European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case HR-2020-14/518 – measures in Croatia

Tourism company Valamar sets up the employment retention programme 'Pause, Restart'

Valamar pokrenuo program „PAUZA, RESTART“

Country Croatia , applies nationwide
Time period Temporary, 01 April 2020 – 30 June 2020
Type Company practices
Category Employment protection and retention
– Income support for people in employment (e.g. short-time work)
Author Predrag Bejalovic (IJF) and Eurofound
Case created 12 April 2020 (updated 30 April 2020)

Background information

Valamar Riviera is the largest tourism company in Croatia. Since the beginning of the global pandemic crisis, the company actively monitors the situation and continuously takes the necessary action to preserve employees’ and customers’ health, jobs and insure the business continuity. Following the tightening of general prevention measures by the competent authorities, Valamar closed in March 2020 all hotels and restaurants. With the aim of preserving jobs and business continuity in the conditions where touristic activities were completely suspended, Valamar made the decision to launch the "PAUSE, RESTART" program. It started on 1 April and will last at least 30 to possible 90 days.

Content of measure

The program covers all employees, therefore there will be no layoffs for about 2,800 workers in Valamar. Government support will be used. All employees who cannot work due to the situation will be referred to PAUSE from April 1. During the PAUSE, employees will be provided with a salary compensation in the amount of minimum 60% of regular salary, but not less than HRK 4,250 net (€ 567). This measure will apply equally to employees and management including permanent and seasonal workers. During the PAUSE, a part of employees and management in charge of the crisis will work primarily on maintenance, conservation and facility security duties, while a part of the staff will communicate with guests and partners. The wages of management will be reduced by up to 30% until all employees return to work. Other employees who will work full-time will continue to receive their regular full pay.

The Management Board cancelled the General Assembly and with the consent of the Supervisory Board proposed to the General Assembly a withdrawal of dividend payment and to direct these sources into funds for increase liquidity and support measures for the preservation of all jobs. Until the situation improves, Valamar Riviera cannot provide regular services but the company’s goal is not to lose any employee. To prepare on time for RESTART, the company directs its efforts to the development of a new business plan and the preparation of facilities for the start of touristic season.

Use of measure

Targeted at the whole company, 2,800 employees.

Contents

  • Employment retention

Target groups

Workers Businesses Citizens
Employees in standard employment
Seasonal workers
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
Companies
National funds

Social partners

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

Trade unions Employers' organisations
Role Negotiated Negotiated
Form Direct consultation outside a formal body Direct consultation outside a formal body

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

  • Social partners jointly
  • Main level of involvement: Company level

Involvement

N/A

Views and reactions

Social partners actively participated in the preparation of the measure.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      I - Accommodation And Food Service Activities I55 Accommodation
      I56 Food and beverage service activities

This case is not occupation-specific.

Sources

Citation

Eurofound (2020), Tourism company Valamar sets up the employment retention programme 'Pause, Restart', case HR-2020-14/518 (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.