Factsheet for measure
HR-2020-12/366
–
Updated
– measures in Croatia
Extension of entitlement to financial assistance for permanent seasonal workers
Produženje trajanja mjere stalni sezonac
Background information
A regulation of 'permanent seasonal work' was introduced in 2001. A fixed-term employment contract for a permanent seasonal job obliges employers to pay contributions for their seasonal workers throughout the year and obliges employers to offer their employees new employment contracts for the following season. According to the Act on Labour Market (OG 118/18) a permanent seasonal worker is entitled to financial assistance for a maximum of six months after termination of employment, and the employer is entitled to financial support from the Croatian Employment Service for financing contributions for extended pension insurance.
Content of measure
The Parliament accepted the Law on Amendments to the Act on Labour Market (OG 32/20) which prescribes the authority of the Governing Board of the Croatian Employment Service in the case of special circumstances to decide on:
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prolongation of the entitlement to financial assistance for permanent seasonal workers; and
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to enable the employer co-financing the costs of the extended pension insurance.
Currently, the Governing Board of the Croatian Employment Service has not decided about the mentioned changes. During extended insurance, the worker receives 100% of the minimum wage in the first three months (gross monthly wage in 2020 is HRK 4,062.51 or €541.67), and in the next three months 50% of the minimum wage.
Updates
The following updates to this measure have been made after it came into effect.
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23 November 2024
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The measure "Permanent Seasonal Worker" exempted employers from the costs of the first three months of contributions for workers' pension insurance and 50% of these costs for another three months while the worker was registered with the Croatian Employment Service (CES). During this time, the worker received financial assistance equivalent to unemployment benefits from the CES. The condition was that they had worked continuously for at least six months with the same employer and had committed to work for the same employer for at least one more season. The measure aims to provide financial support to seasonal workers when they are not working, ensuring the necessary workforce for employers in sectors experiencing periods of reduced work volume due to the seasonal nature of their business. However, in the future, employers will still be able to use the Permanent Seasonal Worker measure, but only for those workers who were previously registered as such, with the proviso that "those who employ more than 10 employees must prove that they have concluded permanent employment contracts for a portion of the persons who worked for that employer for a fixed period to perform seasonal work in the past 12 months from the date of submission." A permanent seasonal worker employed for an indefinite period can agree with the employer that their employment relationship will be suspended between two seasons. During this time, the employer will deregister them from insurance, and the worker can be employed by another employer during that period. Another option for the permanent seasonal worker is to agree with the employer not to deregister them from insurance, but then the employer will pay all contributions for the worker at the lowest amount during the period between the two seasons. This monthly cost is €216.37, which is higher than the cost incurred when the employer pays only pension contributions. The employer is not eligible for state support for paying contributions. Between two seasons, the worker is not entitled to a salary, and given that they are registered under the employment relationship during that period, they cannot receive assistance from the Croatian Employment Service. It follows that permanent seasonal workers employed for an indefinite period are more expensive for employers if these employers pay contributions in the period between two seasons. The worker is also disadvantaged compared to having a fixed-term permanent seasonal worker contract. Unfortunately, the desirable measure of employing permanent seasonal workers for an indefinite period is not adequately accompanied by social legislation and measures from the Croatian Employment Service.
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21 January 2021
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On 21 January 2021, the Croatian Employment Service issued the Guidance for seasonal workers for 2021. The intention of the measure is to provide a financial support to seasonal workers in the period when they are not working, in order to insure the necessary workforce to employers which have the seasonal nature of their business. Duration of the measure is 6 months with the possibility of extension for the duration of special circumstances caused by the COVID-19. The measure usually provides full covers of the cost of extended pension insurance for the first 3 months, and for next 3 months 50% of extended insurance. After the expiration of the first six months for employers who have already used the measure, and for the duration of special circumstances caused by the COVID-19, the measure provides full cover of the cost of extended pension insurance.
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17 September 2020
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On the meeting of the Governing Board of the Croatian Employment Service, on 7 September 2020, with the intention to help also the employers, the conditions for permanent seasonal workers have been changed. Usually, employers have the obligation to employ the seasonal worker also in the next year. However, due to the COVID-19 crisis, they are not obliged to employ such worker in 2020 and 2021. The Croatian Employers’ Association, their Catering and Tourism Association, praises such decision as a significant contribution towards the needed flexibility in the employment policy in such adverse circumstances.
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Use of measure
Every year around 8,000 people obtain the status of a permanent seasonal worker, mostly in tourism and a smaller part in agriculture. As majority of the will not find a job in tourism this year, probably around 6,000 will apply for the mentioned right.
Target groups
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Workers
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Businesses
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Citizens
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Seasonal workers
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Does not apply to businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
Public employment service
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Informed
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Informed
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Social partners jointly
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Main level of involvement: Peak or cross-sectoral level
Involvement
Due to the nature of the measures social partners participated indirectly through their representatives in the Governing Board of Croatian Employment Service, which is responsible for the implementation of the measure.
Views and reactions
As mentioned, representatives of the social partners are members of the Governing Board of the Croatian Employment Service. Trade unions as social partners quite often criticize seasonal work as a form of non-standard and precarious jobs and they advocate any type of support to such workers.
Sources
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27 December 2018: Zakon o tržištu rada, (OG 118/18)
(narodne-novine.nn.hr)
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19 March 2020: Odluka o proglašenju Zakona o dopuni Zakona o tržištu rada
(narodne-novine.nn.hr)
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08 September 2020: Stalni sezonac
(www.hzz.hr)
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10 September 2020: HZZ – nastavak potpora za očuvanje radnih mjesta, prijave od idućeg tjedna
(vegora.hr)
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21 January 2021: Mjere aktivnog zapošljavanja u 2021. Stalni sezonac (Measure of Active Employment Policy in 2021 - Permanent Seasonal Worker)
(mjere.hr)
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29 October 2024: Changes in the measure "Permanent Seasonal Worker" (Promjene u mjeri Stalni sezonac)
(lidermedia.hr)
