Types of Employment Contracts in Croatia
The Labour Act (NN 93/14, 127/17, 98/19, 151/22) regulates various forms of employment in Croatia. The choice of contract type significantly affects the rights and obligations of both employees and employers.
Permanent and fixed-term contracts
Open-ended (permanent) employment contracts are the standard form and offer the highest job security. The law presumes every contract is permanent unless fixed-term is explicitly agreed. Fixed-term contracts are concluded for temporary, project-based or seasonal work but cannot exceed 3 years in total (including all renewals). If an employee returns to the same or similar position within 2 months after the end of a fixed-term contract, the relationship is deemed to be permanent.
Training contracts and occasional work
A vocational training contract without employment is concluded to gain work experience and pass professional exams, lasting up to 1 year. The trainee receives a stipend but does not enjoy full employee rights. A contract for occasional and temporary work (Art. 11 Labour Act) may be concluded with unemployed persons, retirees and students, for work up to 90 days per year, without pension contribution obligations.
Service contracts and copyright contracts
Outside employment law, civil contracts are also used: the service contract (Civil Obligations Act, Art. 600) for one-off tasks with no employment relationship, and the copyright/author contract for creative and intellectual work. Both attract contributions and income tax but no employment law protections. Employers who use service contracts for work that corresponds to regular employment risk reclassification by the Tax Authority or Labour Inspectorate.
Frequently Asked Questions
Can my employer renew a fixed-term contract without limits?
No. The total duration of fixed-term contracts with the same employer cannot exceed 3 years including renewals. After that, the employment automatically becomes permanent.
What is the maximum probationary period?
A probationary period can last up to 6 months. During probation, the notice period is at least 7 days. A probationary period may also be set in fixed-term contracts but cannot exceed the contract duration.
What is agency work and what rights does it give?
Agency work (temporary assignment of workers) means the employee contracts with a staffing agency and works at the client company. They have the right to equal working conditions (pay, hours) as directly employed workers at the client.