According to the Croatian Employers' Association (HUP), the tourism and hospitality sector in Croatia will need about 50,000-60,000 seasonal employees this year, marking an 8% increase from 2023.
Please find below is an overview of important issues related to seasonal employment:
What is seasonal employment?
Seasonal employment refers to jobs whose scope and intensity temporarily increase in line with the seasonal increase in business activities of certain industries that depend on the change of seasons.
The Labor Act does not restrict the performance of seasonal employment to certain industries. Instead, seasonal employees can be employed by those employers whose business activities decrease or increase during certain periods of the year due to seasonal nature of their business.
According to data from the Croatian Employment Service, in the first three months of 2024, by far the most seasonal employees were sought and employed in activities related to hospitality industry.
Duration of seasonal employment
Up to nine months during the calendar year.
Types of employment contracts for seasonal employmen
- Permanent employment contract whereby the rights and obligations of the employee and employer during temporary break of performing seasonal employment must be regulated in one of the following ways:
1.The employee is not obliged to perform contracted work during temporary break, the employer is not obliged to pay salaries, and the employee will not be deregistered from mandatory insurance, and the employer remains liable for calculating and paying contributions according to the relevant regulations;
Or
2. During temporary break, the employment relationship of the seasonal employee is suspended, and the employer is deregistering the employee from mandatory contributions, allowing the employee to enter into an employment contract with another employer during this period.
- Fixed-term employment contract
If the employer needs a seasonal employee for multiple seasons, a fixed-term contract can also be concluded. In that case the employer must offer to the employee, within an agreed period, an employment contract for the next season. The employer is liable for extended pension insurance, contributions and for calculation and payment of contributions after the termination of that contract during a temporary break in work performance.
Exceptionally, if agreed in writing at the employee's request, the employer is not liable for extended pension insurance, contributions and for calculation and payment of contributions after the contract ends during temporary break.
What if the employee unjustifiably refuses to enter into a contract for the next season?
If the employee unjustifiably refuses the offer for a contract in the next season, the employer has the right to demand a refund of paid contributions if they were paid as per the assumed obligation.
How many fixed-term contracts for seasonal employment can be concluded?
General legal provisions on the limitation of the duration and number of successive fixed-term contracts do not apply to contracts for seasonal employment that can last up to nine months.
Rights of seasonal workers in general:
- Sick leave compensation under the same conditions as employees in standard employment relationship
- Same working hours as employees in standard employment relationship with two exceptions:
- If the seasonal employee works in two shifts during the day, the employer must ensure a minimum of eight continuous hours of daily rest;
- If the employer operates on seasonally redistributed working hours, during the period of exceeding full or part-time hours, it may extend up to 48 hours per week, but not more than 56 hours per week or 60 hours per week, provided this is stipulated by a collective bargaining agreement and the employee consents in writing.
Features of seasonal employment in agriculture
- The employment contract is concluded before the start of work, for each working day by submitting and accepting a value coupon and recording it on the prescribed seasonal agricultural employment contract form;
- Seasonal agricultural employment can last up to 90 days per calendar year, not necessarily continuously;
- The minister in charge of finances annually prescribes the minimum daily salary for seasonal agricultural employees;
- Legal provisions on deregistration from unemployment register, suspension or termination of unemployment benefits and termination of pension payments do not apply to seasonal agricultural employees with a seasonal employment contract in agriculture contract.
Seasonal Employees from the EU
According to the principles of freedom of movement for employees, equal treatment, and non-discrimination within the EU, EU citizens have the right to seek seasonal employment in another EU member state, to receive equal assistance from national employment offices, and be employed under the same conditions as nationals of the host member state.
Once employed, EU seasonal employees are subject to the laws and relevant collective bargaining agreements of the host member state, with equal treatment regarding working conditions, including pay, termination, and occupational safety as host member state citizens.
If involuntarily unemployed, EU seasonal employees retain employee status in the host member state for six months, provided they register with host member state’s employment services.
Seasonal Employees from Non-EU Countries
Croatian regulations distinguish between seasonal employment of EU and non-EU citizens i.e. “third country citizens”, whereby a seasonal employee who is a third country citizen is defined as an employee who:
- Retains residence in a third country;
- Lawfully and temporarily resides in Croatia;ž
- Performs work dependent on seasonal changes;
- Holds one or more fixed-term employment contracts with an employer based in Croatia.
Seasonal employment for third country citizens is allowed in following industries:
1. Agriculture;
2. Forestry;
3. Tourism;
4. Hospitality.
The third country citizens can work based on a residence and employment permit for up to six months but is not obliged to obtain a residence permit for seasonal employment up to 90 days. According to the draft proposal of the new Foreigners Act, the mentioned periods will be extended.
A residence and employment permit for seasonal employees can be issued without a labour market test or opinion from the Croatian Employment Service for seasonal employment in agriculture, forestry, hospitality, and tourism in Republic of Croatia up to 90 days per calendar year or if the permit has to be renewed for the same employer and same third country citizen.
A seasonal employee with a residence and employment permit for seasonal employment can work in Croatia for up to six months per year after which they must leave the country.
Seasonal workers must be provided with adequate accommodation in the Republic of Croatia, and a special ordinance expressly prescribes the criteria that such adequate accommodation must meet. For example, the minimum surface area provided for accomodating a seasonal worker is 14 square meters per person. For two people, the minimum area is 20, for three 26, for four 32, for five people 38 or 44 square meters for six seasonal workers.
ADDITIONAL REQUIREMENTS:
Taxation and contributions for seasonal employment
Taxes and contributions of the salaries of seasonal employees (regardless of whether they are from the EU or third countries) are calculated and paid in Croatia.
The general rule is that taxes and contributions on the salary of seasonal workers (regardless of whether they come from the EU or a third country) are calculated and paid in Croatia, but the tax and accounting treatment should always be determined separately depending on the specific case.