Significant changes in rules for arrival and employment of workers

Croatia is implementing significant changes to its regulations for hiring foreign workers, creating a more complex and stringent system. The new rules emphasize regional labor market conditions, meaning a foreign worker's eligibility may depend on the specific county where a company operates.

Under the revised system, companies can hire foreign workers if there is a shortage of domestic candidates in a particular region. However, if a region has a sufficient supply of local workers, requests for foreign labor are more likely to be denied. This approach aims to better align the country's workforce needs with the availability of both domestic and international labor, introducing stronger regional control over employment.

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What is concerning regarding the labor market test, the changes in that part were not too significant, except that it is now determined by law that employers first need to check whether they meet the conditions for hiring foreigners. If they do not meet the conditions, then it is pointless to conduct the labor market test and waste time on submitting an application for a work permit.

Employers face increased scrutiny. If an inspection reveals business irregularities, a company can be placed on a list that prohibits it from hiring foreign workers for a year. Additionally, the responsibility for reporting the termination of an employment contract has shifted from the worker to the employer. Foreign workers are now tied to the specific county for which their employment was approved and must register with unemployment services within five days of their employment ending. Failure to accept a job offer can result in the loss of their right to reside and work in Croatia.

The "labor market test" remains a key mechanism for approving work permits. However, employers must first verify their eligibility to hire foreign nationals before proceeding with the test. The number of foreign workers approved is now influenced not only by employer requests but also by the ratio of employed domestic to foreign workers, with a minimum threshold of 20% domestic workers for positions requiring a labor market test and 10% for deficit occupations. This aims to prevent employers from obtaining more permits than they can effectively utilize.

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The worker who has a valid work permit for a certain profession can, according to the new law, change employment after only six months.