chamber of Commerce temporarily suspends membership fee

Odluka o privremenom ukidanju obveze plaćanja članarine)

Country Croatia , applies nationwide
Time period Temporary, 01 March 2020 – 31 May 2020
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Predrag Bejalovic (IJF) and Eurofound
Case created 07 April 2020 (updated 06 October 2020)

Background information

At its extraordinary session on March 20, 2020 the Croatian Chamber of Commerce, decided to provisionally repeal the provisions of its Financing Decision which prescribes the obligation, amount and manner of payment of the membership fee for its members.

Following the 19 March 2020 decision of the Civil Protection Headquarters of the Republic of Croatia on measures to limit social gatherings, work in commerce, services and the holding of sporting and cultural events due to COVID-19 outbreak, the Croatian Chamber of Commerce decided to temporarily suspend the payment of its membership fee.

Content of measure

The Croatian Chamber of Commerce (CCC) Decision on the temporary suspension of the obligation to pay membership fees (OG 36/2020) stipulates temporary suspension of the membership fee to the Croatian Chamber of Commerce for the period from 1 March to 31 May 2020. Members are entrepreneurs from the various economic sectors, primarily in retail trade, preparation of food and drinks, accommodation, education, culture etc. According to the data by the Croatian Bureau of Statistics this measure could cover around 80 thousand business entities with 250 thousand employees. In accordance with this Decision the Croatian Chamber of Trades and Crafts (HOK) decided that debit of the mandatory chamber contribution for the period April - June 2020 is written off.(see case n 344).

Updates

The following updates to this measure have been made after it came into effect.

16 July 2020

The Croatian Chamber of Commerce (CCC) gave layoffs to almost half of its employees due to the crisis and falling membership fees. The CCC employed about 520 people in the central office, branches, but also in foreign representative offices. The number of dismissals was almost 200. The reason is the decline in revenue from membership fees that have not been collected for three months, and will fall in 2021 year due to the reduction of membership fees. Therefore, the Croatian Chamber of Commerce is preparing a reorganization. For year 2020, the CCE planned revenues of HRK 233 million (€ 31. 07 million), and about 70 percent or about HRK 165 million (€ 22 million), should have come from the mandatory membership fee paid by all companies operating in Croatia. After the outbreak of the COVID19 crisis, the CCE decided that companies would not pay membership fees for three months. From all revenues, annually around HRK 90 million (€ 12 million) was spent for employees’ salaries and social contributions. The rest of the costs were material costs, organisation of trips to fairs, external services and the like. Entrepreneurs advocate that membership be voluntary, not mandatory as soon as a company is established.

Use of measure

Not yet known.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
Employers' organisations
Company / Companies
Employers organisation
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain Agreed (outcome) incl. social partner initiative
Form Not applicable Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • Only employers' organisations
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Although the employers are fully aware that the CCC has some positive activities, like representation, coordination and safeguarding common interests of its members before country institutions; participation in shaping the economic system and economic policy; promotion of the Croatian economy abroad, business training and execution of entrusted public authority, they would like that membership in the Croatian Chamber of Commerce be voluntary, not mandatory.

Views and reactions

Entrepreneurs advocate that membership in the Croatian Chamber of Commerce be voluntary, not mandatory as soon as a company is established.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles G45 Wholesale and retail trade and repair of motor vehicles and motorcycles
      G46 Wholesale trade, except of motor vehicles and motorcycles
      G47 Retail trade, except of motor vehicles and motorcycles
      I - Accommodation And Food Service Activities I55 Accommodation
      I56 Food and beverage service activities
      R - Arts, Entertainment And Recreation R90 Creative, arts and entertainment activities
      R92 Gambling and betting activities
      R93 Sports activities and amusement and recreation activities

This case is not occupation-specific.

Sources

  • 20 March 2020: Odluka o privremenom ukidanju obveze plaćanja članarine (narodne-novine.nn.hr)
  • 27 March 2020: Suspension of the obligation to pay the CCC and HOK membership fees (www.rrif.hr)
  • 16 July 2020: Drastični rezovi: HGK će dati čak 200 do 250 otkaza zbog krize (www.24sata.hr)
  • 16 July 2020: Reorganizacija: Ide val otkaza u Hrvatskoj gospodarskoj komori, posao će izgubiti više od 200 ljudi? (www.tportal.hr)

Citation

Eurofound (2020), Chamber of Commerce temporarily suspends membership fee, case HR-2020-10/342 (measures in Croatia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.