Dismissal and Severance Pay in Croatia
The Labour Act (NN 93/14, 151/22) sets out the conditions for lawful dismissal, notice periods, and the right to severance pay. Knowing these rules protects employees from unlawful termination.
Types of dismissal and notice periods
Croatia distinguishes between ordinary dismissal (with notice period) and extraordinary dismissal (without notice, for serious breaches of duties). Notice periods for ordinary dismissal depend on tenure: up to 2 years – 2 weeks; 2-5 yrs – 1 month; 5-10 yrs – 6 weeks; 10-20 yrs – 2 months; 20+ yrs – 3 months. Employees over 50 with 20+ years of service get 3 months; those over 55 with 20+ years get 3 months + 2 weeks.
Severance pay – amount and conditions
Severance pay arises on business-related or personal grounds dismissal (not for misconduct). The minimum is 1/3 of average gross monthly pay per year worked with the same employer. The total cannot exceed 6 average gross monthly pays unless a collective agreement provides otherwise. Average pay is calculated from the last 3 paid salaries.
Protection from dismissal
The Labour Act prohibits dismissal during pregnancy, maternity/parental leave, and sick leave. Employees over 60 with 25+ years of pension service also enjoy special protection. An employee who believes dismissal was unlawful must file a lawsuit within <strong>15 working days</strong> of receiving it. The court may order reinstatement and payment of lost wages.
Frequently Asked Questions
What is a business-motivated dismissal and what are the requirements?
A business-motivated dismissal is given when there is no need for a particular job due to technical, organisational or economic reasons. The employer must prove objective necessity, offer the employee another position if available, and pay severance.
Can I refuse to sign a dismissal notice?
Refusing to sign does not invalidate the dismissal. The employer may deliver it by registered post. An employee who considers the dismissal unlawful must file a lawsuit within 15 working days.
When is extraordinary dismissal allowed?
Extraordinary dismissal is allowed for serious breaches of work duties (e.g., theft, violence, disclosure of trade secrets). It must be given within 15 days of learning of the reason, and no later than 6 months after the occurrence.