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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

Country Croatia , applies nationwide
Time period Open ended, started on 19 March 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme
Author Predrag Bejakovic (IJF) and Eurofound
Measure added 08 April 2020 (updated 08 November 2021)

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:

  • prolongation of the entitlement to financial assistance for permanent seasonal workers; and
  • 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.

21 January 2021

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.

17 September 2020

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.

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

Workers Businesses Citizens
Seasonal workers
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Public employment service
National funds

Social partners

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

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

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

  • Social partners jointly
  • 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

  • 27 December 2018: Zakon o tržištu rada, (OG 118/18) (narodne-novine.nn.hr)
  • 19 March 2020: Odluka o proglašenju Zakona o dopuni Zakona o tržištu rada (narodne-novine.nn.hr)
  • 08 September 2020: Stalni sezonac (www.hzz.hr)
  • 10 September 2020: HZZ – nastavak potpora za očuvanje radnih mjesta, prijave od idućeg tjedna (vegora.hr)
  • 21 January 2021: Mjere aktivnog zapošljavanja u 2021. Stalni sezonac (Measure of Active Employment Policy in 2021 - Permanent Seasonal Worker) (mjere.hr)

Citation

Eurofound (2020), Extension of entitlement to financial assistance for permanent seasonal workers, measure HR-2020-12/366 (measures in Croatia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HR-2020-12_366.html

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