- Posting is a situation in which an employer sends his workers to work from one state to another for a certain period of time. The worker continues to be covered by the social insurance system of the country from which he or she is being posted to work, and contributions for social insurance are paid in the state from which the worker has been posted to work, i.e. in his or her home country. On the basis of a certificate issued for that purpose, such worker is exempt from paying contributions to another State where he or she is temporarily engaged, during a specified period. If the approved period of posting was exceeded, or in case of occurrence of any other circumstances affecting the posting right, the competent authorities and institutions of the State in which the worker carries out the work shall be entitled to require the employer and the worker to pay contributions in that State.After the accession of the Republic of Croatia to the EU, Croatia applies the EU regulations for the coordination of social security systems to the obligations and rights from the social security system of persons posted to work from one EU Member State to another. Under the general rules of the Social Security Coordination Regulation (EC) 883/2004 and the subsequent Regulations 987/2009 and 1231/2010, which extended the personal scope, the legislation of only one Member State applies to employed and self-employed persons who move within the EU are subject to the legislation of only one Member State, according to their place of work (lex loci laboris), and persons moving to another state for the purpose of carrying out a particular job are an exception to this rule and are subject to the legislation of their state of origin (home country). The Croatian Pension Insurance Institute performs operations related to posting of workers within the EU. The Croatian Pension Insurance Institute (HZMO) issues A1 certificates within its competence, and the employer is obliged, before the posted worker commences work, to submit a Posting Declaration to the State Inspectorate, which is a prerequisite for the application of the rules for posted workers.
Posting of employed persons
Certain conditions must be met – regarding the employer and the worker, in order to post an employed person to another Member State to perform job for his or her employer.Legislation of the state from which a worker has been posted to another state shall continue to apply to such worker, provided that:
- The posting lasts no longer than 24 months (may exceptionally be extended)
- A worker is not posted to replace another posted worker (if, during the period of posting, a worker is replaced by another posted worker performing the same task in the same location, the periods of posting of the individual posted workers shall be cumulatively counted towards the total duration of the posting period, unless otherwise specified by a special regulation)
- The worker was subject to the legislation of his or her home state for at least one month immediately prior to posting (for this condition it is sufficient that, for example, the posted person was covered by the unemployment benefit system as an unemployed person or was previously included in the health insurance system)
- The employer regularly carries out its business activities in the home country (in a manner that a substantial part of this activity is performed in the home country. The sole performance of administrative operations and internal management operations will not be considered as regular performance of a significant part of business activities). The employer from the home country cannot be a company that could be considered fictitious or whose registration in the home country is aimed solely at posting, without performing its registered activity in the home country. These circumstances are verified in relation to the inspection the application of the provisions on posting by the inspection authority in the Member State.
- There is a direct relationship between the worker and the employer during the posting; the worker and the employer must be in an employment relationship (if such a connection does not exist or is terminated during posting, the rules on posting do not apply, i.e. posting term ceases).
Posting of self-employed persons
The provisions on posting also enable self-employed individuals are also allowed to temporarily carry out their activity in another Member State, and legislation of their home state applies to them with regard to the social security system as laid down in the aforementioned Regulations.
Conditions are the following:
- Posting period must not last longer than 24 months
- Regular performance of activities as a self-employed person in the state from which they are posted (if they carry out a substantial part of their business activities in that state, which is assessed on the basis of the criteria stating that activities must be carried out for at least two months before posting, so that they can be continued after returning to the country of origin, and whether they still fulfil all the necessary conditions for carrying out their activities so that they can be continued after their return)
- The activity to be performed in the state of work must be of a similar nature to activity performed in the state of origin.
Guaranteed working conditions and rights of posted workers during posting
An employer who posts workers to temporary work in the EU/EEA Member State or Switzerland must comply with certain rules of the host country during the posting, since at the time of posting the worker has the status of posted worker and specially guaranteed working conditions and rights.
Work conditions
The Act on Posting of Workers to the Republic of Croatia and on Cross-Border Enforcement of Fines shall not apply to cross-border provision of services by self-employed individuals, work in two or more countries, and the work of seafarers.
The work of workers in road transport is regulated by a special Regulation, taking into account the specific nature of the activity.
National website for posting workers
EU Member States have made certain information available on their national web sites. Work conditions of posted workers and contact details of local authorities are available on the national web site of the host country.
SOME OF THE EMPLOYER’S OBLIGATIONS during posting of workers to the REPUBLIC OF CROATIA
During the posting to the Republic of Croatia, the employer must ensure the posted worker the following guaranteed working conditions as defined in Article 6 of the Act on Posting of Workers to the Republic of Croatia and on Cross-Border Enforcement of Fines applicable to Croatian workers:
- Maximum work periods and minimum rest periods
- Minimum duration of paid annual leave
- Minimum salary, including bonuses for overtime work
- Health and safety at work
- Protective measures for the work of pregnant women, women who have recently given birth or are breast-feeding
- Protective measures for the work of minors
- Work conditions of workers referred by temporary employment agencies (a foreign agency worker posted to a user undertaking with its seat in the Republic of Croatia is entitled to compensation for work performed to which a domestic agency worker is entitled under the provisions of the general regulation governing employment relationships in the Republic of Croatia, and at least in an amount which must not be less favourable than the salary of a worker employed by the user undertaking in the same jobs, which the foreign agency worker would receive if they had directly concluded an employment contract with the domestic user undertaking)
- Equal treatment for men and women and other rules for the prevention of discrimination (prohibition of discrimination).
During the period of posting, the employer is obliged to apply the regulatory provisions of the Republic of Croatia, or the extended collective agreement relating to:
- maximum work periods and minimum rest periods
- minimum duration of paid annual leave
- compensation for work performed under Article 8 of this Act, including bonuses for overtime work
- health and safety at work
- protective measures for the work of pregnant women, women who have recently given birth or the work of minors
- conditions for assignment through temporary employment agencies
- equal treatment of women and men and other protection against discrimination
- allowance or reimbursement for travel, food, and accommodation expenses incurred while performing a task for which the worker is posted to the Republic of Croatia, as specified in Article 9 of this Act, provided that a domestic worker is entitled to such allowance or reimbursement under the regulation or extended collective agreement
- quality of accommodation to which a domestic worker is entitled, if the employer is required by regulation or an extended collective agreement to provide accommodation for a domestic worker who is away from their usual place of work
At what level should these rights be ensured?
The aforementioned rights are stipulated by legal regulations of the Republic of Croatia, as defined in collective agreements whose application in the Republic of Croatia has been extended to all employers and workers conducting a particular activity.
More information on the applicable Croatian legislation
Act on Posting of Workers in the Republic of Croatia and on Cross-Border Enforcement of Fines applicable to worker posting.
What if these guaranteed working conditions (including salaries) are more favourable in the country of establishment of the employer who posts the worker to the Republic of Croatia for a limited period of time?
In this case, the more favourable law should be applied to both the posted worker and to the worker posted through a foreign agency.
The procedure for posting of workers
1. The obligation to submit a posting declaration prior to posting or notification of any subsequent change of data in that declaration.
Before posting of workers to the Republic of Croatia, all employers / service providers are required to submit a declaration, no later than the commencement of work or provision of services in the Republic of Croatia, in electronic form and by electronic means, to the central state body responsible for labour inspection and safety at work, at the e-mail address:
postingdeclaration.inspektorat@mrosp.hr
Before the posting commences, a foreign employer based in a third country must submit a complete and accurate posting declaration, except in the case of drivers in the road transport sector.
A foreign agency that posts a worker to the Republic of Croatia is considered the employer and is required to confirm in writing to the domestic user undertaking that they have been informed about the working conditions, salary, and other working conditions of the worker employed by the user undertaking in the same jobs, which a foreign agency worker would have achieved if they had directly signed an employment contract with the user undertaking.
Posting Declaration Form 1 HR and Posting Declaration Form 1 EN
Notification of change of submitted posting declaration Form 2 2 HR
Notification of change of submitted posting declaration Form 2 EN
2. Obligation to designate a person who will be authorized to cooperate with the competent authorities in the Republic of Croatia during the period of posting and who will, upon request of the competent authority, provide relevant documentation on the worker, other evidence necessary for the control and supervision, and provide the competent authorities with all the necessary information.
3. Obligation to appoint a contact person in the Republic of Croatia who will be authorized, during posting period, on behalf of and for the account of the employer to co-operate with the competent authorities and, if necessary, to receive and send documents, requests, notices and other written submissions and deliver them to the employer. They shall present the authorization upon request and shall translate all documents upon request if so required.
4. The employer is required to keep all documents related to the posting for a period of two years after the posting and to submit them to the competent authorities of the Republic of Croatia upon their request, within one month from the date of the delivery of the request, unless otherwise specified by a special regulation.
5. The labour inspector is authorized to request certain statements and documents proving whether the employee is employed by the employer in accordance with the law during the posting, in which working hours and schedule, how many working hours he or she has worked, what his or her income is, whether he or she has an A1 form completed, and similar. Therefore, the posted worker should have, during the posting, an identification document, an employment contract, preferably a copy of A1 form, an individual bill of pay or pay-sheet, a copy of the declaration of posting and:
– Third country nationals employed in a European Union Member State, another EEA contracting state, or the Swiss Confederation must also hold a residence permit in the country where their employer that posted them to work in the Republic of Croatia is based. Additionally, for work longer than 90 days, they must register a temporary residence for the purpose of employment as a posted worker coming from another EEA Member State or the Swiss Confederation for more than 90 days in any 180-day period in the Republic of Croatia, in accordance with the provisions of the Foreigners Act.
– third country nationals employed outside the territories in which the employer has its seat in a Member State of the European Union, another EEA contracting state or the Swiss Confederation, who are sent to the Republic of Croatia as service providers on the basis of a multilateral or bilateral international agreement binding on the Republic of Croatia, need a residence and work permit without labour market test and opinion of the Croatian Employment Service in accordance with the provisions of the Foreigners Act
– third-country nationals employed outside the EEA who are service providers in the Republic of Croatia need a residence and work permit or work registration certificate in the Republic of Croatia in accordance with the provisions of the Foreigners Act.The contact point for general information on labour legislation is the Ministry of Labour, Pension System, Family and Social Policy (Contact: info@mrosp.hr ; croliaisonoffice@mrosp.hr )
Point of Single Contacts – information on establishing a company and providing services in Croatia.
The Croatian Pension Insurance Institute issues an A1 certificate for each posted worker, confirming that the Croatian social insurance legislation continues to apply to such worker. A1 certificate is a default form valid throughout the EU as proof that a worker was posted to work abroad and does not have to pay contributions in the state of work for a certain period because these contributions are paid in the country from which he or she is posted to work.
A1 certificate cannot be issued for a period longer than 24 months if an employment contract for an indefinite period of time is concluded. In case of a fixed-term contract, the certificate is issued only for the duration of the contract. Exceptionally, it is possible to apply for an extension of the posting period (longer than 24 months and up to 5 years) for one person. If there is a justified reason e.g. if the contracted job cannot be completed within 24 months, it is possible to extend the posting period by a special proceeding, with the consent of the competent institution of the country in which the worker is posted to work. An application for posting extension is submitted in advance, before the expiry of the existing posting period (it is submitted in a separate Application form pursuant to Article 16 of Regulation 883).
Posting rules also apply to persons who are employed with the intention of posting from the first day of employment. However, the person concerned must, immediately before posting, be covered by the legislation of the Member State in which the employer regularly carries out his activity.
Relevant links:
- Foreigners Act (OG, No. 133/20, 114/22 i 151/22)
- Act on EEA Nationals and Members of Their Families (Official Gazette, no. 66/19, 53/20 ,144/20 and 114/22)
- Act on cross-border enforcement of fines in the field of posting workers
- Labour Act (Official Gazette, no. 93/14, 127/17, 98/19, 151/22, 46/23, 64/23)
- Regulation 883/2004
- Websites of the Croatian Pension Insurance Institute
- Guidance on posting workers to the EU
- Exceptions from the rules for determination of applicable legislation
- Special rules for the determination of legislation which applies to mariners
- Applications for posted persons
