Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure HR-2020-24/1045 – Updated – measures in Croatia
|Country||Croatia , applies nationwide|
|Time period||Temporary, 08 June 2020 – 30 March 2021|
|Type||Bipartite collective agreements|
Employment protection and retention
– Income support for people in employment (e.g., short-time work)
|Author||Predrag Bejalovic (IJF) and Eurofound|
|Measure added||26 August 2020 (updated 18 November 2021)|
Croatia is highly dependable on tourism, which represent around 18-20% of its GDP. Therefore, the consequences of the COVID-19 on Croatian economy should be seen primarily through this economic sector and its spill-over effects on the whole economy. As the share of exports in Croatia's GDP, primarily due to positive trends in tourism, has increased over the last 10 years, so its GDP has become increasingly sensitive to changes in exports. Negative factors, as a sudden decrease in exports, due to an exogenous event like the COVID-19, could have a very fast adverse result in significant GDP decline. Tourism is very sensitive to safety and health because if tourists do not feel safe, they do not travel. Moreover, the tourist sector is experiencing growing recruitment problems. Waiters, chefs, cleaners, and helpers in offices, hotels, and other establishments are needed, but due to the work’s seasonal nature and limited employment possibilities out of season, young people are not willing to enroll in educational programs for these occupations. Further, there is a widespread lack of bakers, pastry-cooks, and confectionery makers.
Representative trade unions, the Tourism and Services Trade Union of Croatia and Trade Union of Istria, Kvarner and Dalmatia on workers’ side, and Croatian Employers’ Association , Catering and Tourism Association, on employers’ side, agreed on 25 March 2020 to suspend the Collective Agreement of Hospitality until the decision of the competent government bodies to terminate outstanding COVID-19 pandemic measures. The main goal is to aid and preserve skilled labour force in the sector, which is essential for the satisfaction of guests. The parties concluded on 8 June 2020, a new agreement that temporary postpones the increase in the level of the minimum and other wages. The parties further agreed that during the COVID-19 pandemic, the worker who is temporary not working according to the employer’s decision, is entitled to wage compensation in the amount of at least 50% of his or her basic wage. If the mentioned amount will be lower than the amount of minimal wage, stipulated by the Decree on minimal wage, the worker is eligible on the wage equal to the minimal wage. All other stipulations of the Collective agreement stay on force. Trade Unions accepted the Agreement fully aware that this is the case of special circumstances that employers could not expect or prevent and therefore they are not responsible for them.
The touristic results in 2020 are much better that expected with around 75% of incoming foreign tourists in comparison with the situation in 2019. However, there is no guarantee for 2021 and therefore such measures can be also applied in the nearly future.
Employees in standard employment
Sector specific set of companies
||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||Agreed (outcome) incl. social partner initiative||Agreed (outcome) incl. social partner initiative|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners agreed on the content of the new agreement that temporary postpones the increase in the level of the minimum and other wages. The agreement also stipulates the amount of the wage compensation for the worker that is temporary not working according to the employer’s decision.
Both sides of social partners are very satisfied with the signed agreement. Trade Unions accepted the Agreement fully aware that this is the case of special circumstances that employers could not expect or prevent and therefore they are not responsible for them.
|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.
Eurofound (2020), Measures for tourism and hospitality, measure HR-2020-24/1045 (measures in Croatia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HR-2020-24_1045.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.